Oat Ingredient - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Oat Ingredient Market Analysis

The oat ingredients market size is expected to grow significantly, from USD 7.1 billion in 2025 to USD 10.7 billion by 2030, registering a strong CAGR of 8.57%. This growth is driven by the rising popularity of plant-based diets, regulatory approvals for β-glucan's heart-health benefits, and advancements in enzymatic fractionation technology, which improve protein extraction efficiency. Major investments, such as PepsiCo’s establishment of a 160,000-ton Quaker plant in China, reflect the market's long-term growth potential. However, the market faces short-term challenges, including limited oat supplies from Canada and a newly imposed 25% tariff in the United States, which are contributing to cost volatility. Despite these obstacles, ongoing research and development efforts, coupled with premium product positioning, are expanding the use of oat ingredients in beverages, bakery products, and nutraceuticals. Furthermore, the growing focus on sustainability and the increasing demand for clean-label products are supporting attractive profit margins, particularly for organic and specialty oat fractions that command higher prices.

Global Oat Ingredient Market Trends and Insights

Growing popularity of oat-based foods and beverages

Consumers are increasingly shifting towards functional foods that offer both nutritional benefits and convenience, driving the popularity of oat-based products. In the United States, oat milk sales have experienced significant growth, directly boosting the demand for oat crops. This trend is not confined to beverages; it has expanded into innovative solutions like Milkadamia's Flat Pack Oat Milk, which reduces packaging waste by 94% using proprietary 2D-printing technology. Additionally, advancements in enzymatic processing are supporting this growth. For example, Novozymes' Vertera Oat biosolutions help manufacturers achieve optimal protein levels and sweetness profiles while simplifying ingredient lists. Companies are also reformulating their products to meet this rising demand. Unilever, for instance, has replaced nuts and seeds with oats in Ben & Jerry's dairy-free ice cream, as reported by Food Navigator. The growing variety of oat-based products across different categories highlights a strong and sustained growth trend that extends well beyond traditional breakfast items.

Plant-based and vegan diet adoption

The plant-based protein market is projected to grow significantly by 2030, creating substantial opportunities for oat ingredients. Oats are increasingly favored due to their unique nutritional advantages, particularly their superior amino acid profile. For instance, Oat Bran Concentrates contain a protein content of 21%, which is considerably higher than the 14% found in regular oat flakes. As the market shifts toward diversifying protein sources, oats are emerging as a strong alternative alongside lentils and chickpeas, often preferred over soy and pea proteins. Unlike many plant-based products that focus on mimicking meat, oat-based products emphasize complete nutrition, appealing to health-conscious consumers seeking natural, plant-forward options. This growing preference for healthier and more authentic dietary choices is driving sustained demand, firmly establishing oats as a vital ingredient in the rapidly evolving plant-based protein market.

Price volatility of raw oats

Canadian oat stocks are at historically low levels, highlighting significant supply chain vulnerabilities caused by production instability. These challenges have led to increased ingredient prices and limited availability, creating hurdles for the market. Over the past few years, extreme weather conditions and shifts in planting decisions have caused unpredictable variations in oat harvests, making it difficult for food manufacturers to maintain a steady supply. Despite their high nutritional value, oats remain undervalued in the market. The current pricing structure does not fully account for their nutritional benefits, with 77% of oats used for commercial food purposes and only 23% allocated for feed. Oat futures are currently trading at USD 3.09 per bushel, with a 1% decline reflecting persistent market uncertainty. This situation has forced processors to explore alternative sourcing strategies or face rising input costs that squeeze profit margins.

Other drivers and restraints analyzed in the detailed report include:

1. Increasing demand for sustainable and clean-label products
2. Growing consumer awareness of β-glucan heart-health claims
3. Cross-contamination concerns for gluten-free claims

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

In 2024, oat flakes hold the largest market share at 34.46%, highlighting their strong presence in traditional breakfast foods and industrial food processing. Their adaptability makes them essential ingredients in products like cereals, granola bars, and baked goods, ensuring consistent quality and functionality. This segment benefits from well-established supply chains and advanced processing systems that enable efficient and cost-effective large-scale production. For instance, Bühler Group's integrated oat production lines showcase advanced technology, managing the entire process from cleaning and grading to kilning and flaking with high efficiency and quality. Leading food manufacturers prefer oat flakes due to their reliable performance and widespread consumer acceptance, which drives steady demand across various product categories.

Oat protein is the fastest-growing segment, with a projected CAGR of 12.62% through 2030. This growth is driven by increasing scientific evidence supporting its cardiovascular benefits and the rising popularity of plant-based protein alternatives. Research from the University of Manitoba confirms that oat protein can improve heart health, lower bad cholesterol, enhance cardiac function in obese individuals, reduce blood pressure, and prevent heart-related issues in people with hypertension. Companies like Bob's Red Mill are innovating in this space, introducing high-protein oats to meet the growing demand for clean-label protein products. Oat protein stands out due to its superior amino acid profile compared to other grains, and its growth reflects a broader market trend favoring functional and health-focused ingredients over standard commodity products.

The Oat Ingredients Market Report is Segmented by Product Type (Oat Flour, Oat Groats, Oat Bran, and More), Nature (Conventional, Organic), End-User (Food Processing Industry, Nutraceuticals, and More), and Geography (North America, Europe, Asia-Pacific, South America, Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Geography Analysis

In 2024, Europe holds the largest market share at 32.44%, driven by its strong Nordic oat production and advanced processing capabilities that cater to both local and international markets. Countries like Finland, Sweden, and Ireland benefit from favorable climates and sustainable farming practices, enabling them to produce high-quality oats with strong environmental credentials. Finnish organic oats stand out due to strict quality controls, minimal pesticide use, and carbon-neutral production processes, making them highly appealing to premium market segments. Irish oat production is recognized for its sustainability, with a carbon footprint of just 207 kg CO2 equivalent per ton, significantly lower than the 1000 kg CO2/t recorded in warmer regions like Italy and Spain.

Asia-Pacific is the fastest-growing region, with a projected CAGR of 9.36% through 2030. This growth is fueled by innovative product developments and increasing consumer acceptance of plant-based alternatives in urban areas. OATSIDE's rapid growth highlights the region's potential, driven by effective marketing and unique flavor innovations like matcha oat lattes infused with 20mg L-theanine, which offer stress relief and sleep health benefits. PepsiCo's USD 68.6 million investment in 2025 to establish a 160,000-ton Quaker oat facility in China reflects the commitment of global companies to the region's development. The region's expanding middle class, rising health awareness, and interest in functional food innovations further drive growth.

North America remains a key market despite challenges stemming from its reliance on Canadian imports, with over half of U.S. oat consumption sourced from Canada. This dependency exposes the region to trade disruptions, especially after the introduction of a 25% tariff on Canadian cereals in 2025. As a result, U.S. processors are seeking to diversify sourcing or absorb higher costs. Domestic production initiatives are gaining momentum, such as Oatly's partnerships with Midwest farmers to reintroduce oats into crop rotations, promoting both environmental and economic benefits. Meanwhile, South America and the Middle East and Africa are emerging as promising markets, driven by urbanization and growing interest in plant-based alternatives, supported by multinational brand expansion strategies.

List of Companies Covered in this Report:

1. Grain Millers, Inc.
2. Avena Foods Ltd.
3. Lantmännen
4. James Richardson & Sons, Limited (Richardson International)
5. Navara Oat Milling
6. Aurora Mills & Farm, LLC
7. PepsiCo, Inc (Quaker Oats Company)
8. Fazer Group
9. H J Lea Oakes (Morning Foods Ltd)
10. Bay State Milling Company
11. Grupo Industrial Vida, S.A. de C.V. (Canadian Oat Milling Ltd)
12. Ardent Mills
13. GrainCorp Limited
14. DakotaMB
15. Swedish Oat Fiber AB
16. La Crosse Milling Company
17. The Cerco Group (Highland Milling Inc.)
18. SunOpta Inc.
19. Provital Group
20. Aussee Oats Milling Pvt. Ltd

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support