Organic Oats Market

Market Study on Organic Oats: Demand for Rolled Oats to Remain High across Geographies

Organic Oats Market Segmented By Organic Whole Oats Groats, Organic Steel Cut Oats, Organic Rolled Oats, Organic Oat Flour Type in Retail Sales, Food & Beverage Industry, Foodservice Industry

Market Snapshot

By value, Persistence Market Research has projected 3.6% CAGR for the global organic oats market for 2021 to 2031, with the market ending up at a valuation close to US$ 4.8 Bn by 2031. As per projections, emerging markets in all regions are expanding at high CAGRs. However, Europe is projected to hold more than 59% of global market value share for organic oats through 2031.

As of 2021, by value, overall sales of organic oats accounted for around 3% to 5% share of the global oats market.

Organic Oats Market Value (2020A)

US$ 3.2 Bn

Projected Sales of Organic Oats (2031F)

US$ 4.8 Bn

Global Market Growth Rate (2021-2031)

3.6% CAGR

Value Share of Top 5 Countries (2021A)

56%

Find Out More about the Report Coverage

Companies

  • Richardson International
  • Quaker Oats Company
  • Avena Foods
  • Grain Millers, Inc.
  • Bob’s Red Mill Natural Foods
  • Fazer Mills
  • Helsinki Mills Ltd.
  • Ceres Organics
  • Kialla Pure Foods
  • NOW Foods
  • Dutch Organic International Trade
  • Nature's Path Foods
  • Dancourt
  • Saaten-Union GmbH
  • Swedish Oat Fiber AB
  • Arrowhead Mills
  • Flahavan's
  • McCabe
  • Royal Lee Organics
  • Better Oats

2016-2020 Organic Oats Market Outlook Compared to 2021-2031 Forecasts

From 2016-2020, the global market for organic oats increased at 2.2% CAGR. Major market driver for organic oats is increasing health consciousness among consumers along with the ongoing trend of plant-based food products.

Organic oats also regarded as the perfect breakfast cereal as they provide with health benefits. Organic oatmeal is a rich protein diet that consists of soluble fiber that has numerous health benefits and further helps in the reduction of cholesterol and blood sugar levels.

Major demanding regions of organic oats are Europe and North America. In both these regions, organic oats consumption is expected to grow faster as these regions have well-established facilities and an organized supply chain and logistics systems.

Overall, the global sales of organic oats are expected to increase at a CAGR of 3.6% through 2031.

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Will Growing Consumption of High-Fiber Food Products Increase Usage of Organic Oats?

Consumers are increasingly favoring high-fiber diets because of the multiple health benefits they provide. Dietary fiber has a high level of disease-fighting qualities, which improves the immune system of our body, making it effective against heart disease, diabetes, and several cancers. Furthermore, rich fiber foods are low in calories and are ideal for people who want to eat healthy.

Organic oats and gluten-free oats are high in soluble fiber, which has a variety of health advantages, including lowering risk of colon cancer, improving sleep cycle, and helping in weight management. Organic oats have a high beta-glucan content, which is a form of soluble fiber. Beta-glucan is particularly useful for lowering insulin levels and promoting the development of healthy bacteria in the intestines.

  • For instance, according to a Harvard study, oats is the source of fiber that contains both, soluble and insoluble, phosphorus, thiamine, magnesium, and zinc. Mainly, the beta-glucan soluble fiber contained in oats helps in reducing the risk of coronary heart disease.

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Why is Consumer Preference for Flavor-enhanced Organic Oats Rising?

Organic flavored-enhanced oats are becoming increasingly popular among customers owing to their superior taste and health advantages. In response to increased demand for organic food, manufacturers are introducing flavored organic oat products with apples, cinnamon, peaches, cranberries, dates, and spices. These variants enhance the flavor of plant-based food products such as organic oats.

Furthermore, rising consumer demand for vivid and spicy-flavored foods is likely to aid organic oats manufacturers’ growth throughout the forecast period. These flavored oat products are curated by manufacturers based on the region in which they are sold.

Many top organic oat brands are also focusing on new product development and innovation in order to cater to the growing needs of consumers. These product development and innovation capabilities help companies come up with new flavors to satisfy the taste buds of their consumers.

  • For instance, in November 2019, Chobani Oat, an oat-based product provider, launched organic oat drinks with different flavors. These oat drinks are gluten-free and are offered in vanilla, chocolate, creamy, and other flavors.

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Increasing Organic Grain Production Supporting Growth of Organic Oats Industry?

Organic farming is being gradually adopted by major countries to promote chemical-free food production. Growing consumer preference for organic food has increased production of organic crops and plants such as wheat, oats, rice, soybean, and others.

Major agribusiness companies are also increasing production of organic grains to further meet consumer demand. Grains are one of the majorly consumed food commodities and are also widely used in the food industry, which has boosted demand for organic grains. Data from the past 10 years depicts that organic farming has increased across major countries.

Organic farming techniques also improve the agronomic and economic basis of agricultural farms. This helps farmers to have a more economical approach and gives the opportunity to operate without any farm loan as well. Organic farming is a transitioning and smart strategy that helps in producing and bringing unique, nutritionally potent products in the global market.

  • For instance, according to the Organic Trade Association, in the U.S., from 2008 to 2016, production of organic oats, corn, soybeans, wheat, and barley grew 20%. Farming area for the same grew from 626,000 acres to 765,000 acres.

Increased Consumers Spending from Emerging Economies to Provide More Opportunities Organic Oat Suppliers?

Organic oat-based products, particularly from North America and Europe, are being increasingly preferred by consumers. Emerging economies such as China, India, Brazil, and others are undergoing rapid economic development.

Consumers' improved per capita income also allows them to spend more money on organic plant-based foods such as organic oat snacks.

Increasing number of consumers are approaching the western organic oat products such as oat noodles, oat meals, oat biscuits, and other organic oats-based food products which are readily available in the market.

Apart from that, organic oat manufacturers are also shifting their interest in other developing countries to escalate sales and increase their regional presence. Many companies are also investing in advanced technologies such as state-of-art machineries, which helps them in attaining operational efficiency and aids in product innovation as well.

What are the Factors Restraining Demand Growth of Organic Oats?

Although the popularity of organic oats powder as a functional food additive is growing at a very fast pace, high availability of substitutes for organic oats is posing a threat to the global market.

Organic oats are among the organic grains that are majorly consumed across the world due to their healthy and nutritious properties. Nevertheless, other organic grain products are also being increasingly used to meet the nutritional demands of consumers.

Organic oats are majorly consumed in North America and Europe, whereas, in other parts of the world such as South Asia and the Middle East & Africa, organic oats see very low demand, as wheat, rice, corn, and other organic food products have a more prominent place.

Organic oatmeal is considered to be of high quality and more safe than conventional oats. However, high prices associated with organic oats is also anticipated to hinder market growth of the product. Organic oats are obtained using organic farming, which costs more due to time and quality measures, thereby increasing the prices of organic oat offerings.

Country-wise Insights

Why Does Russia Account for the Largest Share in the Market for Organic Oats in the European Region?

The market for organic oats is witnessing growth in the Russian market at a value CAGR 2.6%. Demand for organic oats in Europe is growing at a significant rate, which provides a favourable market growth opportunity for organic oats manufacturers.

Which Country Holds the Largest Share in the East Asia Market?

China holds a major share in the East Asia market for organic oats. This is due to growing health and nutritional benefits of organic oats for consumers.

Moreover, increasing demand for convenient foods and presence of organic products with high nutrition in the food and beverage industry will have a positive impact on the product market. Market growth in China is pegged at 6.1% CAGR.

Category-wise Insights

Why are Rolled Organic Oats Hugely Popular across Regions?

Based on product type, rolled organic oats are mostly demanded and consumed in the organic oats category. Market value share of the rolled oats segment is 43.5%.

Demand increases for rolled oats in the retail sector owing to their popularity among consumers and the convenience offered, along with numerous health benefits.

B2B Distribution Channel Offering New Opportunity for Suppliers of Organic Oats

Demand for organic oats is increasing due to easy availability of the product. Moreover, market value of organic oats in the Business to Business (B2B) distribution channel category is expected to reach US$ 3.9 Bn by the end of the forecast period.

Impact of COVID-19 Crisis

The global pandemic slowed down industrial and economic activities around the world, due to which, there was a significant drop in demand for organic oats, majorly due to lockdowns, several restrictions on travels and transport, and closure of retail outlets.

However, changes in the lifestyle of consumers, people’s interest in buying organic oats as the situation improves, and increasing usage of organic oats across the food service industry due to the need for nutritious and healthy food and beverages will aid market expansion over the coming years.

Competitive Landscape

Key producers of organic oats are inclined toward innovation, research & development, and expansions to obtain the application of organic oats with fine quality. Organic oats producers are striving and investing heavily to enhance their operation and innovation capabilities.

  • In April 2021, Fazer Group announced a plan to implement its growth strategy. The company is making investments in the manufacturing of oat products in Vantaa, Finland. The company is planning to build a new bakery production line for portion breads, which would use new state-of-the-art production technology.
  • In February 2020, Avena Foods began the construction of a new oat processing facility to meet the growing demand for safe, plant-based, nutritious, and gluten-free food and beverages. The new facility will be located in Rowatt, Canada. This investment is further expected to double the company’s production capacity of oats.
  • In June 2019, Richardson International inaugurated the Bennett Farm- fully dedicated for research and development. The farm is involved in helping farmers adopt the most promising new products, equipment, and crop varieties. The company invested US$ 15 Mn in a 600-acre site to build the Bennett farm. This investment will allow the company to produce new and innovative flavors of oats.

Organic Oats Industry Report Scope

Attribute

Details

Forecast period

2021-2031

Historical data available for

2016-2020

Market analysis

  • USD million for value
  • Tons for volume

Key regions covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • The Middle East & Africa

Key countries covered

  • U.S.
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

Key market segments covered

  • Product Type
  • End Use
  • Distribution Channel
  • Region

Key companies profiled

  • Richardson International
  • Quaker Oats Company
  • Avena Foods
  • Grain Millers, Inc.
  • Bob’s Red Mill Natural Foods
  • Fazer Mills
  • Helsinki Mills Ltd.
  • Ceres Organics
  • Kialla Pure Foods
  • NOW Foods
  • Dutch Organic International Trade
  • Nature's Path Foods
  • Dancourt
  • Saaten-Union GmbH
  • Swedish Oat Fiber AB
  • Arrowhead Mills
  • Flahavan's
  • McCabe
  • Royal Lee Organics
  • Better Oats

Report coverage

  • Market Forecasts
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & pricing

Available upon request

Key Segments Covered in Organic Oats Industry Research

Product Type

  • Organic Whole Oats Groats
  • Organic Steel Cut Oats
  • Organic Rolled Oats
  • Organic Oat Flour

End Use

  • Retail Sales of Organic Oats
  • Organic Oats for Food & Beverage Industry
    • Breakfast Cereals
    • Bakery & Confectionery
    • Beverages
    • Snacks and Savoury
    • Others
  • Organic Oats for Foodservice Industry
  • Others

Distribution Channel

  • Business to Business Sales of Organic Oats
  • Business to Consumer Sales of Organic Oats
    • Hypermarkets/Supermarkets
    • Convenience Stores
    • Specialty Stores
    • Online Retail

Media Release

- FAQs -

The global organic oats market is currently valued at over US$ 3.3 Bn.

Demand drivers for organic oats include growing consumption of high-fiber food products, rising demand for organic food products, increasing consumer preference for flavor-enhanced organic oats, and rising inclination toward organic oat snacks.

From 2016 to 2020, demand for organic oats increased at a CAGR of 2.2%.

Sales of organic oats are projected to increase at 3.6% CAGR and be valued at close to US$ 4.8 Bn by 2031.

Key market trends of organic oats include breakfast cereals gaining traction in developing countries, veganism trend, increasing consumer preference for sustainable and nutritional food, and growing inclination toward multi-grain products.

Richardson International, Quaker Oats Company, Avena Foods, Grain Millers, Inc., and Bob’s Red Mill Natural Foods are the top 5 organic oats manufacturers accounting for around 55% - 60% market share.

Russia accounts for the highest share in organic oats sales in the European region.

The market in Japan is anticipated to reach US$ 3.7 Mn by 2031, while that in Canada is set to reach US$ 253 Mn.

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