Oatmeal Market Overview
The oatmeal market held a market size of $5.20 billion in the year 2020 and is poised to grow at a CAGR of 4.2% over the forecast period of 2021-2026. Oatmeal has seen a rising demand in recent decades owing to its nutritional value over the other commonly available grains. The nutritional quality of the oats, as deciphered by various health gurus, governs that the least processed oat is the healthiest of all. Oat groats, for the matter, are the least processed of all the oats which one can see on any supermarket shelf. The fiber content of groats is high, along with supreme amounts of fatty acids, iron, protein, and polyunsaturated fats. Steel-cut oats are interchangeably known as Irish Oatmeal, and they are obtained by chopping the groats via large steel blades. If one’s aim is to control their glycemic index, one might opt for steel-cut oats. Steel-cut oats are slowly absorbed in one’s body, hence lowering blood sugar levels.
Additionally, the fiber content of the steel-cut oats is marginally better than the rest, as it belongs to the category of “least processed.” If one’s aim is to cater his needs of porridge, then coarse oatmeal or pinhead oats are used in the making. Instant oats have seen traction owing to the ease and the overall time required to make the meal. Millennials prefer to follow a nutritious diet and the ease by which they can obtain them, and oats offer the best-in-class value in attaining the said goals. White oats have seen a preferential rise amongst the discussed population, as they can be mixed with milk and fresh fruits, providing more taste to the same. The organic growth of oats and the rising popularity for having a healthy meal make the oatmeal industry outlook favorable and the oatmeal market share more prominent.
Report Coverage
The report: “Oatmeal Market Forecast (2021-2026)”, by Industry ARC covers an in-depth analysis of the following segments of the Oatmeal Market.
By Nature- Organic and Conventional
By Type- Quick/Instant Rolled Oats, Steel Cut/ Irish, Scottish Oatmeal, Whole Oat Grains and Others.
By Distribution Channel- Offline and Online Stores.
By Geography- North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia, and New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, and Rest of South America), and Rest of the World (the Middle East, and Africa)
Key Takeaways
- North America held a dominant market share in the year 2020. It is predominantly owing to the hectic lifestyle of the said population and the inclination to opt for a healthy lifestyle.
- Asia-Pacific will offer lucrative growth opportunities owing to the rising cardiovascular diseases, such as diabetes which can be managed by having an oat restricted diet. Moreover, the protein allocation of oats better than the staple wheat will help the oatmeal market.
- The premium report will contain an in-depth analysis of Strengths, Weaknesses, Opportunities, and Threats.
- Nutritional benefits that can help in different ailments, along with the preference for choosing a gluten-free diet, can support the market's growth.
Oatmeal Market Segment Analysis- By Nature
The oatmeal market can be segmented into two broad categories based on nature- Organic and Conventional. The organic segment dominated the market in the year 2020. It is owing to the non-presence of carcinogens in the final product. Moreover, FDA reports suggested the presence of glyphosate in several oat products. The presence ranged from 0.3 to 1.67 parts per billion, although the accepted range is 30PPM. But various researchers have cautioned that “legal is not the same as safe.” The following propelled the demand for this segment.
The organic segment will continue to grow at the fastest CAGR of 4.5% over the forecast period of 2021-2026. The reasons listed above, along with the guidance provided by the studies, have shown that taking organic oats can help one lower the chance of developing a cardiovascular condition. The organic products are free from pesticides, and the researchers have claimed that they found no presence of glyphosate directly in the oat produce. However, the nutritional difference between both categories is not evident. The following reasons will help in driving the oatmeal market forward.
Oatmeal Market Segment Analysis- By Distribution Channel
The oatmeal market can be segmented into two broad categories based on distribution channel-Offline Stores and Online Stores. Offline stores dominated the market segment in the year 2020. It is owing to the vast array of products available to a customer while shopping for goods. Oat-associated products have been given the desired shelf or a separate section, which makes the consumers aware of them as a separate grain and moreover creates product differentiation. In addition, hypermarkets and supermarkets provide discounts and coupons to further drive sales in the preceding year, 2020.
The online segment will grow at the fastest CAGR of 4.9% over the forecast period of 2021-2026. It is predominantly due to the company’s preference to rely on online channels to reduce dependency on the agents and others. Further, the company offers discounts and cashback to the users, making them regular customers of theirs. In addition, strong digital literacy rates and increased internet penetration in the global markets will help make the online segment more robust.
Oatmeal Market Segment Analysis- By Geography
North America held a dominant geographic share of 35% in the year 2020. It is associated with the region’s rising preference for obtaining a healthy breakfast with the desired nutrition. Moreover, diabetic patients are recommended to shift from wheat to oats owing to the latter’s exceptional satiety providing benefits. Moreover, 34.2 million people, or 10.5% of the population of the USA, were diagnosed with diabetes. However, 7.3 million adults had no idea about the seropositivity. Thus, the factors became one of the reasons why the North American region had an immense market share.
Asia-Pacific shows opportunities for lucrative growth in the forecast period of 2021-2026. The literacy rates of the region have shown a continual improvement after the advent of cheap internet data. With rising awareness, the population gained knowledge about how shifting to oat grain and oatmeal can help prevent various cardiovascular diseases and mitigate the chances of developing diabetes. Moreover, most of the food manufacturing companies are outsourcing product-related activities to these regions, which have helped raise awareness of the same.
Oatmeal Market Drivers
Oatmeal’s ability to help cancer patients, in the long run, can ail the market growth.
Research owing to the oatmeal’s nutritional quality has suggested that daily consumption of oatmeal can help cancer patients in matters more than one. First, it can help appetite suppression and satiety, as oatmeal is filled with soluble fiber and beta-glucan, making it a favorable way to suppress appetite. Second, since cancer patients have a suppressed immunity, oatmeal provides nutritional benefits in terms of beta-glucan and fiber to stimulate the immune system effectively. Moreover, due to the presence of bran, germ, and endosperm in oats, the following constituents help lower the spikes of blood sugar levels, which is a strict factor to be maintained if you are diagnosed with cancer as it increases the complexities.
Moreover, The American Cancer Society has released data that suffices that approximately 104,000 cases of colon cancer and 43,300 cases of rectal cancer were diagnosed in the country for the year 2020. As per their recommendations, having oatmeal daily can substantially decrease the chances of ever developing the listed cancer.
Oatmeal’s capability to help lose weight can help the rising obese population.
As per various research conducted by several agencies, it was found that globally around 39% of the adults were found to be obese or overweight. The prevalence of which is alarming. Moreover, the high-income countries have a higher prevalence, up to 70% in the United States and 20% in cases of South Asian countries.
Further, the research has subjugated that oatmeal helps the obese population to lose weight and subsequently manage it. It is associated with the presence of beta-glucan fiber, which attracts the water, and makes the digested food thicker, which in turn slows down how fast the food moves down the digestive process. The total elongation of the process makes one feel satiated faster and for more extended time frames. Hence, people on an oat diet feel less hunger, and thus, their in-between snacking reduces, which helps in weight management.
Moreover, the researchers have proven that oatmeal can reduce bad cholesterol or LDL with one’s waist circumference. In a double-bind study, it was established that the obese population which was given two portions of oat cereal, and the people who were given the said diet observed reductions in LDL (-6.3+/-1.0 vs. -3.3+/-1.1%, P=0.046), and waist circumference reduction of (-3.3+/-0.4 vs. -1.9+/-0.4 cm, P=0.012) as compared to the other grains.
Oatmeal Market Challenges
Availability of substitutes can hamper the market penetration for oatmeal.
Although, the discussed nutritional benefits of oats significantly outweigh its competitors. There are several factors that can create a hurdle in terms of market penetration. Firstly, Quinoa, buckwheat, brown rice is some of the close nutritional substitutes for oatmeal. A serving of Quinoa contains 8 grams of protein, as compared with 6 grams in oatmeal. Additionally, the dietary fiber of 2.8 grams is provided in Quinoa, while only 1.7 grams of fiber is delivered per serving. Moreover, wheat is comparatively cheaper than oats. A 30 Oz canister of steel-cut oats can cost approximately $4, while an 80 Oz wheat flour can cost approximately $3.47. Hence, a huge price difference is observed by the clientele when going for oatmeal purchasing.
Oatmeal Market Landscape
The oatmeal market adopts to the strategies such as product development and enhancements, along with mergers and acquisitions to continually grow in the market. The top 10 companies operating in the oatmeal market are-
- The Quaker Oats Company
- Kellogg’s Company
- Post Holdings
- General Mills
- Bob’s Red Mill Natural Foods
- Nature’s Path
- Nestle SA
- W Jordan Cereals
- Edward Flahavan
- Federal Oats Mills
Recent Developments
- In August 2021, Kreatures of Habit, a leading functional food brand, launched- The PrOATagonist- oatmeal flourished with plant-based- gluten-free nutrients and compositions. Furthermore, it is provided that three flavors will be launched, such as Vanilla, blueberry banana, and lastly chocolate. The associated cost for seven single-serve pouches is $34.99. Moreover, the serving will have 30 grams of protein.
- In April 2021, Path of Life announced a launch of frozen steel-cut oatmeal in two different flavours. The products are- Organic Berry Steel Cut Oatmeal and Organic Apple Cinnamon Steel Cut Oatmeal.
Relevant Titles
Wheat Protein Market
Report Code- FBR 22843
Ancient Grain Market
Report Code- FBR 0103
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