Organic Oats Market | IndustryARCIncrease in the Preference for Consuming Healthy Meals, Supplemented by the Rising Concern Over the Use of Organic Ingredients Over the Non-organic Segment Has Been a Key Market Driver for the Organic Oats Market.The Organic Oats Market size is estimated to reach $3,572 million by 2027. Furthermore, it is poised to grow at a CAGR of 5.9% over the forecast period of 2022-2027. Oats have been the most prevalent form of cereal grain, which are high in fiber, and have immense quantities of beta-glucans, vitamins, minerals, and various antioxidants. Oats have been a helping hand in disease-driven economies, as they have properties that can help in lowering blood sugar levels and can help in managing cholesterol levels. The most common form of oats that are available in the markets globally is rolled oats and crushed oats. However, quick or instant oatmeal is often made with cut oats and is available in the market, which allows for better water absorption and hence, cooks faster. The oat brans are the fiber-rich outer layer of the grain and are primarily consumed with other cereals or muesli as well. The organic segment of oat demand and production has been facing an uneven demand pattern and is severely affected by the agricultural yield, thereby making the market dynamics uneven. The increase in the preference for consuming a healthy meal, supplemented by the rising concern over the use of organic ingredients over the non-organic segment, has been a key marketdriver for the Organic Oats Industry in the projected period of 2022-2027.
Organic Oats Market Segmentation Analysis- By Application
The organic oats market based on the application can be further segmented into Bakery and Confectionary, Ready Eat Snacks, Breakfast Cereals, and Others. Breakfast Cereals held a dominant market share in the year 2021. It is owing to the widespread prevalence of the usage of organic oats in the making of breakfast cereals. Additionally, the predominant product launches available in the companies enlisted are within the said Breakfast Cereal. Moreover, the products are advertised by using tag-line such as “healthy-breakfast” and various others, which have significantly helped the overall market growth.
Moreover, Breakfast Cereals are estimated to be the fastest-growing, with a CAGR of 6.3% over the forecast period of 2022-2027. It is owing to the various nutritional benefits the following application has for the consumers. Firstly, oat-meal is extremely filling and can help one in losing weight, owing to the presence of beta-glucan. The prevalence of obesity in the US was close to 43% in 2019, which three decades back were close to 31%. Thereby, a sedentary lifestyle is further helping the market growth.
Organic Oats Market Segmentation Analysis- By Distribution Channel
The organic oats market based on distribution channels can be further segmented offline and online. The offline segment held a dominant market share in the year 2021. It is owing to the consumer’s ease to purchase the said oats on the counter. Additionally, one can interact with various sales representatives, which allows them to make better decisions. Moreover, a predominant shelf-space occupation boosts consumers’ demand. Lastly, offline retailers push sales by offering cash-backs and other incentives, which further fuel the demand; additionally, “taste and trial” availability of food items allow for better sales propositions.
However, the online segment is estimated to be the fastest-growing, with a CAGR of 6.5% over the forecast period of 2022-2027. It is owing to the availability of various deals and cashback one can in-cash in terms of online purchasing. For example, if one wishes to purchase Quaker Oats at Amazon, they’ll get an instant discount of 13%. Additionally, 5% cashback and loyalty point further propel the market growth.
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Organic Oats Market Segmentation Analysis- By Geography
The organic oats market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held a dominant market share of 35% as compared to the other regions in 2021. It is owing to the presence of major production lands within the region, which makes the overall cost go down. In the US, as per FAO, the production for Oats was close to 771440, while in Canada, it was close to 42. Million tonnes. Owing to such capacities, the market has predominant value-chain players, allowing the overall region to share a predominant space.
Moreover, Asia-Pacific is expected to offer lucrative growth opportunities to the marketers owing to the rapid adoption of the western culture in regions of India and China. Additionally, low-cost manufacturing is further propelling the industry to grow. Additionally, with the advent of social media and the easy availability of the internet, the trends governing the consumption of organic and healthy foods will only grow.
Organic Oats Market Drivers
The growing burden of diseases supplemented by old age has been a key driver for the market.
Oats have been famous for their nutritional benefits. For example, 3.5 ounces of 100 grams of oats offer 389 calories, 8% water, protein 16.9 grams, 0 sugars, and 10.6 grams of fiber. The protein quality of oats stands out when compared to the other grains, and hence, becomes a traction point advantage. The geriatric population has been growing, with it, the disease burden has been on the rise as well. Since oats carry huge amplitudes of beta-glucan, they can largely help in reducing the LDL levels and reducing the blood sugar levels of the consumers. As per CDC, in 2020, the incidence of diabetes was close to 35 million. Additionally, a lot of patients, close to 10 million, have no idea about their blood sugar levels. Moreover, it has the capacity of increasing the good bacteria within the digestive tract of the individuals, thereby helping people suffering from Crohn’s disease and other issues as well. Owing to such factors, the market is ought to grow at a steadfast pace.
The association of “organic” backed by social media and the internet has been a ready market driver.
Organic food sales now represent close to 4% of the overall food sales in the US. Additionally, the consumer sentiments back the overall word “organic,” and a predominant portion of the consumers’ buying decision is now based on label claims such as “organic” or “sustainably obtained.” The advent of social media has further allowed the market of organic to grow. Hashtag trends such as “#healthylife” or “work on organic” have worked wonders for the cereal class, especially for the oats. One can see beautifully adored oatmeal with pumpkin seeds, berries, and geometrically shaped apple slices. Companies have highlighted the usage of hashtags and social media as the major market drivers within the organic segment, as they provide the last push for playing with the consumer’s mentality.
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Organic Oats Market Challenges
Low agricultural yields have been impeding the market growth.
Low acreage has been reported from the predominant producers of Oats. Agriculture Canada has pegged their national oats to be down from 3.8 million in 2020 to 3.4 million this year. Farmers have conveyed worries and believe that the overall yield can be 30-40% below the average production. Additionally, the climate change factors have weighed in on the yield. For example, Oats and most crops in the eastern half of Manitoba because the region is desperately short on moisture. From Aug. 1, 2020, to the middle of July, Winnipeg received 232 millimeters of snow and rain. That’s about 200 mm less than normal for a 12-month period. Owing to such factors, the overall value chain would take a hit and thereby impede the market growth.
Organic Oats Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in this market. Organic Oats top 10 companies include:
PepsiCo, Inc.
Grain Millers Inc.
Nestle SA
Blue Lake Milling Pty Ltd
B&G Foods, Inc.
Marico Limited (Saffola)
Nature's Path Foods
Morning Foods Ltd.
Wegmans Food Markets
The Hain Celestial Group
Recent Developments
In April 2021, Saffola launched “Saffola Oodles”, which are ring noodles packed with Yummy Masala flavor and contain no maida. Saffola Oodles brings in the goodness of whole grain oats, real vegetables, and sooji. It has NO MAIDA, so you can snack on guilt-free. It comes with a Yummy Masala mix sachet inside which you can add as per your taste. One is free to add coriander, cheese, and even veggies will make the overall flavor better.
In March 2021, Path of Life launched New Organic Steel Cut Oatmeal. A new line of organic steel-cut instant oatmeal to expand on its existing options of accessible, convenient, and high-quality dishes in the frozen foods aisle. It would be available in two different flavors, Apple Cinnamon and Berry. It is combined with delicious fruits and is totally gluten-free, non-GMO certified, made from dairy-free products, and the orientation is towards plant-based diet fulfillment.
In February 2021, SunOpta launched the new organic oat creamer brand. It is owing to the recent development and soars seen in the plant-based milk alternatives and creamers. The new product launch is part of SunOpta’s multi-pronged “go-to-market” strategy to leverage the company’s recent $26 million investment in an oat base processing facility in Minnesota. Additionally, the product has been priced at $5.29 for a 32Oz carton, which allows it to compete within the dominated market.
Key Takeaways
Geographically, North America’s Organic Oats market held a dominant market share in the year 2021. It is owing to the presence of various factors which affect the overall market dimensions such as the presence of major growers within the region. Additionally, the product innovations have allowed the market to expand. Moreover, Asia-Pacific is estimated to offer lucrative growth opportunities to the marketers in the forecast period owing to the new start-ups being registered within the market supplemented by product innovations.
The increase in the preference for consuming healthy meals, supplemented by the rising concern over the use of organic ingredients over the non-organic segment has been a key market driver for the Organic Oats Market. However, declining plantations of oats have been a restraining factor for the market.
A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Organic Oats Market Report.
Relevant Title:
Oats Production Market
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