Oat Ingredient Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

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.

Increasing demand for sustainable and clean-label products

Consumers are increasingly prioritizing sustainability when making purchasing decisions, driving demand for eco-friendly food products. This trend positions oat ingredients, known for their naturally low environmental impact, as a competitive choice in the market. Irish oat production exemplifies this advantage, achieving net carbon footprints as low as 38 kg CO2 per ton through sustainable farming practices such as cover cropping and straw incorporation. Companies are capitalizing on this shift to strengthen their market presence. For instance, PureOaty's breakfast range emphasizes its exceptionally low carbon footprint, distinguishing itself from conventional alternatives. Similarly, Oatly has committed to reducing emissions by 89% by 2050, showcasing how robust sustainability goals can enhance brand positioning. The rising demand for sustainable and clean-label products presents brands with opportunities to command premium pricing, enabling them to meet evolving consumer preferences while maintaining higher profit margins.

Growing consumer awareness of β-glucan heart-health claims

The FDA's recognition that consuming 3 grams of β-glucan daily can help reduce the risk of coronary heart disease, when included in a diet low in saturated fat and cholesterol, provides a strong foundation for market growth. This regulatory approval allows manufacturers to promote specific health claims, giving oat-based ingredients a competitive edge over other plant-based options^{[1]Code of Federal Regulations, "§ 101.81 Health claims: Soluble fiber from certain foods and risk of coronary heart disease (CHD).", ecfr.gov}. Additionally, approvals from Health Canada, the FDA, and EFSA for β-glucan's cholesterol-lowering benefits open up global opportunities for these enriched products. Beyond cardiovascular health, studies have shown that β-glucan can effectively regulate blood glucose levels and support the immune system. To further drive demand, ingredient suppliers and product manufacturers are actively educating consumers about these health benefits. This increased awareness not only encourages informed purchasing decisions but also supports premium pricing strategies across the value chain, enhancing the overall market potential for β-glucan-enriched products.

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. 

Cross-contamination concerns for gluten-free claims

Gluten contamination in oat products presents critical regulatory and liability concerns, which could lead to changes in labeling standards and market strategies. Testing of Trader Joe's Gluten-Free Rolled Oats revealed contamination levels ranging from below 5 ppm to 120 ppm across various lots, exposing gaps in cross-contact control during production. In the United States, there is growing pressure to introduce mandatory gluten labeling for oats, aligning with regulations already adopted in 87 other countries. Such measures could significantly increase compliance costs and restrict market access for producers who lack gluten-free certification. Implementing the Purity Protocol, a stricter standard for gluten-free oats, requires dedicated supply chains and advanced testing systems. This approach tends to favor larger, vertically integrated processors that can absorb the higher costs, while smaller regional producers may face challenges due to limited resources and infrastructure.

Segment Analysis

By Product Type: Flakes Dominate While Protein Accelerates

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^{[2]University of Manitoba, "Researcher uncovers the health-boosting power of oat protein", umanitoba.ca}. 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.

Note: Segment shares of all individual segments available upon report purchase

By Nature: Conventional Scale Versus Organic Premiumization

In 2024, conventional oats command a dominant 83.22% market share, bolstered by established supply chains, competitive pricing, and their ubiquitous presence in mainstream food applications. These oats leverage economies of scale in both production and processing, allowing manufacturers to cater to the high-volume demands of major food processors and retail outlets. Highlighting the scale advantages of the conventional segment, Canada, as the world's leading oat producer with 3.4 million metric tonnes in 2024, as reported by the US Department of Agriculture. The conventional segment underpins mass-market staples, from breakfast cereals and snack bars to industrial food ingredients, prioritizing cost efficiency over premium branding.

Organic oats are on an upward trajectory, boasting an 11.21% CAGR through 2030. This surge is fueled by premium positioning and consumers' readiness to invest in perceived health and environmental advantages. Taking the lead, Finnish organic oats, particularly from Raisio Food Solutions, spotlight this movement. They emphasize stringent quality controls, reduced pesticide usage, and carbon-neutral production, resonating with eco-conscious consumers. Further underscoring this trend, Alpro has made headlines with a significant investment in the UK, pivoting to 100% British organic oats. This move not only underscores their dedication to local sourcing but also aligns with the industry's shift towards organic positioning and supply chain transparency. The organic segment's robust growth mirrors a broader industry trend: as consumers increasingly prioritize quality and sustainability, they're willing to pay a premium. 

Note: Segment shares of all individual segments available upon report purchase

By End-User: Food Processing Leads While Nutraceuticals Surge

In 2024, the food processing industry dominates the market with a 62.72% share, driven by its wide range of applications. These include bakery and confectionery, breakfast cereals, dairy alternatives, snacks and bars, and beverages, all of which utilize oat ingredients for their functional benefits. Oats are valued in food manufacturing for their ability to improve texture, act as a binding agent, and enhance nutritional content across various products. Among these applications, the dairy alternatives subsegment is witnessing the fastest growth in oat crop demand due to the rising popularity of plant-based products. The food processing industry benefits from strong supply chain networks, standardized quality requirements, and predictable demand trends, which support efficient long-term planning and investment.

The nutraceuticals segment is the fastest-growing, with a projected CAGR of 12.18% through 2030. This growth is fueled by scientific evidence supporting the health benefits of β-glucan and regulatory approvals for health claims in multiple regions. For instance, Ceapro has successfully developed oat β-glucan for anti-aging products, which help stimulate collagen production, aid in skin repair, and deliver therapeutic effects through deep skin penetration. The nutraceuticals market also capitalizes on premium pricing opportunities, as consumer interest in natural remedies and functional health products continues to grow. This trend highlights a shift in consumer behavior, with increasing awareness of functional ingredients and a willingness to invest in products backed by scientific validation for health benefits.

Note: Segment shares of all individual segments available upon report purchase

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^{[3]Cereals Canada, "Cereals Canada: U.S. Tariffs on Canadian Cereals Will Hurt North American Consumers", cerealscanada.ca}. 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.