The oats market has witnessed a major impact on its product trends. During the COVID-19 pandemic, consumer preference for healthy food products with various functional properties has increased significantly.
According to The Insight Partners study on “Oats Market to 2028 – Global Analysis and Forecast – by Product Type, Price Range, Tank Type, Distribution Channel, and Geography,” the market is projected to reach US$ 9,939.82 million by 2028 from US$ 7,764.49 million in 2021; it is expected to grow at a CAGR of 3.6% during 2021–2028.
Oats are increasingly being used as a replacement for high-energy cereals, such as barley and corn. As a result, the animal feed industry has established itself as a key end user in the market. Oats can also be used in extruded breakfast cereals and snacks, instant powders, dry soups and sauces, ready-to-drink beverages, bread, cakes, crispbread, biscuits, desserts, ice cream, pasta/noodles, health and medical food products, and sports bars/food/powder/drinks, as a nutritional and functional ingredient. It has a high concentration of total proteins, carbohydrates (starch), crude fat, dietary fiber (nonstarch), a unique antioxidant, and vitamins and minerals.
In 2020, Europe accounted for the largest share in the global oats market. The growth of the food & beverages and animal feed industries, along with health benefits associated with oats, drive the growth of the oats market in Europe. Oats are a popular breakfast cereal used to make porridge or oatmeal, hot cereal, biscuits, bread, muesli, infant food, and granola bars. These are naturally gluten-free and are ideal for consumers with gluten intolerance and celiac disease, among other autoimmune and inflammatory diseases. The strong domestic presence of manufacturers such as JELU-WERK J. Ehrler GmbH & Co. KG, Lantmännen, Morning Foods, Oy Karl Fazer Ab, and Swedish Oat Fiber—coupled with a surge in investments in the expansion of their production capacities—is another factor contributing to the oats market growth in Europe.
Impact of COVID-19 Pandemic on Oats Market
The COVID-19 pandemic has affected economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. Interruptions in food services have had a substantial influence on food demand. Food makers and processors had to deal with a number of challenges in their daily operations in 2020. The consumer preference to stay at home that had a detrimental impact on the HORECA (i.e., Hotel, Restaurants, and Café) sector. However, the production process was unaffected since governments allowed the delivery and sale of seeds, fertilizers, and crop protection products. According to the Food and Agriculture Organization (FAO), Europe and Central Asia had adequate food supplies, including main food commodities. However, with developments in terms of vaccination and initiatives taken by various governments to support economic and industrial growth, the demand of oats is anticipated to grow at a steady pace in the coming years.
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Editor, International Bakery
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