The Organic Oats Market To Witness Calculated Innovation

As per a detailed study by Persistence Market Research, the global organic oats market is set to witness growth at a CAGR of 3.6% and close in on a valuation of US$ 4.8 Bn by 2031. Organic oats are increasingly being used in the foodservice industry for creating various food products and as a snack item across households. Different types of raw materials are used to make these oat-based products more innovative, which gives a unique taste and make the dish more attractive for consumers. Consumption of organic foods is witnessing high growth across regions as consumers are shifting toward healthy and chemical-free food products. The consumption pattern of consumers is shaping toward healthy and organic foods, which is subsequently impacting every food category, and benefiting organic oat manufacturers as well, since oats is one of the primarily consumed grains in the world.

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Multi-applicable organic oats are becoming ideal ingredients for food manufacturers to use in different type of snacks. Many companies are also positioning their organic oats as a snack item that has more nutritive value, easy-to-cook, and can stay fresh longer than conventional snack items. Major players are also focusing on acquisitions and mergers to expand their product portfolios and increase their regional as well as international presence.

Quaker Oats Company is highly focused on product diversification to cater to every type of consumer. The company's oats product range offers products with different tastes and shapes. For instance, Quaker Old-Fashioned Oatmeal, Quick Quaker, and Instant Quaker Oatmeal are oats products with different cooking methods.

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Competitive Landscape

Manufacturers of organic oats are expected to adapt their marketing strategies to benefit the most from prevailing market trends. Leading manufacturers are adopting strategies such as business expansion and acquisitions with a focus on increasing production capacity.

Additionally, manufacturers are aiming to cater to the rising number of health-conscious consumers to gain a competitive advantage.

In March 2020, Nature's Path Foods's organic farm obtained the Regenerative Organic Certification from the Regenerative Organic Alliance (ROA). Its organic farm is the largest organic farm in the world and mainly cultivates oats.

In December 2019, Avena Foods announced that FXM will distribute the company's ingredient solutions in Mexico. FXM will provide the full range of Avena Foods ingredients to Mexican food companies. This will help the company to increase its footprint in Latin America.

Key Takeaways from Market Study

The market for organic oats is expected to expand at CAGRs of 5.5% and 4.8% in countries of Latin America and the Middle East & Africa, respectively, through 2031.

The European organic oats market is expected to reach 669,530 tons by the end of 2031.

Growing consumer preference for healthy snack items is driving sales of organic oats across the world. Based on product type, the whole oats groats segment is expected to rise at a CAGR of 3.6%.

By end use, the food and beverage industry holds the highest market share, while the foodservice industry is set to expand at a CAGR of 3.8%.

The outbreak of COVID-19 had a profound impact on the global market for organic oats due to the closure of many businesses, restaurants, and hotels. However, the market is expected to witness significant growth with increasing consumer demand for healthy and nutritious snacking options.

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