March 7 – Is a 4.0% Market Growth Going to Save Oat Prices?

Oat farmers want to know where demand is coming from. Let’s take a look at new research into expected consumption demand through 2022.

Over the next five years, oat farmers will want to know where demand is coming from. Let’s take a look at new research that offers additional insight into expected consumption demand through 2022. 

The total global oatmeal market is poised to go from $2.0 billion in 2016 to roughly $2.5 billion by 2022. That puts the five-year compound annual growth rate at 4.0%.

Primary drivers of the uptick in demand have been fueled mainly by dietary change. More people eating healthy foods and breakfast products are part of this trend. Second, we’re seeing more consumption in developing nations has been pushed by rising wages and market access.

As we’ve noted, China is a key market for this sort of transition. New product innovation continues to sweep across that region (in addition to the United States.)

However, as we continue to explain, everything is little more than noise unless Canadian exporters are able to get their crop shipped to China.

Even though there is rising demand, prices remain largely unaffected.

On Thursday, the USDA will release its monthly WASDE report. While we’re not expecting anything significant to change in oats numbers, feed numbers in the grain complex will give us a better understanding of demand in the year ahead.


Oatmeal Market Growing at a CAGR of 4.0% between 2017 and 2022

According to the report, the global oatmeal market was valued at around USD 2.00 billion in 2016 and is expected to reach approximately USD 2.50 billion by 2022, growing at a CAGR of around 4.0% between 2017 and 2022.

Oatmeal is made up of breakfast cereal oats which are in high demand across the globe. Oats are considered as one of the healthiest grains. Oat groats, the most intact and whole form of oats, take a long time to cook. As a result, most people prefer rolled, crushed or steel-cut oats. Oat grains are treated to produce oatmeal. Oat grains are processed, crushed, steel cut or rolled to make coarse oatmeal. 

Oatmeal is expected to exhibit high gains in light of increasing breakfast industry coupled with changing food habits and increasing preference for healthy meals across the globe. Shifting trend towards ready to eat food and healthy breakfast products and large varieties of oatmeal available in the market at lower prices is further expected to boost the demand for oatmeal. Moreover, rising health awareness regarding consumption of oatmeal is expected to push the market growth. However, the high cost of oatmeal as compared to other breakfast options may hamper the market growth within the forecast period. Nonetheless, oatmeal consumption in developing countries is continuously increasing. Thus, increasing demand from emerging economies is expected to open up new growth opportunities within the forecast period.

Some of the key products include whole oat grains, steel cut oats, regular rolled oats, and instant rolled oats and others. Instant rolled oats segment is expected to grow at the highest CAGR during the forecast period. Easiness to cook and on-the-go food supports the growth of instant rolled oats market during the forecast period.

Based on distribution channel, the market can be segmented into super/hypermarket, convenience/departmental stores, specialty stores, and others (includes foodservice) distribution channel. Among all distribution channels, super/hypermarket is expected to show substantial growth in the years to come. The increase in organized retail sector is the prime cause for the high growth of super/hypermarket. Super/hypermarket offer wide variety of oatmeal products also offers attractive offers and discounts. Moreover, increase in a number of super/hypermarket in developing economies is also expected to drive this market.

By geography, Europe generated high demand for oatmeal, which accounted for the largest market share of overall consumption in 2016. North America was another leading regional market in 2016. The Asia-Pacific oatmeal market is expected to grow at fastest growth rate during the forecast period primarily due to changing eating habits, and growing urban population resulting in higher demand for healthy on-the-go food.

Some of the key players operating in this market are Quaker Oats Company, General Mills, Nestle, Dr. McDougall’s Right Foods., Kellogg’s, Bagrry’s India Ltd., McCann’s, Abbott Nutrition, Conagra Foods, ABF Grain Products Limited., and thinkThin and others. The major players in the market focus on the expansion of the business by different new strategies such as setting up a new plant to increase production capacity and also extending the product line.

This report segments the global oatmeal market as follows:

Global Oatmeal Market: Product Segment Analysis

  • Whole Oat Grains
  • Steel Cut Oats
  • Regular Rolled Oats
  • Instant Rolled Oats
  • Others

Global Oatmeal Market: Distribution Channel Segment Analysis

  • Super/Hypermarket
  • Convenience/Departmental Stores
  • Specialty Stores
  • Others (includes foodservice) distribution channel

Global Oatmeal Market: Regional Analysis

  • North America
    • U.S.
  • Europe
    • Germany
    • France
    • UK
  • Asia Pacific
    • China
    • Japan
    • India
  • Latin America
    • Brazil
  • The Middle East and Africa
H/T: Your Niskayuna 24
About the Author
Garrett Baldwin

Garrett Baldwin is a content strategist and editor at FarmLead. He covers the global grain markets and public policy issues related to the agricultural industry. He is a graduate of the Medill School of Journalism at Northwestern University. He also holds a Master’s Degree in Economic Policy from The Johns Hopkins University, an MS in Agricultural Economics from Purdue University, and an MBA in Finance from Indiana University.