Organic Oats Market - Forecast(2023 - 2028)

Key Takeaways

• Geographically, the North America Organic Oats Market accounted for the highest revenue share in 2021. However, the Asia-Pacific is poised to dominate the market over the period 2022-2027.
• Growing gym memberships and spiraling usage in healthcare and personal care are said to be preeminent drivers driving the growth of the Organic Oats Market. Diminishing soil richness and fertility owing to chemical usage to grow a variety of crops and unfavorable environmental catastrophes are said to reduce the market growth.
• Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Organic Oats Market report.

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Organic Oats Market Segment Analysis-By Application

The Organic Oats Market based on the application basis can be further segmented into personal care, food products (confectioneries, bakeries, cereals, and others), animal feeds, and others. The food segment held the largest share in 2021. The growth is owing to far-reaching usage by consumers as a breakfast food to kick start their day. Moreover, intensifying malnutrition and cardiovascular complications are prompting people to add these cereal grains into their diet. Also, with growing gym memberships, the overall demand for oats has witnessed a sheer rise as oats are a rich source of required protein and other essential micronutrients. Furthermore, food and animal feed segments are estimated to be the fastest-growing with a CAGR of 6.3% over the forecast period 2022-2027. This growth is owing to uplifting demand for oats in various confectionery items such as desserts and bakeries. In addition to that, as demand for dairy products is hiking year after year, oats are being widely used in animal feeds which is helping the overall market to grow.

Organic Oats Market Segment Analysis-By Distribution Channel

The Organic Oats Market based on distribution channels can be further segmented into offline (supermarket/hypermarket, convenience stores, small retail stores, and others) and online platforms. The offline segment held the largest share in 2021. The growth is owing to tons of benefits associated with offline shopping as quick purchase unlike e-commerce sales where a customer is supposed to wait for more than 3 or 4 days, stable prices of commodities, one-stop solution, sale support, and easy return in case product are damaged. Moreover, offline shopping extends the pleasure to meet strangers and spend some time with friends or family members. On another hand, the far-reaching presence of supermarkets, small retail stores, and convenience stores is another factor behind more offline shopping. Nevertheless, the online segment is estimated to be the fastest-growing with a CAGR of 6.7% over the forecast period 2022-2027. This growth is owing to improving infrastructure in pastoral areas allowing e-commerce companies to start their services. Also, rapid digitalization, the breakthroughs in the telecom sector, growing numbers of people who hold a smartphone with them are the factor playing their essential role in the growth of e-commerce sales.

Organic Oats Market Segment 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 the largest share with 35% of the overall market in 2021. The growth in this segment is owing to the factors such as better lifestyles of people in North American countries such as the U.S. and Canada than residents of most of the countries worldwide. Also, better alertness regarding health has played a crucial role in augmenting the fitness industry. The maximum adult and millennial population of the US have a gym membership which has broadened the demand for organic oats. However, Asia-pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to escalating milk consumption which has heightened the demand for oats in animal feeds. In addition to that, improving the quality of life and proliferating the disposable income of residents have prompted the usage of such grains. Moreover, as more people are making rational choices and undergoing gym memberships the scope for the growth of the respective market is improving day by day.

Organic Oats Market Drivers

The malnutrition problem is still prevailing among several African and Southeast Asian countries like India, Pakistan, and others as millions still hardly make it to one-time food in these nations. According to a report, in 2021 nearly 33 lakh (3.3 million) cases especially children were suffering from malnutrition problems in India. Similarly, more than 38% of Rwandan infants were undernourished in 2021. Therefore, as oats are a sound source of essential nutrients and can help in weight gain, the overall demand for these cereal grains is accruing worldwide. Nevertheless, the mounting pervasiveness of heart attacks and other life-threatening complications are providing great platforms for the growth of the organic oats market.

Escalating dairy consumption and disposable income is Expected to Boost Product Demand.

Proliferating demand for nutrition-rich food and beverages has stimulated the demand for milk and other dairy-associated products. India, in 2021, consumed approximately 83,000 million metric tons of milk. Similarly, European Union had more than 20,000 million metric tons consumption in 2021. On another hand, owing to affluent economies many European countries and the US has more than $60,000 GDP per capita income ensuring heavy purchasing power in the hands of consumers. Nevertheless, ascending economic prosperity in developing countries is resulting in growing disposable incomes too.

Organic Oats Market Challenges

Diminishing soil-richness and fertility and unfavorable environmental catastrophes are Anticipated to Hamper Market Growth.

Even though organic oats are cultivated without using pesticides or other chemicals but there are thousands of other crops which are fabricated with the help of certain chemicals. Extensive usage of pesticides destroys the natural soil fauna such as earthworms which plays a crucial role in maintaining the soil richness and overall fertility. In another hand, the problem of climate change and global warming is resulting in various catastrophic and unfavorable weather events which are curbing the overall crop yield. 

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:

1. Hain Celestial Group
2. UniGrain
3. Richardson International
4. Helsinki Mills
5. Grain Millers
6. Bob’s Red Mill Natural Foods
7. Quaker Oats
8. Nature’s Path Foods
9. Bagrrys India
10. Nairns Oatcakes

Recent Developments

• On December 13, 2021, New York, United States-based “Hain Celestial Group” which operates in organic food products announced the successful acquisition of New Jersey, United States-based food company “That’s How We Roll.” The total value of this transaction stands at around $259 million. Moreover, the acquisition has added convenient product brands like “Thinsters” and “ParmCrips” to Hain’s portfolio.
  
• On November 9, 2021, Richmond, Canada-based organic food producing company “Nature’s Path Foods” announced that the company has successfully acquired an ownership interest in Canada-based organic flour producer “Anita’s organic Mill.” The financial details regarding the transaction were not revealed by the company.
• On April 8, 2021, Winnipeg, Canada-based company “Richardson International” which operates in the food and agriculture sector announced the successful acquisition of Missouri, United States-based renowned durum wheat miller “Italigrani.” The financials of the transaction were not publicized. Moreover, the acquisition has strengthened the processing capabilities of Richardson.

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