Asia-Pacific Oats Market Size (2023-2030)

The Asia-Pacific Oats Market was valued at USD 1.35 billion and is projected to reach a market size of USD 2.32 billion by the end of 2030. Over the outlook period of 2023–2030, the market is anticipated to grow at a CAGR of 7%.

Avena sativa, often known as oats, is a kind of cereal grain that belongs to the Poaceae family of grasses. The oat grass's edible seeds are especially referred to as the grain. In the past, the consumption of oats was limited in Asia-Pacific countries. However, urbanization, globalization, and diversity led to rising popularity. Currently, many people in countries like India, Australia, China, Malaysia, etc. consume oats as a part of their diet. In the future, with growing awareness and organic practices, this market is predicted to expand considerably. During the forecast period, a notable growth rate is anticipated.

Key Market Insights:

In 2021, China's estimated oat production amounted to about 600,000 metric tons.

Oat retail sales in Japan hit seven billion Japanese yen in 2021. The size of the oat market has increased gradually in recent years; the most recent year had an annual growth rate of about 290 percent.

Oats are not trending, with a decrease of -25.59% in social discussions in the last year. To tackle this issue, there have been product offerings coupled with diversity. Unique and authentic flavors with more spices are being created.

Asia-Pacific Oats Market Drivers:

The health benefits of oats are paving the way for market success.

Over the years, there has been an increase in the prevalence of chronic diseases like diabetes, high blood pressure, and cardiovascular disorders. Apart from this, various other studies have shown similar statistics about various health illnesses. Due to this, there has been an increase in health awareness. Various wellness trends have encouraged people to try alternative options. Oats are associated with high protein content. They are loaded with various vitamins B1 and B5, minerals like manganese, zinc, copper, magnesium, phosphorus, iron, and other antioxidants. These antioxidants help lower blood pressure. Besides, many research activities have shown that oats are effective in reducing bad cholesterol levels. Additionally, oats are known to increase the responsiveness of cells to insulin and lower blood sugar levels. Furthermore, they promote skin care by reducing itching and irritation. Apart from this, the fibers present assist in relieving constipation.

A changing lifestyle is fueling the global market progress.

Urbanization and rising middle-class income have changed the standard of living. This has led to a shift towards preferences. Dual income is the new norm. This has led to the creation of hectic schedules. Couples are unable to find time for cooking. Moreover, bachelors, students, and other individuals may not know how to cook. Oats are a go-to option in such cases. These food products require minimal supervision and ingredients. They are made within 5–10 minutes. All these benefits are a huge plus factor in their rising adoption.

Asia Pacific Oats Market Restraints and Challenges:

Cost volatility, cultural preferences, a lack of transparency, and an incomplete understanding are the main issues that the market is currently experiencing.

Price fluctuations for raw materials can hinder market growth. Further, recent inflation can demotivate manufacturers. Secondly, even though people are embracing these products, rice has been a staple food for many centuries. So, the older generation can have prejudice and refrain from trying out new products. Additionally, limited awareness can hamper growth. Thirdly, gluten allergies are caused in a small percentage of the population. This can occur if food transparency is not maintained. Furthermore, certain youngsters and other teenagers might have partial knowledge about consumption. To reduce weight, many adolescents devour oats as a meal all three times. This can cause bloating. Few articles have indicated that people with eating disorders like anorexia and bulimia are known to eat oats throughout the day to lose weight in an unhealthy way.

Asia Pacific Oats Market Opportunities:

Veganism has been providing the market with an abundance of possibilities. Vegan-based diets are plant-based foods. Dairy alternatives are continuously being developed. Oat milk is one such example. In a Rakuten Insight study on plant-based food consumption in Malaysia, more than 80% of participants across all age categories stated they had experimented with plant-based milk substitutes, including soy, rice, almond, or oat milk. Dairy alternatives were the second-most popular plant-based food among individuals aged 25 to 34, with 54 percent of them having eaten them. Secondly, convenience food products have become the new trend. Oatmeal bars, snacks, and chocolates are increasing and can generate significant amounts of revenue. Thirdly, global expansion through import-export activities has seen a rise. Oats are therefore gaining popularity in remote areas. Furthermore, organic farming practices are being prioritized owing to their nutritional content and positive impact on the environment.

ASIA-PACIFIC OATS MARKET REPORT COVERAGE:

Asia Pacific Oats Market Segmentation:

Asia Pacific Oats Market Segmentation: By Category:

• Organic
• Conventional

The conventional segment is the largest market based on category. This is because of a higher yield, a broader consumer base, familiarity, and budget-friendliness. They are estimated to hold a share exceeding 65%. The organic segment is the fastest growing due to rising awareness, demand, nutritional content, minimal use of pesticides, eco-friendly nature, increasing adoption in culinary practices, and texture. During the forecast period, this segment is predicted to show good growth.

Asia Pacific Oats Market Segmentation: By Type:

• Steel-Cut Oats
• Whole Oats
• Instant Oats
• Others

Based on type, whole oats are the largest segment in this market. They hold a share exceeding 28%. This is because they have a higher nutritional profile, which includes more proteins, fiber, starch, and other fatty acids. Besides, they are easy to cook. Snacks, bars, biscuits, bread, and other cookies are some of the most commonly consumed food products. Instant oats are among the fastest-growing due to their lesser cooking time, convenience, broader consumer base, ease of preparation, and demand.

Asia Pacific Oats Market Segmentation: By Application:

• Food and Beverages
• Animal Feed
• Personal Care
• Others

Based on application, food, and beverages are the largest segments of the market. This is because of an increase in the number of eateries that offer oats as a part of their menu, the rising number of vegan restaurants, changing consumer preferences, demand, nutritional benefits, the global operation of restaurants, and an upsurge in online retail. Besides, experimentation with various food products like fruit bowls, juices, and smoothies has helped with the expansion of oat milk and oats. Animal feed is the fastest-growing due to increasing livestock, breeding activities, nutritional value, cost-effectiveness, and traditional usage.

Asia Pacific Oats Market Segmentation: By Distribution Channel:

• Supermarkets/Hypermarkets
• Specialty Stores
• Convenience stores
• Online Retail

Based on distribution channels, supermarkets, and hypermarkets are the largest segments in this market. This is because of convenience, face-to-face interaction, customer satisfaction, bargaining, availability, and visual inspection. They hold a share of more than 45%. However, online retail is considered to be the fastest-growing, with a share of approximately 30%. This is owing to home delivery, discounts, mega sales, ease, user-friendly features, availability of a wider choice, customer experience, and international shipping. During the forecast period, a significant growth rate is anticipated for this segment.

Asia Pacific Oats Market Segmentation: Regional Analysis:

• China
• Japan
• India
• South Korea
• Australia & New Zealand
• Rest of Asia-Pacific

Based on region, China is the largest grower, with a rough share of 32%. This is because of the population, bulk manufacturing, expanding food industry, globalization, key players, demand, extensive farming activities, and incorporation in diets. India is one of the fastest-growing regions owing to recent fitness trends, the number of inhabitants, emerging innovative startups, diversification of flavors, collaborations, lifestyle changes, urbanization, dual income, rising demand, and an increasing prevalence of chronic diseases. Additionally, the rising popularity of dairy alternatives such as oat milk is driving the market. India is estimated to hold a share of approximately 22%. Japan is also emerging rapidly owing to increasing health consciousness and the implementation of oat-based products.

COVID-19 Impact Analysis on the Asia-Pacific Oats Market:

The outbreak of the virus had a mixed impact on the market. Lockdowns, movement restrictions, and social isolation were the new norm. This caused disruptions in the supply chain, transportation, and logistics. The import-export trade was affected. Companies and manufacturing units were closed. This caused a delay in operations. However, people were leaning towards the incorporation of healthy food and home-cooked meals. Oats were a convenient food option because of their ease. Besides, the nutritional benefits helped with its popularity. Moreover, veganism gained tremendous prominence during the pandemic. Sales of dairy substitutes increased by more than 300%. This included oat milk, a widely accepted category. Furthermore, during the latter half of the pandemic, that is, in 2021, an upsurge in online activities was seen regarding oat foods and beverages.

Latest Trends/ Developments:

Companies are also spending heavily to improve existing crops and technologies while maintaining competitive pricing. This has further resulted in increased expansion.

Due to increasing cases of celiac disease, gluten-free oats are being developed. Besides, a broader consumer base is leaning towards gluten-free products, owing to health consciousness. Furthermore, sales of gluten-free oat milk are increasing.

Key Players:

1. Nestlé
2. Kellogg's
3. Freedom Foods Group
4. Sanitarium Health Food Company
5. Patra Food
6. Freedom Nutritional Products
7. Cereal Partners Worldwide (CPW)
8. Goodness Superfoods
9. SunOpta
10. Farm Pride

In August 2023, the Australian oat and grain manufacturer Unigrain and the global leader in ingredients, taste, and nutrition innovation, Kerry Group, partnered to create premium, sustainable dairy substitutes for the Asia-Pacific plant-based market. Through this partnership, Kerry and Unigrain's clients would be able to use each other's unique ingredients, research and development, and processing portfolios to create new, wholesome oat milk and other products utilizing crops cultivated in Australia.

In February 2023, to create a menu of classic recipes created with oats, Saffola Oats teamed up with Edabba, an East Indian chain of cloud kitchens and the market leader in that niche.

In April 2020, the Mumbai-based packaged consumer goods company Marico Ltd. announced that it had opened a scaffold store to provide customers with its line of oats and cooking oils. This partnership puts Marico Ltd. in the company of other businesses that are forming alliances to guarantee last-mile delivery of necessities during India's rigorous three-week lockdown.