Global oat-based ingredients market is estimated to be valued at USD 142.0 Mn in 2025 and is expected to reach USD 252.2 Mn by 2032, exhibiting a compound annual growth rate (CAGR) of 8.55% from 2025 to 2032.
Increasing health awareness and growing demand for plant-based and functional foods globally are boosting the oat-based ingredients market growth. With their high nutritional value and versatility, oat-based ingredients are being utilized across various food industries such as beverages, bakery, and dairy alternatives. Advances in food technology, including new milling methods and enzyme treatments, are improving the quality and stability of products based on oats, which are becoming increasingly appealing to industry and consumers alike. In addition, the increasing incidence of gluten intolerance and demand for clean-label food are likely to contribute further to the market growth. Still, the potential presence of substitute grains like rice, barley, and quinoa can be a threat to the market expansion.
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The oat-based ingredients market growth is primarily driven by the rising global demand for functional and plant-based food products. As consumers increasingly prioritize wellness, sustainability, and clean-label nutrition, oats are emerging as a preferred ingredient due to their versatility, high fiber content, and clinically proven benefits such as heart health support and blood sugar regulation.
The surge in veganism and flexitarian diets across regions like North America, Europe, and parts of Asia has further boosted demand for oat-based alternatives in dairy, bakery, beverage, and snack segments.
In September 2023, PepsiCo India expanded its Quaker brand portfolio by introducing ready-to-eat breakfast cereals, specifically Quaker Oats Muesli, available in 'Fruit & Nut' and 'Berries & Seeds' variants. This launch targets urban millennials seeking convenient and nutritious breakfast options.
Large-scale manufacturers and retailers are actively spending on sustainable packaging and ingredients for the purpose of lowering environmental pressures and responding to consumer preference for greener consumption. For example, in July 2024, Aldi substituted plastic packaging with paper for its "Everyday Essentials Porridge Oats," which will cut plastic use by 57 tons a year. This action demonstrates the retailer's dedication to sustainability and responds directly to increasing consumer demand for environmentally friendly options.
Oats are at the center of this shift because they have low water needs and low greenhouse gas emissions during production, particularly when compared to other cereal crops. With plant-based diets increasingly popular in North America, Europe, and certain regions of Asia, oat-based foods like oat milk, cereals, and snacks are experiencing strong demand from health-oriented and environmentally conscious consumers.
Growing need for plant-based, healthy, and sustainable food products offers a high growth potential for the market for oat-based ingredients. Oat-based ingredients like oat milk, oat flour, oat protein, and beta-glucan provide an attractive combination of health advantages in terms of lowering cholesterol, aiding digestion, and maintaining heart health. For instance, Oatly has led in the utilization of oats in milk-alternative drinks, spotlighting the ecological and functional benefits of oats like low water demand and high-yielding land.
In 2022, Oatly informed that its production of oat milk has 80% fewer greenhouse gas emissions and 60% less energy expenditure than cow's milk. It also discovered it takes around 80% less land. Oatly has also begun using regenerative agriculture methods on its supply chain, working together with farmers in the U.S., Canada, and Europe to encourage sustainable agricultural practices.
The versatility and scalability of oats enable them to be incorporated in a broad range of food and beverage applications. Gluten-free oat production meets consumers' increasing demands for products for those with gluten sensitivity. Additionally, the clean-label nature of oats as a non-GMO, allergen-safe, artificial-additive-free ingredient makes it more desirable by manufacturers seeking to reformulate to align with changing consumer needs.
By application, the breakfast cereals segment is expected to contribute the highest market share in 2025. This expansion is primarily driven by increasing demand for healthy food and increasing consumer knowledge of the nutritional benefits associated with oats. Oat breakfast cereals contain high levels of soluble fiber, which maintains cholesterol and blood sugar levels healthy.
Apart from their low calorie content and rich nutritional values, their addition to the diet contributes to enhancing the quality of food intake by offering needed nutrients without adding to body fat. A good example is the introduction of So Delicious Dairy Free Organic Oatmilk by Danone North America in April 2023. The product is an example of the increasing consumer interest in plant-based drinks, providing a clean-label option that is certified organic, gluten-free, and Non-GMO Project Verified.
Increased use of oats as a multi-faceted, plant-based component has also helped spur their use in oat milk, a rapidly growing dairy alternative. With continued consumer demand influence from health and wellness trends, food makers are taking advantage of advancements in formulation and processing to build on oat-based breakfast foods. Together, these drivers bolster the stronghold that the breakfast cereals segment has in the market for oat-based ingredients.
Based on distribution channel, the offline segment is anticipated to account for the largest market share in 2025 due to the high growth of hypermarkets and supermarkets, as well as the extensive distribution of global brand products across brick-and-mortar retail outlets. Such stores offer customers the advantage of in-store access to products, discounting during promotions, and sampling, enhancing purchasing decisions and sales. Large brands take advantage of high visibility in stores to target health-conscious consumers in search of oat-based foods, snacks, and dairy alternatives.
For example, in 2023, Quaker Oats launched an in-store promotion in partnership with major grocery chains in the U.S., offering product samples of their new oat-based protein bars and oatmeal, which helped boost customer engagement and sales. Additionally, most customers still enjoy the tactile nature of shopping and the instant gratification of offline retail.
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North America dominates the oat-based ingredients market, driven by increasing health awareness and the rising prevalence of diabetes and obesity in the region. In 2025, the region is projected to account for approximately 31.5% of the global market share.
The U.S. and Canadian consumers are increasingly turning their diets to high-fiber, low-calorie products like oat-based cereals and beverages as a means of weight control and general wellness. Oats, with beta-glucans, are widely known for their capacity to help stabilize blood sugar levels and are thus a favorite among diabetic consumers. For example, as per the Centers for Disease Control and Prevention (CDC), in North America, approximately 37 million Americans had diabetes as of 2023. The dominant share of major players, along with increased expenditure by consumers towards health and wellness, solidifies North America's dominance in the oat-based ingredients market.
The oat ingredients market sees a strong growth prospect in Asia Pacific, led by mounting health consciousness, urbanization, and the trend towards plant-based consumption. China, India, and Australia are seeing the demand for oat-based breakfast food, beverages, and milk alternatives grow due to surging diabetes, obesity, and heart health concerns.
According to the 2023 ICMR INDIAB study, India has over 101 million people living with diabetes, accelerating the adoption of high-fiber, blood sugar-friendly foods like oats. In addition, expanding e-commerce channels and product launches by global and regional brands are making oat-based foods more accessible across urban and semi-urban areas.
Europe represents a mature market for oat-based ingredients, driven by consumer preference for natural, sustainable, and allergen-free products. Scandinavian countries like Sweden and Finland have historically incorporated oats into their diets, while countries like Germany, France, and the U.K. are experiencing increased demand for oat milk, oat snacks, and gluten-free oat options.
Government programs that encourage sustainable agriculture and plant-based nutrition are fueling the market growth. For instance, the EU Farm to Fork Strategy calls for a move towards healthier eating, such as whole grains such as oats.
Moreover, higher investment in food innovation and product development is solidifying the European market for oat-based ingredients. On March 25, 2025, Danone S.A., a France-based multinational food-products corporation, made an announcement stating that its plant-based business Alpro is investing in the U.K. to source oats direct from British farmers and produce its oat drink from 100% British oats for the very first time.
The U.S. continues to lead the oat-based ingredients market in North America, supported by a high prevalence of lifestyle-related health conditions and increasing demand for functional foods. Technological innovations in food processing and strategic product launches (e.g., oat milk, oat-based protein bars) are fueling the market expansion.
Major brands such as Quaker, Oatly, and General Mills are introducing oat-enriched products targeting weight management and heart health as well as lactose intolerance. For instance, on April 15, 2025, Jell-O, a Kraft Heinz’s brand offering the original gelatin dessert, launched JELL-O Oat Milk Chocolate Pudding, marking a step into the plant-based desserts category.
Pricing in the oat-based ingredients market is influenced by multiple factors such as raw material costs, processing methods, regional variations, supply chain logistics, and demand dynamics driven by health and sustainability trends. Below is a detailed breakdown of key pricing components:
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 142.0 Mn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 8.55% | 2032 Value Projection: | USD 252.2 Mn |
| Geographies covered: |
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| Companies covered: |
KELLOGG Company, Grain Millers, Inc., General Mills., Morning Foods, Abbott, Quaker Oats Company, Blue Lake Milling, RICHARDSON INTERNATIONAL LIMITED., Conagra Brands, Inc., Avena Foods Limited |
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*Definition- Oat-based ingredients consist of beta glucan, which enhances nutrition, taste, and texture in bakery & confectionery products. These ingredients are resources of protein, vitamins, iron, carbohydrates, and dietary fibers. Moreover, it is used for dry skin, blood pressure, cancer, and other health problems.
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About Author
Pankaj Poddar is a seasoned market research consultant with over 12 years of extensive experience in the fast-moving consumer goods (FMCG) and plastics material industries. He holds a Master’s degree in Business Administration with specialization in Marketing from Nirma University, one of India’s reputed institutions, which has equipped him with a solid foundation in strategic marketing and consumer behavior.
As a Senior Consultant at CMI for the past three years, he has been instrumental in harnessing his comprehensive understanding of market dynamics to provide our clients with actionable insights and strategic guidance. Throughout his career, He has developed a robust expertise in several key areas, including market estimation, competitive analysis, and the identification of emerging industry trends. His approach is grounded in a commitment to understanding client needs thoroughly and fostering collaborative relationships. His dedication to excellence and innovation solidifies his role as a trusted advisor in the ever-evolving landscape of not only FMCG but also chemicals and materials markets.
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