Oat-based Snacks Market Size, Share & Trends Analysis Report By Product (Bakery and Bars, Savory), By Distribution Channel (Offline, Online), By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global oat-based snacks market size was valued at USD 17.47 billion in 2018 and is expected to expand at a CAGR of 4.3% during the forecast period. Rising preference for healthy and nutritious food, especially in developing countries such as India, China, Brazil, and Thailand is the key factor driving growth. Oats are a rich source of vital nutrients such as carbohydrates, vitamins, minerals, fiber, and antioxidants, which makes these snacks a healthy and nutritious food product, which is projected to drive the product demand.

Rising awareness regarding the high nutritional value of oat-based snacks is anticipated to fuel their demand over the forecast period. Oats promote metabolism and healthy weight loss, along with reducing the risk of cardiovascular diseases and diabetes. As a result, processed food and snacks manufacturers are shifting their focus to healthy ingredients such as oats. The changing eating habits coupled with the availability of innovative products is anticipated to fuel the market.

Rising health consciousness and awareness regarding the ingredients, additives, and preservatives used in snacks is anticipated to positively influence the product demand. Hence, various supermarkets, departmental stores, hypermarkets, and even e-commerce retailers have increased shelf space for oat-based snacks. In January 2018, HyperCITY, a subsidiary of Shoppers Stop and one of the largest supermarket chains in India, launched its e-commerce platform. Such initiatives are expected to promote healthy snacks.

High prevalence of chronic diseases such as obesity, diabetes, and cardiovascular diseases has fueled the demand for oats in daily meals as it is a rich source of beta-glucan - an essential soluble fiber for the human body. This helps lower bad cholesterol and blood sugar levels and boosts the good bacteria vital to improve the digestive system of the body. According to the Centers for Disease Control and Prevention and Control (CDC), in the U.S., around 95 million people above 30 years of age have total cholesterol levels higher than 200mg/dL. Increasing concerns over such high cholesterol levels are projected to promote the demand for healthy foods and snacks.

Product Insights

Oat-based bakery and bars held the largest market share of 71.8% in 2018 and is projected to expand at the fastest CAGR of a CAGR of over 4% from 2019 to 2025. Major manufacturers are adopting marketing strategies such as joint ventures and new product launches to expand their consumer base. For instance, in June 2017, General Mills and Nestlé agreed to a joint venture in Germany under the name Cereal Partners Deutschland (CPD). This joint venture will offer a range of cereal bars under the Nestlé brand. These bars have the nutritional values of oat flakes and wholegrain cereals and they do not contain artificial coloring or flavoring. These bars are available in three varieties, namely, almond seeds, pumpkin seeds, and crispy chocolate. Such new product launches are anticipated to propel the product segment over the forecast period.

Distribution Channel Insights

The online distribution channel is the fastest-growing segment with a CAGR of 4.6% from 2019 to 2025 owing to the convenience of shopping. Moreover, online platforms such as social media and google ads have played an important role in steering consumer preference toward e-commerce platforms, such as Walmart, Amazon, Auchan, Grofers, and Rakuten to purchase food products including oat-based snacks, Furthermore, increasing penetration of high-speed internet and smartphones is expected to fuel the segment growth. The online grocery business is booming in developing countries, such as India. Global e-commerce and retail companies including Walmart, Alibaba, and Amazon are investing in these countries to gain a competitive edge in the market.

The offline distribution channel held the largest market share of 75.5% in 2018. This distribution channel includes convenience stores, supermarkets, brand outlets, hypermarkets, unorganized retail, and direct selling. In developing countries such as India, Thailand, Bangladesh, and Taiwan, unorganized retail is one of the key distribution channels. Widespread network and consumer ease of shopping are some of the factors expected to fuel the offline sales of the oat-based snacks over the forecast period.

Regional Insights

Europe is the largest market for the oat snacks and it accounted for 33.5% of the global oat-based snacks market share in 2018. Major manufacturers including Nestlé, General Mills, and Kellogg are adopting various marketing strategies such as new product launches, product innovation, retail chain expansion, and mergers and acquisitions to gain a competitive edge in the market. For instance, in November 2018, Nestlé launched a new Oat Cheerios in U.K. The company offers the product under its breakfast cereal range. This new launch has increased the visibility of oat-based snacks.

Asia Pacific is expected to expand at the fastest CAGR of 4.6% from 2019 to 2025. Manufacturers are introducing innovative products to expand their product portfolio with oat-based products. For instance, in May 2018, Britannia Industries launched NutriChoice Oats Chocolate & Almond to cater to the rising demand for healthy snacks.

Oat-based Snacks Market Share Insights

The market is consolidated in nature owing to the presence of some strong players including General Mills, Kellogg, Mondelez International, Britannia Industries., and Quaker Oats Company that occupy the majority of the market share and innovation activities. The key manufacturers are also taking innovative steps to gain the maximum customer base as well as to lead the industry. For instance, in October 2017, Kellogg, one of the prominent breakfast cereal producers announced to launch of Kellogg’s Chocos Fills, a chocolate-based snack with oats, rice, and wheat as the primary ingredients.

Major players including General Mills, Kellogg, Mondelez International, Britannia Industries., and Nairn's Oatcakes are increasing their product visibility, especially in developed countries to expand the customer reach. The establishment of R&D centers for product innovation coupled with strategic partnerships with investment companies to launch new innovative products as per the customer demand is the critical success driver. The manufacturers are likely to focus on technology innovation catering particularly to developing countries and untapped markets to gain maximum share.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global oat-based snacks market report on the basis of product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2015 - 2025)

  • Oat-based Bakery and Bars

  • Oat-based Savory

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)

  • Offline

  • Online

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    •  The U.S.

  • Europe

    • U.K.

    • Germany

    •  France

  • Asia Pacific

    • China

    •  India

  • Central & South America

    •  Brazil

  • Middle East & Africa