The global Oat Protein industry is estimated to be worth USD 53.9 million by 2024. It is projected to reach USD 80 million by 2034, reflecting a CAGR of 5.6% over the assessment period 2024 to 2034.
Protein is considered an essential macronutrient that is required to meet the nutritional needs of the body to support almost all of the bodily functions to maintain health and well-being. These are made of large chains of amino acids and among these 9 essential amino acids cannot be synthesized in the body.
To fulfil the requirement for these, proper diets rich in proteins are to be consumed in the form of foods and dietary supplements. One such source is “oat protein” which contains more SAA (Serum Amyloid A) and tryptophan than pea protein, more valine than soy protein, and more essential amino acids than wheat protein.
Oat is one of the most essentially cultivated cereal crops known to possess many nutrients and bioactive chemical compounds, beneficial for human food, animal feed, health care, and the cosmetics industry. The primary sources of protein usually include meat, pulses, nuts, tubers, and cereal-based staple foods.
However, according to the World Health Organisation, the rise in the production of livestock has still not met the required adequate consumption levels of proteins, especially in developing countries.
The bioavailable forms of protein from these sources are unable to meet the levels required for proper growth and development of the body. To cater to these requirements large companies have introduced several product ranges consisting of plant-based alternative proteins, with a specific focus on extraction of proteins from oat.
| Attributes | Description |
|---|---|
| Estimated Global Oat Protein Industry Size (2024E) | USD 53.9 million |
| Projected Global Oat Protein Industry Value (2034F) | USD 80 million |
| Value-based CAGR (2024 to 2034) | 5.6% |
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global Oat Protein Market.
This analysis reveals crucial shifts in performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 4.1% (2023 to 2033) |
| H2 | 4.4% (2023 to 2033) |
| H1 | 4.8% (2024 to 2034) |
| H2 | 5.1% (2024 to 2034) |
In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 4.1%, followed by a higher growth rate of 4.4% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase to 4.8% in the first half and remain considerably high at 5.1% in the second half.
Modifying the Use of Oat Beta Glucan to Promote the Health and Well-being
Beta Glucan is a type of soluble fiber found naturally in the endosperm cell wall of oat kernel. Several scientific researchers have conducted vast research on the functional and nutritional properties of oat beta-glucan which includes positive effects on cardiovascular health, immunomodulatory properties, and stabilizing blood sugar and cholesterol levels. The content of oat beta-glucan is greatly affected by the growing location, techniques, storage, and processing conditions.
As the global population continues to rise and consumption patterns evolve, the demand for plant-based nutrient sources is increasing. This trend is simultaneously accompanied by a heightened demand for better quality products with enhanced taste, texture, and flavours.
To fulfil these needs manufacturers are actively seeking innovative ways to source ingredients and formulations that satisfy consumer needs. Constant investment in research and development is underway to secure stable and high-quality oat products.
Tate & Lyle PLC has introduced a new product range known as PromOat Beta Glucan, highlighting its health and well-being benefits. This ingredient can also act as a texturant in a variety of foods and beverages, and as a thickener or stabilizer to create reduced-fat milk-based beverages.
The company also states that even the addition of oat beta-glucan to many products will be enough to cater to the consumer’s health benefit demands. Thus scientific studies have proven that oat beta-glucan is an essential component in oat protein, thus modifying these using various processing and extraction techniques will further lead to better sourcing of proteins.
Introduction of Hybrid Dairy Alternatives as Protein Source
Cow’s milk allergy is one of the most common allergies among the younger age group of consumers in developed and developing countries. It is often associated with ingestion or even severe anaphylactic reactions and is also said to impact the growth and development of the child.
This prevalence of increasing dairy allergy in many parts of the world has highlighted the need for plant-based non-dairy alternatives with protein content high enough to support the growth and development of children without any side effects.
Companies like Kerry Dairy Consumer Foods have introduced an innovative product line consisting of blended oat and dairy products, known as “Smug Dairy”. They introduced a range of milk, cheese, and butter alternatives, each containing a proportion of dairy and plant-based ingredients, as the presence of dairy in fewer quantities will not alleviate the allergic condition.
These plant-based non-dairy alternative products are greatly in demand from parents who are seeking vegan or hypoallergenic alternatives to replace the traditional sources of proteins. Its properties such as easy-to-digest, minimal additives, ease to incorporate in other food items, gentle flavour, and texture, propel the demand for oat protein alternatives.
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Global sales increased at a CAGR of 4.4% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on such products will rise at 5.1% CAGR.
Between 2019 and 2023, there was increasing concern regarding exposure to highly toxic agricultural chemicals due to the consumption of oats and oat products. The Environmental Working Group conducted a research study and detected “chlormequat” a pesticide used in oats. The presence of this pesticide was found in almost 92% of the oat-based foods. This pesticide is said to show toxicity in reproductive and development functions in animals and humans, thus raising concerns about its safety and consumption.
However, a significant shift in consumer preferences towards plant-based protein alternatives has started raising awareness about the benefits of products from oat protein and its positive impact on health.
Oats have been recognized for their multifunctional benefits since ancient times as they contain several bioactive compounds such as phenolic acids, sterols, avenacosides, and avenanthramides. These compounds are said to promote health benefits such as immunomodulation, improved gut environment, dermatitis, and also some forms of cancer.
Cargill Inc. has collaborated with biotechnology firms to enhance research and development, including extraction and processing techniques of oat proteins. They have made substantial investments in the establishment of new protein-focused centres with multifunctional customer experience areas, developed kitchens, and modern pilot plants.
They have successfully launched oat protein-based products backed by rigorous scientific investigations into their essential compounds and structures, thus satisfying the consumer's doubts and needs. During this period, the growing number of health-conscious consumers seeking plant-based alternatives with health-beneficial properties contributed to industry growth.
From 2024 to 2034, the sector is expected to accelerate due to several factors, including increased demand for the introduction of customized protein products, new formulations utilizing one or more plant-based ingredients, optimized product lines that address health concerns, and collaboration of new technologies.
Improved oats farming practices, with reduced use of pesticides and insecticides and better agricultural techniques, will further enhance the market for oat protein products. By incorporating more plant-based ingredients, such as herbs, Oat food nutrition technology will be advanced for both humans and animals, improving immune function and response rates against various diseases.
Additionally, addressing specific consumer groups such as fitness enthusiasts, the aging population, affordable and easy-to-consume products targeted for specific health concerns, and introduction of better cultivation techniques aligned with technological advancements, will help to reduce waste, promote overall health and well-being and also boost the hold of the manufacturers in this market.
Tier 1 Companies consist of Cargill Inc., ADM, Tate & Lyle PLC, Givaudan SA, Croda International PLC, Kerry Group PLC, DSM Nutritional Products, DuPont Nutrition & Biosciences, Ingredion Incorporated, and Lantmännen. These companies are referred to as the major players of the industry as they are fully established worldwide with majority shares of the business ecosystem. Tier 1 companies are the industry leaders who always lead the level of creativity, research, and development and most of the time are the trendsetters.
Kerry Group PLC, with its innovative ingredient formulations and effective global industry distribution, is the leading provider of sustainable oat protein products.
Tier 2 Companies are the regional players with adequate market coverage and are known for offering niche products. These include Cosucra Groupe Warcoing SA, AGT Food and Ingredients, Oatly AB, Fazer Mills, CropEnergies AG, and PureOats. They are typically more localized and address specific issues of more general ones.
BENEO GmbH is another example of this, performing well in Germany due to its innovative production technology to deliver food that includes increased dietary fiber, reduced sugar, and fats without compromising on the taste and texture of the products.
Tier 3 Companies are smaller players who are usually limited to the local or regional areas. They tend to service localized areas and do not possess the same level of R&D as bigger companies but are nonetheless helpful in satisfying local needs. These companies are smaller in size but still strong in their target industries due to their deep-seated innovations and customer service.
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The following table shows the estimated growth rates of the top three territories. USA and Germany are set to exhibit high consumption, recording CAGRs of 5.2% and 5.0%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| USA | 5.2% |
| India | 4.6% |
| Germany | 5.0% |
The majority of the consumers in the USA prefer better quality products with clean labelling and proper certifications. Oat protein has widespread popularity across various industries in the USA due to the addition of minimal additives, processing, gluten-free properties, and easy incorporation in many food and beverage products.
It is widely used across several industries such as cosmetics, healthcare, and pharmaceuticals which is expected to foster its market growth. Easy availability of oat protein products specific to consumer taste and preference is further expected to propel the demand for oat protein market globally.
Consumers are concerned about their health and are willing to spend on protein-rich supplements and ready-to-eat nutrition products which are expected to boost the sale of oat-protein products. The phytochemical profile, easy-to-digest, and health benefits properties have grabbed the attention of many fitness enthusiasts and health-conscious populations.
The expenditure and shift of the population towards plant-based alternatives are also influenced by environmental concerns. As oat proteins are considered a sustainably sourced alternative, which lowers the environmental impact, these factors are said to drive the market growth.
India consists of the largest vegetarian/vegan population in the world, which ultimately drives the demand for plant-based protein alternatives. Indian consumers are constantly looking for high-quality protein sources, with the incorporation of plant-based ingredients that align with their traditional food practices and also provide them with adequate nutrients for proper growth and development of the body.
Consumer awareness regarding the benefits of including oats in daily food consumption is expected to impact the demand for oat protein products. Entry of foreign brands offering diversified oat protein products in countries like India is expected to push the demand further. The urban population in India who have taken up the vegan culture are ready to splurge on vegan-friendly products due to their long-term health benefits.
Europe is said to hold a major share of the global oat protein market. The growing food and beverage industry in countries like Germany, Italy, and France is expected to push the demand for oat proteins globally.
The use of oat protein in animal feed, functional food products, non-dairy beverage alternatives, and health segments to prevent many diseases such as cardiovascular diseases, immune modulating diseases, and weight management, is very popular due to the proven scientific research reports. Especially the incorporation of oat protein in the cosmetic industry to produce various formulations targeting skin and aging benefits is said to grow the hold of the oat protein market.
A rise in consumer awareness regarding the benefits of protein intake and the availability of different plant protein-based products locally is expected to further push the demand for protein-based products.
| Segment | Form |
|---|---|
| Value Share (2024) | 14.5% |
The effects of plant-based food and supplement alternatives have been studied for a long time. With the growing population, it has become a challenge for the government and manufacturers worldwide to meet the demands of consumers while providing high-quality, sustainable, and healthy plant-based protein sources for consumption.
As animal sources of protein have raised environmental concerns and also exposed the risk of many diseases, consumer interest in plant-based alternatives has increased steadily. Functional food is one of the rising segments globally among the health-conscious population. Functional foods incorporated with extracted forms of plant-based protein are said to boost the growth of the oat protein market.
The most popular extracted form of oat protein is - concentrates and isolates. Oat protein concentrates are said to contain almost 70% of protein while the isolates may hold more than 90% of protein. These forms can be extracted by dry or wet methods.
The oat protein isolates can be produced using water or alkali extraction methods, which is followed by membrane filtration and drying. The oat proteins extracted using alkali are said to show better content of amino acids and functionality.
| Segment | Application |
|---|---|
| Value Share (2024) | 32.4% |
The consumer demand for protein in various types of forms is on the rise and is expected to grow significantly in a few years. Due to the constantly rising global population, who are declining to consume meat-based protein sources and gradually shifting towards plant-based alternative sources, the value of oat proteins is grabbing significant attention.
Oat as a source of protein is widely known due to many factors such as the absence of Anti-Nutritional Factors (ANPs), and the presence of high content of fibres, vitamins, and macro and micronutrients. It is considered a better option than other cereals as it is gluten-free, which makes it popular among consumers who are allergic to it.
Oats have been utilized worldwide for thousands of years due to their diverse applications. In the cosmetics and personal care industry, oat protein is used as an ingredient in hand and body creams to enhance moisture content, better hydration, and lipid balance properties.
These are also said to reduce inflammation, itching, redness, and inflammation, thus making them a very popular ingredient among women consumers. Oat proteins are utilized in animal feed due to their high fibre content, easy-to-digest ability, and balanced nutrient composition. These are considered an excellent feed for younger animals.
In recent times, oat protein has gained much more popularity, and its derivatives are now used in numerous products such as cosmetics, preservatives, functional foods, dietary supplements, and pharmaceuticals.
The Oat Protein Market is experiencing growth, with key players such as Cargill Inc., ADM, Givaudan SA, DSM Nutritional Products, DuPont Nutrition & Biosciences, Ingredion Incorporated, Kerry Group, Glanbia Nutritionals, Roquette Frères, Croda International, and Lantmännen who are making significant investments in research and development to enhance protein production techniques from oats.
These companies are committed to creating innovative, sustainable, and readily available food products to meet the trending market demand. They are focusing on manufacturing foods that promote overall health and well-being.
To boost their sales, manufacturers are employing various strategies, including the launch of innovative product lines, creative marketing, and strategic acquisitions. For instance, Tate & Lyle PLC based in the UK expanded its manufacturing facility in Sweden to cater to the growing needs of specialty food ingredients and solutions such as oat proteins.
They decided to move forward with the manufacturing process of local Swedish oats without using any chemicals. The ingredients produced included PromOat Beta Glucan and PrOatein Oat Protein, mainly used in the production of cereals, smoothies, nutrition shakes, and bars.
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As per form, the industry has been categorized into Isolates and Concentrates.
As per application, the industry has been categorized into Food and Beverages, Personal Care and Cosmetics, Dietary Supplements, and Others.
This segment is further categorized into Store-based retail (Supermarkets / Hypermarkets, Departmental Stores, Convenience Stores, and Specialty Stores), and Online Retail (Company Website, Third party website, Social Media Selling).
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
The global industry is estimated at a value of USD 53.9 million in 2024.
Sales increased at 4.7% CAGR between 2019 and 2023.
Some of the leaders in this industry include Cargill Inc., ADM, Tate & Lyle PLC, Oy Karl Fazer AB, Givaudan SA, Croda International PLC, Lantmännen, Harke Group, Ingredients by Nature, Avena Foods Limited, BENEO GmbH, PureOats, Roquette Frères, Avebe, Oterra, Axiom Foods, Inc., Glanbia PLC, Kerry Group PLC, Emsland Group, CropEnergies AG, Fazer Mills, Biovelop AB, Oatly AB, DSM Nutritional Products, DuPont Nutrition & Biosciences, Ingredion Incorporated, AGT Food and Ingredients, Cosucra Groupe
The European territory is projected to hold a revenue share of 29.4% over the forecast period.
The industry is projected to grow at a forecast CAGR of 5.6% from 2024 to 2034.
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