White Oats Processing. Profitable Business Opportunities in Oat Based Products.

White Oats Processing. Profitable Business Opportunities in Oat Based Products. Oatmeal Production.

Oats are a uniquely nutritious food as they contain an excellent lipid profile and high amounts of soluble fiber. However, an oat kernel is largely non-digestible and thus must be utilized in milled form to reap its nutritional benefits. Milling is made up of numerous steps, the most important being dehulling to expose the digestible groat, heat processing to inactivate enzymes that cause rancidity, and cutting, rolling or grinding to convert the groat into a product that can be used directly in oatmeal or can be used as a food ingredient in products such as bread, ready-to-eat breakfast cereals and snack bars. Oats can also be processed into oat bran and fiber to obtain high-fibrecontaining fractions that can be used in a variety of food products.

Oatmeal is a type of coarse flour made of hulled oat grains (groats) that have either been milled (ground), steel-cut, or rolled. Ground oats are also called white oats. Steel-cut oats are known as coarse oatmeal, Irish oatmeal or pinhead oats. Rolled oats can be either thick or thin, and may be categorized as old-fashioned, quick, or “instant”, depending on the cooking time, which is shortened by the size of the oats, precooking, and sometimes the addition of enzymes.

Oats are hardy annual grasses able to withstand poor soil conditions and are best adapted to areas with a cool, moist climate. Russia, the US, Finland, and Poland are the world’s major oat-producing countries. The plant grows to about 61 to 91 cm in height with straight, hollow, blade-like leaves. The flowers, which contain 2 or 3 florets, are clustered at the top of the plant. Oat grain grows enclosed in 2 hulls that protect it during development. It contains 3 main structures the bran, endosperm, and the germ.

Type of products:-

  • Flakes
  • Flour
  • Bran
  • Whole Oat Groats
  • Steel Cut Oats
  • Scottish Oats
  • Regular Rolled Oats
  • Quick Rolled Oats
  • Instant Oats
  • Others

Oat flakes are the most popular product type since they are consistently gaining popularity as a breakfast cereal.

Oats are grains from the cereal plant, Avena Sativa, and once harvested are processed for use in animal feed, skin products or food. For food use, oats are milled, steamed, heated and cooled in a kiln, which brings out the flavour. The oats are then rolled, cut or ground to produce flakes, oatmeal or flour.


Oats and oatmeal are used primarily as a food source. Use in celiac disease is debated. Benefits in dermatology, high cholesterol, heart conditions, and diabetes remain controversial. Oat bran and whole oats are used for high blood pressure high cholesterol diabetes and digestion problems including irritable bowel syndrome (IBS), diverticulosis, inflammatory bowel disease (IBD), diarrhea, and constipation. They are also used for preventing heart disease, gallstones, colon cancer, and stomach cancer.  Oats are most commonly used to lower cholesterol and reduce the risk of heart disease.

Oatmeal are cereal grains obtained from oat plant, commonly harvested for food, animal feed, and production of skin care products. Consumed as a breakfast cereal, oatmeal is enjoyed with fruits and nuts. Rich in vitamin & minerals, oatmeal comes with high in dietary fiber and low sodium content, to improve the nutritional intake of the body. Oatmeal contains starchy carbohydrates, which provide nutrition to the muscle and organs. The protein content of oatmeal is higher as compared to other cereals, which plays an important role in growth and tissue repair of the human body. Other health advantages of oatmeal include lower blood cholesterol and blood sugar, which help reduce the risk of heart diseases. Oatmeal is also used in production of variety of products, such as cakes, cookies, energy bars, and desserts.

Related Projects: – Cereal Processing (Rice, Dal, Pulses, Oat, Wheat)

Market Outlook

Oats are grains obtained from the Avena Sativa plant which belongs to the Poaceae family. They are consumed by humans in the form of oatmeal or rolled oats and are also used as an ingredient in animal feed. Although with the availability of low-cost substitutes, along with changing farming practices, the usage of oats as a feed grain has significantly declined over the past few years. On the contrary, the consumption of oats as a breakfast cereal and an ingredient in baked goods has witnessed a boost due to the presence of a variety of nutrients including vitamin E, essential fatty acids, soluble fibers and antioxidants. Oats also contain beta glucan which is a lipid-lowering agent and lignan that not only lowers unhealthy cholesterol levels and prevents heart diseases but also reduces the chances of hormone-related cancers.

Increasing awareness about the health benefits offered by oats has boosted their inclusion in healthy breakfast foods and snacks like granola bars, muesli, oats biscuits and oatmeal. The market is also being driven by the substantial growth in retail chains and online platforms in confluence with the easy availability of premium oat-based products. Moreover, the fast-paced lifestyle led by the working population has catalyzed the demand for ready-to-eat oats products. Apart from this, manufacturers are constantly expanding their product portfolio by introducing oat-based beverages and bakery products in the market. Similarly, they are launching unique flavors of oats and oat-based products, such as mint, masala and orange.

Top ten oats producing countries are Russia, Canada, Poland, Finland, Australia, United States, Spain, United Kingdom, Sweden, and Germany. The global production of oats in 2013 was 20.73 million metric tons. The output by the five major producers accounted for 51% of the global output. The United States, Germany and Mexico are the major consumers and importers of oats globally; the United States accounts for more than half of the market demand. Nevertheless, in 2014-15, the countries of European Union emerged as the major consumers of oats, globally. Russia is the largest producer of the crop, though it supplies only for its domestic consumption. Canada and Finland are the main exporters with a combined share of 70%. However, countries like Czech Republic and Sweden have emerged as the fastest growing exporters during the last five years. In the holistic trade scenario, Canada dominates the global market and the United States is the major trade partner for Canadian oats.

Global oats yields have been growing continuously despite the decline in breeding activities in North America and the European region. Privately-financed breeding activities have been limited, while domestic breeding activities turned out economically sound in the European countries. Additionally, in many producing countries, the use of certified oat seeds is limited. Strong environmental variation affects the breeding of higher and more stable oat grain. The issues related to finance and higher number of field trials have been deterring the efforts of oats seed breeding. With the application of innovative seed breeding techniques, the oats seed industry can be developed further in comparison to other arable crops.

The global oatmeal market was valued at $10,475 million in 2017, and is projected to reach $11,907 million by 2027, growing at a CAGR of 1.3% from 2018 to 2027. The instant oats type accounted for more than 40% of the global market in 2017.

By type, the market is bifurcated into whole oat groats, steel cut oats, Scottish oats, regular rolled oats, quick rolled oats, instant oats and others. The increase consumption of oats as a breakfast cereal in Asia-Pacific.

By distribution channel, the market is divided into hypermarket, supermarket, specialty retailers, convenience stores, independent retailers and others. Supermarket `has the highest CAGR throughout the analysis period due to the rapid urbanization across the globe.

Oat-Based Products:-

With changing lifestyles and the rising demands of consumers, companies are penetrating deeper into the oats market for the development of different types of oat products. Many companies are offering oat-based products such as granola bars, savories and snacks, oat cakes, bread and bakery products, oat-based drinks, and many other products. Also, the increasing awareness of the millennial population towards the negative impacts of food additives, chemicals, antibiotics, etc., on the health has led to the increasing demand for oat-based food products.


  • Food use
  • Feed use
  • Household
  • Commercial

Oats are extensively used in a wide variety of food products owing to their unique flavor and high nutritional value. Some of the common food products made from oats include porridge, bread, cookies, infant food and muesli.

Related books: – Food Processing, Food Industry, Processed Food, Cereal Food,

Key Players

Quaker Oats, General Mills, Kellogg, Nestl, Calbee, Treehouse Foods, Morning Foods, Associated British Foods, Grain Millers, Weetabix, Seamild, Narins Oatcakes, Viz Branz, Bagrrys India, Bagrry’s India Ltd.,

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