Oat products have seen increased new product development in the UK over the last 4 years. This is good news for oat farmers who could benefit from increased demand.

1. Oat Product Innovations
Grace Randall, Consumer Insight Analyst, March 2019
AHDB Retail and Consumer Insight Snapshot

2. Summary: Oat product innovations
Oat Performance
• Oats milled in the UK have
seen an increase every year
for the last 5 years
• An estimated 97% of oats
milled in the UK come from
British farms. So more
demand is good for oat
farmers
• Added-value oats have been
performing well
• Oat products are no longer
confined to the breakfast
occasion
Range Rationalisation
• The big 4 supermarkets
are rationalising ranges to
compete with discounters
• Range rationalising
means more competition
for space, meaning NPD
needs to stand out and
meet important consumer
needs
NPD
• 516 SKUs launched in the
UK from 2014 – 2018
• Not only in the food and
drinks category but also
in beauty and skincare
• Oat innovations are
focusing on the need for:
− Convenience/on-the-go
− Healthier alternatives
− Free-from alternatives
− High-protein alternatives
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Source: Oat performance – AHDB/Defra, NPD – Globaldata

3. In the future, NPD needs to stand out as ranges are rationalised
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According to a study by SCALA*, the UK’s biggest grocers are
reducing their product ranges to compete with discounters. Currently,
discounters stock keep 7,500 units compared with 30,000 for a
traditional supermarket. This simpler and more streamlined approach
is coupled with market share growth for discounters.
Range rationalisation has a big impact on NPD, making it harder for
new products to gain shelf distribution and shorter time frames to
prove themselves. Despite this, NPD is key for retailer success as
innovation is news for a consumer and typically higher priced.
Therefore, it is essential NPD stands out and meets consumer
needs.
Recent oat NPD has focused on:
• Convenience/on-the-go
• Quick and healthy snacking
• Healthier alternatives
• Free-from alternatives
• Higher-protein alternatives
• Low/ No added sugar
• More variety in flavours
*Source: https://www.kamcity.com/namnews/uk-and-ireland/supermarkets/leading-supermarkets-removing-product-lines-to-compete-with-discounters/

4. Oats milled in the UK for human consumption
450
460
470
480
490
500
510
520
530
540
550
2014 2015 2016 2017 2018
ThousandTonnes
Source: AHDB/Defra
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5. Established consumer trends in the UK
Peak Google searches for overnight oats
happen in January, with this year seeing the
highest levels yet. A healthy way to start your
day, and a breakfast that’s ready when you
wake up. Porridge oats layered with yoghurt
and left overnight. Often topped with
‘superfoods’ such as fruit, nuts and seeds.
Recent news stories have said 90% of
consumers in the UK aren’t eating enough fibre.
Whole grain and high fibre have been common
in breakfast cereals for years with many
on-pack claims. Could this news see these
claims increase on other foods such as snacks
or even drinks?
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Whole grains & fibre Overnight oats

6. New oat products in the UK
0
50
100
150
200
2014 2015 2016 2017 2018
SKUs
Source: GlobalData6

7. Around the worldBreakfast drinks based on dairy, oats and
flavours:
Ready to eat oat pots with yoghurt
Just add water porridge pots
Need: Convenience
On-the-go breakfast
48% of UK 25–34-year-olds eat breakfast at work at least once a week and 44% eat breakfast during their commute. (GlobalData Q3 2018). This
means on-the-go breakfast formats have to be transportable, ready to eat or require minimal prep.
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Right to left: Quaker
Oats, Nomadic Dairy,
Life Health Food,
Arla
Right to left: Perkier, Symington’s, Deliciously Ella
Right to left: Joy Bol Foods , Rachels
Dairy, Onken
Happy Healthy’s overnight oats
recently launched in the USA. All
the hard work already done with
ready-to-eat overnight oats. They
come in a range of flavours
including banana ginger, dragon
fruit berry and pumpkin pie.
Cereal bars and breakfast biscuits
Right to left:
Mondelez,
Kelloggs, General
Mills, Traybakes

8. Children’s snack
Snack bars and bites
Crisps
Need: Convenience
Quick and healthy snacking
The most popular time to snack is between lunch and dinner. Crisps are the second most popular snack. According to GlobalData's 2016 Q4 global
consumer survey, UK consumers feel that health/nutrition is very important (25%) or important (43%) when choosing products to snack on.
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Right to left: Protein Ball Co.,
Northumbrian Fine Foods
Right to left: Nairn’s, The Food Doctor,
Nature Delivered, Wessanen
Right to left: Nairn’s, Nairn’s, Walkers
Around the world
Metro Foods launched a range of
snack bars aimed at children in
Australia. Product health claims
are clearly highlighted on pack
with several free-from claims.
This appeals to parents who are
looking for healthy and easy
snacking options for children.

9. Breakfast cereal
Need: Healthier alternatives
Ancient grains trends
Ancient grains include oats, spelt, bulgur wheat, sorghum, pearly barley and many other grains. They are perceived by consumers as healthy and
appeal to those who agree that their food products choice is often (29%) or always (18%) influenced by how the product impacts their health and
wellbeing (GlobalData Q3 2016)
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Right to left:
Dorset Cereals,
Quaker Oats,
Spoon Cereals
Right to left:
The Food
Doctor,
Warburtons,
Waitrose,
Arden Fine
foods
Around the world
In Italy, Riso Gallo has launched a
cereal mix that includes a mix of
grains such as oats, rice, spelt
and barley. This mix aimed as a
savoury healthy carbohydrate
grain mix and an easy alternative
to traditional pasta or rice.

10. Breakfast cereal
SnacksGluten free pizza
Need: Dietary requirements
Gluten-free
Oats are gluten-free – so using them as a wheat substitute in everyday products could be a huge market. It is not only those with a gluten intolerance
who are buying these products. 25% of UK shoppers believe gluten has a negative impact on their health (GlobalData Q2 2015)
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Right to left: Wholecreations, Tesco
Top to bottom: Natural Balance
Foods, United Biscuits,
Northumbrian Fine Foods
Left to right:
Moma Foods,
Deliciously
Ella, Great
British
Porridge Co.
Around the world
Bowl formats have been popular
in main meals this year. German
brand Frau Ultrafrischs made the
jump to a gluten-free breakfast
bowl with a range of exciting
flavours, including turmeric and
almond; and banana and coconut.

11. High protein breakfastsOats based protein snacks Oats as a protein
powder base
Need: Dietary requirements
High-protein diets
In the UK, 74% of shoppers say that they are either trying to eat a moderate amount, or as much protein as possible (GlobalData Q3 2016). Oats can
appeal to this need for increased protein in a range of formats to suit all lifestyles.
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Top to bottom: Battle Oats,
Natural Balance Foods,
Fuel10K , Nature Delivered
Top to bottom: Quaker Oats,
Kelloggs
Top to bottom: PhD
Nutrition, Oatein
Around the world
Kraft Heinz Foods in the USA has
created a ‘protein and fiber plate’,
which contains oats, along with
dairy and meat products for an
on-the-go healthy snack. On-pack
claims include 15g of protein and
6g of fibre.

12. Low sugar cerealsOats based snacks Low sugar on-the-go
Need: Dietary requirements
Low/no added sugar
Breakfast cereals are one of the product categories tasked with cutting sugar by 20% by 2020. Consumers are also concerned about sugar, as
reflected by 50% of breakfast cereal eaters looking for low/no added sugar products, according to Mintel (Breakfast Cereals, UK, Aug 18)
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Top to bottom: Nibble group, Helsinki Heaven Oy,
Nestle Confectionery Top to bottom: Weetabix, Kelloggs
Top to bottom: Boka Food,
United Biscuits
Around the world
B-Live has launched a range of
oat-based biscuits in Spain that
claim to be sugar-free. Combined
with a range of other health claims
on pack, and packaging designed
to mimic a milk carton, they
position well to appeal to all ages
as a healthy snack.

13. Oat based alcoholOat milksOat milk used in flavoured drinks
Need: Drinks
Oat milk enjoyed a meteoric rise in volume sales in 2017 and have a strong health halo according to Mintel (Added Value in Dairy Drinks, Milk and
Cream, Apr 18) Not only can oats be used as a dairy substitute but in a range of soft and alcoholic drinks.
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Top to bottom:
Riise, Jimmy’s,
Delamere Dairy
Ltd Planted
Around the world
Craft beers have been growing in
popularity, and Bytow in Poland
has included flavours of oats in
their newest beverage. Adding
new or different flavours could
help stand out from the crowd in a
market where there is a lot of new
product development.Colonsay BeveragesInnocent

14. From more premium brands such as Elemis and Jo Malone to the more everyday Aveeno, oats and
oat milk have been used in an increasing number of beauty products. Known for their ‘soothing and
protecting properties’
Need: Skincare and beauty
Oats and oat milk have been used in an increasing number of beauty products. It is known for its ‘soothing and protecting properties’.
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Around the world
In the US, Johnson & Johnson
has expanded their Aveeno range
to include baby products. Meeting
the needs of new consumers
could bring new shoppers to the
brand, increase sales and drive
overall growth.Elemis, Johnson &
Johnson Aveeno, Jo
Malone

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