Oats Driving Breakfast Cereal Launches

DUIVEN, The NetherlandsDiven by their healthy image as a high-energy, whole-grain and heart-healthy food, oats are making a comeback as a go-to ingredient in the food industry, according to new data from market researcher Innova Market Insights.

And oats are becoming more popular in a whole range of bakery and cereal lines, including cereal bars, biscuits, cakes and even crumble toppings for desserts, breakfast cereals continue to be the key area of focus, accounting for nearly 40 percent of the 1,600-plus global launches of bakery and cereal products containing oats in the first six months of 2010.

According to Innova, more than 1,360 breakfast cereals were launched in the January to June 2010 period, and nearly 45 percent contained oats, although this covered all types of cereals using oats as a significant component, not just oat cereals. Cereal bars followed closely behind, with more than 40 percent of launches containing oats, while just 6 percent of bread launches contained oats.

Innova Market Insights Head of Research LuAnn Williams said the appeal of oats appears to be growing unimpeded and giving impetus to a relatively mature breakfast cereals market.

As the healthy image of oats has developed further in the wake of research about controlled energy release on top of growing awareness of the link between oats, cholesterol levels and heart health, the potential for further development seems considerable," she said. The additional benefit of a natural image has helped oats still further and aided the rising levels of demand in other sectors of the bakery and cereals market, including bread, biscuits, cereal bars and snacks, and ongoing high levels of activity in these and other product sectors seems inevitable."

The health benefits of oats traditionally have been associated with the hot cereals/porridge/oatmeal market, which has been moving forward via more convenient formats in recent years, including single-serve sachets and ready-to-heat pots, and via the use of added-value ingredients such as fruit and nuts.

Data also revealed a rising interest in cold oat-based cereals in the United Kingdom because they are perceived as more convenient to eat and more suitable for year-round consumption.