The future of oats: Global trends & opportunities for Australian oats

Oats are undergoing a global transformation, from a traditional feed grain to a high-value food ingredient aligned with health and sustainability trends. This Nuffield Scholarship explored global oat markets, production systems, consumer preferences and competitive dynamics to identify opportunities and risks for the Australian oat industry.

Australia produces over 1.5 million tonnes of oats annually, with Western Australia leading national production. Recent investment in breeding, agronomy, and market development, particularly through the Grains Research Development Corporation (GRDC), InterGrain and the Processed Oat Partnership (POP), has revitalised the industry, with improved genetics and increasing grower confidence.

Globally, demand for oats is being driven by health-conscious consumers. Countries like Canada, Chile, Sweden and Denmark are nations that are investing heavily in oat innovation, positioning themselves as leaders in food-grade oat production. Australia stacks up remarkably well in this space, with a unique and well-integrated system of research and development, product innovation and market development. To maintain this edge, the industry must continue strengthening international market relations and understanding and reacting to consumer trends to ensure innovation in the oat space. 

Key risks include market volatility, outdated pricing models and overreliance on China, which accounts for over 60% of Australian oat exports. Diversification into emerging markets such as India and the Middle East is essential, supported by organisations like the Australian Export Grains Innovation Centre (AEGIC) and Grains Australia. Strong customer relationships, like those built with some of our international customers within China, are critical to maintaining trust and long-term access.

Sustainability is another growing priority. Australia’s farming systems are well-aligned with global sustainability expectations, but benchmarking, data collection and proactive engagement in scheme design are needed to ensure credibility and relevance.

Opportunities also exist in gluten-free certification, alternative protein applications, and even cosmetics. With coordinated investment, clear messaging and grower engagement, Australia can build a resilient, high-value oat industry that meets evolving global needs.