South Indian homes welcome oats to the family table

South Indian homes seem to have warmed up to oats at their breakfast table more than North Indians. According to a Nielsen report, though the consumption of oats across India is relatively low at 13 per cent, several markets in South India have lapped it up. Nielsen is a global provider of insights on what consumers watch and buy.

The study found that Chennai and Cochin had high penetration rates of the cereal at 37 per cent and 34 per cent, respectively. The study, which was conducted across 11 markets with a population of 10 lakh and above, found out that a large portion of the consumer base in North, East and West India were unaware of oats as a breakfast option.

While many consume the cereal as breakfast, in some areas it is also used in other preparations. “We found that the most popular form of oats consumption was porridge with milk. However, housewives have also tried including it with upma, idli, roti and dosa . In Kerala, for example, 49 per cent of families consume it for dinner,” the Nielsen study said.

According to Nielsen’s estimates, oats constitute 26 per cent of the Rs 720-crore breakfast cereals market and have grown by nearly 38 per cent over the last year. “The bulk of the growth has been organic and has come from consumers who don’t eat breakfast cereals,” it said. Talking about the category drivers, Dolly Jha, Executive Director, Nielsen India, said, “Consumers are shifting towards more health-conscious diet, and oats, with its benefits, falls well into that new diet. Besides convenience and health aspects, consuming oats is almost becoming a preventive measure.” The report added that about 54 per cent of households that consume oats said they don’t face health problems.

Key industry players that are battling it out in the oats market include PepsiCo’s Quaker, Marico’s Saffola Oats, Kellogg’s, Britannia, and GlaxoSmithKline’s Horlicks Oats. The report also added that tastier options were likely to fare better and flavoured oats have been the game changer. It indicates that there was a skew toward savoury (salty) oats in the flavoured segment. Anuj Chadha, Category Director, Quaker, PepsiCo India-Foods, said, “Oats is still a nascent category in India but the fastest growing within the breakfast category. However, India is a large country and any new category which involves behaviour change will take significant investments to build.”

He said as part of the company’s strategy to drive consumption and build local relevance, Quakers was expanding its product portfolio through offerings that were affordable and meet changing consumer needs. The company is betting big on flavoured oats such as Homestyle Masala and Lemony Veggie Mix, Strawberry with real Apple and Kesar with raisins.

Meenakshi.v@thehindu.co.in

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