Marico has managed to outshine the PepsiCo-owned brand, Quaker Oats, by introducing a savoury twist to the otherwise sweet oat category.
Marico’s strategic move to add a local flair to oats by introducing a savoury version, a departure from the traditionally sweeter options consumed globally, has propelled Saffola to the top position in the category. According to Kantar, a marketing data and analytics company, Saffola now boasts a 42% market share by value, surpassing Quaker’s 34% share (as of MAT December 2022). Just a year ago, Quaker held the leading position with a value share of approximately 38%, while Saffola was at around 37%. (A moving annual total, or MAT, represents the total value of a variable over the preceding 12 months.)
Saffola Oats, available in both plain and masala versions, have expanded the concept of oat consumption “beyond breakfast,” offering it as a snacking option. In contrast, Quaker primarily focuses on oats as a breakfast menu item, as oats have historically been associated with morning meals.
Saugata Gupta, Marico’s MD & CEO, commented on this achievement, stating, “We are proud to have achieved this milestone and emerge as leaders in the oats category… Indians are uncompromising when it comes to taste. With this basic learning, we set out to Indianize oats by addressing the quintessential Indian taste preferences while seamlessly integrating the health benefits that it offers.”
Responding to the development, a spokesperson from PepsiCo said, “Quaker is a strong market leader in the oats breakfast cereals segment in India, driven by our 145 years of nutritional expertise. It is not comparable to selectively clubbing other segments that may have oats as an ingredient for calculating market share.”
The oats category is witnessing growth, with urban India experiencing a surge in penetration, increasing from 11% in MAT July 2020 to 17% in MAT July 2023, according to Kantar’s household penetration data. This category is broadly categorized into plain oats (11% penetration) and flavoured oats (8%). In this landscape, Saffola Oats leads with 11% penetration in MAT in July 2023, while Quaker Oats trails behind with 5%.
Marico has also introduced millets in its oats range as part of its strategy to offer “better for you” products. Other players in the approximately Rs. 500 crore oats category include Kellogg’s (with a share of under 10%), followed by Bagrry’s (2.5%), and Horlicks (under a percentage).