Quaker seeds digestive health growth in China with new oatmeal product

To meet rising consumer demand for functional foods and address growing concerns over digestive health, Quaker, a US cereal brand under PepsiCo, launched its first fermented instant oatmeal product in China, which the company said marked a crucial step for the company in reinforcing its commitment to local innovation while expanding the functional food sector.

Fermented oatmeal is made by processing oats with microbial fermentation technology, which enhances its nutritional value by breaking down complex macronutrients into smaller, more bioavailable molecules.

Quaker's new product combines "postbiotics" and "prebiotics" to support intestinal balance, a key benefit for consumers seeking healthier and more functional food options, said the company.

Evrim Sen, general manager of PepsiCo China, said the company is committed to offering a diverse product portfolio tailored to local consumer needs. "We bridge traditional dietary wisdom with modern innovation, bringing new health solutions to China's evolving food landscape," he said.

"True innovation is not about overturning tradition, it's about using modern technology to translate traditional wisdom, making it understandable, acceptable and even beloved by more people."

The new product comes in response to a growing awareness of digestive health in China. According to Euromonitor International's Global Consumer Trends for 2026 report, demand for natural, wholesome ingredients and interest in spiritual therapies are on the rise. Breakfast cereals are seeing demand shaped by such consumer health awareness, which is boosting sales of hot cereals, but having a negative impact in areas such as muesli and granola.

The breakfast cereals market in China has been growing in recent years, rising from 9.55 billion yuan ($1.35 billion) in 2022 to 10.14 billion yuan in 2024, with a forecast to reach 10.87 billion yuan in 2028, said the report.

As Chinese consumers' expectations for their diets increase, demand for foods that offer more than just basic nutrition is also on the rise. Today's consumers want food products that not only satisfy hunger but also deliver functional health benefits.

Quaker's fermented oatmeal addresses this gap by enhancing the nutritional and functional profile of oats, said the company. After three years of development, the company introduced a proprietary fermentation process, using a blend of five probiotics to ferment oat flour in a 24-hour controlled environment. The result, dubbed "Fiber Q Ultra", combines prebiotics from the oats and postbiotics from fermentation to offer a superior product.

"Much like how milk becomes yogurt through fermentation, our fermented oats undergo a similar transformation, resulting in enhanced nutritional value and flavor," said Jason Yang, senior director of product development at PepsiCo Asia R&D Center.

Leyla Boumghar-Bourtchai, vice-president of the center, cited the company's evolution in China over the past 40 years, saying: "PepsiCo initially introduced global products to China. Today, we are deeply rooted in local innovation, blending Chinese dietary traditions with modern technology to create global solutions for the snack and food industry."

PepsiCo's localized innovations have received positive responses locally, with products like Lay's Cucumber Chips and Purple Sweet Potato Chips, which incorporate locally sourced ingredients.

Quaker's "5 Series" is another example and is inspired by the traditional Chinese medical theories. The series has been a hit in China and is now expanding into Southeast Asia, where it is one of the fastest-growing segments in the instant oatmeal category.

Additionally, the company has demonstrated agility in responding to cultural trends. For instance, when the "Zibo Barbecue" craze took off in 2023, PepsiCo's research and development team quickly developed and launched Lay's Zibo Barbecue Flavor Potato Chips within two months.

"We aim to leverage Eastern wisdom to create new opportunities for the global market, driving innovation with a strategy of 'In China, for the world'," Boumghar-Bourtchai said.