The global oat milk market size was valued at USD 2.89 billion in 2022. It is projected to reach USD 9.47 billion by 2031, growing at a CAGR of 14.1% during the forecast period (2023-2031). Factors like the growing popularity of the vegan diet and increasing awareness about the health benefits of oat milk drive market growth.
Oat milk refers to plant-based milk that is extracted from whole oat grains by the process of extraction of the plant material using water. It is a lactose-free, vegan drink made from liquefied oats, which are widely used as a milk replacement in coffee, tea, smoothies, and health drinks. Oats are easy to cultivate, which makes the product economical and widely available everywhere throughout the year. In addition to this, oat milk does not contain nutrients naturally, due to which nutrients, such as potassium, calcium, vitamin A, vitamin D, and iron, are artificially added. The growing awareness regarding the importance of health and wellness is resulting in increased adoption of oat milk among consumers. However, the availability of other kinds of plant-based milk in the market, such as soy and almond milk, hampers the growth of the market.
The increasing popularity of the vegan diet among consumers in the recent past is fueling the demand for alternative dairy beverages. The shift in consumer preferences toward plant-based milk, owing to health, environmental, and ethical factors, significantly contributes to the growth of the oat milk market. The rising awareness of animal rights and change in tastes and preferences of consumers toward plant-based beverages is mainly observed among consumers in the U.S. and Europe. In addition to this, an increase in the number of consumers suffering from lactose intolerance and milk allergy has led to an increase in the consumption of oat milk as it has a rich concentration of branched amino acids that helps in proper growth without triggering blood insulin levels and allows easy digestion.
One of the largest factors in the market for oat drinks continues to be the fact that these products are driven by clean labeling, among the numerous advantages offered by oat drinks. When a product has a clean label, it means it has no adulterations of any kind. The fact that the product is healthy and will benefit our health is of utmost importance. The demand for oat drinks is anticipated to rise during the projected period because they are uncommon goods that have clean labels.
Oat milk has a lot of sugar and might not be a good substitute for diabetics. This could pose a threat to the market for oat milk throughout the anticipated period of growth. Oat milk includes natural sugars, so even when it isn't sweetened, it might not be the best choice for someone trying to control their blood sugar levels.
The manufacturers' growing investment in R&D and the use of cutting-edge technology is one of the key factors driving the oat milk market. For instance, to enhance oat output, the Canadian government is supporting the use of integrated weed management tactics. In addition, many manufacturers have registered patents on some of the innovations produced by their R&D divisions. In order to produce a superior variety of oats, the technology attempts to combine contemporary phenotyping techniques with the expertise of genomics. Manufacturers like Oatly are looking for novel methods of milk extraction in an effort to establish distinctive selling points and set their products apart from the competition. High-quality raw materials are being bought directly from farmers by manufacturers, which makes the finished product more affordable and helps the market expand.
| Study Period | 2019-2031 | CAGR | 14.1% |
| Historical Period | 2019-2021 | Forecast Period | 2023-2031 |
| Base Year | 2022 | Base Year Market Size | USD 2.89 Billion |
| Forecast Year | 2031 | Forecast Year Market Size | USD 9.47 Billion |
| Largest Market | Europe | Fastest Growing Market | North America |
The global oat milk market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Europe region is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period on account of the increasing awareness regarding the health benefits of oat milk among consumers. In addition to this, the share of the region is expected to increase due to the frequent product innovations by several major players in the European market. Furthermore, the growing popularity and increasing consumption of plant-based beverages have propelled the demand for oat milk in the region. As per the Oldways Whole Grains Council, Europe is currently the largest oat producer in the world. Moreover, approximately 14% of consumers in European countries are lactose intolerant and believe in animal welfare, according to the Euro Group for Animals. As per the Vegan Society, the number of people identifying as vegans has increased by 350% compared to a decade ago in the U.K.
North America is expected to witness dynamic growth in the oat milk market during the forecast period due to the awareness of its high protein and nutritious value to consumers. The market for dairy substitutes in the area has expanded as a result of the high popularity of e-commerce portals as a selling medium. Oat milk consumption in North America is anticipated to increase as a result of an increase in cases of lactose intolerance and milk allergies. To appeal to a rising consumer base that is choosing plant-based products, regional food and beverage producers are adding dairy substitutes to their products, which is helping the industry grow even more.
Asia-Pacific is expected to witness significant growth in the oat milk market during the forecast period owing to the improved living standards of individuals, rising disposable income of the people, and increased acceptance of plant-based food and beverages. Furthermore, the increasing adoption of Western dietary patterns and industry players trying to capitalize on emerging fitness trends by introducing new products will augment the growth of the market in the region. The growing health consciousness among individuals is also a factor that is responsible for the shift in consumer preferences towards healthy products, such as oat milk.
The LAMEA region is expected to witness moderate growth in the global market during the forecast period. The exciting introduction of SAUDIA Oat Milk, the first locally manufactured oat-based milk in the Kingdom, is announced by Saudia Dairy and Foodstuff Company (SADAFCO). Health-conscious Saudi customers between the ages of 18 and 30 are increasingly looking into nutritious milk substitutes as sales of plant-based beverages surge around the world. Carbon-neutral oat milk producer "Nude" raised USD 5 million in series-A funding to expand throughout Latin America.
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The global oat milk market is segmented by source, product, packaging, and distribution channel.
Based on the source, the global market is bifurcated into organic and conventional.
The conventional segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period due to its strong market penetration on account of its affordability. In order to increase their market share, manufacturers are also introducing new items. For instance, The Coca-Cola Company introduced a new oat milk product under its Simply brand in April 2021 with a variety of tastes in an effort to draw in a sizable client base.
The organic segment is expected to witness a higher CAGR. This increased growth is linked to consumer health consciousness, a preference for items farmed without pesticides, and awareness of adulteration in traditional goods. Additionally, consumers are becoming more interested in organic oat milk due to the higher concentrations of antioxidants and dietary minerals in organic products compared to conventional alternatives.
Based on the product, the global market is bifurcated into plain and flavored.
The plain segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period owing to its different uses without any added flavor. Plain oat milk is widely used in coffee shops to prepare latte due to the creamy texture of the oat milk. In addition to this, an upsurge in demand and consumption of oat milk as an alternative to dairy milk is increasing its regular usage and is growing the demand for oat milk in the market.
The flavored segment is expected to grow at a significant rate due to consumer interest in the makers' selection of unusual and ethnic flavors. Customers are turning to flavored oat milk as a result of producers' push to offer a variety of distinctive flavors like hazelnut, mocha, coconut, and berries, supported by regular new product introductions. When it comes to selecting the right nutrients and flavor for their bodies, consumers have become more thoughtful.
Based on packaging, the global market is bifurcated into cartons and bottles.
The cartons segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. This is a result of the rising need for packaging options with high-quality and long shelf lives. Demand for the segment is also being driven by the growing popularity of Tetra Pak carton packaging, which is predominantly made of paperboard. Because of its lightweight characteristics and sustainability, carton packaging is receiving a major investment from a number of important organizations. The widespread use of carton packaging for oat milk is a result of a rise in global awareness about the environmental impact of paper-based cartons.
The bottle segment is expected to grow at a significant rate. Consumers are becoming more interested in eating and drinking while on the go. Manufacturers have responded by providing bottle packaging options for oat milk. To draw customers who desire convenience, manufacturers like Oatly provide a variety of oat milk products in bottles, driving the segment.
Based on the distribution channel, the global market is bifurcated into supermarkets & hypermarkets, grocery stores, and e-commerce.
The supermarket & hypermarket segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. This is due to an increase in visibility and attractive assortments of plant-based products to its consumers. The shelf organization helps in the easy convenience of buying the product by discovering new variety and understanding the labels to differentiate better among products. In addition to this, the supermarket and hypermarket chains are the most visited store for purchasing groceries, which is expected to propel the sales of oat milk in the market.
The e-commerce segment is expected to grow at a significant rate. Online sales of oat milk are increasing as a result of greater brand options, simple online purchasing, and easy access to items. Online sales of plant-based milk are anticipated to grow even more throughout the course of the projected period due to the industry's significant fragmentation and low customer loyalty. Specialty shops and department stores are included in the others sector. Oat milk sales through this channel benefited from the strong growth of specialty stores in both established and emerging nations due to their broad product selections in a single category, adaptable store designs, and product displays.
