Oat Milk Market Analysis

Global Oat Milk Market Overview

Oat Milk Market Size valued at USD 2.87 Billion in 2023. The Oat Milk industry is foreseen to rise from USD 3.30 Billion in 2024 to USD 8.79 Billion by 2032, exhibiting a compound yearly growth rate (CAGR) of 13.01% during the forecast years (2024 - 2032). Increased demand for plant-based alternatives driven by a growing awareness of health and environmental concerns are the key market drivers enhancing market growth.

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Oat Milk Market Trends

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  Growing demand for plant-based alternatives is driving the market growth

  
  

Market CAGR for oat milk is being driven by the rising demand for plant-based alternatives driven by a surging awareness of the health and environmental concerns. As individuals become more conscious of the impact of their dietary choices on personal well-being and the planet, they are actively seeking alternatives to traditional animal-based products. Oat milk, positioned as a plant-based, dairy-free option, has gained traction due to its perceived health benefits, including being lactose-free, low in saturated Fat, and often fortified with essential nutrients.

Moreover, the rising awareness of environmental sustainability has further propelled the popularity of oat milk. Consumers are increasingly cognizant of the environmental toll associated with conventional dairy farming, such as deforestation, water usage, and greenhouse gas emissions. Oat cultivation is comparatively more sustainable, requiring less water and producing fewer emissions. This aligns with the preferences of eco-conscious consumers who are willing to make choices that positively impact the planet. The versatility of oat milk in various culinary applications, including coffee, baking, and cooking, adds to its appeal, making it a viable substitute in a wide range of recipes. The marketing of oat milk as a wholesome, ethical, and planet-friendly choice taps into the broader cultural shift toward mindful consumption. Additionally, the prevalence of lactose intolerance and dairy allergies has driven consumers towards plant-based options, with oat milk emerging as a palatable and nutritious solution.

The oat milk market's growth is further facilitated by strategic marketing efforts by manufacturers, emphasizing the health benefits of oats, the absence of cholesterol, and the positive ecological footprint of oat milk production. The widespread availability of oat milk in mainstream grocery stores and cafes reflects a response to the burgeoning demand, making it more accessible to a broader consumer base. The endorsement of oat milk by influencers and celebrities on social media platforms has also played a role in popularizing the product. Investments in research and development have led to the introduction of innovative oat milk formulations catering to specific dietary preferences, like gluten-free or organic options. The evolving landscape of consumer preferences, coupled with the continual diversification of oat milk products, ensures a dynamic and responsive market. Thus driving the Oat Milk market revenue.

Oat Milk Market Segment Insights

Oat Milk Product Type Insights

The Oat Milk Market segmentation, based on product type, includes Regular/Full Fat and Reduced Fat. The regular/full-fat segment dominated the market, accounting for the largest market revenue due to its ability to mimic the creamy texture and richness of traditional dairy milk, offering a more indulgent experience for consumers. Many individuals seeking alternatives to dairy appreciate the familiarity and taste associated with full-fat options, making them a preferred choice in various culinary applications, including coffee and baking. The demand for a fuller flavor profile and a satisfying mouthfeel contributes to the dominance of regular/full-fat oat milk products in the market.

Oat Milk Flavor Insights

The Oat Milk Market segmentation, based on flavor, includes Natural and Flavored. The natural category dominates the market due to a consumer preference for clean-label products and an aversion to artificial additives. Oat milk manufacturers leveraging natural flavors can cater to the demand for authentic, wholesome taste experiences, aligning with the broader trend toward healthier and more transparent food choices. The use of natural flavorings enhances the overall appeal of oat milk as a natural and nutritious alternative, contributing to its dominance in the market.

Figure 1: Oat Milk Market, by Flavor, 2022 & 2032 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Oat Milk Format Insights

The Oat Milk Market segmentation, based on format, includes Shelf-Stable and Refrigerated. The shelf-stable category dominates the market due to its convenience and extended shelf life, providing consumers with a versatile and long-lasting option. This format eliminates the need for refrigeration, making it more accessible for storage and transportation, thereby widening distribution channels. The shelf-stable oat milk's durability aligns with busy, on-the-go lifestyles, allowing consumers to stock up on a non-perishable, plant-based alternative without concerns about spoilage. This dominance in the market reflects a strategic response to consumer preferences for both convenience and sustainability.

Oat Milk Regional Insights

By region, the study gives market insights into the North America, Europe, Asia-Pacific, and the Rest of the World. The North American Oat Milk market area dominates this market due to a robust demand driven by the region's health-conscious consumers seeking plant-based alternatives. The market growth is further fueled by a strong presence of major oat milk producers, effective marketing strategies, and an increasing awareness of environmental sustainability.

Further, the prime countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.

Figure 2: OAT MILK MARKET SHARE BY REGION 2022 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Oat Milk market accounts for the second-largest market share due to a surge in demand fueled by health-conscious consumers seeking sustainable and plant-based alternatives to traditional dairy products. Further, the German Oat Milk market held the largest market share, and the UK Oat Milk market was the fastest-growing market in European region.

The Asia-Pacific Oats Milk Market is expected to rise at the fastest CAGR from 2023 to 2032. This is due to a rising awareness of health and wellness, increasing lactose intolerance awareness, and a growing preference for plant-based and dairy-free alternatives among consumers. Moreover, China’s Oat Milk market held the largest market share, and the Indian Oat Milk market was the fastest-growing market in Asia-Pacific region.

Oat Milk Key Market Players & Competitive Insights

Leading market players are investing heavily in the research and development in order to expand their product lines, which will help the Oat Milk market, grow even more. Market players are also undertaking a variety of strategic activities to spread their global footprint, with important market developments including mergers and acquisitions, new product launches, contractual agreements, higher investments, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, Oat Milk industry must offer cost-effective items.

Manufacturing locally to minimize the operational costs is one of the key business tactics used by the manufacturers in the global Oat Milk industry to benefit the clients and increase the market sector. In recent years, the Oat Milk industry has offered some of the most significant advantages to health. Major players in the Oat Milk market, including PepsiCo, Danone, Oatly Group AB, Nestle SA, Lam Soon, Califia Farms, Donene SA, Urban Platter, Alpro, PureHarvest, and others, are trying to increase market demand by investing in the research and development operations.

PepsiCo is the multinational food and beverage company that stands as one of the world's largest and most recognizable corporations. Headquartered in Purchase, New York, the company's diverse portfolio includes a wide range of iconic brands, such as Pepsi, Mountain Dew, Lay's, Gatorade, Tropicana, and Quaker Oats. In September 2023, PepsiCo acquired Quaker Foods for $18 billion. Quaker Foods is a producer of oats and oat-based products, including oat milk. This acquisition is expected to help PepsiCo expand its portfolio of plant-based beverages and strengthen its position in the oat milk market.

Danone, a multinational food-products corporation headquartered in Paris, France, is a global leader in the dairy and plant-based product sectors. With a rich history dating back to 1919, Danone has evolved into a diversified company offering a wide range of products, including dairy, water, baby nutrition, and medical nutrition. Known for its commitment to health and sustainability, Danone places a strong emphasis on providing nutritious and sustainable food options to consumers. The company has a significant presence worldwide, operating in numerous countries and catering to diverse markets. In August 2023, Danone acquired Whitewave Foods for $12.5 billion. Whitewave Foods is a producer of dairy and plant-based beverages, including oat milk. This acquisition is expected to help Danone expand its global reach and gain a foothold in the growing oat milk segment.

Key Companies in the Oat Milk market includes

• PepsiCo


• Danone


• Oatly Group AB


• Nestle SA


• Lam Soon


• Califia Farms


• Donene SA


• Urban Platter


• Alpro


• PureHarvest

Oat Milk Industry Developments

October 2023: Califia Farms partnered with Starbucks to launch a new line of oat milk beverages exclusive to Starbucks stores. This partnership is expected to help Califia Farms expand its reach into the coffee and beverage channel.

September 2023: Elmhurst 1920 partnered with Whole Foods Market to develop a new line of organic oat milk products exclusive to Whole Foods Market stores. This partnership is expected to help Elmhurst 1920 expand its reach into the natural and organic grocery channel.

July 2023: Coca-Cola acquired a minority stake in Oatly, a Swedish producer of oat milk. This acquisition is expected to help Coca-Cola expand its portfolio of beverages and gain a foothold in the growing oat milk market.

Oat Milk Market Segmentation

Oat Milk Product Type Outlook

• Regular/Full Fat


• Reduced Fat

Oat Milk Flavor Outlook

• Natural


• Flavored

Oat Milk Format Outlook

• Shelf-Stable


• Refrigerated

Oat Milk Regional Outlook

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  North America

  
  
  
  
  • US
  
  
  • Canada
  
  
  
  


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  Europe

  
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific

  
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America