Global Oat Milk Market Segmentation, By Source (Organic and Conventional), Type (Flavoured, Unflavoured, and Others), Distribution Channel (Online and Offline), Application (Food and Beverages), Packaging (Carton, Bottle, and Others), Product Type (Regular/Full Fat and Reduced Fat), Format (Shelf-Stable and Refrigerated) – Industry Trends and Forecast to 2031
Oat Milk Market Analysis
The oat milk market is witnessing significant growth, driven by advancements in production technology and an increasing consumer preference for plant-based alternatives. The latest methods include enzymatic processes that enhance the extraction of oat proteins and fibers, resulting in smoother textures and improved nutritional profiles. These processes not only optimize the flavor but also increase the shelf life of oat milk products.
Technological advancements such as ultra-high temperature (UHT) processing are also being employed to extend shelf life without the need for preservatives, making oat milk more appealing to health-conscious consumers. In addition, innovations in packaging technology are enhancing product sustainability, with a shift towards recyclable materials that appeal to environmentally aware shoppers.
The usage of oat milk is expanding beyond traditional beverages to include applications in coffee shops, smoothies, and cooking, which broadens its market appeal. This growth is fueled by rising awareness of lactose intolerance and the environmental benefits of plant-based diets, positioning oat milk as a leading alternative in the dairy sector.
Oat Milk Market Size
The global oat milk market size was valued at USD 3.41 billion in 2023 and is projected to reach USD 10.54 billion by 2031, with a CAGR of 15.15% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.
Oat Milk Market Trends
“Rise of Clean Label Products”
One specific trend in the oat milk market is the growing consumer demand for clean label products. Consumers are increasingly seeking transparency regarding ingredients and production processes. Brands such as Oatly have responded by promoting their products as containing minimal ingredients, free from artificial additives and preservatives. This trend is not just limited to oat milk but is reshaping the entire dairy alternatives sector, where consumers prefer options that align with their health and sustainability values. For instance, in August 2024, Milkadamia introduced Flat Pack Organic Oat Milk, expanding its dairy-free offerings. This innovative product utilizes a groundbreaking 2D-printing technology to create oat milk sheets, significantly reducing packaging waste by an impressive 94% and the product's weight by 85%. This launch emphasizes Milkadamia’s commitment to sustainability while meeting consumer demands for convenient, eco-friendly alternatives in the dairy-free market.
Report Scope and Oat Milk Market Segmentation
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Attributes
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Oat Milk Key Market Insights
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Segments Covered
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Key Market Players
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PACIFIC FOODS OF OREGON, LLC. (U.S.), Oatly (Sweden), Califia Farms (U.S.), Danone (France), HP HOOD LLC (U.S.), PepsiCo (U.S.), HAPPY PLANET FOODS (Canada), Drinks Brokers Ltd (U.K.), Alpro (Belgium), The Quaker Oats Company (U.S.), Pureharvest (Australia), The Kraft Heinz Company (U.S.), Yili Industrial Group Company Limited (China), China Mengniu Dairy Company Limited (China), Mother Dairy Fruit & Vegetable Pvt. Ltd. (India), Nestlé (Switzerland), Fonterra Co-operative Group (New Zealand), Lactalis International (France), Dean Foods (U.S.), Hiland (U.S.), Umang Daries Pvt. Ltd. (India), DAIRY FARMERS OF AMERICA (U.S.), FrieslandCampina (Netherlands), LALA BRANDED PRODUCTS, LLC (U.S.), Oy Karl Fazer Ab (Finland), RISO SCOTTI S.p.A. (Italy), Elmhurst Milked Direct LLC (U.S.), and Rude Health (U.K.)
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Market Opportunities
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Value Added Data Infosets
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In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework
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Oat Milk Market Definition
Oat milk is a plant-based dairy alternative made from oats and water. It is produced by blending oats with water and then straining the mixture to remove solids. The resulting liquid is creamy, slightly sweet, and has a mild flavor, making it a popular choice for coffee, smoothies, and cereals. Oat milk is rich in vitamins, minerals, and fiber, and is often fortified with nutrients such as calcium and vitamin D. It’s naturally free from lactose, nuts, and soy, making it suitable for those with dietary restrictions. Its environmentally friendly production adds to its appeal among consumers seeking sustainable options.
Oat Milk Market Dynamics
Drivers
- Lactose Intolerance and Dairy Allergies
With approximately 68% of the global population experiencing some form of lactose intolerance, the demand for lactose-free alternatives is on the rise. Oat milk stands out as an excellent choice for those avoiding dairy due to lactose intolerance or allergies. For instance, a study indicated that 30% of adults in the U.S. avoid dairy products, with many opting for oat milk as a nutritious substitute. As consumers seek dairy-free options that don't trigger allergic reactions, oat milk’s creamy texture and flavor provide a satisfying alternative, significantly driving market growth and expanding its consumer base.
- Plant-Based Diet Trend
The growing shift toward plant-based diets is propelling demand for non-dairy milk options, with oat milk emerging as a standout choice. Suitable for vegan, vegetarian, and flexitarian lifestyles, oat milk caters to a broad range of dietary preferences. For instance, in September 2022, Elmhurst launched a reformulated version of its unsweetened Oat Milk, now boasting enhanced nutritional benefits. The new formulation includes increased levels of calcium, healthy fats, and potassium, positioning it as a superior dairy alternative. This reformulation reflects Elmhurst's commitment to delivering high-quality, nutritious products to consumers, meeting the rising demand for health-conscious options in the competitive dairy-free market.
Opportunities
- Versatility in Culinary Uses
Oat milk’s creamy, smooth texture and mild flavor make it a versatile ingredient, ideal for various culinary applications. In coffee, it froths well, offering a non-dairy option for lattes, while in baking, its consistency mimics that of cow’s milk, making it suitable for cookies, cakes, and bread. For instance, in June 2022, Elmhurst 1925 introduced three new products, including Chocolate Milked Oats and Unsweetened Milked Oats, available at all Whole Foods Market locations. This launch expands Elmhurst's diverse product range, catering to consumers seeking flavorful and nutritious dairy alternatives. By offering these innovative options, Elmhurst aims to enhance its market presence while appealing to a wide audience looking for quality oat-based products.
- Fitness and Lifestyle Trends
Fitness and lifestyle trends are fostering growth in the oat milk market as more athletes and health-conscious consumers seek nutritious, plant-based recovery options. Oat milk, rich in fiber and beta-glucans, provides a low-fat, cholesterol-free alternative to dairy, supporting muscle recovery and heart health post-exercise. For instance, in May 2022, Oatly Group launched a one-hour delivery service for its best-selling oat-based products, including oat milk and frozen non-dairy desserts, in Los Angeles and New York City. Utilizing popular food delivery apps, this initiative is designed to meet the growing demand for convenience in grocery shopping. The launch emphasizes Oatly’s commitment to accessibility and customer satisfaction in the rapidly evolving food delivery market.
Restraints/Challenges
- Taste and Texture Preferences
Taste and texture preferences present a notable challenge for the oat milk market. Many consumers are accustomed to the flavor and mouthfeel of traditional dairy, and oat milk’s distinct taste and often thicker consistency may not appeal to them. Furthermore, compared to alternatives such as almond or soy milk, oat milk can have a grainier texture that some find less enjoyable. These sensory differences create barriers to widespread acceptance, as consumers are hesitant to switch from familiar milk options. Such preferences limit market penetration, and despite increasing availability, convincing consumers to embrace oat milk over other plant-based and dairy options remains difficult, thus hindering growth.
- Competition from Other Alternatives
The oat milk market faces significant competition from other popular plant-based milk alternatives, including almond, soy, and coconut milk. These alternatives, each with distinct flavors, nutritional profiles, and consumer followings, contribute to a highly saturated market. Almond milk, for instance, remains a favorite among consumers seeking low-calorie options, while soy protein milk appeals to those prioritizing protein content. This diversity in plant-based options divides consumer preference, making it challenging for oat milk to dominate. Furthermore, the existing familiarity and popularity of these alternatives add resistance to oat milk adoption, hindering its growth and reducing its potential market share amidst the crowded plant-based milk landscape.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays
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Oat Milk Market Scope
The market is segmented on the basis of source, type, distribution channel, product type, format, application and packaging. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Source
- Organic
- Conventional
Type
- Flavoured
- Unflavoured
- Others
Distribution Channel
- Online
- Offline
Application
- Food
- Beverages
Packaging
- Carton
- Bottle
- Others
Product Type
- Regular/Full Fat
- Reduced Fat
Format
- Shelf-Stable
- Refrigerated
Oat Milk Market Regional Analysis
The market is analysed and market size insights and trends are provided by country, source, type, distribution channel, product type, format, application and packaging as referenced above.
The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA)
North America is expected to dominate the oat milk market, with continued growth driven by a surge in product launches catering to rising consumer demand for plant-based alternatives. This trend aligns with evolving health-conscious lifestyles, solidifying North America's lead through the forecast period.
Asia-Pacific is expected to show lucrative growth in the oat milk market, driven by rising consumer awareness of oat milk's health benefits. Increased veganism and lactose intolerance are also fueling demand, positioning the region as a significant contributor to market expansion.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Oat Milk Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Oat Milk Market Leaders Operating in the Market Are:
- PACIFIC FOODS OF OREGON, LLC. (U.S.)
- Oatly (Sweden)
- Califia Farms (U.S.)
- Danone (France)
- HP HOOD LLC (U.S.)
- PepsiCo (U.S.)
- HAPPY PLANET FOODS (Canada)
- Drinks Brokers Ltd (U.K.)
- Alpro (Belgium)
- The Quaker Oats Company (U.S.)
- Pureharvest (Australia)
- The Kraft Heinz Company (U.S.)
- Yili Industrial Group Company Limited (China)
- China Mengniu Dairy Company Limited (China)
- Mother Dairy Fruit & Vegetable Pvt. Ltd. (India)
- Nestlé (Switzerland)
- Fonterra Co-operative Group (New Zealand)
- Lactalis International (France)
- Dean Foods (U.S.)
- Hiland (U.S.)
- Umang Daries Pvt. Ltd. (India)
- DAIRY FARMERS OF AMERICA (U.S.)
- FrieslandCampina (Netherlands)
- LALA BRANDED PRODUCTS, LLC (U.S.)
- Oy Karl Fazer Ab (Finland)
- RISO SCOTTI S.p.A. (Italy)
- Elmhurst Milked Direct LLC (U.S.)
- Rude Health (U.K.)
Latest Developments in Oat Milk Market
- In May 2024, Nestlé Singapore launched OAT and ALMOND & OAT drinks, enhancing its portfolio of nutritious beverages. These new drinks are fortified with essential nutrients such as vitamins B2, B3, and D, along with calcium, catering to health-conscious consumers seeking dairy alternatives. The introduction of these beverages reflects Nestlé's strategy to address the growing demand for plant-based options while ensuring nutritional value and taste
- In January 2024, Oatly unveiled two new oat milk variants: Unsweetened Oatmilk and Super Basic Oatmilk. Both products are designed to offer enhanced nutritional benefits without sacrificing flavor. This launch aligns with Oatly's mission to provide delicious and nutritious dairy alternatives, appealing to consumers who prioritize health and taste. The introduction of these variants signifies Oatly's ongoing innovation in the oat milk segment
- In October 2023, Califia Farms announced a partnership with Starbucks to create a new line of oat milk beverages exclusively available at Starbucks locations. This collaboration aims to enhance Califia Farms' visibility in the coffee and beverage industry, tapping into the growing consumer interest in plant-based options. The initiative is expected to strengthen Califia's brand presence while providing Starbucks customers with innovative and tasty oat milk offerings
- In September 2023, Elmhurst 1920 formed a partnership with Whole Foods Market to launch a new line of exclusive organic oat milk products. This collaboration is designed to enhance Elmhurst's reach in the natural and organic grocery segment, catering to health-conscious consumers. By aligning with Whole Foods, Elmhurst aims to leverage the retailer’s strong market presence, providing customers with high-quality, organic oat milk options
- In July 2023, Coca-Cola announced the acquisition of a minority stake in Oatly, the prominent Swedish oat milk producer. This strategic investment is aimed at expanding Coca-Cola's beverage portfolio, allowing the company to tap into the rapidly growing oat milk market. The partnership is expected to enhance Oatly's resources and distribution capabilities, facilitating broader access to its innovative oat-based products
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