U.K. Oat Milk Market – Industry Trends and Forecast to 2029

Market Analysis and Insights

The increasing demand for lactose-free products as it is easy to digest coupled is a major growth factor for the U.K. oat milk market. The rising population of lactose intolerants is the major factor accelerating the growth of the U.K. oat milk market. Furthermore, increasing awareness about its benefits over other dairy counterparts is propelling the market. The high concentration of fiber in oat milk as compared to dairy milk and rising health consciousness are also expected to drive the growth of the oat milk market in the forecast period of 2022-2029. In addition, the prevalence of less number of manufacturers in the developing economies will create ample opportunities for the oat milk market in the above-mentioned forecast period.

However, high packaging maintenance is hindering the market. The easy availability of substitutes such as almond milk and coconut milk restrains the growth of the oat milk market. Also, disturbance in the supply chain due to the COVID-19 pandemic will challenge market growth in the forecast period of 2022-2029. Data Bridge Market Research analyses that the U.K. oat milk market will grow at a CAGR of 40.8% during the forecast period of 2022 to 2029.

Market Definition

Oat milk is a plant-based product made up of whole oat grain, as oat contains a high quantity of useful protein, fatty acids, and dietary fibers that are essential to keep up the healthiness. Oat milk is employed as a substitute for farm milk for vegetarian or lactose-intolerant individuals because it offers style and consistency similar to farm milk. Oat milk offers a decent supply of low-fat and cholesterol-free milk.

U.K. Oat Milk Market Dynamics

Drivers

• Increase in the vegan food market

The health consciousness of the consumer has been driving the food industry in recent years. The increased health awareness has resulted in increased demand for natural and organic food. This has been driving the growth of the vegan food market across regions.

For instance,

• Google search for 'veganism' has seen an increase of 580 percent over the last five years. Following image showcase the percentage change in 2019-20, which is large numbers turning into vegan

Such developments coming across the market will provide a wide range of options to the vegan population. And with the growth in the vegan population, the market for plant-based food and beverages will also increase. This, in turn, will also help drive the growth of the U.K. oat milk market.

• Increase in the number of lactose intolerant people

One of the most prevailing health problems among the U.K. population is lactose intolerance. Lactose intolerance is a digestive disorder that causes disability in the digestion of lactose present in animal-based milk.

For instance,

• According to WHO, reports in 2018 stated that 65% or more of the total human population are lactose intolerant, and there is a cow milk protein allergy that persists into adulthood
• According to European Dairy Association (EDA), it is shown that around 56% of the European population is suffering with lactose intolerance

As the awareness among consumers about what they eat and drink has increased, the lactose intolerant populace has been looking at a variety of dairy alternatives like oat milk. This increasing demand has given a positive boost to the market of oat milk in the U.K.

Opportunity

• Availability of a variety of flavors

U.K. oat milk market is significantly rising due to well-established market players such as Oatly, Alpro, Plenish, Oatsome, Minor Figures AU, Valsoia S.p.A., Planted, among others. Growing demand for oat milk in the U.K. is likely to provide huge opportunities for manufacturers to introduce a variety of flavors in the market. Consumers, especially young kids and millennials, have a special preference for the variety of flavors available in oat milk.

Restraint/Challenge

• High prices of oat milk in comparison to animal-based milk 

Due to high raw material prices, the price for oat milk is also higher in comparison to animal-based milk. Another reason for hiked prices of oat milk is that there are a series of processes involved in the production of oat milk which makes it more expensive. As lockdown was imposed across the country due to COVID-19, it also imposed on the import and export of goods, making the availability of raw materials for manufacturers difficult, which further increased the problems for oat milk manufacturers. Another reason for this hiked prices of oat milk is that due to the high prices of raw materials and the process involved, the initial investment is also high, which has resulted in only a few major market players, which in turn has made the oat milk a premium product.

The oat milk becomes less affordable to consumers, which makes it less preferable among the consumers. Due to this, the growth of oat milk may hamper in the U.K. market. 

Post COVID-19 Impact on U.K. Oat Milk Market

COVID-19 has affected the market to some extent due to the lockdown. The manufacturing process was halted as well as the demand from the end-users also decreased, which has affected the market. Post-COVID, the demand for U.K. oat milk is increased due to changes in purchasing patterns of consumers and a gradual shift towards increasing the demand for the U.K. oat milk market.

Recent Development

• In April 2022, Plenish launched new premium packaging for their plant-based milk, juices, and shots products. The new packaging showcases its ingredients through striking on-pack imagery and also introduces warm colors. The new packaging helped the company in attracting a large consumer base and eventually helped them gain more revenue
• In March 2022, Minor Figures planned to launch a new oat-based milk chilled range. The company won the listing for three existing SKUs from Tesco, U.K. largest grocer. The launch of the new product will be backed up by a national advertising campaign. This expansion helped the company in enhancing its product portfolio and gain a large consumer base
• In November 2021, Danone announced to transform its dairy facility to make mainly oat milk. The transformation will begin in 2022, and in 2023, Alpro will start producing oat milk in the new production facility. This transformation helped the company in increasing its production level to fulfill the growing demand of consumers

U.K. Oat Milk Market Scope

The U.K. oat milk market is segmented into product type, category, formulation, flavor, claim, fortification, packaging type, packaging size and distribution channel. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.

Product type

• Shelf stable oat milk
• Refrigerated oat milk

On the basis of product type, the U.K. oat milk market is segmented into refrigerated oat milk and shelf stable oat milk.

Category

• Conventional
• Organic

On the basis of category, the U.K. oat milk market is segmented into organic and conventional.

Formulation

• Unsweetened
• Sweetened

On the basis of formulation, the U.K. oat milk market is segmented into unsweetened and sweetened.

Flavor

• Unflavored/Original
• Flavored

On the basis of flavor, the U.K. oat milk market is segmented into unflavored/original and flavored.

Fortification

• Fortified
• Regular

On the basis of fortification, the U.K. oat milk market is segmented into regular and fortified.

Claim

• Regular/No claim
• Gluten free
• Nut free
• Artificial preservatives & color free
• Others

On the basis of the claim, the U.K. oat milk market is segmented into regular/no claim, gluten free, nut free, artificial preservatives & color free, and others.

Packaging Size

• 100 ML
• 110 ML
• 250 ML
• 500 ML
• 1000 ML
• More than 1000 ML

On the basis of packaging size, the U.K. oat milk market is segmented into less than 100 ml, 110 ml, 250 ml, 500 ml, 1000 ml, and more than 1000 ml.

Packaging Type

• Tetra Packs
• Bottles
• Can

On the basis of packaging type, the U.K. oat milk market is segmented into tetra packs, bottles, and can

Distribution Channel

• Store Based Retailers
• Non-Store Retailers

On the basis of distribution channel, the U.K. oat milk market is segmented into store based retailers and non-store retailers.

U.K. Oat Milk Market Regional Analysis/Insights

The U.K. oat milk market is analyzed, and market size insights and trends are provided by inclusion type, flavor, form, end user, source, application and distribution channel.

The country section of the report also provides individual market impacting factors and changes in regulations in the market that impact the current and future trends of the market. Data points, such as new and replacement sales, country demographics, disease epidemiology, and import-export tariffs, are some of the major pointers used to forecast the market scenario for individual countries. In addition, the presence and availability of global brands and their challenges faced due to high competition from local and domestic brands and the impact of sales channels are considered while providing forecast analysis of the country data.

Competitive Landscape and U.K. Oat Milk Market Share Analysis

The U.K. oat milk market competitive landscape provides details by the competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, U.K. presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus on the U.K. oat milk market.

Some of the major players operating in the U.K. oat milk market are Alpro, Plenish, OATSOME, Minor Figures, Planted, OATO, GLEBE FARM, RUDE HEALTH, OATLY, Valsoia S.p.A, among others.

Research Methodology

Data collection and base year analysis are done using data collection modules with large sample sizes. The market data is analyzed and estimated using market statistical and coherent models. In addition, market share analysis and key trend analysis are the major success factors in the market report. The key research methodology used by the DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market, and primary (industry expert) validation. Apart from this, data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Company Market Share Analysis, Standards of Measurement, U.K. Vs. Regional and Vendor Share Analysis. Please request an analyst call in case of further inquiry.

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