Oat Milk Market

In 2022, the Global Oat Milk Market was valued at USD 2.23 billion, and it is projected to grow steadily at a compound annual growth rate (CAGR) of 14.2% from 2023 to 2030. This expansion is primarily attributed to the increasing number of individuals adopting vegan lifestyles and health-conscious consumers who are seeking plant-based milk options that are rich in nutrients. Factors like lactose intolerance, allergies, and the popularity of low-cholesterol diets have prompted manufacturers to introduce various plant-based alternatives, benefiting the oat milk market. Oat milk addresses the demand for allergen-free options and provides numerous health advantages.

Notably, the influence of animal rights organizations and animal enthusiasts has brought about a shift in consumer behavior, favoring animal protection. As a result, a significant portion of consumers is transitioning to vegan diets, which is expected to drive the sales of oat milk in the coming years. In 2023, the United States secured the largest market share in North America. This can be attributed to the country's widespread adoption of plant-based food and beverages, the presence of prominent manufacturers, and the growing vegan consumer base, all contributing to oat milk's remarkable growth.

Companies such as Oatly are innovating their milk extraction processes to establish unique selling propositions and differentiate their products in the competitive market. By procuring high-quality raw materials directly from farmers, manufacturers are making the end product more cost-effective, positively impacting market growth. The prevailing trend towards high-protein consumption among consumers has further boosted the plant-based milk industry's expansion. The demand for protein-rich beverages has surged due to the population's increased focus on sports and fitness, likely driving oat milk demand in the forecast period.

Although the initial stages of the COVID-19 pandemic led to disruptions in supply chains and logistics, government support for essential products helped mitigate the impact on plant-based items like oat milk. The pandemic underscored the significance of nutrition for immune and overall health, prompting customers to make more health-conscious choices. Carbohydrates, fats, and sugary drinks were replaced with nutritionally balanced and nourishing alternatives, resulting in heightened demand for dairy-free options.

Source Insights

In 2023, the conventional source segment took the lead with a revenue share exceeding 70.0%, primarily due to its widespread presence in the global market driven by its cost-effectiveness. Moreover, manufacturers are introducing novel products to secure a larger market portion. As an illustration, in April 2021, The Coca-Cola Company unveiled a new range of oat milk products under its Simply brand, featuring various flavors aimed at appealing to a broad customer demographic.

On the other hand, the organic source segment is projected to experience a substantial compound annual growth rate (CAGR) from 2023 to 2030. This heightened growth is attributed to the growing consumer awareness about health, a preference for products grown without pesticides, and concerns regarding adulteration in conventional offerings. Furthermore, the increased levels of antioxidants and essential nutrients found in organic alternatives compared to their conventional counterparts are capturing consumers' interest in organic oat milk. Hence, the recognition of the health advantages linked to organic oat milk is anticipated to further propel market growth between 2023 and 2030.

Numerous regulatory bodies and organizations are lending support to farmers and non-governmental organizations (NGOs) in their transition to organic farming practices. Notable entities like IOFAM Organic International, USDA, and the National Organic Standard Board are playing a role in facilitating the production of organic goods, thereby fostering the expansion of the market throughout the forecast period.

Report Coverage & Deliverables

Product Insights

The plain product segment took the lead as the predominant category, commanding a share exceeding 55.0% in 2023. On the other hand, the flavored segment is poised to experience substantial growth at a notable compound annual growth rate (CAGR) throughout the projected period. This growth is attributed to the fact that flavored oat milk products are strategically designed to cater to both health-conscious and comfort-seeking consumers, effectively capturing their attention.

The market is witnessing an escalating demand for products that not only tantalize the taste buds and provide an indulgent experience but also offer health-enhancing properties. The allure of exotic and ethnic flavors offered by manufacturers has resulted in a noteworthy uptick in consumers opting for oat milk infused with various flavors. The concerted efforts of manufacturers to introduce unique options like hazelnut, mocha, coconut, and berries, accompanied by frequent new product releases, have successfully shifted consumer preferences towards flavored oat milk.

In the present landscape, consumers are demonstrating a heightened awareness when making choices related to both nutrition and flavor profiles. Furthermore, the inclination towards using alternative avenues for self-diagnosis and identifying specific health needs has spurred the demand for naturally flavored options. In light of these evolving consumer preferences, oat milk manufacturers are continuously engaged in research and innovation to cater to these demands, which in turn is expected to foster substantial market growth in the foreseeable future.

Packaging Insights

In 2023, the cartons segment secured the predominant portion of revenue, exceeding 45.0%. This prominence can be attributed to the escalating need for packaging solutions that provide both high quality and extended shelf life. Furthermore, the growing acceptance of Tetra Pak carton packages, primarily composed of paperboard, is a driving force behind the segment's popularity. Notably, several key industry players are making substantial investments in carton packaging due to its lightweight nature and environmentally friendly attributes. The heightened global consciousness regarding the sustainability of paper-based cartons has led to a substantial adoption of carton packaging for oat milk. To bolster sales, manufacturers and suppliers are concentrating on developing packaging adorned with appealing colors and distinctive designs.

Although the carton packaging for oat milk commands the lion's share of the market, it is projected that the bottle packaging segment will experience the most rapid expansion in the upcoming years. This surge is propelled by the increasing consumer demand for convenient on-the-go consumption of food and beverages. This shift has compelled manufacturers to introduce oat milk packaging solutions in the form of bottles. Industry leaders like Oatly are diversifying their oat milk offerings through bottle packaging to cater to the needs of customers seeking convenience, thus significantly propelling growth in this segment.

Distribution Channel Insights

The distribution channel landscape saw the supermarkets and hypermarkets segment take the lead, commanding a share of over 40.0% in 2023. This dominance can be attributed to global advancements in the retail sector, coupled with the availability of renowned international brands in these establishments, which is fostering an increased adoption of oat milk through these retail avenues. Notable grocery giants like Target, Lidl, Kroger, and Walmart are actively offering dairy alternatives like oat milk. The allure of annual memberships and bulk purchase discounts is anticipated to entice consumers towards hypermarkets and supermarkets, thereby amplifying oat milk sales throughout the projected period.

Concurrently, the online retail segment is poised to experience the swiftest growth over the forecast duration. The convenience of product accessibility, streamlined online transactions, and the growing array of brands available for selection are propelling the surge in online oat milk sales. Given the industry's pronounced fragmentation and a relatively lower degree of customer loyalty, the online platform is poised to observe an augmented share of plant-based milk sales during the forecast interval.

Furthermore, the 'others' segment encompasses specialty stores and departmental stores. The robust expansion of specialty stores, particularly in both developed and developing nations, is attributable to their comprehensive product offerings within a single category, flexible store formats, and appealing product displays. These factors are effectively drawing customers towards specialty stores, thereby fostering oat milk sales through this distribution channel.

Regional Insights

In 2023, the Asia Pacific region asserted its dominance in the oat milk market, commanding a revenue share exceeding 45.0%. This ascendancy can be attributed to the transformation in lifestyles, urbanization, and evolving dietary preferences within Asia Pacific, culminating in an escalated demand for nourishing foods. These factors are poised to act as drivers for the market's growth within the region. Furthermore, a positive perspective towards the plant-based milk sector, driven by the increasing prevalence of cardiovascular diseases and the popularity of weight management programs, is anticipated to further bolster market expansion within the region.

Over the forecast period, North America is projected to experience significant growth due to the considerable consumer awareness regarding oat milk's protein content and nutritional value. The proliferation of e-commerce platforms as prominent sales channels has significantly contributed to the advancement of the dairy alternatives market in this region. Moreover, the rise in cases of milk allergies and lactose intolerance among North American consumers is expected to drive the demand for oat milk. Responding to the growing base of consumers opting for plant-based choices, food and beverage manufacturers in the region are integrating dairy alternatives into their products, thereby stimulating the market's progression.

In the European context, the market exhibited notable strength in 2023, owing to heightened consumer demand for vegan and plant-based offerings. Manufacturers in the oat milk market are strategically targeting countries within the region to augment their market presence. A case in point is Califia Farms, which introduced a long-life oat drink exclusively tailored for the U.K. market in 2023. This strategic move aimed to inspire consumers to transition from dairy milk in order to reduce their environmental impact, thus increasing the adoption of their products in the country.

Key Companies & Market Share Insights

The sector exhibits a notable degree of fragmentation and is marked by fierce rivalry, wherein market participants, whether publicly traded or privately held, are prioritizing innovation as a means to uphold competitiveness. Major industry players are adopting a strategy of procuring premium-grade raw materials directly from farmers, aiming to provide customers with oat milk of exceptional quality. Moreover, these key entities are placing a strong emphasis on introducing novel products into the market, encompassing an array of flavors and user-friendly packaging, all geared towards captivating a substantial customer demographic.

In addition to these efforts, companies are actively diversifying their product portfolios, venturing into oat milk-based ice creams, yogurts, flavored beverages, and packaged coffee. This strategic move is anticipated to significantly enhance the demand for these products. Notable figures within the global oat milk market landscape encompass:

• Oatly
• Rise Brewing
• Thrive Market
• Happy Planet Foods
• Califia Farms
• The Coca-Cola Company
• Elmhurst
• Pacific Foods
• Danone
• HP Hood LLC

Segments Covered in the Report

The present document predicts an increase in revenue on a global scale, as well as within specific regions and countries. It also furnishes an examination of the most current trends and prospects within each of the sub-divisions from 2023 to 2030. In the pursuit of conducting this analysis, MarketDigits has stratified the comprehensive report on the worldwide oat milk market according to distinct categories, encompassing source, product variety, packaging, distribution channels, and geographical regions:

• Source Outlook (Revenue, USD Million, 2023 - 2030)
• Organic
• Conventional
• Product Outlook (Revenue, USD Million, 2023 - 2030)
• Plain
• Flavored
• Packaging Outlook (Revenue, USD Million, 2023 - 2030)
• Cartons
• Bottle
• Others
• Distribution Channel Outlook (Revenue, USD Million, 2023 - 2030)
• Supermarkets & Hypermarkets
• Convenience Stores
• Online Retail
• Others
• Regional Outlook (Revenue, USD Million, 2023 - 2030)
• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Spain
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
• Central & South America
  • Brazil
  • Argentina
• Middle East & Africa
  • South Africa