Oat Milk Market - Forecasts from 2024 to 2029

Oat Milk Market - Forecasts from 2024 to 2029

The oat milk market is expected to grow at a CAGR of 12.47% to reach US$1.705 billion by 2029, from US$0.749 billion in 2022.

Oat milk is a healthier substitute for milk in terms of being dairy-free and a more vegan-friendly alternative. Oat milk has been preferred by consumers intolerant to dairy products or who have similar allergies. It is naturally free of lactose, nuts, soy, and gluten if made from certified gluten-free oats.

Oat milk is a great substitute for milk for lactose-intolerant people. Recently, a major chunk of the population is experiencing deficiencies of B & D Vitamins (mainly B12 and D3), which are predominantly associated with monitoring stress & mood, and bone health, due to less exposure to sunlight and poor eating habits. Oat Milk is a rich source of Vitamin B and D and thus, gaining traction among the masses.

Additionally, the high fiber content in oat milk is linked to a healthier heart and a better digestive system which in turn leads to consumer awareness fueling the overall market growth. Furthermore, due to a lack of physical activity, cases of obesity are witnessing a surge and a focus is shifting toward fat-free milk products such as Oat milk. Oat milk is not being sold as a substitute but also as a raw material to prepare several other products like bakery products or beverages.

Oat Milk Market Trends:

The oat milk market is driven by a significant shift of consumers toward plant-based alternatives for a healthier lifestyle which has led to an increase in the demand for oat milk. This milk is made by soaking and blending steel-cut or rolled oats which are then strained by cheesecloth to separate the milk from the oats. It is enriched by nutrients like calcium, potassium, iron, and vitamins A and D as well.

The rapid pace of urbanization in the shopping industry has made the availability of the product easier for consumers and has led to a substantial increase in the sale of oat milk over the years. Oat milk is now available at several online stores and multiple hyper and supermarkets as well. It is now being used as a healthier alternative to dairy milk in multiple products like tea, smoothies, coffees, and other health-related drinks.

Oat Milk Market Drivers:

Increasing popularity amongst consumers is expected to influence oat milk market growth.

The increasing popularity amongst consumers of oat milk is due to the nutritional value provided by the product as compared to dairy milk. Some other health benefits from oat milk that are expected to drive the market during the forecast period are that it improves heart health and is great for bones. The milk consists of an appropriate amount of beta-glucans which is a soluble fibre and provides heart health benefits and thus is preferred by heart patients as it reduces blood cholesterol as well.
A significant shift of consumers towards a vegan diet is predicted to positively impact oat milk market growth.

It is projected that a notable movement in consumer dietary preferences in favor of plant-based substitutes, especially a sharp increase in the adoption of vegan diets, has a very favorable effect on the growth trajectory of the oat milk industry. Oat milk has become a popular option because of its creamy texture, nutritious makeup, and environmentally friendly production practices, as more customers look for dairy product substitutes for reasons related to health, ethics, and the environment.

Oat milk's adaptability to a wide range of culinary uses, such as smoothies, baked goods, and coffee drinks, adds to its appeal to customers looking for plant-based alternatives. Demand for dairy-free substitutes like oat milk has also been fueled by consumers' growing knowledge of lactose intolerance and dairy allergies.

As a result of changing human lifestyles across the globe, a slew of health-related issues is cropping up. Lactose tolerance has reduced among 65% (approx.) of the human population after infancy. Geographically, lactose intolerance is quite low in Northern Europe at about 5% due to their dependence on unfermented milk products whereas it is very common among people of East Asian descent with about 70 to 100 percent of people being affected by it (Source: National Library of Medicine).

Oat Milk Market Geography Outlook:

The North American region is anticipated to hold a significant share of the market.

Oat milk sales in North America have grown significantly in recent years due to several important causes. For instance, oat milk's growing appeal is a result of the growing consumer demand driven by ethical, environmental, and health concerns for plant-based substitutes for dairy products. Owing to its naturally creamy texture and neutral flavor, it may be used in a variety of culinary applications and is popular with a broad spectrum of customers, including those who are lactose intolerant, vegans, and health-conscious consumers.

Furthermore, customers are searching for more ecologically friendly substitutes due to increased awareness of sustainability concerns in the food business. Oat milk is particularly noteworthy due to its relatively low environmental effect when compared to typical dairy production. Additionally, by raising product exposure and accessibility, makers of oat milk have increased market growth through aggressive marketing efforts and smart collaborations with cafés, restaurants, and stores. In the near future, it is anticipated that the North American oat milk industry will continue to grow as consumer tastes continue to move in favor of plant-based solutions.

Key Developments:

In January 2024, the biggest and original oat drink business in the world, Oatly Group AB announced the statewide launch of two new beverage innovations in the US: Super Basic Oatmilk and Unsweetened Oatmilk.
In January 2023, the award-winning collection of dairy-free products from leading premium plant-based beverage company Califia Farms has been expanded with the introduction of USDA-certified Organic Oatmilk and Almondmilk. The firm created its newest products with just three basic ingredients—purified water, sea salt, and oats or almonds—and no oils or gums to satisfy the demands of customers looking for more affordable items without sacrificing quality.

Segmentation:

By Product
Plain
Flavored
By Packaging form
Carton
Bottle
By Source
Organic
Conventional
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Taiwan
Thailand
Indonesia
Others