Global Oat-based Beverage Market 2024-2031

Global Oat-based Beverage Market 2024-2031

Oat-Based Beverage Market Size, Share & Trends Analysis Report by Product Type (Plain/Original, and Flavored), and by Specialty (Gluten-Free, Dairy-Alternative, and Heart-Healthy) Forecast Period (2024-2031)

Oat-based beverage market is anticipated to grow at a CAGR of 8.3% during the forecast period (2024-2031). Oat-based beverages are plant-based beverages prepared using oats. They are simple to make and reasonably priced. This sort of beverage is nutritious and healthful, and it comes in various flavors. The growing consumption of plant-based beverages as an alternative to dairy milk is a key factor driving the global oat-based beverages market.

Market Dynamics

Growing demand to curb obesity

The prevalence of obesity has increased globally, due to changing consumer habits. According to the WHO, in 2022, 1 in 8 people in the world were living with obesity. In 2022, 43.0% of adults aged 18 years and over were overweight and 16.0% were living with obesity. Therefore, the growing demand of consumers for lower-fat beverages to reduce their weight is driving the growth of the global oat-based beverages market. Customers who are allergic to traditional dairy products or who want to reduce the quantity of saturated fats in their diet are frequently choosing oat milk, which is likely to drive global market growth.

Market Segmentation

Based on product type, the market is segmented into plain/original, and flavored.

Based on specialty, the market is segmented into gluten-free, dairy-alternative, and heart-healthy.

Plain/Original Sub-segment to Hold a Considerable Market Share

For producers of oat-based beverages, the plain/original product type created a substantial opportunity for revenue generation due to its market share. The capacity of plain/original products to serve as a genuine dairy substitute is the reason for their supremacy. Demand for this kind of product is increased by its versatility in recipes and drinks. Compared to flavored milk, plain oat milk is less processed and has less added sugars. As a result, the beverage helps satisfy customers searching for uncomplicated and pure ingredients. A plain beverage costs less than options for flavored oat milk. These satisfy the demands of consumers on a tight budget and looking for reasonably priced plant-based milk substitutes.

Regional Outlook

The global oat-based beverage market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Asia-Pacific countries have a rising demand for milk alternatives

Due to the high prevalence of lactose intolerance in China, there is a sizable market for dairy substitutes. The Chinese government is launching various programs to encourage a healthy diet.

Plant-based beverage companies are benefiting from a more hospitable climate as a result of numerous government bodies in the Asia-Pacific region lowering their dependency on dairy imports.

North America Holds Major Market Share

The high acceptance of plant-based diets across the region is a key factor aiding the regional market share. The region exhibits a high demand for lactose-free and dairy-alternative beverages, as individuals all over the nation become more health-conscious. As a result, the oat-based beverages market is growing in the US. Sales are being also supported by the established retail environment for oat-based beverages in the US. Traditional dairy corporations and creative start-ups will pose a serious threat to established oat-based beverage industries in North America.

Market Players Outlook

The major companies serving the global oat-based beverage market include Oatly AB, Califia Farms, Alpro, Pacific Foods of Orego, and Quaker Oats Company, among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive.