Oat Milk Market Size, Share, Industry, Forecast and outlook (2024-2031)

Oat Milk Market is segmented By Nature (Organic, Conventional), By Type (Flavored, Unflavored), By Packaging Form (Carton, Bottle, Others), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Sales, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Oat Milk Market Size

The Global Oat Milk Market reached US$ 3 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 6 billion by 2030. The market is growing at a CAGR of 9.8% during the forecast period 2024-2031.

The Global Oat Milk Market is experiencing significant growth, driven by the increasing demand for plant-based milk alternatives. It has witnessed substantial expansion, with many consumers adopting a plant-based lifestyle and seeking alternatives to traditional dairy products.

The Oat Milk Market is witnessing trends such as product innovation, with manufacturers introducing a wide range of flavored and fortified oat milk products to cater to diverse consumer preferences. Expanding distribution channels, including supermarkets, convenience stores, health food stores, and online platforms, contributes to the accessibility and visibility of oat milk products.

Oat Milk Market Scope

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Oat Milk Market Dynamics and Trends

Increasing Health Consciousness Among Consumers Drives the Market Growth

The oat milk market is witnessing more consumers seeking dairy-free options. Oat milk is preferred due to its mild flavor and versatile applications. Manufacturers and retailers also actively respond to consumer preferences with innovative oat milk products, leading to further market growth and availability.
For instance, in 2020, Califia Farms launched a long-life oat drink exclusively for customers in the U.K. market. The company aimed to motivate consumers to switch from dairy milk to decrease their environmental footprint and increase the penetration of its products in the country.

Environmental Sustainability of the Oat Milk Drives the Market Growth

As consumers become more conscious of their food choices' environmental impact, they seek sustainable alternatives. Oat milk stands out as a more environmentally friendly option than traditional dairy milk production. The market responds to this demand by emphasizing the eco-friendly aspects of oat milk in marketing campaigns and product labeling. Manufacturers highlighted the sustainable nature of oat milk production, attracting environmentally conscious consumers.

For instance 2020, SunOpta Inc. invested US$ 26 Million to establish a new manufacturing facility in Minnesota and the Alexandria plant in the USA. This expansion helped increase the production of oat bases used in ice creams and milk alternatives and meet the increasing consumer demand for oat milk in the USA.

Limited Availability of Raw Materials Hampers the Market Growth

The production of oat milk requires a sufficient supply of oats. Fluctuations in oat crop yields, weather conditions, and agricultural challenges can impact the availability and affordability of raw materials, potentially affecting the market's stability, which restrains market growth.

Oat Milk Market Segment Analysis

The Global Oat Milk Market is segmented based on nature, type, packaging form, distribution channel, and region.

Increased Demand for High-Quality and High-Shelf-Life Packaging Solutions

The cartons segment held the largest revenue share in 2022. This was due to the increasing demand for high-quality and high-shelf-life packaging solutions. The rising acceptance of Tetra Pak carton packages, manufactured primarily from paperboard, drove the need for the segment.

Several key players had significantly invested in carton packaging because of its lightweight properties and sustainability. An increase in global awareness regarding the sustainability of paper-based cartons has led to the high adoption of cartons packaging for oat milk. Manufacturers and suppliers had focused on creating packaging with attractive colors and unique designs to increase sales.

 
Source: DataM Intelligence Analysis (2023)

Oat Milk Market Geographical Share

Changing Consumer Preferences and Increasing Health Consciousness in Asia Pacific

Asia Pacific was the dominant global oat milk market region, holding a significant market share in 2022. The area witnessed robust growth in the oat milk market due to changing consumer preferences and increasing health consciousness. The market in Asia Pacific experienced a surge in demand for oat milk, driven by the growing awareness of its nutritional benefits and the rise in lactose intolerance cases.

Market players in the region capitalized on this trend by introducing various oat milk products to cater to diverse consumer needs. For instance, on February 23, 2023, Life Health Foods (India) Pvt. Ltd., a pioneer in the plant-based beverage segment, launched their new vegan drink, So Good Oat Unsweetened beverage - a dairy-free, plant-based milk.

The delicious So Good Oat beverage delivered what the brand promised - a healthy and versatile drink made right in India, adding incredible taste and creaminess to coffee, tea, baking, and smoothies.

Source: DataM Intelligence Analysis (2023)

Oat Milk Market Companiues

The major Global Oat Milk Market players include Danone S.A., Pacific Foods, Elmhurst Milked Direct LLC, Lima Foods Srl, Califia Farms, DuClaw Brewing Co., Chobani, Oatly AB, Oath Drinks, and Nestle S.A.

COVID-19 Impact on Oat Milk Market

The oat milk market faced disruptions in the supply chain due to lockdown measures, travel restrictions, and labor shortages. These challenges resulted in delays in raw material procurement, production, and distribution, leading to temporary supply shortages in some regions.

However, the pandemic led to a surge in demand for oat milk as consumers stocked up on non-perishable and plant-based food items. The perceived health benefits and longer shelf life of oat milk contributed to its popularity during the initial phases of the pandemic.

Artificial Intelligence Impact Analysis

Artificial Intelligence (AI) powered algorithms and machine learning models have enabled more accurate market analysis and prediction. Through data analysis and pattern recognition, AI algorithms can assess market trends, consumer preferences, and demand patterns, helping businesses make informed decisions and develop effective marketing strategies.
AI technology has improved supply chain management in the oat milk market. AI systems can optimize inventory management, streamline logistics, and reduce costs by analyzing real-time data. This improves efficiency, reduces waste, and enhances overall supply chain performance.

By Nature

• Organic
• Conventional

By Type

• Flavored
• Unflavored

By Packaging Form

• Carton
• Bottle
• Others

By Distribution Channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Sales
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In January 2022, Califia Farms launched Zero Sugar Oatmilk to meet the rising demand for low-sugar or low-calorie options. With this innovative product, the company aimed to capitalize on the evolving demand for plant-based beverages and offered a wide range of choices for plant-curious consumers.
• In May 2022, Oatly established a new distribution channel to meet the soaring demand for oat milk in Los Angeles and New York City. The company had partnered with REEF Kitchens for the timely delivery of its products.
• On April 30, 2021, The Coca-Cola Company expanded its plant-based portfolio with a new oat milk product launched under its Simply brand. The move came as the entire oat milk category surged to become the second most popular plant-based dairy alternative within just years of its inception, and recorded triple-digit sales growth.

Why Purchase the Report?

• To visualize the Global Oat Milk Market segmentation based on nature, type, packaging form, distribution channel, and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous oat milk market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Oat Milk Market Report Would Provide Approximately 69 Tables, 66 Figures And 135 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies