Oat Milk Market Size, Share, Analysis, Trends, Growth, Forecasts, 2032

Oat Milk Industry Prospective:

The global oat milk market size was worth around USD 5.64 billion in 2023 and is predicted to grow to around USD 12.86 billion by 2032 with a compound annual growth rate (CAGR) of roughly 9.60% between 2024 and 2032.

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Oat Milk Market: Overview

Oat milk is produced from plants. It is a popular alternative to traditionally consumed animal-based milk. Oat milk is classified as a vegan product and does not contain soy, lactose, dairy, and nuts. Oat milk available in the commercial market is produced using certified and gluten-free oats. According to market analysis, it is considered suitable for people who are allergic to gluten. Furthermore, certain studies also indicate that consuming oat milk on a regular basis may prove beneficial for the heart and bones. The growing popularity of plant-based milk and derivatives is fueling the demand for oat milk. One of the key factors fueling significant revenue in the industry is that oat milk can be produced at home for personal use. It requires mixing steel cut or rolled oats with cold water for a few seconds.

Placing a cheesecloth over a bottle followed by pouring the mixture on the cheesecloth thus effectively separating oats and the milk. During the forecast period, the oat milk industry is anticipated to generate significant growth revenue. Factors such as the increasing number of commercial sellers, changing consumer preferences, and the emergence of grocery delivery applications contribute heavily to the industry’s revenue rate. A major growth limitation for the industry is in the form of tough competition from other plant-based alternatives.

Key Insights:

• As per the analysis shared by our research analyst, the global oat milk market is estimated to grow annually at a CAGR of around 9.60% over the forecast period (2024-2032)
• In terms of revenue, the global oat milk market size was valued at around USD 5.64 billion in 2023 and is projected to reach USD 12.86 billion by 2032.
• The market is projected to grow at a significant rate due to the rising number of vegan populations worldwide.
• Based on the format, the shelf-stable segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the product type, the regular/full-fat segment is anticipated to command the largest market share
• Based on region, Europe is projected to dominate the global market during the forecast period.

Oat Milk Market: Growth Drivers

Rising vegan population worldwide will drive the market demand rate

The global oat milk market is projected to grow due to the growing number of vegan populations across the globe. According to market analysis, a vegan diet consists of only plant-based food products. People following vegan food norms refrain from consuming any edible item produced from animals including milk and dairy products. Over the last few years, several studies and research have been conducted to learn about the benefits of a vegan diet including oat milk. Several health and environmental benefits have been associated with consuming only plant-based food items.

For instance, a vegan diet is known to reduce the risk of coronary heart disease, obesity, and certain types of cancer. Oat milk, for instance, is known to improve bone health since it is a rich source of vitamins D and A. Moreover, it is considered heart-friendly since it assists in lowering cholesterol levels. 

Furthermore, oat milk does not contain dairy ingredients. Hence, it is ideal for people who have a low tolerance for dairy products or they are allergic to animal-based milk items. The surge in awareness regarding vegan diets is driven by several factors. One of the key reasons is the surge in the number of awareness activities through digital channels and platforms.

Digitization of the grocery delivery industry has been influential in prompting the industry’s growth revenue

The evolution of the grocery delivery industry has helped create more demand for oat milk. These applications are designed for the comfort of grocery buyers. They provide doorstep delivery in a limited time period along with several other advantages. For instance, most grocery delivery applications offer regular incentives, discounts, and a wide range of options to choose from. The global oat milk market players can benefit from the surge in investments in advancing grocery delivery platforms for improved customer support.

In November 2024, reports emerged suggesting that technology from Apple is expected to launch a new Artificial Intelligence (AI)-powered display that is expected to revolutionize the connected device market. According to official reports, the new technology will be equipped to order groceries for users along with other features. The introduction of delivery robots along with the integration of novel ways for supporting the supply chain of grocery items will be critical to the industry’s overall revenue in the long run.

Oat Milk Market: Restraints

High cost of oat milk and competition from alternate beverages limit the industry’s expansion period

The global industry for oat milk is expected to be restricted by the high cost of the product as compared to conventionally available animal-based milk. For instance, the price for one 32-ounce carton of oat milk may cost around USD 5 in the US while conventional milk may be priced at USD 3 depending on the overall supply chain and availability of the items.

Furthermore, the industry faces extreme consumer fragmentation due to the presence of several types of oat milk brands as well as alternate beverages. Some of the popular plant-based milk products include coconut milk, almond milk, hemp milk, and cashew milk. 

Oat Milk Market: Opportunities

Increasing introduction of a new range of products in diverse packaging to generate expansion possibilities

The global oat milk market is expected to generate growth opportunities due to the growing introduction of new products in the market. The addition of new oat milk beverages helps market players reach a broader audience group while also generating improved consumer awareness.

In January 2024, Oatly Group AB, one of the world’s largest and original oat drink producers, announced the launch of two new beverages in the US market. The company has launched Super Basic Oat Milk and Unsweetened Oat Milk. The two products are curated to deliver different nutritional values. For instance, the unsweetened version has 0 sugar content with only 40 calories per serving.  Super Basic Oatmilk, on the other hand, is made using only 4 ingredients that are sea salt, oats, water, and citrus zest fiber.

In August 2024, milkadamia, a pioneer in the macadamia nut milk industry, announced the expansion of its product portfolio. The company has launched Flat Pack Organic Oat Milk. It is printed sheets of oat milk thus effectively acting as the only flat-pack milk in the U.S. The novel packaging has helped the company reduce packaging waste by 94%.

Similarly, other nations including European countries and Asian regions are registering greater product innovation leading to a steady rise in revenue. The end-consumption of oat milk is further impacted by the increasing use of plant-based milk items in the production of chocolates, cakes, and other confectionery items.

Oat Milk Market: Challenges

Scalability is a major cause of concern for the industry players at present times

The global industry for oat milk is expected to be challenged by the complexities faced by industry players in scaling the production of oat milk. Traditionally consumed animal-based milk is produced in large volumes thus meeting global demand. On the other hand, the production rate for oat milk is highly limited with only select brands operational in the commercial market.

Oat Milk Market: Report Scope

Oat Milk Market: Segmentation

The global oat milk market is segmented based on format, flavor, product type, and region.

Based on the format, the global market segments are refrigerated and shelf-stable. In 2023, the highest growth was listed in the shelf-stable segment. These products traditionally have a longer shelf life and hence can be consumed over a longer period of time. Furthermore, these products are largely found in retail stores since they can be displayed until opened. The most common size for shelf-stable oat milk is 32 ounces. The refrigerated version is predominantly related to the oat milk cartons that are opened and must be consumed before their expiry date.

Based on flavor, the global oat milk industry is divided into flavored and natural.

Based on the product type, the global market is divided into reduced fat and regular/full fat. In 2023, the highest demand was listed in the regular/full-fat segment driven by higher preference for the product type among consumers. Additionally, during the projection period, the segment is expected to register a CAGR of more than 72% according to market research.Full-fat oat milk offers a creamier texture as compared to the other counterparts but regular oat milk is widely used in the preparation of coffee and tea.

Oat Milk Market: Regional Analysis

Europe to register the highest revenue during the forecast period

The global oat milk market will be led by Europe during the projection period. Germany, France, Italy, Spain, and other European countries are some of the largest regional market growth drivers. Germany is expected to grow at a CAGR of more than 4% during the projection period due to higher consumption of oat milk among the regional population. The rising number of vegan diet followers across Europe is promoting the demand for plant-based alternatives to milk and dairy products.

In 2023, more than 2.59 million people were reported to be following a vegan diet. The number is expected to continue increasing in the coming years and awareness around the advantages of veganism continues to rise. The region also has a massive presence of several influential players producing oat milk along with similar beverages.

For instance, the Swedish brand Oatly has managed to expand its presence across major economies including China. The demand for oat milk in Europe is significantly impacted by the growing inclination of the regional popular toward clean-label items and companies adopting sustainable business operations.

Oat Milk Market: Competitive Analysis

The global oat milk market is led by players like:

• Califia Farms
• Goodmylk
• Elmhurst 1925
• Chobani
• Laird Superfood
• Planet Oat
• So Delicious
• Minor Figures
• Oatsome
• Nestlé (Oat Well)
• Oatly
• Rude Health
• Sparq
• Silk
• Mooala

The global oat milk market is segmented as follows:

By Format

• Refrigerated
• Shelf-Stable

By Flavor

• Flavored
• Natural

By Product Type

• Reduced Fat
• Regular/Full Fat

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa