Oat Milk Market Expected to Reach $995.2 Million by 2027—Allied Market Research

According to a new report published by Allied Market Research, titled, “Oat Milk Market by Source, Flavor, Packaging Form, and Distribution Channel: Opportunity Analysis and Industry Forecast, 2021–2027,” the global oat milk market was valued at $360.5 million in 2019, and is projected to reach $995.3 million by 2027, registering a CAGR of 13.4% from 2021 to 2027. The market is expected to exhibit an incremental revenue oat milk market opportunity of $634.7 million from 2020 to 2027. The market growth is propelled by increase in number of consumers suffering from lactose intolerance & milk allergies, environmental concerns, and surge in prevalence of health issues associated with diet rich in cholesterol.

The number of consumers interested in reducing the amount of animal products in their diet for health, ethical, and environmental reasons has increased exponentially. Hence, the food & beverage industry players are responding by developing a wide range of plant‐based milk alternatives, such as oat milk. Furthermore, with rise in prevalence of lactose intolerance and milk allergy among consumers across worldwide, the demand for plant-based beverages, such as oat milk is expected to increase considerably in the near future. Moreover, in the recent years, food traceability has become an important aspect among consumers, as they care more about what they are eating and where their food is sourced. In addition, consumers demand for creativity and variety in their melas; hence, they are experimenting with new products and adding plant-based beverages to their diet, which, in turn, propels the growth of the oat milk market size. 

Owing to the outbreak of the COVID-19 pandemic, the demand for functional beverages as a result of growing consumer spending and health consciousness has experienced substantial demand. COVID-19 is expected to further boost the oat milk market growth at a much higher rate in the global market, owing to increase in awareness among consumers to strengthen their immune system to prevent themselves from being infected easily, which is compelling them to maintain a healthy lifestyle and proper diet. 

On the basis of source, the conventional oat milk category was the dominant segment in 2019 with 82.5% share. This was attributed to the fact that oat drink produced from conventionally sourced oats is relatively low priced as compared to its counterpart, and is largely used for industrial oat milk production. However, the organic segment is anticipated to grow at a faster rate during the forecast period, owing to factors such as increase in health consciousness among consumers, rise in consumer spending, and inclination toward non-GMO & pesticide-free grown materials. 

On the basis of flavor, the plain oat milk category was the dominant segment in 2019 with 62.3%  share, owing to the fact that plain oat is largely used in coffee shops such as Starbucks and Dunkin Donuts. In addition, increase in demand and consumption of plant milk as an alternative to dairy milk, especially through these coffee retail chains in the recent years, has led to the growth of the plain segment. However, the flavored oat milk segment is expected to grow at a higher CAGR during the oat milk market forecast period. 

On the basis of packaging form, the carton segment accounted for the maximum oat milk market share in 2019, as cartons provide longer shelf life to the product, incur lower transport costs, and are convenient & safer to use for consumers. Thus, owing to increase in preference and rise in consumption, the carton segment accounted for a higher value share in the global oat milk market. 

By distribution channel, the supermarket & hypermarket segment accounted for the maximum share in the global oat milk market in 2019. This is attributed to the fact that supermarkets & hypermarkets provide high visibility and attractive assortment of plant-based products to consumers. This enables them to discover new variety and understand the labels and differentiate better among products. Furthermore, supermarket chains are of the frequently visited stores for purchasing grocery items. Owing to this factor, the supermarket & hypermarket segment accounted for a higher value share in the oat milk market analysis.

Region wise, Europe was the prominent region for oat milk market in 2019, due to the tremendous popularity and substantial consumption of plant-based beverages in the region. Moreover, approximately 14% of the consumers in European countries are lactose intolerant and a much larger share believe in animal welfare. Hence, the trend of veganism is on rise in this region. Furthermore, plant-based diets have been a part of their culture for decades. However, Asia-Pacific is expected to witness a significant CAGR, owing to rapid demand and acceptance of plant-based food & beverages as a result of rise in consumer spending, presence of large population, and rise in health consciousness.  

Key findings of the study

• By source, the conventional segment was the highest contributor to the oat milk market, with $297.4 million in 2019, and is estimated to reach $804.1 million by 2027, at a CAGR of 13.1% during the forecast period.
• On the basis of flavor, the plain segment held the highest share, and is anticipated to grow at a notable CAGR during the forecast period.
• Depending on packaging form, the carton segment was the highest contributor to the market in 2019, and is estimated to reach $847.9 million by 2027, registering a CAGR of 13.6% during the forecast period.
• As per distribution channel, the supermarket & hypermarket segment was the highest contributor to the oat milk market, with $134.7 million in 2019. However, the online retail segment is anticipated to grow at the highest CAGR. 
• In 2019, Europe was the most prominent market; however, Asia-Pacific is expected to grow at a significant CAGR throughout the forecast period.

The key players operating in the oat milk industry include Califia Farms, LLC, Hain Celestial (Dream), Pacific Foods of Oregon, LLC. (Pacific Foods), Danone (Silk), HP HOOD LLC. (Plant Oat), Cereal Base Ceba AB (Oatly), Elmhurst Milked Direct LLC, RISE Brewing Co., Happy Planet Foods Inc., and Earths Own Food Company.