The global oat milk market was valued at USD 3.67 billion in 2020 and is expected to grow at a CAGR of 9.9% during the forecast period. Factors such as the rising number of lactose intolerance cases and the increasing focus of customers on nutrition are boosting the industry. The shifting consumer focus toward nutrition-rich products and low-calorie diets is encouraging market players to develop new solutions.
Know more about this report: request for sample pages
In addition, the growing knowledge of the dietary benefits of oat milk, which is high in Vitamin B12 and calcium, has led to increased demand. The demand for oat milk has also increased during the epidemic due to customers' desire to strengthen their immune systems.
Food allergy affects 520 million people across the globe, according to the WHO report. In 2018, Food allergy was responsible for more than 150 deaths, and 2,000 hospitalizations in the U.S. Oats are gluten-free, and hence they are helpful for people who suffer from gluten sensitivity.
Globally, large numbers of people suffer from gluten insensitivity and in the U.S. alone, 6 to 7% is gluten-sensitive, which translates into 20 million people. This is shifting consumer’s focus towards hypoallergic, which will propel the growth of the global market in the coming years.
The emergence of the COVID-19 pandemic is expected to increase market growth, owing to the increasing use of packaged products. Since packaged products have more shelf life, consumers prefer these products to store them for an extended period. People are also becoming health conscious since the emergence of the pandemic, and this will further help the growth of the oat milk market.
The growth of the global market is driven by factors such as the increasing number of people allergic to lactose and gluten across the globe, along with the rising popularity of the vegan diet. The increasing awareness of health-conscious foods among consumers will further propel the growth of the global market for oat milk.
People following a vegan diet have seen a significant rise across the globe and consumers are avoiding animal-based products. This has increased the demand for plant-based products such as oat milk. According to the report from proceedings of the National academy of sciences of the United States of America (PNAS), the adoption of plant-based diets is expected to lower worldwide mortality by 6% by 2050. Oat milk is rich in proteins and contains 3 grams of protein in a 1-cup serving. These factors will contribute to the upward growth of the milk market.
Oat milk contains a low number of calories, and hence it will help reduce obesity which is responsible for developing many chronic diseases such as cardiovascular diseases (CVDs). CVDs affect more than 420 million people globally and are responsible for more deaths than any other illness. Oat milk has high concentrations of calcium, iron, potassium, and vitamin D. All these factors augment the growth of the global oat milk market.
Many new developments have been taking place in the global market in recent times. For instance, in May 2021, Bevry launched India’s First Oat Milk that comes in three flavors that include Original, Choc-O-Haze, and Vanilla Cinnamon. Coca-Cola launched a new oat milk product Simply Oat, under its Simply brand in 2021, which has expanded its plant-based beverages portfolio.
The market is primarily segmented on the basis of source, product, packaging, application, and region.
· North America (U.S., Canada)
· Europe (Germany, UK, Italy, France, Spain Austria, Netherlands)
· Asia Pacific (China, Japan, India, Indonesia, Malaysia, South Korea)
· Latin America (Brazil, Argentina, Mexico)
· Middle East & Africa (Israel, Saudi Arabia, South Africa, UAE)
Know more about this report: request for sample pages
The conventional oat milk segment dominated the market and generated the highest revenue in 2020. Oat milk prepared from conventionally procured oats is less expensive than its counterparts. The common usage in the production of industrial oat milk is vital factor that led to the increased revenue of the segment. In addition, growing consumer purchasing power, government initiatives, and improved living conditions further boosted the milk segment growth.
The organic milk segment is likely to grow at a high rate and this trend is expected to continue in the forecast years. The increasing popularity of vegan diets, the ability of the product to strengthen the immune system, and decreased risk of osteoporosis are factors driving the expansion of this segment.
The plain product segment dominated the market and generated the highest revenue in 2020, owing to its increased consumption. The recent growth in demand and utilization of plant milk as a substitute to dairy milk, mainly through the coffee shop chains, has boosted the industry.
Flavored products are expected to have the fastest growth rate in the coming years. Factors such as rising health concerns, expanding popularity of plant-based nutritional items, and increased consumer spending on cholesterol-free products are expected to drive demand for the segment in the future years.
The beverages application dominated the market and generated the highest revenue in 2020. Oat milk has high calcium and protein and is easily digestible, and hence is a popular ingredient in shakes and smoothies.
The food application segment is likely to grow at a high rate during the forecast period due to increasing use in functional food and bakery and confectionery items. The products are becoming popular among consumers to strengthen the immune system and reduce the risk of osteoporosis.
North America dominated the industry and generated the highest revenue in 2020. The segment is expected to maintain its dominance during the forecast period owing to its increasing use in ice cream and bakery products.
Increasing the introduction of new products and rising consumer awareness regarding the product's health benefits are expected to drive the growth. Since the U.S. has a high obese population, people are increasingly using plant-based low-calorie products such as oat milk which is expected to drive the growth of the market in the region.
The Asia Pacific is expected to be the fastest-growing region for the global market during the forecast period owing to a greater number of supermarkets opening in recent years and increasing consumer awareness of the health benefits of plant-based products in emerging economies such as China and India. Increased demand for the products, rising living standards, and the advent of new products will further fuel the market growth in the region.
Major players across the globe are investing in research and development to develop oat milk products with various flavors and compositions. Companies are also devising key strategies such as new product launches, funding, and acquisitions to expand their market reach across the globe. Some of the major players operating in the market include Oatly, Rise Brewing, Happy Planet Foods, Thrive Market, Califia Farms, PepsiCo, Elmhurst, Pacific Foods, and Danone.
Oat Milk Market Report Scope
Market size value in 2020
USD 3.67 billion
Revenue forecast in 2028
USD 7.66 billion
9.9% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million and CAGR from 2021 to 2028
By Source, By Product, By Packaging, By Application, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Oatly, Rise Brewing, Happy Planet Foods, Thrive Market, Califia Farms, PepsiCo, Elmhurst, Pacific Foods, and Danone