Oat Milk Market Size, Share & Trends Report

Oat Milk Market Size, Share & Trends Analysis Report By Product (Plain, Flavored), By Source (Organic, Conventional), By Application (Food, Beverages), By Region (Europe, APAC, North America), And Segment Forecasts, 2020 - 2027

  • Published Date: Jul, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-776-6
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 150

Report Overview

The global oat milk market size was estimated at USD 3.7 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 9.8% from 2020 to 2027. Rising consumer awareness about the advantages of oat milk, increasing popularity vegan diet, and rising cases of dairy milk allergies are likely to boost the product demand over the forecast period.

U.S. oat milk market size

Oat milk is a plant-based and lactose-free drink that is majorly used as a dairy milk alternative in tea, smoothies, coffee, and various health drinks as it is rich in iron, potassium, calcium, and vitamin D. Furthermore, oat milk also provides a substantial proportion of calcium and protein.

Intake of calcium in adequate amount reduces the chances of osteoporosis and also helps in muscle and nerve function, maintaining cardiovascular health. Such health benefits offered by oat milk increase its demand. Rising instances of lactose intolerance is also boosting product demand. In addition, owing to the Covid-19 pandemic, the sales is rapidly increasing.

Consumers are buying supplies in bulk due to lockdown in many major cities across the globe. Being shelf-stable, most of the oat milk brands can be stored for a longer duration than the other non-dairy milk products. Furthermore, oat milk has a smaller carbon footprint than other milk products, which is another major factor driving the industry growth.

Source Insights

The conventional segment accounted for the largest market share of over 71% in 2019 and will remain dominant throughout the forecast period. However, the organic source segment is expected to witness the fastest CAGR from 2020 to 2027 on account of increasing disposable income levels and growing consumer awareness about the health benefits of organic products.

Moreover, in recent years, large-scale retailers, such as Target and Walmart, have been responsive to increased demand for organic oat milk. Improved standards of living, initiatives taken by government associations, and growing purchasing power of consumers are driving the market in emerging countries, such as India, China, and Brazil. On the other hand, high price of organic oat milk products and lack of promotion is likely to hinder the segment growth.

Rising adoption of a vegan lifestyle on account of growing awareness about animal rights is expected to encourage product demand. Oat milk is widely used as an alternative to conventional milk due to its nutritional profile and neutral taste. Furthermore, its rich concentration of branched amino acids supports in proper growth without triggering blood insulin level.

Product Insights

The plain product segment accounted for the largest market share of over 68% in 2019 owing to higher product consumption. Based on the product, the market is categorized into plain and flavored. The flavored product segment is expected to register the fastest CAGR from 2020 to 2027. Factors, such as increasing health concerns coupled with the growing popularity of the plant-based nutritional products and surge in consumer demand for cholesterol-free products is projected to augment demand for flavored oat milk over the forecast period.

Moreover, major companies, such as Silk owned by Danone, Chobani, and OATLY, are innovating new flavors. For instance, Danone launched DHA omega-3 plant-based milk. The product is available in Unsweetened Vanilla and Original flavors that provide 32mg of DHA Omega-3, 6g of pea protein per serving, and 50% more calcium than traditional dairy milk.

Packaging Insights

Carton segment accounted for the largest share of 49.2% in 2019 owing to the growing demand for high-quality tetra packs and high shelf-life solutions. Moreover, the rising adoption of tetra pak carton packages, manufactured mainly using paperboard and definite layers of aluminum foil and polyethylene, is expected to increase the segment growth. Key players are spending heavily in carton packaging on account of its sustainability and lightweight property.

Additionally, innovations, such as UV protection and refrigeration compatible cartons, are driving the segment growth. Carton solutions are ideal for universities and schools as they are easy to stock, lightweight, and don’t add up to non-biodegradable waste. Thus, manufacturers are spending on several marketing programs to propose a modern packaging solution to target the young population.

To increase sales, manufacturers and suppliers are focusing on innovative and attractive packaging with catchy and bright colors. Though oat milk in carton packaging has a maximum share in the market, the bottles packaging segment is anticipated to experience the fastest growth over the coming years.

Application Insights

The beverages application led the market in 2019 accounting for a share of 43%. The segment will expand further at a steady growth rate during the forecast period. Oat milk is easily digestible and is rich in proteins and calcium, due to which it is widely used in the preparation of shakes and smoothies.

The food application segment is expected to register the maximum CAGR from 2020 to 2027 on account of the product’s compatibility with bakery and confectionery items. Consumers are rapidly adopting oat milk products in their diets to reinforce the immune system and diminish the risk of osteoporosis.

Global oat milk market share

The use of oat in the functional food category is receiving increased attention. Recent studies have shown that oat is a suitable substrate for the functionality of fermented products and several kinds of lactic acid bacteria, primarily yogurts that could be enhanced by the production of oat-based milk. Furthermore, increasing demand for lactose-free oat milk-based foods, such as desserts, ice-cream, cheesecakes, and other sweets, is expected to drive the segment growth over the forecast period.

Regional Insights

North America accounted for the largest share of 41.4% in 2019 and is expected to witness substantial growth owing to the increasing awareness among the consumer regarding the health benefits of oat milk along with a growing number of new product launches. The demand for plant-based foods in U.S. market is projected to increase rapidly, thereby supporting market growth.

Moreover, stringent labeling requirements in U.S. force market players to use natural flavoring products, which will further enhance the market growth. Asia Pacific is estimated to be the fastest-growing regional market on account of the high product demand and improved living standards. Oat milk is widely used in preparing ice creams and confectionery and bakery products as key players are trying to take advantage of emerging fitness trends.

Key Companies & Market Share Insights

The market is highly competitive with companies having less differentiation between their products. Numerous industry players are engaged in novel product development and stabling new manufacturing facilities. Key players are sourcing premium-quality raw material directly from farmers.

Industry players in the European region are using conventional techniques to extract oat milk to distinguish their product offerings and gain Unique Selling Points (USPs) in the domestic market. Key companies are also engaged in segment diversification and are launching oat milk-based ice creams, yogurts, flavored shakes, and packaged coffee, which is likely to boost product demand. Some of the prominent players in the global oat milk market include:

  • Pacific Food

  • Danone

  • PepsiCo

  • Elmhurst

  • Thrive Market

  • Califia Farms

  • Happy Planet Foods

  • Rise Brewing

  • Oatly

Oat Milk Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 4.0 billion

Volume size in 2020

415.3 Kilotons

Revenue forecast in 2027

USD 7.8 billion

Volume forecast in 2027

764.9 Kilotons

Growth Rate

CAGR of 9.8% from 2020 to 2027 (Revenue-based)

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in Kilotons, Revenue in USD million, and CAGR from 2020 to 2027

Report coverage

Volume forecast, revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Source, product, packaging, application, region

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Country scope

U.S., Canada, Mexico, U.K., Germany, France, Spain, China, Japan, India, Australia, Brazil, Argentina, and South Africa

Key companies profiled

Pacific Food; Danone PepsiCo; Elmhurst; Thrive Market; Califia Farms; Happy Planet Foods; Rise Brewing; and Oatly

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2020 to 2027. Grand View Research has segmented the global oat milk market report on the basis of source, product, packaging, application, and region:

  • Source Outlook (Volume, Kilotons, Revenue, USD Million, 2016 - 2027)

    • Organic

    • Conventional

  • Product Outlook (Volume, Kilotons, Revenue, USD Million, 2016 - 2027)

    • Plain

    • Flavored

  • Packaging Outlook (Volume, Kilotons, Revenue, USD Million, 2016 - 2027)

    • Cartons

    • Bottles

    • Others

  • Application Outlook (Volume, Kilotons, Revenue, USD Million, 2016 - 2027)

    • Food

    • Beverages

  • Regional Outlook (Volume, Kilotons, Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

      • Spain

    • Asia Pacific

      • China

      • India

      • Japan

      • Australia

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • South Africa

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