The Global Oat Milk Market size is expected to reach $6.8 billion by 2031, rising at a market growth of 13.7% CAGR during the forecast period. In the year 2023, the market attained a volume of 536.34 kilo tonnes, experiencing a growth of 12.4% (2020-2023).
The growth of the oat milk market in India is significantly influenced by the rising Gross National Disposable Income (GNDI), which the Ministry of Statistics & Programme Implementation projects to be ₹236.07 lakh crore for 2021-2022. This marks a substantial increase from the ₹201.15 lakh crore estimated for 2020-21, reflecting a robust growth rate of 17.4%. This increase in disposable income is pivotal for several reasons, as it affects consumer spending patterns and the overall demand for health-oriented products like oat milk. Hence, in 2023, the Asia Pacific region generated nearly 1/4th revenue share in the market.
In terms of volume, 375.92 kilo tonnes of oat milk is expected to be utilized by the year 2031. Oat milk’s appeal lies in its creamy texture and versatility, making it suitable for various applications in beverages and food products. The rise of veganism and vegetarianism, especially among younger demographics, has further fuelled the demand for oat milk in countries such as Australia, New Zealand, and parts of Southeast Asia.
Growing concerns about climate change and environmental sustainability drive consumers toward plant-based diets. Oat milk has a lower environmental impact than dairy milk, as it requires less water and produces fewer greenhouse gas emissions. The ethical considerations surrounding animal welfare prompt many consumers to adopt vegan lifestyles. Oat milk aligns with these values as it is a plant-based product free from animal cruelty.
Additionally, the rise of plant-based diets, including veganism and flexitarianism, has increased the demand for dairy alternatives. Oat milk suits those looking to reduce or eliminate animal products from their diets. These products appeal to busy consumers seeking nutritious, portable options. In conclusion, rising consumer health consciousness and increased demand for oat milk in food and beverage applications propel the market's growth.
However, many oat milk producers are small to medium-sized companies that may not benefit from economies of scale. This lack of scale can result in higher production costs per unit, making it difficult to compete with larger dairy or alternative milk producers that can spread their costs across higher volumes. The initial costs can be prohibitive for smaller brands looking to scale up production to meet growing demand. These barriers can limit their ability to enter or expand the market effectively. This price sensitivity can pressure oat milk producers to lower their prices, impacting profitability. Hence, higher production costs and pricing pressure hamper the market's growth.
The growth of the oat milk market in India is significantly influenced by the rising Gross National Disposable Income (GNDI), which the Ministry of Statistics & Programme Implementation projects to be ₹236.07 lakh crore for 2021-2022. This marks a substantial increase from the ₹201.15 lakh crore estimated for 2020-21, reflecting a robust growth rate of 17.4%. This increase in disposable income is pivotal for several reasons, as it affects consumer spending patterns and the overall demand for health-oriented products like oat milk. Hence, in 2023, the Asia Pacific region generated nearly 1/4th revenue share in the market.
In terms of volume, 375.92 kilo tonnes of oat milk is expected to be utilized by the year 2031. Oat milk’s appeal lies in its creamy texture and versatility, making it suitable for various applications in beverages and food products. The rise of veganism and vegetarianism, especially among younger demographics, has further fuelled the demand for oat milk in countries such as Australia, New Zealand, and parts of Southeast Asia.
Growing concerns about climate change and environmental sustainability drive consumers toward plant-based diets. Oat milk has a lower environmental impact than dairy milk, as it requires less water and produces fewer greenhouse gas emissions. The ethical considerations surrounding animal welfare prompt many consumers to adopt vegan lifestyles. Oat milk aligns with these values as it is a plant-based product free from animal cruelty.
Additionally, the rise of plant-based diets, including veganism and flexitarianism, has increased the demand for dairy alternatives. Oat milk suits those looking to reduce or eliminate animal products from their diets. These products appeal to busy consumers seeking nutritious, portable options. In conclusion, rising consumer health consciousness and increased demand for oat milk in food and beverage applications propel the market's growth.
However, many oat milk producers are small to medium-sized companies that may not benefit from economies of scale. This lack of scale can result in higher production costs per unit, making it difficult to compete with larger dairy or alternative milk producers that can spread their costs across higher volumes. The initial costs can be prohibitive for smaller brands looking to scale up production to meet growing demand. These barriers can limit their ability to enter or expand the market effectively. This price sensitivity can pressure oat milk producers to lower their prices, impacting profitability. Hence, higher production costs and pricing pressure hamper the market's growth.
Driving and Restraining Factors
Drivers
- Rising Health Consciousness Among Consumers and The Shift Towards Veganism
- Increased Demand for Oat Milk in Food and Beverage Applications
- Increased Lactose Intolerance and Dairy Allergies in Populations
Restraints
- Limited Shelf Life Compared to Traditional Dairy Products
- Higher Production Costs and Pricing Pressure
Opportunities
- Influence Of Social Media and Celebrity Endorsements on Dietary Choices
- Investment In Research and Development to Enhance Oat Milk Production Techniques
Challenges
- Competition from Other Plant-Based Milk Alternatives
- Environmental Concerns Associated with Agriculture
Packaging Outlook
On the basis of packaging, the market is segmented into cartons, bottle, and other packaging. In 2023, the cartons segment attained 46% revenue share in the market. In terms of volume, 512.19 kilo tonnes of carton packaged oat milk is expected to be utilized by the year 2031. Cartons are widely favoured for their environmental benefits, as they are typically made from renewable resources such as paperboard and are fully recyclable. This aligns with the growing consumer awareness and demand for sustainable packaging solutions driven by increasing environmental concerns.Product Outlook
By product, the market is divided into flavored and plain. The flavored segment procured 43% revenue share in the market in 2023. In terms of volume, it is expected that 521.64 kilo tonnes of Flavored oat milk would be utilized by the year 2031. This segment caters to consumers who seek more variety and enhanced taste experiences, with options like vanilla, chocolate, and berry. The popularity of flavoured oat milk is driven by the increasing demand for ready-to-drink beverages that provide both nutrition and a pleasant taste. These flavoured options appeal to a wide range of taste preferences and dietary needs, making them a popular choice among consumers looking for both convenience and flavour in their plant-based milk.
Source Outlook
Based on source, the market is divided into conventional and organic. The organic segment attained 30% revenue share in the market in 2023. In terms of volume, 260.66 kilo tonnes of Organic oat mils is expected to be utilized by the year 2031. Rising consumer awareness about health and environmental issues has fuelled the demand for organic products, including oat milk. Organic oat milk appeals to consumers willing to pay a premium for healthier and more environmentally sustainable products. This segment’s growth is also supported by the increasing availability of organic options in supermarkets and health food stores and major brands' expansion of organic product lines.Distribution Channel Outlook
On the basis of distribution channel, the market is segmented into supermarkets & hypermarkets, convenience stores, online retail, and others. The convenience stores segment held 28% revenue share in the market in 2023. In terms of volume, 330.46 kilo tonnes of oat milk is expected to be sold through convenience stores by the year 2031. This growth can be attributed to the increasing demand for quick and convenient shopping experiences, particularly among urban consumers and busy professionals. Convenience stores are strategically located and offer a variety of oat milk products, catering to consumers who may not have the time or inclination to visit larger supermarkets.Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe region witnessed 39% revenue share in the oat milk market in 2023. In terms of volume, 414.56 kilo tonnes of oat milk would be utilized in this region by the year 2031.This can be attributed to several key factors driving the region's consumer demand for oat milk. Increasing health consciousness among consumers has led to a shift away from traditional dairy products toward plant-based alternatives. Oat milk, recognized for its creamy texture and nutritional benefits, has become a favoured choice among those seeking lactose-free and dairy-free options.List of Key Companies Profiled
- The Hain Celestial Group, Inc.
- PepsiCo, Inc.
- Danone S.A.
- Campbell Soup Company
- Califia Farms LLC
- Rise Brewing Co.
- Thrive Foods
- The Coca Cola Company
- HP Hood LLC
- Chobani LLC
Market Report Segmentation
By Source (Volume, Kilo Tonnes, USD Billion, 2020-2031)
- Conventional
- Organic
By Product (Volume, Kilo Tonnes, USD Billion, 2020-2031)
- Plain
- Flavored
By Distribution Channel (Volume, Kilo Tonnes, USD Billion, 2020-2031)
- Supermarket & Hypermarket
- Convenience Stores
- Online Retail
- Other Distribution Channels
By Packaging (Volume, Kilo Tonnes, USD Billion, 2020-2031)
- Cartons
- Bottle
- Other Packaging
By Geography (Volume, Kilo Tonnes, USD Billion, 2020-2031)
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Global Oat Milk Market by Source
Chapter 5. Global Oat Milk Market by Product
Chapter 6. Global Oat Milk Market by Distribution Channel
Chapter 7. Global Oat Milk Market by Packaging
Chapter 8. Global Oat Milk Market by Region
Chapter 9. Company Profiles
Companies Mentioned
- The Hain Celestial Group, Inc.
- PepsiCo, Inc.
- Danone S.A.
- Campbell Soup Company
- Califia Farms LLC
- Rise Brewing Co.
- Thrive Foods
- The Coca Cola Company
- HP Hood LLC
- Chobani LLC
Methodology
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