Oat milk is a popular alternative for animal-based milk, which is made from high fibre oats. Consumption of organic oat milk has been rising with increasing number of consumers inclining toward natural beverages that are free from synthetic chemicals. With increasing awareness regarding health and well-being, more and more consumers are seeking a healthy lifestyle and diet, which bodes well for to growth of the oat milk market, especially organic oat milk.

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Manufacturers have also started offering different flavors in organic oat milk. In established markets such as Europe and North America, consumers are more inclined toward the consumption of organic and natural plant-based food products. As such, the oat milk market is set to experience value growth around 7% CAGR over the next ten years.

Key Takeaways from Market Study

• The market in India and China is expected to surge at CAGRs of 10.7% and 10.6%, respectively, over the forecast period.
• In Europe, manufacturers are focusing on the production of organic oat milk owing, to rising consumer preference for value-added products, preferably with natural ingredients, organic, and other alternatives that are healthier.
• Organic oat milk is expected to exhibit significant value CAGR of 7.4%, owing to increasing demand for organic and natural food products across regions.
• The oat milk market in the U.S. is projected to expand at CAGR of close to 6% through 2030.
• Germany, France, and Russia account for a significant share of the market in Europe.
• Establishment of efficient distribution channels and supply chain management is facilitating the easy availability of oat milk. The online retail distribution channel is expected to witness growth of more than 9% CAGR through 2030.
• The spread of COVID-19 hampered manufacturing and supply chain management, which resulted in a slowdown in the production of oat milk and created a supply-demand gap. However, due to the pandemic situation, consumers are now more inclined toward health-beneficial and plant-based products, a trend that is expected to aid recovery of losses over the coming years.

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Market Competition

Oat milk manufacturers are focusing on the expansion and adoption of advanced processing technologies to increase production and fulfil rising demand across different regions. They are also focusing on online distribution channels to increase product penetration in different regions and attract more consumers.

• In 2019, Minor Figures secured US$ 7 Mn investment for the expansion of its distribution channel in the U.K.
• In 2019, Sanitarium expanded its portfolio by launching a new range of plant-based milk. The company launched the barista range, which includes plant-based milk such as oat, almond, and soy milk. This expansion enabled the company to diversify its product portfolio.

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