Oat Based Beverages Market size is likely to witness exponential growth over 2021-2027, considering the shifting preference from dairy milk to plant-based alternatives including oat milk. In addition, increasing awareness about the health benefits of beta-glucans found in oats will further present lucrative opportunities for industry growth in the years ahead.
An oat-based beverage refers to an extremely versatile, dairy-free drink with several formulation possibilities, allowing manufacturers to target customers with a range of distinct product profiles. This type of beverage can be formulated with clean-label varieties, blended with milk, enriched with vitamins and calcium, and additional stabilizers to meet the distinct needs of customers. The dairy-free substitute has been rapidly gaining popularity over the years due to its excellent nutritional value, as it provides more vitamin B-2 and riboflavin.
Escalating demand for plant-based beverages, including oat milk, from health-conscious consumers in supermarkets is a prominent trend proliferating the overall oat based beverages market share. This vegan alternative to dairy milk is packed with protein, fiber, vitamin B, and minerals, thus reducing the risk of heart disease, improving gut health and cholesterol levels, and controlling blood sugar. Additionally, the high concentration of vitamin D and calcium in oat-based beverages make them suitable for restoring bone health in patients suffering from ailments like osteoporosis, which could also boost product demand.
In terms of segmentation by product, the protein shakes segment is expected to account for a major oat based beverages market share by 2027. This is attributable to the growing trend of breakfast on the go and the subsequent rise in consumption of oatmeal protein shakes with rich taste and high nutrient content. Likewise, the rising intake of protein smoothies like flavored oatmeal smoothies post-workout or as midday snacks will also amplify the segmental expansion in the upcoming years.
On the regional front, the North America oat based beverages industry is set to amass considerable profits over 2021-2027. This can be credited to the increasing health-conscious population and the rapid business expansion of oat drink companies in the region. For example, in 2019, Oatly opened a new factory in New Jersey and since then, the company has been manufacturing over 750,000 gallons of oat base each month.
Key participants in the oat based beverages industry include Quaker Oats (PepsiCo), Danone (Sofina), NOSH Drinks, and Oatly, among others. These companies are implementing strategies including innovative product launches, business expansions, acquisitions, and partnerships to strengthen their geographical footprint across the global market.
For instance, Bevry, taking inspiration from oat milk brand - Oatly, launched India’s first oat milk in May 2021. This new milk alternative is made with oats, sunflower oil, and water to serve customers who prefer thick and creamy milk. In February 2021, Danone invested nearly USD 14.2 million (EUR 12 million) in a new plant-based production line at the Parets del Vallès factory located near Barcelona. This investment was made with an objective to produce oat-based products, dairy yogurts, and other plant-based alternatives.
The novel coronavirus pandemic has led to supply disruptions in the food sector, stemming from challenges around restrictions on the movement of goods and people. In addition, there has been a significant closure of manufacturing facilities and a declining number of workers across this sector amid the crisis, thereby resulting in lower production of processed beverages. These aforementioned factors have posed significant challenges to the food sector across the globe. However, the growing propensity towards plant-based dairy milk alternatives with high nutritional content to stay fit during the outbreak has led to a surge in demand for oat-based drinks.