Oat Milk Market Size & Share 2023 to 2032
Market Size by Source (Organic, Conventional), Type (Flavored, Unflavored), Packaging Form (Carton, Bottle) and Sales Channel (Mainstream Stores, Specialty Stores), Regional Outlook, Covid-19 Impact Analysis, Competitive Market Share & Forecast.
Report ID: GMI4600
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Published Date: November 2023
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Report Format: PDF
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Authors:
Kiran Pulidindi, Kunal Ahuja
Oat Milk Market Size
Oat Milk Market is set to grow at a CAGR of over 10.2% during 2023 to 2032. The shift toward plant-based and dairy-free diets has catapulted oat milk into the spotlight. Consumers are increasingly opting for non-dairy alternatives due to health concerns and lactose intolerance. As per a study published by the National Institute of Diabetes & Digestive & Kidney Diseases, an estimated 68% of the global population suffers from lactose malabsorption. Moreover, the product’s creamy texture and neutral taste make it versatile dairy substitute that has gained immense popularity among those seeking a milk alternative.
Oat Milk Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The product also benefits from its sustainable and eco-friendly image. Oats are a low-impact crop, requiring less water and land compared to dairy production or other milk alternatives like almond or soy milk. This sustainability aspect aligns with the growing concern for the environment, drawing environmentally conscious consumers to choose oat milk. According to an article published by the World Economic Forum, almost 65% of consumers prefer to make ethical spending choices in order to live a healthy and sustainable life. The food industry's commitment to reducing its carbon footprint has further resulted in an increasing number of oat milk products and brands, making it a favored milk alternative and strengthening the market outlook.
The growth of the oat milk market is hampered by the increasing competition within the plant-based milk sector. Oat milk competes with various alternatives such as almond, soy, and coconut milk, leaving little space for individual growth. Moreover, fluctuations in oat supply can impact production and pricing. Regulatory challenges in labeling and health claims can be a hurdle, and while oat milk is sustainable, its environmental impact may still pose concerns as the industry expands, leading to a need for responsible sourcing and production practices.
COVID-19 Impact
The global oat milk industry saw both challenges and opportunities during the COVID-19 pandemic. While the initial disruptions in supply chains affected oat milk production and distribution, the market demonstrated resilience. The pandemic reinforced consumer health consciousness, boosting demand for plant-based milk, including oat milk. Its long shelf life and availability through e-commerce platforms helped it thrive as consumers embraced online grocery shopping. As people sought health-focused and sustainable choices, there was increased product consumption, further establishing oat milk as a leading dairy alternative in the post-pandemic world.
Oat Milk Market Trends
An increasing emphasis on sustainability and environmental responsibility has been a major trend in the oat milk industry. The product is perceived as an eco-friendly alternative to traditional dairy, as oats require less water and land for cultivation. According to a study published by Our World in Data in 2022, the environmental footprint of dairy milk is the highest with the product ranking first in the maximum usage of resources (land use, freshwater use),GHG emission and eutrophication. Oat milk aligns with the sustainability preferences of consumers and the corporate commitments to reduce environmental footprints.
Further, the product has become a canvas for experimentation, with companies introducing an array of flavors, such as vanilla, chocolate, and barista blends, catering to diverse consumer preferences. It is being incorporated into various food products beyond beverages, including yogurt, ice cream, and creamers. The versatility of oat milk as a base ingredient is opening up new opportunities for product development and diversification in the plant-based milk sector.
Oat Milk Market Analysis
The organic source segment is projected to witness around 10.5% growth rate through 2032, owing to the catching trend of healthy consumption and sustainability alongside increasing innovations.
The carton segment of the oat milk market will record over 10% CAGR through 2032, owing to its renewability and ease of storage and transport.
North America oat milk market is poised to attain gains at nearly 9.5% up to 2032. The growth is primarily driven by the shift toward plant-based diets and the popularity of dairy alternatives. The consumers in United States and Canada are increasingly opting for oat milk due to its health-conscious and environmentally sustainable profile. The presence of major manufacturers and a robust distribution network has further created a conducive outlook. The regional population’s inclination toward eco-friendly and health-oriented choices is expected to sustain the regional growth.
Oat Milk Market Share
Danone, a significant player in the oat milk industry, has implemented growth strategies to strengthen its position. Their focus on product diversification and innovation has been instrumental, introducing a variety of flavored and barista-focused options. Strategic partnerships and collaborations have also played a role, enabling Danone to tap into new markets and distribution channels. Additionally, the company emphasizes its commitment to sustainability and responsible sourcing, aligning with consumer preferences for eco-conscious brands.
Some other prominent industry players include:
Oat Milk Industry News
This oat milk market research report include in-depth coverage of the industry with estimates & forecast in terms of volume in million kilo tons & revenue in USD billion from 2022 to 2032 for the following segments:
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By Source
By Type
By Packaging Form
By Sales Channel
By Region
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
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Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
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✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
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Verified data sources
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GMI archive
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Parameters studied & evaluated
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