Oat Milk Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F

The Oat Milk Market was valued at USD 3.12 Billion in 2024, and is projected to reach USD 6.08 Billion by 2030, rising at a CAGR of 11.81%. The global oat milk market is witnessing robust growth, fueled by increasing consumer preference for plant-based and lactose-free dairy alternatives. Rising awareness about health, environmental sustainability, and animal welfare has contributed to the surge in oat milk consumption, particularly among vegans, lactose-intolerant individuals, and environmentally conscious consumers. Oat milk is valued for its creamy texture, nutritional profile, and versatility in beverages and cooking. Manufacturers are expanding product ranges with flavored, fortified, and barista-style variants to meet evolving consumer preferences. Additionally, the growth of e-commerce and retail distribution channels is further supporting the market’s expansion across various regions worldwide.

Key Market Drivers

Rising Demand for Plant-Based and Lactose-Free Alternatives

One of the most significant drivers of the global oat milk market is the increasing demand for plant-based and lactose-free dairy alternatives. Consumers around the world are actively seeking healthier, sustainable substitutes to traditional cow’s milk due to lactose intolerance, dairy allergies, and growing awareness of animal welfare issues. Oat milk has emerged as a preferred choice among the various plant-based options because of its natural sweetness, creamy texture, and ability to blend well with coffee, cereals, smoothies, and baked goods.

Unlike soy or almond milk, oat milk has a more neutral flavor and allergen-friendly profile, making it accessible to a broader audience. As more consumers adopt vegan or flexitarian lifestyles, oat milk is increasingly incorporated into daily diets, further driving its global market penetration. According to the Plant Based Foods Association (2024), plant-based milk remains the largest segment in the U.S. plant-based food market, accounting for over 35% of total plant-based food sales highlighting strong consumer demand for dairy-free alternatives like oat milk.

Key Market Challenges

High Production Costs and Price Sensitivity

One of the major challenges in the global oat milk market is the relatively high cost of production compared to traditional dairy milk and some other plant-based alternatives. The oat milk production process involves enzymatic treatment to break down oats into a creamy, milk-like liquid, followed by filtration, fortification, and packaging. This multistep process, combined with quality control measures and the cost of sourcing organic or non-GMO oats, can drive up overall production expenses. Additionally, oat milk often requires fortification with essential nutrients like calcium, vitamin D, and B vitamins to match the nutritional profile of cow’s milk, adding to production complexity and cost.

As a result, oat milk is typically priced higher at retail than dairy milk and even some other plant-based options like soy or rice milk. In price-sensitive markets, particularly in developing countries, this premium pricing can act as a barrier to mass adoption. Consumers who are interested in plant-based diets may opt for more affordable alternatives, limiting oat milk’s penetration in certain regions. To overcome this, manufacturers must find ways to optimize production efficiency and supply chain operations to reduce costs and enhance affordability.

Key Market Trends

Expansion of Flavored and Functional Oat Milk Products

A prominent trend in the global oat milk market is the increasing diversification of product offerings through flavored and functional variants. Originally marketed as a plain dairy substitute, oat milk has evolved into a versatile beverage segment with multiple options catering to different consumer preferences. Brands are launching a variety of flavors, including vanilla, chocolate, strawberry, and coffee-infused oat milk, to appeal to a broader audience, especially children and young adults seeking taste along with nutrition.

Beyond flavor innovation, functional oat milk is gaining momentum. These products are fortified with added nutrients and health-boosting ingredients such as plant-based protein, fiber, omega-3s, probiotics, adaptogens, and vitamins. Some formulations focus on specific health benefits such as immune support, digestive health, or energy enhancement aligning with the rising consumer demand for functional foods and beverages. This trend reflects a broader shift toward wellness-oriented lifestyles, where consumers seek not just basic nourishment but added value in their food and drink choices.

Key Market Players

• Agrifoods International Cooperative Ltd
• Betterbody Foods & Nutrition LLC
• Califia Farms LLC
• Campbell Soup Company
• Danone SA
• Ecotone
• Elmhurst Milked LLC
• Green Grass Foods Inc. (Nutpods)
• Oatly Group AB
• Ripple Foods PBC

Report Scope:

In this report, the Global Oat Milk Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Oat Milk Market, By Product Type:

• Plain
• Flavored

Oat Milk Market, By Packaging Type:

• Tetra Pack
• Bottle
• Others

Oat Milk Market, By Distribution Channel:

• Offline
• Online

Oat Milk Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia-Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• South America
• Argentina
• Colombia
• Brazil
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE
• Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Oat Milk Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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