Oat Milk Market By Type (Sweetened Oat Milk, Unsweetened Oat Milk, Flavored Oat Milk, Barista Blend Oat Milk, Organic Oat Milk, Fortified Oat Milk, Protein-enriched Oat Milk, Low-Fat Oat Milk.), By Application (Beverages, Cooking & Baking, Dairy Alternatives, and Others.), By Source (Conventional Oats, Organic Oats.), By Form (Liquid Oat Milk, Powdered Oat Milk, Concentrated Oat Milk.), By Distribution Channel (Offline {Supermarkets, Specialty Stores, Direct-to-Consumer}, Online), and By End-user (Residential, Commercial.), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Global Oat Milk market accounted for USD 3.35 Billion in 2024 and is expected to reach USD 12.6 Billion by 2035, growing at a CAGR of around 12.8% between 2025 and 2035. The Oat Milk Market has expanded rapidly due to growing consumer interest in vegan and low-lactose products. Oat milk is a dairy product alternative, namely milk, made from oats and water.

It has advantages for consumers who are vegan, lactose intolerant, animal activists, or who are concerned about their finances. Its smooth and rich flavor, high nutrient content, and whipping ability make it a favorite. This industry is driven by consumer awareness of the negative effects eating dairy products can have on one's health and the environment. Oat milk is even more appealing to health-conscious people because it is packed with fiber, vitamins, and minerals when compared to other plant-based milks.

Report Scope:

Market Dynamics

Rising Lactose Intolerance and Dairy Allergies Propel Oat Milk Demand in Plant-Based Market

The increase in the incidence of lactose intolerance and dairy allergies justifies this shift in favor of more milk alternatives, which drives the Oat Milk Market. According to the National Institute of Diabetes and Digestive and Kidney Diseases, nearly 68% of the world's population suffers from some form of lactose malabsorption, with higher prevalence being recorded in Asian and African populations. NHANES reports that about 36% of adults in the United States suffer from this condition.

Thus, in addition to increased consumer demand for non-dairy alternatives, this has kept interest in plant-based milks, specifically oat milk, very high, since its popularity has increased enormously due to the creamy texture it boasts, along with its nutritional profile. Thus, the dairy alternative market is expected to grow rapidly through awareness of such diet preferences. The shift, however, does not solely stem from health concerns, as increased interest in plant-based diets, food production, and thoughts toward animal welfare ethics are major factors.

Increasing vegan and flexitarian populations fuel demand for dairy alternatives.

There has been a rising trend of people who are embracing vegan and flexitarian diets due to health, ethical, and environmental factors, and this has a great impact on the Oat Milk Market. People who take very little animal food while relying on plant foods look for plant-based replacements for their regular dairy products, such as oat milk. This shift is consistent with other dietary trends that are more peculiar to the modern world, such as consuming less meat and dairy products to reduce carbon emissions.

According to data from the T.H. Chan School of Public Health, 9.7 million Americans identified as vegan or vegetarian in 2023, and 18% of Americans acknowledged following a flexible vegetarian diet. These changes have also increased the consumption of oat milk as a natural, vegan, and environmentally friendly milk substitute.

Oat milk is generally more expensive than regular dairy milk, limiting its affordability.

The primary factor limiting the Oat Milk Market's affordability is its high cost when compared to other dairy products. New processes like enzymatic conversion and filtration, necessary when creating oat milk, all add to the cost of manufacturing. However, purchasing oats that are cultivated sustainably or organically also raises the cost. Pricing similar products more expensively than this one deters buyers from purchasing the product, particularly in poorer nations where cost is a major deciding factor.

The situation is even more problematic in underdeveloped nations, where the possibility to switch from routine, basic dairy products to luxury plant-based products like oat milk is diminished by the prohibitively high discretionary income of consumers.

Development of oat milk creamers for coffee and tea enthusiasts.

Oat milk creamers for coffee and tea afford a significant business opportunity for the Oat Milk Market. This feature appeals to a growing number of consumers who need dairy-free options. This special segment is in line with the rising demand for plant-based alternatives in everyday products.

Manufacturers can draw different segments of consumers, for instance, vegans, lactose-intolerant individuals, and flexitarians, by manufacturing flavored, sweetened, or unsweetened varieties. The general increased popularity of café culture and brewing at home enhances the likelihood that oat milk creamers will be the best non-dairy alternative for beverages.

Promoting oat milk in baby food or pediatric nutrition markets.

One primary opportunity for the Oat Milk Market is promoting oat milk in the baby food and pediatric nutrition markets. As consumers become more conscious of allergies, lactose intolerance diseases, and awareness of vegetarianism, parents look for other non-milk sources of nutrition for children.

Oat milk is naturally free from dairy content and soy, which can be a hazard to the stomachs of kids, and also is easily digested. Besides, it has nutritional benefits that include fibers, vitamins, and minerals such as calcium and iron, which are fortified. it has been made an additive in baby formulas, cereals, and snacks. Engaging this market can assist brand clientele in building a strong bond by echoing the healthy parenting drive.

Industry Experts Opinion

“Oat milk is an ideal option for those allergic to soy, nuts, or coconut. It can also be made gluten-free, making it suitable for various dietary needs."

• Valerie Agyeman, RD, a women's health dietitian and founder of Flourish Heights

Segment Analysis

Based on the type, the Oat Milk Market has been classified into Sweetened Oat Milk, Unsweetened Oat Milk, Flavored Oat Milk, Barista Blend Oat Milk, Organic Oat Milk, Fortified Oat Milk, Protein-enriched Oat Milk, Low-Fat Oat Milk. The major segment in the Oat Milk Market is sweetened oat milk, primarily driven by consumer tastes and preferences for sweetened flavors, as well as the burgeoning interest in plant-based beverages that emulate the flavors of the traditional product. It is available in both retail and food service channels and appeals to consumers who prefer a sweeter character for their milk substitute. This market also has a significant distribution advantage due to the large selection of sweetened oat milk flavors and coffee shop beverages. Even extremely health-conscious consumers need healthier sugar substitutes, and this demand is driving the market's growth in the sweetened sector.

Based on the type, the Oat Milk Market has been classified into Beverages, Cooking & Baking, Dairy Alternatives, and Health Foods. The most important segment in the Oat Milk Market is beverages, as oat milk is heavily consumed as a direct substitute for dairy milk in beverages, which include coffee, tea, smoothies, and ready-to-drink products. It is creamy and has a neutral taste, so it has become a popular choice in cafes and at household levels, thereby increasing its demand. It is obvious that oat milk's broad range of beverage applications, along with its health advantages and the growing demand for plant-based beverages, will ensure its continued dominance. Furthermore, a larger consumer base may now access the flavored and fortified variants due to their rise.

Regional Analysis

The North American Oat Milk Market is expanding rapidly due to rising health awareness and sustainability concerns. The US has been identified as the biggest consumer of oat milk, attributed to an increase in consumers’ preference for vegan products, especially among the youthful urban and health-conscious population. Some of the factors driving the market in this region are the increasing number of people going for vegan diets, increasing lactose intolerance, and a shift towards flexitarians. Also, due to a focus on coffee shops using oat milk in drinks like lattes, oat milk’s market penetration is well-developed. Grocery retailers and e-commerce portals increase its accessibility, strengthening its growth.

The United States Oat Milk Market is growing rapidly due to the increasing consumption of plant-based milk amongst consumers. Many people are switching to oat milk because it has fewer calories, more nutrients, low lactose, and non-vegan substances. Ongoing trends in supermarkets, coffee shops, and food service outlets have also contributed to oat milk availability. It is also feasible to note that flavor innovation combined with other products and enriching ingredients has expanded the company's clientele overall. Because of the cooperation between oat milk brands and both new and established market players, an increasing number of oat milk products are anticipated.

The European Oat Milk Market is expanding significantly as a result of growing customer demand for plant-based substitutes and better, more sustainable diets. Rising Consumers who are lactose intolerant, vegan, or sensitive about the environmental impact of dairy products give reasons to prefer oat milk. The Oat Milk Market has wider availability in supermarkets, cafes, and food service outlets across the region. The demand for oat milk in countries like the UK, Germany, and Sweden is mainly driving this trend. The growing focus on lowering carbon footprints along with restricting animal product intake supports this expansion further. Interlinking oat milk manufacturers with established brands is also supporting the penetration of the market. The European Oat Milk Market is likely to be moving forward since the purchasing lifestyle is changing and consumers are demanding more sustainable options.

Due to the growing demand for plant-based and healthier goods worldwide, the UK Oat Milk Market has enormous growth potential and is expanding quickly. The usage of dairy products has changed in the UK as well, and oat milk is now available in supermarkets, coffee shops, and cafés. Shifts in oat milk products, including new items that are "flavored" and "fortified," are significantly growing the consumer base of the firm. And now, more competition exists, with a broader portfolio of oat milk products from not only smaller regional producers but also from larger firms. This demand is likely to grow even higher with increased awareness of sustainable consumption habits and health issues.

Competitive Landscape

The Oat Milk Market is highly competitive, and the industry is being dominated by a few major players. These competitors include California Farms, Silk from the Danone Corporation, which sells a broad range of plant-based drinks like oat milk, and Oatly, which dominates the market with a strong brand presence and sustainability pledges. The most recognized brand names is Pacific Foods, which specializes in organic and has chosen Alpro (Danone) since the latter has more complete distribution throughout Europe in high-street chains. Other new entrants into this marketplace include Rebel Kitchen, Moma Foods, and many more, which gained significant acceptance by being marketed to health-focused consumers with innovation and flavor variety in oat milk. Strong brand loyalty, increased accessibility, and growing demand from dairy alternative consumers dominate the market.

Oat Milk Market, Company Shares Analysis, 2024

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Recent Developments:

• In August 2024, Milkadamia Released a pack of Organic Oat Milk, utilizing a 2D-printing process to create oat milk sheets. This approach reduces packaging waste by 94% and product weight by 85%, aligning with sustainability goals
• In May 2024, Nestle Launched OAT and ALMOND & OAT drinks enriched with vitamins B2, B3, D, and calcium. This innovation focuses on providing nutrient-rich options for health-conscious consumers

Report Coverage:

By Type

• Sweetened Oat Milk
• Unsweetened Oat Milk
• Flavoured Oat Milk
• Barista Blend Oat Milk
• Organic Oat Milk
• Fortified Oat Milk
• Protein-enriched oat Milk
• Low-Fat Oat Milk
• Others

By Application

• Beverages
• Cooking & Baking
• Dairy Alternatives
• Others

By Source

• Conventional Oats
• Organic Oats

By Form

• Liquid Oat Milk
• Powdered Oat Milk
• Others

By Distribution Channel

• Offline
  • Supermarkets
  • Specialty Stores
  • Direct-to-Consumer
• Online

By End-user

• Residential
• Commercial

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Oatly
• Califia Farms
• Silk (Danone)
• Quaker Oats
• Pacific Foods
• Elmhurst 1925
• Minor Figures
• Rude Health
• Dream
• Alpro
• Rebel Kitchen
• Good Karma Foods
• The Oatmeal Company
• Planet Oat
• Chobani
• So Delicious Dairy Free
• Vitacoco
• Moma Foods

Frequently Asked Questions (FAQs)