Oat Based Beverages Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Source (Organic, Conventional), By Specialty (Gluten-Free, Dairy Alternative, Heart-Healthy, Others), By Distribution Channel (Online, Offline), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.90 Billion
CAGR (2026-2031)	6.93%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 2.84 Billion

Market Overview

The Global Oat Based Beverages Market will grow from USD 1.90 Billion in 2025 to USD 2.84 Billion by 2031 at a 6.93% CAGR. Oat-based beverages are plant-derived dairy alternatives produced through the aqueous extraction of oats, typically fortified to offer a nutritional profile comparable to conventional milk. The market is primarily supported by the rising prevalence of lactose intolerance and a structural shift in consumer preferences toward vegan and flexitarian diets. Additionally, the sector benefits significantly from the product's favorable sustainability profile, as oat cultivation generally requires less water and land than dairy or almond production, appealing to environmentally conscious buyers.

According to the Good Food Institute, in 2024, oat milk captured 25% of the plant-based milk market share, solidifying its position as a leading category competitor. Despite this substantial market presence, one significant challenge impeding further expansion is the susceptibility to supply chain volatility and inflationary pressure. These economic factors contribute to higher production costs and elevated retail prices compared to conventional dairy, which remains a barrier to broader adoption among price-sensitive consumer segments.

Key Market Drivers

The rapid expansion of the foodservice sector and premium coffee chains serves as the primary engine for the global oat-based beverages market. Unlike other plant-based alternatives, oat milk possesses a unique structural integrity that allows it to froth and steam similarly to bovine milk, making it the preferred non-dairy option for baristas and specialty coffee retailers. This channel acts as a critical discovery platform, where consumers first experience the product's superior flavor profile before committing to retail purchases. The segment's vitality is evident in recent trade data; according to The Good Food Institute, May 2024, in the '2023 State of the Industry Report', dollar sales of plant-based milk in the U.S. foodservice channel surged 21% to reach $222 million in 2023, significantly outpacing other distribution channels.

Concurrently, the market is propelled by the escalating global adoption of eco-conscious dietary habits, where oat beverages are increasingly favored over almond or soy varieties due to their significantly lower water utilization and carbon footprint. This shift in consumer values has insulated the category from the broader slowdown affecting the plant-based sector, solidifying its status as a resilient staple. For instance, according to Beverage Industry, July 2024, in the '2024 State of the Beverage Industry' article, oat milk was the only dairy alternative segment to register volume growth in the 52 weeks ending May 2024, while competitors like almond milk faced declines. Highlighting this upward trajectory at the corporate level, according to Oatly, November 2024, in the 'Third Quarter 2024 Financial Results', the leading manufacturer reported a sold volume increase of 13% to 141.3 million liters compared to the prior year period.

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Key Market Challenges

Supply chain volatility and the resulting inflationary pressures represent a critical barrier to the expansion of the Global Oat Based Beverages Market. When production and logistical costs rise, manufacturers are compelled to increase retail prices to preserve margins, which widens the cost gap between oat beverages and conventional dairy. This price disparity becomes a decisive factor for mainstream consumers who might otherwise consider switching to plant-based options. In an economic climate where household budgets are tightened, the premium pricing of oat milk limits its appeal to a committed niche rather than facilitating the mass adoption required for sustained market growth. Consequently, potential volume gains are lost as price-sensitive buyers opt for more affordable traditional milk products.

The impact of these economic headwinds is evident in recent market performance metrics. According to the Plant Based Foods Association, in 2024, unit sales of plant-based milks in the United States declined by approximately 5% as average retail prices remained elevated compared to animal-based dairy. This contraction demonstrates that despite environmental or health motivations, price remains a primary lever for consumer behavior. As long as supply chain instability keeps production costs high, the inability to achieve price parity with dairy will continue to hamper the industry's ability to capture a broader share of the mainstream beverage market.

Key Market Trends

The Growth of Private Label and Retailer-Owned Brands has emerged as a dominant trend, fundamentally altering the competitive landscape as retailers respond to inflationary pressures and price-sensitive consumer behavior. While national brands initially established the category, major supermarket chains and mass merchandisers are now aggressively expanding their own proprietary oat milk lines, offering products that rival premium options in texture and functionality but at a significantly lower price point. This commoditization is driving substantial volume shifts within the refrigerated aisle, effectively democratizing access to the beverage beyond affluent demographics. The scale of this shift is evident in recent category performance; according to Dairy Foods, January 2025, in the 'Private-label sales set new record in 2024' article, dollar sales of the private-label refrigerated category, which houses fresh plant-based milk alternatives, increased by 7.5% in 2024, notably outperforming branded competitors.

Simultaneously, the market is undergoing Mainstream Penetration in Quick-Service Restaurant Chains, moving beyond its roots in specialty coffee shops to become a standardized menu fixture in high-volume fast-food and coffee franchises. This integration into the quick-service infrastructure represents a critical evolution from "barista-specialty" item to a default operational standard, securing high-volume contracts that insulate manufacturers from retail volatility. This channel's continued vitality stands in contrast to the stagnation seen in shelf-stable retail segments; according to AgFunderNews, May 2025, in the 'Plant-based meat by numbers' article, dollar sales of plant-based milk in the foodservice channel increased by 9% in 2024, confirming that out-of-home consumption remains a primary growth engine for the sector despite broader economic headwinds.

Segmental Insights

The online distribution channel is recognized as the fastest-growing segment in the global oat-based beverages market, primarily due to the increasing consumer reliance on e-commerce platforms for grocery procurement. This growth is fueled by the convenience of doorstep delivery and the extensive product variety available through digital storefronts, which often exceeds physical retail inventories. Furthermore, major oat milk manufacturers are actively expanding their direct-to-consumer capabilities to establish stronger connections with shoppers. The seamless accessibility of diverse plant-based options through online portals continues to drive the rapid expansion of this market segment.

Regional Insights

North America maintains a dominant position in the Global Oat Based Beverages Market, primarily due to rising consumer demand for plant-based and heart-healthy dietary alternatives. This leadership is supported by the U.S. Food and Drug Administration (FDA), which authorizes specific health claims regarding oat beta-glucan and cardiovascular wellness, significantly boosting consumer confidence. Additionally, the region benefits from a highly developed retail sector and the strategic presence of major manufacturers innovating to address lactose intolerance and environmental concerns. Consequently, North America remains the central driver of global market expansion without relying on traditional dairy sources.

Recent Developments

• In September 2025, MOMA Foods introduced four new oat-based products to the United Kingdom retail market, targeting opportunities in the flavoured and functional beverage categories. The launch included two café-inspired varieties, Salted Maple & Hazelnut Oat Drink and Pistachio Oat Drink, designed to offer indulgence without the need for syrups. Additionally, the company released an Immunity Support Oat Drink fortified with vitamins and minerals, responding to consumer interest in functional health benefits. The brand stated that these innovations aimed to drive incremental sales by addressing gaps in taste and nutrition within the dairy-free sector.
• In March 2025, Danone’s plant-based brand Alpro revealed a significant operational advancement supported by a multimillion-pound investment in its United Kingdom manufacturing facilities. The company announced a transition to sourcing 100% British oats for its domestic oat drink range, moving away from imported ingredients to support local agriculture and reduce food miles. This initiative involved installing new processing technology at its Kettering factory, which allows oat grains to be ground into flour prior to blending. The updated production method was reported to reduce water usage and carbon emissions, aligning with the company's sustainability goals.
• In February 2024, Califia Farms expanded its premium offering with the launch of Organic Oat Barista Blend, alongside other plant-based additions. This new product was developed to meet the growing consumer desire for certified organic, café-quality oat beverages that can be easily used at home. The formulation was crafted to froth and steam similarly to dairy milk, making it suitable for coffee and specialty drinks. This launch was rolled out to major retailers across the United States, positioning the company to capture a larger share of the organic segment within the competitive oat beverage market.
• In January 2024, Oatly Group AB introduced two new liquid innovations to its North American portfolio, marking its first major beverage product additions in the region in five years. The company launched Unsweetened Oatmilk and Super Basic Oatmilk, both designed to address specific consumer demands for lighter and simpler plant-based options. The Unsweetened variety features a proprietary oat base that delivers zero grams of sugar and only 40 calories per serving. The Super Basic option was formulated with just four ingredients—water, oats, sea salt, and citrus zest fiber—to appeal to shoppers seeking clean-label products without oils or gums.

Key Market Players

• Oatly AB
• Califia Farms, LLC
• Danone SA
• PepsiCo, Inc.
• Campbell Soup Company
• Rude Health Foods Limited
• Elmhurst Milked Direct, LLC
• Happy Planet Foods, Inc.
• Nature’s Path Foods, Inc.
• Minor Figures Ltd.

By Source	By Specialty	By Distribution Channel	By Region
Organic Conventional	Gluten-Free Dairy Alternative Heart-Healthy Others	Online Offline	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Oat Based Beverages Market, By Source:

• Organic
• Conventional

• Oat Based Beverages Market, By Specialty:

• Gluten-Free
• Dairy Alternative
• Heart-Healthy
• Others

• Oat Based Beverages Market, By Distribution Channel:

• Online
• Offline

• Oat Based Beverages Market, By Region:

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