Oat Milk Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Product Type (Plain, Flavored), By Packaging Type (Tetra Pack, Bottle, Others), By Distribution Channel (Offline, Online), By Region & Competition, 2020-2030F

Global Oat Milk Market was valued at USD 3.12 billion in 2024 and is expected to grow to USD 6.08 billion by 2030 with a CAGR of 11.81% during the forecast period. 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.

Health and Nutritional Benefits of Oat Milk

Health consciousness is another major factor contributing to the growth of the oat milk market. Consumers today are more focused on nutrition, clean-label products, and functional foods. Oat milk is rich in dietary fiber, particularly beta-glucans, which are known for supporting heart health and lowering cholesterol. It also contains essential nutrients such as calcium, vitamin D, and vitamin B12 when fortified. In addition, oat milk tends to be lower in saturated fats compared to animal-based dairy and is often free from added sugars and artificial ingredients in many formulations. These health attributes align well with the current global wellness movement. As consumers seek beverages that not only taste good but also offer functional benefits, oat milk stands out as a compelling choice. According to the U.S. Food and Drug Administration (FDA), beta-glucan soluble fiber from whole oats may reduce the risk of coronary heart disease, a claim approved for qualified health labeling.

Environmental Sustainability and Lower Carbon Footprint

Environmental concerns are playing an increasingly influential role in consumer decision-making, and oat milk benefits from its strong sustainability credentials. Compared to traditional dairy production, oat milk manufacturing requires significantly less water, land, and energy, and results in lower greenhouse gas emissions. It also has a smaller environmental footprint compared to other plant-based milks like almond milk, which requires large quantities of water for cultivation. As climate change awareness grows, consumers are making more environmentally conscious food choices, including sustainable dairy alternatives. Brands are also actively promoting the eco-friendly nature of oat milk through packaging labels and marketing campaigns, which is further boosting its appeal among climate-conscious consumers and reinforcing its market growth trajectory. According to a study published, producing a glass of oat milk results in approximately 80% fewer greenhouse gas emissions and uses 60% less energy and land compared to cow's milk.

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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.

Limited Consumer Awareness in Emerging Markets

While oat milk has gained significant traction in North America, Europe, and parts of Asia-Pacific, consumer awareness and acceptance remain limited in many emerging markets. In countries where dairy consumption is deeply rooted in culture and tradition, plant-based alternatives especially newer ones like oat milk still struggle to gain mainstream visibility. Consumers may be more familiar with older dairy alternatives like soy milk or coconut milk, which have been present for longer periods and are often better integrated into local cuisines.

Additionally, oat milk’s positioning as a premium health product means it is often confined to urban areas, health food stores, and specialty cafes, limiting its reach in rural or lower-income communities. A lack of education around the nutritional and environmental benefits of oat milk further inhibits its adoption. To address this challenge, manufacturers need to invest in targeted marketing, awareness campaigns, and local partnerships to educate consumers and promote oat milk as a versatile, healthful option.

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.

Barista-Style and Foodservice Integration

Another growing trend is the surge in popularity of barista-style oat milk, especially in cafés, coffee chains, and foodservice establishments. Oat milk’s naturally creamy texture and ability to froth easily make it a preferred choice for coffee and espresso-based drinks like lattes, cappuccinos, and macchiatos. As a result, specialty oat milk variants tailored for barista use have been introduced to meet the needs of professional baristas and coffee enthusiasts.

This trend has significantly boosted oat milk’s visibility and trial among consumers, particularly in urban settings and premium coffee shops. Leading brands like Oatly, Califia Farms, and Minor Figures have capitalized on this demand by partnering with global and regional café chains. The increased availability of oat milk in foodservice channels helps convert occasional users into regular buyers, driving growth in both on-premise and retail segments. As more consumers experience oat milk through coffee shops, the demand for at-home barista-style oat milk products continues to rise.

Sustainability-Focused Branding and Eco-Friendly Packaging

Sustainability is playing a critical role in shaping consumer choices in the oat milk market. With growing concern over environmental degradation, carbon footprints, and ethical sourcing, consumers are increasingly drawn to products that align with eco-conscious values. Oat milk is inherently more sustainable than dairy milk, using less water and land, and generating lower greenhouse gas emissions during production. Compared to almond milk, it also has a smaller water footprint, making it one of the more environmentally friendly plant-based milk options.

Brands are leveraging this environmental advantage by incorporating sustainability into their branding and packaging strategies. Many oat milk companies use eco-friendly packaging materials, such as recyclable cartons, biodegradable caps, and plant-based inks. In addition, transparency in sourcing such as highlighting locally sourced oats or sustainable farming practices is becoming a key marketing focus. Consumers are responding positively to brands that demonstrate authentic environmental stewardship, which not only enhances brand loyalty but also reinforces oat milk’s position as a sustainable dairy alternative. According to Tetra Pak’s 2024 Environmental Research, 76% of global consumers consider environmental impact when selecting food and beverage products, and 68% prefer packaging made from renewable or recyclable materials.

Segmental Insights

Product Type Insights

The plain oat milk segment dominated the global market due to its versatility, wide consumer appeal, and suitability for various applications. It is commonly used as a dairy substitute in beverages, cereals, baking, and cooking, making it a staple for households and foodservice providers alike. Plain oat milk also caters to health-conscious consumers seeking clean-label products with minimal additives. Its neutral flavor profile allows for easy customization and pairing with other ingredients, further boosting its demand. As oat milk continues to gain mainstream acceptance, the plain segment remains the foundation of the market, driving consistent sales across regions.

Distribution Channel Insights

The offline segment dominates the global oat milk market, driven by strong consumer preference for purchasing beverages through supermarkets, hypermarkets, health food stores, and convenience stores. Physical retail outlets allow consumers to compare brands, check product labels, and benefit from in-store promotions, leading to impulse purchases and brand discovery. Offline channels also provide a trusted platform for first-time buyers and those who prefer to assess product quality in person. Additionally, the presence of oat milk in cafés, restaurants, and foodservice chains contributes significantly to its visibility and trial, reinforcing the dominance of the offline distribution channel in the market.

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Regional Insights

North America was the dominating region in the global oat milk market, driven by high consumer awareness, strong demand for plant-based alternatives, and a well-established health and wellness culture. The region has a large population of lactose-intolerant individuals and a growing base of vegan and flexitarian consumers. Major oat milk brands like Oatly, Califia Farms, and Planet Oat have strong retail and foodservice penetration across the United States and Canada. Additionally, widespread availability in grocery chains, cafés, and online platforms supports market expansion. Continuous product innovation, coupled with sustainability-focused consumer preferences, further strengthens North America's leading position in the market.

Recent Developments

• ​In June 2025, HRX launched a new plant‑based Oat Milk Protein Shake, delivering 25 g protein per 200 ml, made with no dairy or processed sugar. Packaged in glass bottles for sustainability, it's available nationally via Swiggy, Zomato, Amazon, and HRX outlets.

• In July 2025, Oatly launched a ready‑to‑drink Matcha Latte Oat Drink in UK supermarkets combining oat milk, finely ground Tencha matcha, and a hint of vanilla. Available now at Sainsbury’s and Morrisons

• In Aug 2024, Milkadamia has launched its Flat Pack Organic Oat Milk, a pioneering pre‑cycled oat milk format created via proprietary 2D‑printing that turns oat milk paste into lightweight sheets delivering the same creamy taste while reducing packaging waste by 94% and shipping weight by 85%.

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:

o   Plain

o   Flavored

• Oat Milk Market, By Packaging Type:

o   Tetra Pack

o   Bottle

o   Others

• Oat Milk Market, By Distribution Channel:

o   Offline

o   Online

• Oat Milk Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  Japan

§  India

§  South Korea

§  Indonesia

o   South America

§  Argentina

§  Colombia

§  Brazil

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Turkey

Competitive Landscape

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

Available Customizations:

Global Oat Milk Market report with the given market data, TechSci Research 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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