Oat milk is plant milk made by separating the plant material from whole oat grains with water. It has a smooth texture and a taste that is similar to oatmeal. Oat milk comes in both plain and flavored forms. The global oat milk market is expected to grow with a CAGR of XX% during the forecast period, reaching USD xx million in 2028, from its recorded value of USD xx million in 2020. Most commercial oat milk is fortified with vitamins B12, A, D, B2 as well as various minerals like calcium. Calcium intake in sufficient amounts lowers the risk of osteoporosis and aids muscle and nerve function, as well as cardiovascular health. According to a medical study, a person's blood cholesterol can decrease by 3% if they drink about 3 cups of 750 ml of oat milk every day for more than five weeks. Oat milk's demand is increasing as a result of its health benefits. Oat milk's demand is increasing as a result of its health benefits. Moreover, switching from cow's milk to oat milk will reduce carbon dioxide emissions by up to 73 per cent, and oats are a healthy crop that isn't linked to deforestation or excessive water use.
A significant shift of consumers towards a vegan diet
An increasing number of consumers opting for a vegan diet is expected to fuel the global oat milk market. According to a study done by Turner-McGrievy, G. M. et al. titled “Comparative efficacy of plant-based diets for weight loss: A randomized controlled trial of five different diets,” vegans lost about 7.5 per cent of their body weight, while omnivores lost just 3.1 per cent. Vegan products are seeing a huge rise in demand as people are becoming more conscious of the health benefits of a vegan diet. During the forecast period, the demand for oat milk is expected to be driven by the increasingly growing vegan diet customer base.
Moreover, the market for oat drinks is being driven by an increase in consumer demand for flavor. As a result, there is a growing focus on manufacturing fresh and tasty oat beverage products. This will also aid in the market's growth and the development of consumer loyalty. These activities have also resulted in the introduction of a variety of oat beverage choices. For instance, the Barista version of oat drinks is gaining popularity for its froth-forming properties in the coffee industry. Often, companies launch oat drinks in various flavors such as vanilla, blueberry and chocolate. For instance, in December 2019, Nestle launched its first plant-based oat milk chocolate drink called GoodNes. This is expected to aid sales growth.
Plant-based milk, on the other hand, is not allowed to be branded as milk in many countries and is taxed more heavily than dairy milk. These factors can limit the growth of the global oat milk market.
Carton segment is expected to be the largest segment with a share of XX% during the forecast period.
The oat milk market, on the basis of packaging form, is segmented into the carton and bottle, among others. Because of the demand for high-quality tetra packs and long-lasting solutions, the carton segment had the largest market share in 2020. Furthermore, the growing popularity of Tetra Pak carton packages, which are made primarily of paperboard with distinct layers of aluminium foil and polyethylene, is expected to boost segment growth. Because of its durability and lightweight properties, major players are investing heavily in carton packaging. In addition, new products such as UV defence and refrigeration-friendly cartons are propelling the segment growth. Carton solutions are suitable for colleges and schools because they are simple to store, lightweight, and produce no non-biodegradable waste. As a result, manufacturers are investing in a number of marketing campaigns to deliver a new packaging solution to target the young population.
North America is expected to dominate the global Oat Milk market
The NorthAmerica region accounted for the largest share of the regional oat milk market. The United States dominated the North American oat milk market with a share of XX% in 2020. Consumers are increasingly gravitating toward high-quality protein sources that are low in fat. The growing demand for vegan alternatives in conventional food and beverage preparations is expected to benefit the regional industry landscape. To benefit from emerging healthcare trends in the market, industry players in the region are rapidly investing in high-quality oat milk production. For instance, Oatly oat milk will be offered as part of Starbuck's core U.S. menu and available year-round from 2021. In addition, celebrity and fitness model endorsements of oat milk are shifting customer perceptions of oat milk consumption. To remain fit and build muscle mass, consumers are moving from conventional milk to oat milk alternatives, which is expected to drive market demand.
The market is fiercely competitive, with little differentiation between companies' products. The following are some of the major players in the global oat milk market: Nestle, Danone, Pacific Food, Oatly, and Chobani among others. The premium-quality raw material is sourced directly from farmers by significant players. Several industry players are designing new products and building new manufacturing facilities, to establish their market presence. For instance, in January 2021, Chobani entered the coffee category with the launch of Chobani Coffee. Its new four-product line features two vegan options: Cold Brew Pure Black (black coffee with no sugar or dairy) and Cold Brew with Oat Milk (coffee blended with the brand’s Chobani Oat milk). In September 2020, Elmhurst Milked Direct LLC has introduced new lines in latte drinks and smoothies’ mixes. This line includes an oat latte with two new flavors- cacao oat milk and flash brew oat milk plus two tea flavors- matcha oat milk and golden oat milk. In January 2020, DuClaw Brewing Co. launched a limited-edition beer that contains oat milk, which includes PastryArchy Oat Milk Stout and Oatshake Double IPA. In January 2020, Starbucks Corporation launched Oat milk Honey Latte in states like Illinois, Iowa, Michigan, Indiana and Wisconsin in the United States.
COVID-19 Impact: Increase in sales of oat milk owing to its health benefits
Because of the COVID-19 pandemic, there has been a significant increase in demand for functional beverages as a result of rising consumer spending and increased health awareness. COVID-19 is expected to drive demand for oat milk at a much faster pace, owing to a rise in consumer consciousness about the importance of strengthening their immune systems to avoid being infected easily, motivating them to live a healthier lifestyle and eat a balanced diet. Moreover, consumers are buying supplies in bulk due to the lockdown in many major cities across the globe, driving the sales of oat milk.
Get your free sample proposal with a single click!