Oat Milk Market
Global Industry Analysis (2017-2020) – Growth Trends and Market Forecast (2021-2025)
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Dairy-free Properties Suitable to Vegan Population Generate Demand for Oat Milk
In recent years, plant-based milk has gained significant momentum as it does not contain lactose. Its low cholesterol levels and gluten-free qualities for health-conscious consumers. Rich in protein, carbohydrates, and fat along with vitamins and minerals, the demand for plant-derived milk is expected to rise as it substitutes animal milk.
In recent years, oat milk, plant-based milk, has become a popular choice in commercial and household uses driven by the younger demographic and growing urban middle-class population. The high nutritional profile of oats–soluble dietary fiber, vitamins and minerals, unsaturated fatty acids, and well-balanced protein composition–has given the global oat milk market solid ground to grow.
According to different research studies, oat protein has similar qualities to soy protein. This has garnered the attention of consumers who seek products offering additional health benefits, which are not given by other variants.
In addition, there is a rising prevalence of lactose intolerant population with better diagnostics. In 2020, the U.S. alone reported more than 3.3 million people with lactose intolerance. The sensitive and conscious population thus prefer to consume dairy-free products.
Furthermore, environmental concerns and animal healthcare issues have generated the global demand for a vegan diet. In 2018, U.K.’s 7% population was reported to be vegan. Thus, increased prevalence of lactose intolerance coupled with rise of the veganism movement is expected to escalate the global demand for oat milk.
Cafés and Food Manufacturers Lead to Mammoth Demand for Oat Milk
The growing vegan trend has moulded numerous café and processed food manufacturers to alter their menus with oat milk as a prime ingredient. For instance, in 2020 Starbucks rolled out oat milk lattes at about 1,300 stores across the U.S. The positive response encouraged the popular coffee chain to launch two new drinks made of oat milk, Iced Brown Sugar Oatmilk Shaken Espresso and the Honey Oatmilk Latte, in March 2021.
The product was targeted towards consumers who prefer buying non-dairy drinks. Following this trend, food manufacturers are also introducing oat milk products. For instance, HiP (Happiness in Plants), a chocolate brand run by James Cadbury is likely to create a disruption in the chocolate market with its new range of oat milk-based chocolate to ride the flexitarian trend. The products will include variants such as Smooth & Creamy, Cookies NO Cream, Salted Caramel, and Salty Pretzel Flavours. The moves comes as of 2021, milking the trend that has caught the world.
Easy Availability of Conventional Oat Milk to Give the Segment a Leg-up
The global oat milk market is segmented on the basis of nature, end-use, sales channel, and region. Based on nature, the market is segmented as organic and conventional. Among all these segments conventional segment is expected to lead due to its wide availability. Organic oat milk is still at its nascent stage. However, considering the consumer influence for organic products, it is expected to boost the demand for organic oat milk over the forecast period.
By end use, the market is segmented as household, food manufacturers and hotels restaurants and café (HoReCa). While by sales channel the market is segmented as business to business and business to consumer segment. Further, business to consumer segment is sub-segmented as supermarket, departmental stores, specialty outlet, and online.
Europe’s Concern with Animal Products Strengthens Oat Milk’s Case
Globally, Europe and North America are expected to show a quick adoption of oat milk in daily diets. Generally higher awareness about lactose intolerance and normalized attitude towards consumption of packaged items are expected to augment these regional markets. Europe and North America oat milk market will also be driven by a higher disposable income, wider availability of varied flavours of oat milk, strong product penetration, and raging veganism.
The demand for oat milk in Europe is largely driven by the vegan population. Rising consumer awareness about animal cruelty and side effects of consuming dairy products that are derived from animals raised on feed additives and have created a need for substitutes such as oat milk.
The demand for oat milk in Asia Pacific is also expected to see momentum as China and India see a younger population tilt towards cleaner labels amidst a worrying pandemic.
Global Oat Milk Market: Key Players
Some of the major players studied in the global oat milk market are Oatly AB, SunOpta Inc, Danone SA, Sanitarium Health & Wellbeing, WhiteWave Services, Inc. (Silk), HP HOOD LLC (Planet Oat), Pureharvest, Califia Farms, LLC, Otis Oat M!lk and Vitasoy International Holdings Limited.