The global oat-based beverage market is estimated to reach USD 1874 million by 2034 and rise at a CAGR of 8.1% during the evaluation period. The plant-based beverage market has witnessed significant growth in recent years, with oat-based beverages emerging as a dominant category across the globe.
The industry is anticipated to attain a value of around USD 859.4 million in 2024. Growth is mainly attributed to the universal shift towards veganism and rising awareness to take steps against animal cruelty.
Looking ahead, the oat-based beverage industry’s future looks promising. In August 2023, for instance, Moma Foods, a United Kingdom-based oat milk company, stated that oat is the future of the plant milk category.
The cereal grain makes up 52% of the dairy alternatives category in the United Kingdom, with a growth rate of 12%. As leading oat-based beverage companies continue to introduce new products tailored to evolving consumer preferences, demand for oat-based beverages is expected to rise significantly.
While the oat-based beverage industry is generally more sustainable compared to dairy, it still faces scrutiny regarding the environmental impact. Hence, manufacturers are prioritizing sustainability measures, such as optimizing production processes, minimizing water usage, and exploring regenerative agricultural practices to maintain the industry’s sustainability credentials.
Ongoing advances in technology, such as the ultra-high-temperature processing (UHT) technique, are making storage and transportation easy while lowering the environmental impact. The technique helps to kill all the bacteria and extend the shelf life of products, which is pushing demand.
Companies are also changing the packaging of new beverages by using recyclable paper-based cartons to reduce the overall environmental footprint. A few players are taking advantage of data analytics and artificial intelligence to reach a wide audience and stay ahead of the competition by introducing products tailored to varying needs.
The plant-based beverage industry is saturated with traditional players and emerging, innovative start-ups. These brands are constantly vying for consumer attention, which is creating a complex scenario to earn consumer trust and loyalty for continued growth.
| Attributes | Description |
|---|---|
| Estimated Global Oat-based Beverage Market Size (2024E) | USD 859.4 million |
| Projected Global Oat-based Beverage Market Value (2034F) | USD 1874 million |
| Value-based CAGR (2024 to 2034) | 8.1% |
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Emergence of Doorstep Delivery Services to Fuel Demand
In recent years, customers have been inclined towards convenience while making purchases. Brands are readily capitalizing on this convenience trend by offering subscription-based and doorstep delivery services, thereby driving steady growth in the plant-based product industry.
Brands have also made the process easy for customers to maintain a healthy lifestyle by providing the option of regular home deliveries. These doorstep delivery services have enabled customers to purchase things without having to leave the comfort of homes. This is further contributing to a convenient experience for modern consumers while helping brands increase consumer base and revenue.
Brands are set to continue to innovate and offer new products that cater to customers' evolving needs and preferences. This convenience trend is projected to play a crucial role in propelling growth of the plant-based beverage sector, including oat drinks.
Individuals with Lactose Intolerance Seek Alternatives to Traditional Dairy Products
Individuals with lactose intolerance and dairy allergies are actively seeking substitutes for conventional dairy products. These substitutes mainly include plant-based drinks such as soy, almond, or oat milk. The easy availability of these products allows individuals with certain dairy-related conditions to enjoy a wide variety of delicious a nutritious food.
Surging Demand for Oats Putting Pressure on Product Supplies
The oat-based beverage industry has seen significant growth in recent years, with more consumers opting for healthy and eco-friendly alternatives. This increasing demand for oat beverages has put immense pressure on the supply chain.
Companies will be required to find sustainable ways to increase oats production while maintaining quality and affordability for long-term business stability. These issues in production are anticipated to lead to fluctuating prices of oats, thereby posing a challenge for manufacturers to balance production costs while maintaining competitive consumer prices.
The oat-based beverage market value increased at a CAGR of 10.4% between 2019 and 2023. The total size at the end of 2023 reached USD 787.7 million. This high growth was fueled by increasing demand for healthy and sustainable food choices.
At the same time, the easy availability of oat milk and other plant-based beverages in retail stores, cafeterias, and online e-commerce platforms augmented sales.
Online sales for plant-based beverages skyrocketed during the historical period when lockdown restrictions were in place due to the COVID-19 pandemic. This surge in online sales highlighted the adaptability and ability of plant-based drink companies to meet consumer needs during challenging times.
Analysis predicts continued growth for the oat-based beverage industry in the upcoming decade, with a CAGR of 8.1% from 2024 to 2034, taking the value to USD 1874 million by 2034. This growth is attributed to the increasing popularity of oat-based drinks, mainly oat milk. The drink has seen widespread use in various applications such as coffee, smoothies, and baking.
The expansion of distribution channels is anticipated to further fuel growth, making oat-based drinks a prominent segment in the ever-growing plant-based beverage industry. With changes being made in manufacturing and packaging, these products are set to achieve close to zero carbon footprint soon, thereby increasing the total sustainability profile.
Principal Consultant
The section below provides a comparative analysis of two industries in the food and beverage domain, namely, the plant-based yogurt and the non-dairy creamer industries. The short assessment of these industries, along with the oat beverage sector, would enable potential clients to make wise investment decisions and focus on the most beneficial sectors.
Plant-based Yogurt Industry Assessment:
The plant-based yogurt sector is well-positioned to capitalize on the trend of a growing health-conscious population seeking dairy alternatives. Growth is further fueled by factors such as lactose intolerance, dairy allergies, and veganism.
Manufacturers are consistently working towards innovating the flavors, textures, and functionalities of plant-based yogurts, catering to a wide customer base. Oats have emerged as a dominant player in the plant-based yogurt industry mainly due to the low environmental footprint.
| Attributes | Description |
|---|---|
| Related Market | Plant-based Yogurt Market |
| CAGR (2024 to 2034) | 13.1% |
| Growth Factor | Increasing demand for plant-based high-protein yogurt in different flavors like blueberry, strawberry, and chocolate is set to push sales. |
| Opportunity | Key companies are projected to collaborate with government bodies to create awareness among millennials regarding the benefits of consuming plant-based yogurt. |
| Key Trends | Increasing endorsements from celebrities and social media influencers are anticipated to be a key trend. |
Non-dairy Creamer Industry Assessment:
The non-dairy creamer sector is emerging as a strong contender in the plant-based creamer segment. Growth is attributed to a surging inclination toward healthy eating choices, especially among millennials. Non-dairy or plant-based creamers are popular among consumers who are looking for alternatives that have low calories and less saturated fats.
| Attributes | Description |
|---|---|
| Related Market | Non-dairy Creamer Market |
| CAGR (2024 to 2034) | 7.3% |
| Growth Factor | High demand for allergen-free additives is anticipated to boost growth. |
| Opportunity | As compared to dairy creamers, non-dairy creamers have lower costs, which is set to push sales. |
| Key Trends | Surging demand for eco-friendly products that are free from harsh chemicals is projected to be a leading trend. |
The following section offers an analysis of the oat-based beverage industry across various countries from 2024 to 2034. South Korea is leading the trend with an estimated CAGR of 10.2% throughout the forecast period, closely followed by Japan and China with a 9.9% and 8.9% CAGR, respectively.
All three countries are anticipated to create increased oat-based market opportunities in Asia Pacific. The section will further provide a regional analysis of the oat-based beverage sector, discussing the latest trends, growth opportunities, and restraints in particular countries.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 8.4% |
| China | 8.9% |
| United Kingdom | 9.4% |
| Japan | 9.9% |
| South Korea | 10.2% |
The United States oat-based beverage market is projected to surge at a CAGR of 8.4% during the forecast period, totaling USD 333.5 million by 2034. This surge is attributed to the robust coffee culture coupled with the rising popularity of plant-based diets in the country.
As people around the country are becoming health conscious, there is a rising demand for lactose-fee and dairy alternative beverages as well as snacks. As a result, the United States oat-based snacks and beverage market is experiencing an upsurge. The well-established retail landscape of oat-based beverages in the United States further strengthens sales.
Established oat-based beverage companies in North America are set to face tough competition from innovative start-ups and traditional dairy companies. These companies are entering the United States oat-based beverage industry with a focus on unique selling points and specific functionalities, recognizing demand and potential for revenue growth.
The oat-based beverage sector in China is estimated to witness significant growth at a CAGR of 8.9% during the assessment period. This increased CAGR is projected to bring a value of USD 295.7 million by 2034 to the non-dairy beverage market. High demand is set to be driven by the growing popularity of Western coffee culture in China.
Lactose intolerance is common in China, thereby creating a significant demand for dairy alternatives. The government of China is also introducing several initiatives to promote healthy eating.
Numerous government agencies are reducing the reliance on dairy imports, further creating a favorable environment for the plant-based beverage industry. Despite the presence of international brands like Oatly, domestic China-based brands are emerging as leading players, catering to local tastes and offering competitive pricing.
The oat-based beverage sector in South Korea is predicted to soar at a CAGR of 10.2%, totaling a value of around USD 120.6 million by 2034. Veganism and flexitarianism are gaining traction in the country.
Such practices are set to be the key drivers of the oat-based beverage industry in South Korea. However, the price point of oat-based beverages is a sensitive issue in the country. This is mainly attributed to the expensive nature of oat-based products compared to traditional milk that is produced locally.
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The section below offers detailed information on the dominant segments of the oat-based beverage industry and anticipates growth rates for the next decade. This detailed segmentation of the industry helps companies to make decisions and formulate strategies accordingly.
The organic segment emerged to be the dominant source in the oat beverage industry with a value share of 65% in 2023 and will likely exhibit a CAGR of 7.8% by 2034. The plain segment took center stage in the product type category with a 62% share and is set to rise at a CAGR of 7.6% through 2034.
| Segment | Organic (Source) |
|---|---|
| Value Share (2023) | 65% |
Based on the source type, the organic source segment dominated the industry, accounting for a market share of 65% in 2023. The segment is estimated to record a CAGR of 7.8% through 2034. The organic category remains widely sold mostly due to several health benefits owing to the use of clear ingredients.
Oat beverages having organic certifications strictly adhere to government regulations and third-party inspections. Organic beverage manufacturers tend to prohibit the use of animal by-products in fertilizers, which is appealing to customers who prioritize animal welfare. Companies are focusing on launching organic beverages to establish trust through transparency.
| Segment | Plain/Original (Product Type) |
|---|---|
| Value Share (2023) | 62% |
The plain/original product type generated a market share of 62% in 2023, thereby creating significant revenue-generation opportunities for oat-based beverage manufacturers.
The segment is anticipated to rise at a CAGR of 7.6% through 2034. The dominance of plain/original product type is attributed to the ability to function as a true substitute for dairy. This type of product can also be easily used in various recipes and beverages, thereby bolstering demand.
Plain oat milk contains fewer added sugars and is less processed compared to flavored milk. Hence, the drink helps cater to the needs of those consumers looking for clean and simple ingredients. Plain beverage is also less expensive compared to flavored oat milk options. These fulfill the needs of budget-conscious consumers seeking affordable plant-based milk alternatives.
The oat-based beverage market is experiencing fierce competition. As a result, leading companies are striving to increase market shares by constantly exploring current trends and evolving the products accordingly.
Key players like Oatly, Chobani, and Califia Farms are leveraging brand recognition and loyalty by keeping the customers engaged with high-quality, innovative product offerings. Companies are also continuously investing in research and development to enhance the taste, texture, and nutritional value of oat-based beverages.
Brands are exploring new technologies to increase the shelf life of oat-based beverages. Advances are being made in packaging technology to ease the storage and transportation of these products while reducing the environmental impact.
Ongoing advances in data analytics and artificial intelligence are helping companies understand consumer preferences and develop new oat-based beverages tailored to unique needs.
By analyzing sales data and social media trends, manufacturers can easily identify popular flavors and ingredients as well as the merging health and wellness trends.
This allows to create new products that meet the evolving needs of consumers and stay ahead of the competition. Apart from this, established players are progressively acquiring small-scale brands to expand existing product lines.
Industry Updates
The industry is segmented into two sources, namely, organic and conventional.
Based on product type, the industry is categorized into plain or original and flavored.
The market has various specialties, including gluten-free, dairy-alternative, heart-healthy, and others.
The oat-based beverage market growth is attributed to various distribution channels that include retail stores, online retail, specialty stores, and food service/HORECA.
The market is set to be valued at USD 859.4 million in 2024.
Oatly AB, Califia Farms, Alpro, and Quaker Oats Company (PepsiCo).
The market is expected to rise at a CAGR of 8.1% by 2034.
The plain/original product type is leading the industry.
China is projected to reach USD 295.7 million by 2034.
Shift towards veganism and rising consciousness of the environment.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-Economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Source 6.2. Product Type 6.3. Specialty 6.4. Distribution Channel 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Source 7.1. Organic 7.2. Conventional 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type 8.1. Plain/Original 8.2. Flavored 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Specialty 9.1. Gluten-free 9.2. Dairy Alternative 9.3. Heart-healthy 9.4. Others 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Distribution Channel 10.1. Retail Stores 10.2. Online Retail 10.3. Specialty Stores 10.4. Food Service/HORECA 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. South Asia 11.5. East Asia 11.6. Eastern Europe 11.7. Middle East & Africa 12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 19. Sales Forecast 2024 to 2034 by Source, Product Type, Specialty, and Distribution Channel for 30 Countries 20. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 21. Company Profile 21.1. Oatly AB 21.2. Califia Farms 21.3. Alpro 21.4. Quaker Oats Company (PepsiCo) 21.5. Pacific Foods of Orego 21.6. Hälsa Foods 21.7. Rude Health 21.8. Elmhurst 1925 21.9. Happy Planet Foods 21.10. Nature's Path Foods 21.11. Pureharvest
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