World oat milk market was USD 1,544.3 million in 2023. The demand for oat milk rose by 12.4% in 2024 over the corresponding period last year. This had taken the whole market to USD 1,981.4 million in 2025. World revenues will have a 13.7% CAGR during 2025 to 2035 and therefore will be USD 7,154.4 million in Q4 of 2035.
Increased health awareness and ecological concern towards sustainability are among the most important growth drivers of the oat milk market with increased demand for plant-based food. Owing to its improved nutritional value, oat milk is increasingly being utilized as a substitute for dairy products in applications for coffee, smoothies, and cake preparation.
Its capacity to imitate the taste and texture of cow's milk has been embraced sufficiently as adequate by most of the lactose intolerant, vegans, and environmentally conscious consumers seeking alternatives with a lesser environmental impact.
Oat milk is also gaining tremendously because oat milk has natural, sweet flavor, fiber nutrients, and health factors in terms of thickness, as well as oat milk leading the pack in terms of calcium, vitamin D, and vitamins B. All these are all thanks to oat milk for being an immensely sought health drink, particularly if one is putting it into perspective with other types of milk such as almond or soy milk.
Among the strongest drivers of oat milk success is increasing consumer demand for green, vegan, and dairy-free. The competitive advantage of oat milk over other plant milks is that it doesn't have nearly as negative of a green stigma because oats require less land and water to cultivate than soybeans and almonds. This ecologic benefit has been at the forefront with increasing demand for oat milk from green consumers.
| Attribute | Description |
|---|---|
| Estimated Global Oat Milk Industry Size (2025E) | USD 1,981.4 million |
| Projected Global Oat Milk Industry Value (2035F) | USD 7,154.4 million |
| Value-based CAGR (2025 to 2035) | 13.7% |
Oat milk industry is also experiencing gigantic product innovation. The companies are continuously improving the taste, texture, and functional characteristics of oat milk. Oat milks with added flavor like vanilla, chocolate, and caramel are gaining popularity, and unsweetened and fortified oat milks are gaining popularity among diet-conscious or health-conscious customers.
New-generation packaging technology like take-away pack and eco-packaging is also unscrambling in the market, which will further allure those customers who are environmentally friendly.
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Relative representation of difference of performance on basis of CAGR in half year period between base year (2024) and current year (2025) of oat milk market globally. Research entails comparison of extreme performance and makes assumptions based on generation of revenues and thus presents an image of trend in growth for one year to stakeholders. Half year as H1 Jan to June. Half year as H2 Jul to Dec.
| Particular | Value CAGR |
|---|---|
| H1 (2024 to 2034) | 13.2% |
| H2 (2024 to 2034) | 13.4% |
| H1 (2025 to 2035) | 13.5% |
| H2 (2025 to 2035) | 13.7% |
In the first half (2025 to 2035, H1) of the decade, the company is expanding at 13.5% CAGR, and in the second half (H2) of the decade, it will be relatively higher at 13.8%. In the subsequent decade, H1 2025-H2 2035, the CAGR is 13.5% CAGR in H1 and relatively higher in H2 at 13.8%. The company increased by 30 BPS in H1, and the company increased another 20 BPS in H2.
Oat milk market will continue to grow based on product innovation milestone strength and repeat consumer health and sustainability need. Fortification and nutrition priority will be given topmost preference for it to be in a position to be able to catch up with consumers' and regulation requirement needs.
World Market Dominating Master Brand Leaders - They are conquering the global oat milk market with deep distribution, innovation in products, and strong brand building. They spend a tremendous amount on advertising, research, and expansion activities. Oatly (Sweden), Worldwide oat milk market leader Oatly, with its operations in North America, Europe, and Asia, has a footprint on the globe.
Its drive towards sustainability, clean label, and innovation on oat milk-based dairy such as barista-use oat milk and oat milk-based ice cream leads the charge. Califia Farms (USA), its premium plant-based drinks strongly placed Califia Farms among the vegan and wellness-oriented consumer base.
Regional Players Building Market Share - These players have some presence in some markets and building their presence through retail relationships, environmental efforts, and product innovation. Danone (France), Danone with Alpro and Silk brands has heavily invested in the oat milk business. It has enormous distribution channels and a positive image in the European and North American dairy alternative market.
Minor Figures (UK), a specialty coffee brand oat milk manufacturer, Minor Figures produces barista-grade oat milk. Minor Figures goes that extra mile to sustainability and carbon-neutral production for eco-conscious buyers and specialty coffee shops.
Niche Brands and Emerging Innovators - The tier consists of small and emerging brands marketed organic, local, or premium oat milk products to meet niche consumers' needs. Elmhurst 1925 (USA), the relatively new plant-based oat milk competitor, Elmhurst 1925 retains oats' natural nutrition through its proprietary HydroRelease process.
A clean-label oat milk specialist, Elmhurst 1925 does not use gums and emulsifiers. Rude Health (UK), Rude Health is a natural oat milk specialist brand with a low-process strategy that will appeal to health-conscious consumers who would prefer to utilize raw, unprocessed ingredients in their milk alternative.
Increased Consumer Demand for Organic & Sustainable Oat Milk
Shift: Consumers are more and more concerned with organic, sustainability, and ethical sourcing. Organic certified, pesticide-free, and regeneratively farmed oat milk is in greater demand. Therefore, companies that can certify sustainable sourcing and environmental protection are more desirable, particularly to more developed economies like Europe and North America, whose consumers are more influential in product selection following branding from certificated sustainablenesses like the EU Organic Label and the USDA Organic seal.
Also, carbon interest and water usage assist in the creation of demand for oat milk as a substitute because everyone would like to live the greener choice by embracing it.
Strategic Response: Oatly is committed to reducing its own carbon footprints by undertaking a Carbon Footprint Labeling Initiative to educate the consumers regarding the carbon worthiness of each carton of oat milk. Califia Farms launched an addition to the line of organic oat milk from non-GMO, eco-farmed oats. Alpro and Oatly both making major investments in regenerative farming and working with farmers in oat production with minimal environmental footprint.
High-Protein & Nutrient-Dense Oat Milk Gaining Momentum
Shift: Consumers are looking for increasingly more protein-enriched and functional vegetable-based drinks because they want health-focused food and beverages. Plant protein is being consumed in higher volumes because consumers have become increasingly health-focused, with over 50% of global consumers actively looking for food that is protein-enriched. Fortified oat milk fortified with calcium, vitamin D, and probiotics to provide nutritional value is gaining traction.
Strategic Response: Oatly launched "Oatgurt" and "Oat Drink + Protein," pea protein-enriched for fitness and active lifestyle shoppers to gain share. Silk launched "Ultra Protein Oat Milk" with 20 grams of plant protein per serving to target athletic performance and fitness shoppers. Elmhurst launched a new "Super Blend Oat + Omega-3" product to target shoppers wanting the added health benefit over regular oat milk.
Expansion in Flavored & Decadent Oat Milk Variants
Shift: As regular oat milk is valued for its lack of taste, the customer is looking for indulgence and flavor options to enhance their experience. Indulgence and flavor oat milk sales are rising as oat milk usage spreads from coffee and cereal to smoothies, protein shakes, and desserts. Newness, functional flavor like matcha, turmeric, chai, and collagen oat milk with additional health value are also rising.
Strategic Response: Oatly introduced oat creamer range, vanilla and chocolate flavors, and recorded a 22% repeat purchase uplift. Oatly further took the lead with its flavor range with chai, strawberry, and matcha flavors, getting onto the wellness wagon. Silk introduced oat-based "Protein Power" range in chocolate and banana flavors, attracting both hedonists and health seekers.
Shift Towards Value-Oat Milk for Price-Conscious Consumers
Shift: Oat milk has been a costly product long enough and is therefore beyond the budget shopper's reach. With inflation still yet to stop taking a bite out of grocery bills, consumers increasingly are turning to lower-priced options, searching for competitively priced oat milk compared to dairy milk and other non-dairy alternative milks like almond and soy. Off-brand sales of plant-based milk increased more than 30% in 2024, which indicates that consumers look for cheaper oat milk.
Strategic Response: Walmart and Kroger launched store-brand oat milk lines, offering value-priced alternatives up to 20% cheaper than name brands. Oatly launched larger packages of oat milk with lower per-ounce prices to place plant-based milk at a lower price point for more consumers. Califia Farms partnered with bulk stores such as Costco and Sam's Club, offering value-size oat milk multi-packs, forcing consumers to buy in bulk and save.
Demand for Barista-Grade Oat Milk in the Coffee Culture
Shift: Increased demand for specialty coffee and plant-based living means the trend towards oat milk in froth and blend with coffee. Coffeehouses now replace almond and soy milk with oat milk because it is heavy and tasteless. Over 60% of specialty coffee drinkers in North America prefer oat milk out of all the plant-based milk substitutes, and therefore it is a huge source of income for cafes and corporations.
Strategic Response: Oatly Barista Edition is found in Starbucks, Dunkin', and most standalone coffee houses and acquiring increasingly more plant-based coffee drinkers. Moderate reformulation created availability in international brands and its visibility to the specialty coffee house category. Silk rolled out their own Barista Collection oat milk for commercial steaming and frothing, picking up traction with the gourmet coffee houses.
The Transition to Shelf-Stable Oat Milk for Online and Bulk Consumption
Shift: Long shelf-life oat milk consumption has been driven by growing e-commerce and consumer shifting shopping patterns, especially since consumers desire convenient-to-drink, ready-to-consume plant-based beverages. Shelf-stable oat milk is highly sought after since more people are working from home and are therefore stockpiling pantry staples. Oat milk sales through the online channel rose more than 40% during 2023 since retailers have been experiencing strong demand for larger package formats.
Strategic Response: Califia Farms developed its shelf-stable aseptic oat milk business, which did not require refrigeration and had a 12-month shelf life, that customers desired because it reduced food waste. Oatly partnered with e-tailers like Amazon Fresh and Instacart, which enabled customers to stock plenty of oat milk. Store brands Costco and Trader Joe's brought shelf-stable oat milk to market, providing a long-life option for price-conscious consumers.
Premiumization & Barbell Pricing Trends in Oat Milk
Shift: Oat milk category is polarizing to value and ultra-premium categories. Premium oat milk with various flavors, added protein, and other nutritional ingredients infused into it is growing extremely sharply on one side. Side-by-side growth is being driven by value shoppers on the other side, purchasing lower-priced private-label oat milks offering value. This "barbell effect" is impacting prices in the market.
Strategic Response: Califia Farms and Elmhurst positioned oat milk premiumness in the language of craft and limited-edition flavors after tracking premiumization patterns. Both Walmart's private brand Great Value and Costco's Kirkland Signature introduced ultra-value oat milk aimed at price-frugal consumers. Oatly expanded the range with premium organic barista oat milk as well as with large, affordable packs to consume more.
The following table shows the estimated growth rates of the top five territories expected to exhibit high consumption of oat milk through 2035.
| Countries | CAGR 2025 to 2035 |
|---|---|
| USA | 16.5% |
| Germany | 10.0% |
| China | 12.2% |
| Japan | 11.4% |
| India | 13.7% |
The oat milk market in the USA is growing as more customers choose dairy products that are plant based. As the demand for lactose-free, vegan, and eco-friendly milk alternatives rises, oat milk is thriving at coffee chains, grocery retail, and foodservice.
Moreover, organic and fortified oat milk formulations are also gaining prominence among health-conscious consumers who prefer high-fiber and low-fat dairy alternatives.
Germany’s oat milk sector is growing steadily, buoyed by stringent EU regulations on the production of organic food and sustainability. There growing demand for clean-label, minimally processed, and fortified oat milk in the retail and café, as well as the on-the-go beverage markets.
Due to consumers becoming more concerned with their impact on the environment, German producers are turning to carbon-neutral production methods and regenerative oat farming.
Rising rates of lactose intolerance and demand for functional plant-based beverages are driving China's oat milk market. Urban consumers demand nutrient-dense, digestive-friendly beverages, and oat milk is increasingly featured in ready-to-drink (RTD) formats and fortified formulations.
Government initiatives for plant-based alternatives and sustainable agriculture also have local manufacturers ramping up investment in high-protein and calcium-enriched variants of oat milk.
Japan’s oat milk market resides in an extensive focus on premium-quality dairy alternatives and functional health beverages. Mildly sweet, barista-style, and high-fiber oat milk varieties favored by Japanese consumers in tea, coffee, and health-conscious diets.
In addition, Japanese innovation in enzymatic processing and food science is resulting in oat milk formulations that deliver better texture and nutritional bioavailability.
The oat milk market in India is growing due to increasing awareness of health, rising levels of lactose intolerance and increasing urbanization. There is a growing appetite for functional oat milk fortified with fiber, protein and Ayurvedic adaptogens.
As plant-based food startups and e-commerce grocery platforms proliferate, oat milk is more widely available to vegan, fitness-fixated, and sustainably minded customers.
| Segment | Value Share (2025) |
|---|---|
| Retail Packaged Oat Milk (By Type) | 70.4% |
Retail packaged oat milk holds the largest market share with an estimated value share of 70.4% in 2025 and is driven by the growing consumer demand for plant-based dairy alternatives which are convenience-based, have extended shelf-life and are fortified. As more and more consumers adopt dairy-free lifestyles, oat milk has become the darling of food shelf staples, a versatile alternative to traditional milk that can be used for drinking, cereal, baking and cooking.
Food manufacturers are developing new formulations of oat milk including sugar-free and protein-fortified and flavored to meet the growing consumer demand for different types of barista-style oat milk. Boosted oat milk with extra calcium, vitamins and probiotics is also becoming popular with health-focussed shoppers.
With demand for sustainable and organic oat-based products on the rise, companies are placing an emphasis on low-carbon, recyclable packaging, and regenerative oat farming to lessen their environmental impact. The retail channel, which is still the biggest growth driver for oat milk, has been strengthened with more supermarket distribution, e-commerce sales, and private label offerings.
| Segment | Value Share (2025) |
|---|---|
| Foodservice & Specialty Beverages (By Application) | 29.6% |
As the demand for dairy-free alternatives has surged in cafés, quick-service restaurants (QSRs) and specialty beverage companies, oat milk has become ubiquitous in lattes, smoothies and plant-based food preparation. Oat milk has carved its own niche in the foodservice business with a creamy texture and neutral flavor that perfectly complements a wide range of beverages, as consumers gravitate toward plant-based and allergen-free options.
As barista-grade oat milk rises in popularity, companies are producing heat-stable, creamy-textured, and foam-friendly products specifically formulated for foodservice use. These advances deliver better frothing, uniformity, and flavor, and respond with the growing market for high-function dairy replacements. Oats that are sourced in a sustainable manner, as well as organic certifications, are also becoming differentiators in the market.
Foodservice and specialty beverage will also drive a 29.6% value share forecast by 2025 supported by growing café culture, plant-based menu innovation and the need for sustainable dairy alternatives.
The oat milk space is competitive, as the major players are concentrating on clean-label formulations, sustainability and further product diversification. This has led companies to innovate oat milk offerings that are allergen-friendly, gluten-free, and organic to cater to diverse consumer preferences.
With expertise in dairy-free products, high-quality oat sourcing and global distribution networks, Oatly, Califia Farms, Danone, Chobani and Elmhurst 1925 are leading players in the market, committed to an international standard production process. As demand for premium oat milk alternatives continues to climb, numerous companies are expanding their footprint across Asia-Pacific and North America.
This includes partnerships with coffee chains, investment in fortified oat milk blends, and development of low-sugar and protein-enriched formulations. Manufacturers are also focused on sustainable sourcing, water-wise oat farming, and carbon-neutral manufacturing facilities.
For instance
The global oat milk industry is projected to reach USD 1,981.4 million in 2025.
Key players include Oatly Group AB; Nestle SA; Lam Soon; Alpro; Califia Farms; PureHarvest; Chobani; F&N Life; Donene SA.
North America is expected to dominate due to strong demand for plant-based dairy alternatives in retail and foodservice.
The industry is forecasted to grow at a CAGR of 13.7% from 2025 to 2035.
Key drivers include rising demand for plant-based dairy, increasing use in coffee and foodservice, growing awareness of lactose-free alternatives, and advancements in oat milk fortification and sustainability.
The market is categorized into regular/full-fat and reduced-fat products, catering to different consumer preferences.
The product offerings include natural, flavored, fruit, chocolate, vanilla, and other varieties, providing a range of taste options.
These products are available in shelf-stable and refrigerated formats to suit varying storage and consumption needs.
The market is segmented as North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, Central Asia, Russia and Belarus, Balkan & Baltic Countries, Middle East and Africa.
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Oat Milk Market
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