Published by fairfieldmarketresearch
Posted on October 6, 2021
4 min readLast updated: January 30, 2026
The oat milk market is expanding due to vegan trends and lactose intolerance awareness, with significant growth expected by 2025.
In the 21st century, the low cholesterol levels and lactose-free properties of plant-based milk have made it a popular option amongst health-conscious vegan consumers. Plant-derived milk such as oat milk is rich in carbohydrates, proteins, fats, vitamins, and minerals. Demand in the oat milk market is driven by the millennial and urban middle-class demographic. Research suggests that oat milk is quite similar to soy protein, attracting the attention of customers seeking greater health benefits. In addition, a rising prevalence of lactose intolerance along with veganism in western countries, is anticipated to spur demand in the oat milk market.
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Coffeehouses Releasing Oat Milk Variants to Cater to Demand in Oat Milk Market
To capitalize on the vegan shift, several cafes and processed food manufacturers now offer oat milk as a primary ingredient. In 2020, Starbucks released oat milk lattes across its chain of coffeehouses in the US. The response was so encouraging that Starbucks followed up with the Honey Oatmilk Latte and Iced Brown Sugar Oatmilk Shaken Espresso this year. Other companies are also eyeing oat milk products. In 2021, British confectionary giant Cadbury’s launched HiP (Happiness in Plants) – an oat milk chocolate. HiP has four variants – Cookies No Cream, Salty Pretzel, Smooth & Creamy, and Salted Caramel. Such vegan, clean label, lactose-free foods are predicted to benefit the global oat milk market throughout the assessment period.
Easy Availability of Conventional Oat Milk Allows it to Race Ahead in Oat Milk Market
The global oat milk market can be classified into the organic and conventional segment. The easy availability of conventional foodstuffs explains their lead in the global oat milk market. Although organic oat milk is still at a nascent stage, an increased consumer pull for such products should boost its prospects in the near future.
Widespread Awareness and Ethical Concerns Fuel Demand in Europe Oat Milk Market
Europe and North America are expected to adopt oat milk considerably quicker than developing regions as consumers there have a greater awareness of lactose intolerance and ways to tackle it. Furthermore, western countries have a much higher disposable income, wider availability of oat milk flavors, presence of large-scale manufacturers, and a growing preference for veganism. Traditionally a meat-eating continent, European consumers have become more mindful about animal cruelty and the side effects of consuming dairy from animals raised on feed additives.
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Largest Company in the Oat Milk Market Goes Public With Others Likely to Follow
In May 2021, Oatly, the largest company actively involved in the oat milk market, decided to go public. Once a niche product, oat milk is now commonplace not only in Starbucks, but also in Target stores and Alibaba in China. Oatly research states that almost 2/5th of adults in the US, UK, Germany, and Sweden tried plant-based milk alternatives in Q1 2021. Other companies profiled in the oat milk market are 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.
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The article analyzes the oat milk market, its growth drivers, and forecasts up to 2025.
Oat milk is popular due to its health benefits, vegan appeal, and being lactose-free.
Key players include Oatly, SunOpta Inc, Danone SA, and others.
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