Global Oat Milk Market Growth Propelled by Increasing Lactose Intolerant Populat

Posted by Abhay Rajput on April 22nd, 2021

Oat milk represents one of the popular dairy-free and vegan-friendly milk substitutes, which is obtained by soaking, blending and straining oats. It can be consumed as it is or after adding natural sweeteners like vanilla, dates, and cinnamon to enhance the overall taste. It has a creamy texture and is a good source of zinc, copper, folate, thiamine, vitamin B, manganese, magnesium, and phosphorus. Besides this,other nutrients, such as iron, potassium, riboflavin, calcium, fiber, and vitamins A and D, are also fortified in commercially available oat milk. Its consumption offers numerous health benefits, including lowering blood cholesterol and promoting bone health.As per the global oat milk market report by IMARC Group, the market reached a total value of nearly US$ 3.8 Billion in 2020.

The growing adoption of veganism is positively influencing the uptake of oat milk

The growing influence of celebrities via social media platforms has resulted in skyrocketing Google searches for veganism. It has also resulted in a remarkable reception of the Veganuary campaign, which is run by a non-profit organization in theUnited Kingdom for promoting and educating about veganism and encouraging people to follow a vegan lifestyle in the month of January. Moreover, due to the growing prevalence of chronic diseases and increasing environmental awareness, there is a significant increase in the number of individuals who are adopting veganism. This, along with the easy availability of vegan food and dairy alternatives and the escalating number of individuals who are lactose intolerant, is positively influencing the sales of oat milk across the globe. However, plant-based milk is not permitted to be labeled as milk in numerous countries, and it is taxed higher thanconventional milk.

The market is anticipated to experience growth as leading manufacturers operating in the industry are adopting innovative ways to obtain oat milk and distinguish their products in domestic markets. Consequently, they are focusing on improving the product packaging and investing in promotional campaigns to expand their existing reach. Besides this, they are sourcing high-quality raw materials directly from farmers to make the end-product cost-effective. As per the global oat milk market forecast, the overall value is expected to reach around US$ 6.7 Billion by 2026, at a projected CAGR of 9.80% during 2021-2026.

Market impact of COVID-19 on oat milk demand

With the sudden outbreak of coronavirus disease (COVID-19), the demand for healthy food products and functional beverages,which help in boosting the immune system,is surging worldwide. This, along with the growing consumer spending to prevent themselves from being affected by the disease,is positively influencing the demand for oat milk across the globe. However, the implementation of complete lockdown hampered the supply chain and manufacturing activities. It also generated a massive supply-demand gap as online platforms were unable to acquire adequate supply, and supermarkets and hypermarkets were closed during the lockdown in several countries.

Due to the introduction of lockdown relaxations in several countries, manufacturing units have been re-opened after adopting preventive measures. Moreover, e-commerce platforms are functioning completely and taking orders on essential as well as non-essential goods. These factors are assisting in minimizing the demand-supply gap and strengthening the growth of the oatmilk market.

Oat milk market classification based on source, product, packaging type, application and distribution channel

• On the basis of the source, conventional oat milk holds the largest market share as it is relatively low priced. It is followed by organic oat milk, which is anticipated to experience faster growth due to the rising inclination towards non-genetically modified organisms (GMOs) and pesticide-free grown products.
• Based on the product, plain oat milk accounts for the majority of the total market share as it finds application in coffee shops. It is followed by flavored oat milk.
• The market has also been segmented on the basis of the packaging type into cartons, bottles and others. At present, cartons dominate the market as they are lightweight, sustainable, and offer a longer shelf-life and incur lower transportation costs. This can also be accredited to the escalating demand for improved quality tetra packs and longer shelf-life solutions.
• On the basis of the application, beverages hold the biggest market share, followed by food.
• Based on the distribution channel, the market has been segregated into supermarkets and hypermarkets, grocery stores, online stores, and others. Presently, supermarkets and hypermarkets account for the majority of the global market share as they provide high visibility and an attractive assortment of plant-based products to consumers. This also enables them to find new product variety and differentiate better among products.

North America dominates the market

On the geographical front, the major markets of oat milk include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (the United Kingdom, Germany, France, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and Middle East and Africa. Amongst these, North America enjoys the leading position in the market on account of the presence of various leading players in the region. This can also be attributed to the growing consumer awareness about the health benefits of oat milk and the rising number of new product launches.

Competitive landscape

The market is currently experiencing high competition, with leading companies having insignificant product differentiation. These companies are focusing on delivering fresh and innovative variants to expand their existing market hold. For instance, Oatly AB, a Swedish company, is targeting cafés as part of their product launch strategy in the United States. Similarly, Earth's Own Food Company Inc., a plant-based beverage company, along with Baristas, introduced Oat Barista exclusively for coffee drinkers. The company also launched an oat-milk creamer, which is a dairy-free alternative used by consumers in their daily drinks.

About IMARC Group:

IMARC Group is a leading market research and consulting company that offers management strategy and market research worldwide. The company has done multiple projects on the oat milk industry, which has enabled the clients to set up and expand their businessessuccessfully. Some of the company’s offerings include:

• Market Research
• Plant setup
• Plant Expansion
• Marketing and sales
• Procurement and Distribution
• Innovation and Product Development

For more information, visit:https://www.imarcgroup.com/oat-milk-market