July 20, 2024

Expanding Demand For Plant-Based Beverages Is Anticipated To Openup The New Avenue For Oat Drink Market

Oat drink, also known as oat milk, is a plant-based beverage made from whole oats and water. It provides nutrition including vitamins (A, B1, B2, B12 and D), minerals (calcium, phosphorus, iron, magnesium and manganese) along with fiber and protein. Oat drinks are a perfect substitute for consumers looking to replace dairy milk due to lactose intolerance, protein allergies or dietary preferences. Major manufacturers offer oat drinks in different flavors like original, chocolate, vanilla, strawberry etc. to cater varied taste buds.

The Oat Drink Market is estimated to be valued at Us$ 741.5 Mn in 2023 and is expected to exhibit a CAGR Of 7.8% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Growing inclination towards healthy plant-based products with multi-dimensional benefits is driving the demand for oat drinks. Shifting dietary patterns and rising vegan population due to increased awareness about environmental and ethical issues associated with animal products have amplified the market growth prospect. Additionally, prevalence of lactose intolerance among adults has fuelled adoption of lactose-free alternatives like oat drinks. Furthermore, emerging trend of consumers opting for beverages offering nutritional value has provided traction to oat drinks enriched with fiber, vitamins, minerals and natural antioxidants. Companies are strengthening their market position through innovations like low sugar, flavored and fortified oat drinks to cater evolving consumer needs.

Segment Analysis

The global oat drink market is dominated by the non-dairy oat milk segment. Oat milk is the most popular non-dairy milk made from grinding oats and boiling them in water. It closely resembles dairy milk in appearance, texture and taste. Oat milk has seen increasing popularity as a dairy alternative owing to rising vegan and lactose intolerant population.

PEST Analysis

Political: The government regulations regarding food labeling and product claims have supported transparency in the ingredients and nutritional value of oat drinks.

Economic: The rising disposable incomes and health awareness among consumers have increased the demand for alternative and healthier plant-based drinks like oat drinks.

Social: Changing lifestyle and eating patterns along with rising vegan and flexitarian population have boosted the social acceptance of oat drinks as environment-friendly and healthy substitutes for dairy milk.

Technological: Advancements in grinding and blending techniques have improved the nutritional value retention and creaminess of oat drinks, making them an attractive alternative to dairy milk.

Key Takeaways

The Global Oat Drink Market Size is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period, due to increasing health consciousness among consumers. The non-dairy oat milk segment currently dominates the market owing to its resemblance to dairy milk in taste and texture along with nutritional benefits.

Regional analysis shows that North America currently holds the major share in the global oat drink market due to growing vegan and lactose intolerant population. Europe is also a major consumer owing to rising preference for plant-based and sustainable products. Meanwhile, Asia Pacific is projected to be the fastest growing regional market with increasing awareness about benefits of a plant-based diet.

Key players operating in the oat drink market are Cereal Base Ceba AB (Oatly), Califa Farms, Happy Planet Foods Inc., PepsiCo Inc., Elmhurst 1925, Rude Health, and Oatguru. Oatly dominates the market with its wide variety of oat drinks and continuous innovations to improve taste and creaminess to attract both vegan and non-vegan consumers.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it