PDF Cover

Oat Milk Market

The market for Oat Milk was estimated at $3.5 billion in 2025; it is anticipated to increase to $6.8 billion by 2030, with projections indicating growth to around $13.4 billion by 2035.

Report ID:DS1901153
Author:Debadatta Patel - Senior Consultant
Published Date:
Datatree
Food & Beverage
Packaged & Processed F&B
Oat Milk
Share
Report Summary
Market Data
Methodology
Table of Contents

Global Oat Milk Market Outlook

Revenue, 2025

$3.5B

Forecast, 2035

$13.4B

CAGR, 2026 - 2035

14.5%

The Oat Milk industry revenue is expected to be around $3.5 billion in 2026 and expected to showcase growth with 14.5% CAGR between 2026 and 2035. This momentum underscores the strategic significance of the Oat Milk market, as Household and HoReCa end-users together account for 87.9% of consumption, making the category central to both at-home use and out-of-home dining occasions. Liquid Oat Milk, which generated $2.88 billion in industry revenue in 2025, remains the dominant product type due to its familiarity, ease of use, and strong placement in retail chains, online grocery platforms, and foodservice distributors. The Oat Milk industry is benefiting from intensifying shifts toward plant-based milk and broader plant-based dairy alternatives, as health-conscious and flexitarian consumers seek dairy-free milk that supports digestive comfort, clean-label formulations, and lower environmental impact. Growing penetration in coffee shops and cafés, quick-service restaurants, and premium hospitality venues further strengthens brand visibility, reinforces barista-grade functionality, and sustains ongoing relevance in competitive non-dairy milk portfolios.

Oat Milk is a cereal-based, dairy-free milk alternative produced by enzymatically treating oats and blending them into a smooth, creamy liquid, offering a neutral yet slightly sweet flavor profile that performs well in hot and cold applications. Key features of modern Oat Milk products include lactose-free beverages suitable for vegan consumers, often fortified with calcium, vitamins, and sometimes protein, with options spanning organic Oat Milk, gluten-free Oat Milk, unsweetened variants, and barista-focused formulations optimized for foaming and latte art. Major applications extend across household consumption for breakfast cereals, smoothies, and baking, as well as HoReCa use in specialty coffee, ready-to-drink oat-based beverages, desserts, and savory recipes where traditional dairy once dominated. Recent trends driving demand in the global Oat Milk industry include clean-label ingredient lists, reduced sugar formulations, sustainable packaging innovations, and a rising preference for ethically positioned, climate-conscious beverages within the wider dairy alternatives landscape.

Oat Milk market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Oat Milk Market Outlook

Market Key Insights

  • The Oat Milk market is projected to grow from $3.5 billion in 2025 to $13.4 billion in 2035. This represents a CAGR of 14.5%, reflecting rising demand across Household, HoReCa, and Food Industry.

  • Oatly, Danone, and Califia Farms are among the leading players in this market, shaping its competitive landscape.

  • U.S. and Canada are the top markets within the Oat Milk market and are expected to observe the growth CAGR of 13.1% to 17.4% between 2025 and 2030.

  • Emerging markets including Brazil, India and South Africa are expected to observe highest growth with CAGR ranging between 10.1% to 15.2%.

  • Transition like Rise of NonDairy Alternatives is expected to add $815 million to the Oat Milk market growth by 2030.

  • The Oat Milk market is set to add $9.9 billion between 2025 and 2035, with manufacturer targeting HoReCa & Food Industry Application projected to gain a larger market share.

  • With

    rising health consciousness, and

    Environmental Sustainability Importance, Oat Milk market to expand 287% between 2025 and 2035.

oat milk market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Oat Milk - Country Share Analysis

Opportunities in the Oat Milk

Rising demand for plant-based performance drinks is also opening space for fortified liquid oat milk in North America’s sports nutrition aisle. Brands can combine added protein, electrolytes, and beta-glucan heart-health claims with low-allergen positioning versus soy and dairy. Globally, liquid formats dominate, growing from $2.88 billion in 2025 to $5.57 billion by 2030 at 14.1% CAGR, and sports-focused SKUs should capture a disproportionate share. Co-branding with fitness apps, gyms, and online coaching platforms can accelerate discovery and repeat purchase.

Growth Opportunities in North America and Europe

In North America, Oat Milk growth is led by the Household segment, where retail penetration of plant-based milk and dairy alternatives is highest, while HoReCa and the Food Industry act as accelerators through coffee chains and ready-to-drink vegan beverages. Top opportunities include premium barista oat milk tailored for specialty coffee, value-oriented family packs, and fortified formulations positioned as nutritious non-dairy creamer options for breakfast and home cooking. Competitive intensity is elevated due to strong private-label expansion, cross-category dairy brands, and broader non-dairy beverages competing on price and taste, pushing brands toward differentiation via clean-label recipes, low-sugar lines, and functional benefits. Key regional drivers include high awareness of lactose intolerance, strong environmental consciousness around dairy emissions, and the deeply ingrained coffee culture that rewards Oat Milk variants optimized for foamability and neutral taste. Strategically, investment should focus on retail visibility in mainstream supermarkets and online channels, co-development with food manufacturers for Oat Milk-based products, and dedicated HoReCa solutions to secure repeat usage and menu standardization.
In Europe, Oat Milk demand is strongly shaped by the HoReCa segment, which, although smaller in absolute volume than Household consumption, has outsized relevance in setting taste preferences and normalizing plant-based milk usage in cafés and restaurants. Top opportunities lie in organic and sustainably sourced Oat Milk, gluten-free certified variants, and barista oat milk formats that align with Europe’s premium coffee culture and strict regulatory standards for dairy alternatives. Competition is marked by powerful retailer private labels, incumbent dairy processors diversifying into vegan beverages, and niche innovators pushing clean-label, local-oat propositions, making branding around provenance, carbon footprint, and ingredient transparency a critical success factor. Core drivers include high adoption of flexitarian and vegan diets, regulatory pressure favoring lower-emission food systems, and consumer willingness to pay a premium for environmentally responsible non-dairy beverages. Strategically, companies should prioritize partnerships with HoReCa operators to secure menu placements, develop Oat Milk ingredients for the Food Industry and position Household offerings around sustainability, taste consistency, and multi-use functionality in cooking and beverages.

Market Dynamics and Supply Chain

01

Driver: Rising Health Awareness and Increasing Demand for Plant-Based Dairy Alternatives Globally

The growing health awareness among consumers is also a key driver for the oat milk market. People are also increasingly conscious of cholesterol intake, lactose intolerance, and the benefits of dietary fiber such as beta-glucans, which support heart health. Oat milk offers a natural, nutrient-rich alternative that aligns with these dietary preferences. At the same time, the rising demand for plant-based dairy alternatives is also fueled by ethical and environmental considerations, including reduced greenhouse gas emissions and sustainable crop production. Both trends converge to expand the oat milk market as consumers seek nutritious, sustainable, and easily accessible products. Brands like Oatly, Alpro, and Planet Oat leverage product innovation, fortified formulations, and convenient packaging to meet these demands, capturing both household and commercial segments and driving overall market growth in developed and emerging regions.
Advancements in oat milk processing and fortification technologies are also a significant market driver. Techniques such as enzymatic treatment and homogenization improve creaminess, consistency, and protein content, making oat milk more suitable for coffee, baking, and industrial applications. Fortification with vitamins, minerals, and plant-based proteins also enhances nutritional value. These technological innovations allow manufacturers to produce high-quality oat milk with extended shelf life, stable flavor, and improved foaming properties for barista applications. Companies like Oatly and Elmhurst 1925 are also adopting these methods to differentiate products, maintain product integrity, and meet evolving consumer expectations, strengthening market adoption across household, HoReCa, and food industry segments.
02

Restraint: High Price Sensitivity Compared With Traditional Dairy Limiting Wider Adoption

Oat milk often costs significantly more than traditional dairy milk and many plant-based alternatives, which restrains market expansion, especially in price-conscious regions. Higher production costs from processing and ingredient sourcing are passed to consumers, reducing demand among households prioritizing budget over perceived health benefits. For example, some grocery shoppers revert to cow’s milk or cheaper soy and almond options during inflationary periods, leading to slower revenue growth for premium oat milk brands. This price sensitivity also affects HoReCa procurement, where slim margins make frequent use of costlier oat milk less attractive for bulk purchasing and menu pricing strategies.
03

Opportunity: Shelf-stable oat milk powders for foodservice channels across Southeast Asia and Clean-label barista oat milk for premium coffee chains in Europe

Rapid café and quick-service expansion in Southeast Asia creates unmet demand for versatile, shelf-stable oat milk powders tailored to foodservice. Hotels, tea shops, and bubble-tea chains want consistent foam, easy storage, and dairy-free menu extensions without cold-chain dependence. Globally, powdered oat milk is smaller but faster-growing, rising from $0.58 billion in 2025 to $1.24 billion by 2030 at 16.4% CAGR, and foodservice applications in tropical climates are poised to lead this subsegment through bulk-pack formats and highly localized, regionally-authentic flavors.
Europe’s specialty coffee culture is shifting toward plant-based options, yet many barista oat milks still rely on additives and imported brands. Clean-label, locally sourced liquid oat milk optimized for latte art can address premium chains seeking sustainability. The fastest growth is expected in Northern and Western Europe, where consumer scrutiny of ingredient lists is highest. Opportunities include co-developing signature blends with leading café groups, leveraging oat hull byproducts for sustainability storytelling, and integrating QR-based transparency on sourcing and footprints.
04

Challenge: Supply Chain Constraints and Raw Material Variability Affecting Production Scalability

Oat milk production is dependent on stable oat supply and processing capacity, and fluctuations in grain yields or logistics disruptions can limit consistent manufacturing. Poor harvests or increased competition for oats from animal feed and other food sectors can raise raw material costs, squeezing margins and forcing manufacturers to adjust prices. For instance, periodic supply shortages have prompted some brands to reduce product ranges temporarily, weakening shelf presence and retailer confidence. These supply constraints can deter new entrants and slow overall market growth by creating uncertainty in capacity planning and long-term contracts.

Supply Chain Landscape

1

Oat Grain Sourcing

Grain MillersArcher Daniels MidlandQuaker Oats Company
2

Oat Milk Production

OatlyDanoneHP Hood LLC
3

Dairy Alternative Packaging

Tetra PakSIG CombiblocBall Corporation
4

Non-Dairy Beverage Markets

Retail & GroceryFoodservice & CafésFood & Beverage
Oat Milk - Supply Chain

Use Cases of Oat Milk in Household & HoReCa

Household : In the household segment, oat milk has become a preferred plant-based dairy alternative due to its creamy texture, naturally sweet flavor, and nutritional benefits such as beta-glucans for heart health. UHT (ultra-high temperature) packaged oat milk is most commonly used for home consumption because it offers a longer shelf life without refrigeration, making it convenient for daily use in cereals, coffee, and smoothies. Leading brands like Oatly, Alpro, and Planet Oat have established strong market presence by offering diverse flavors, fortified options, and eco-friendly packaging, supporting increased household adoption while appealing to health-conscious and environmentally aware consumers. The combination of convenience, taste, and nutrition has driven consistent growth in the home consumption market.
HoReCa : In the HoReCa (Hotel, Restaurant, and Café) sector, barista-style oat milk is widely used because of its superior frothing and steaming capabilities, making it ideal for coffee beverages like lattes and cappuccinos. Specialty oat milk blends with added proteins and enhanced foam stability are preferred by cafés, restaurants, and hotels to deliver a consistent customer experience. Key suppliers such as Oatly, Califia Farms, and Minor Figures have positioned themselves as trusted partners in the HoReCa market by providing high-quality, professional-grade oat milk, which enhances beverage presentation, customer satisfaction, and repeat patronage in competitive hospitality settings.
Food Industry : In the food industry, oat milk is increasingly used as an ingredient in baked goods, sauces, desserts, and plant-based dairy alternatives due to its neutral taste, creamy consistency, and nutritional profile. Manufacturers prefer fortified or organic oat milk for processing applications where consistent viscosity and flavor retention are critical. Major players like Oatly, Danone (Alpro), and Elmhurst 1925 supply bulk oat milk and specialized formulations tailored to industrial-scale production. Its functional benefits, such as high fiber content and cholesterol-lowering properties, make oat milk a versatile and healthy ingredient, supporting product innovation and meeting growing consumer demand for plant-based, sustainable food products.

Recent Developments

Recent developments in the oat milk market highlight rapid product innovation and expanded distribution as key growth drivers. Brands are launching barista‑grade oat milks, fortified plant‑based beverages, and organic formulations to meet rising consumer demand for dairy alternatives with improved texture, nutrition, and sustainability credentials. A notable trend is the rise of direct‑to‑consumer sales and omnichannel retail, enabling wider market penetration and availability in both urban and remote areas. Enhanced production technologies also support scalability and consistent quality, strengthening brand competitiveness across household, HoReCa, and food industry segments.

May 2025 : Danone S.A. agreed to acquire a majority stake in Kate Farms, a U.S. plant‑based organic nutrition and beverage maker. While not solely focused on oat milk, this acquisition expands Danone’s plant‑based product portfolio and capabilities in organic drink formulations, supporting its broader growth strategy in dairy alternatives including oat‑based beverages.
June 2024 : SunOpta Inc. announced a $26 million expansion of its Modesto, California oat extraction and plant‑based beverage facility, increasing spring capacity by over 60% to meet rising demand for oat milk and related products. This investment boosts production scale and supports supply agreements with major national retailers and food service partners.
October 2024 : SunOpta announced an expanded distribution of its Dream Oatmilk Barista to 6,700 additional stores across North America through a partnership with a major coffee chain, significantly increasing market reach and customer access to oat milk in foodservice channels.

Impact of Industry Transitions on the Oat Milk Market

As a core segment of the Packaged & Processed F&B industry, the Oat Milk market develops in line with broader industry shifts. Over recent years, transitions such as Rise of NonDairy Alternatives and Innovation in Production and Distribution have redefined priorities across the Packaged & Processed F&B sector, influencing how the Oat Milk market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Rise of NonDairy Alternatives

The rise of non-dairy alternatives is rapidly reshaping the Oat Milk market, as health-conscious consumers and those pursuing a dairy-free lifestyle increasingly prefer plant-based milk for its perceived health, environmental sustainability, and ethical advantages over traditional dairy. Within this broader shift toward sustainable dairy alternatives and clean label non-dairy beverages, oat milk is emerging as a core growth engine, with this transition alone expected to add approximately $815 million to Oat Milk market growth by 2030. This incremental value underscores oat milk’s strategic position versus other dairy alternatives, particularly in lactose-free and vegan milk segments, and signals expanding opportunities for brands that can scale sustainable sourcing, optimize formulations, and differentiate through nutrition, taste, and responsible production across global markets.
02

Innovation in Production and Distribution

The oat milk industry is experiencing a transformative shift driven by innovation in production and distribution. Advanced processing techniques such as enzymatic treatment and homogenization enhance creaminess, protein content, and nutrient retention, allowing manufacturers to offer higher-quality oat milk suitable for coffee, baking, and industrial applications. Simultaneously, digital distribution platforms and e-commerce channels have expanded market access, enabling brands to reach households, cafés, and food service providers in both urban and remote regions. For example, companies like Oatly and Alpro have leveraged online subscriptions and direct-to-consumer delivery models to increase availability and brand loyalty. These advancements not only improve product performance but also accelerate adoption across HoReCa and food industry segments, supporting consistent growth and wider consumer engagement while reinforcing sustainability and convenience as key differentiators.