Oat Milk Market Size to Capture USD 3.67 Billion in 2025

Oat Milk Market Accelerates with Rising Demand for Plant-Based Beverages

The global oat milk market size is forecasted to expand from USD 3.67 billion in 2025 to USD 10.68 billion by 2034, growing at a CAGR of 12.6% during the forecast period from 2025 to 2034. This growth is driven by the rising shift toward plant-based diets, increasing lactose intolerance cases worldwide, and the growing use of oat milk in beverages, dairy alternatives, and functional food products.

Last Updated: 11 September 2025 Category: Plant-based Food & Beverages Insight Code: 5831 Format: PDF / PPT / Excel

The global oat milk market size estimated at USD 3.26 billion in 2024 and is predicted to increase from USD 3.67 billion in 2025 to nearly reaching USD 10.68 billion by 2034, growing at a CAGR of 12.6% during the forecast period from 2025 to 2034. The oat milk market is driven by the growing vegan population, equipped with health aware consumers demanding plant-based milk with higher nutritional values.

Oat Milk Market Size 2025 to 2034

Key Highlights

  • By region, Europe dominated the oat milk market share in 2024, driven by the increasing adoption of strong vegan culture.
  • By region, Asia Pacific is expected to grow fastest during the forecast period, driven by lactose intolerance prevalence and plant-based innovation.
  • By product, the plain oat milk segment held a major market share in 2024, driven by widely consumed due to versatility and low sugar content.
  • By product, the barista/professional oat milk segment is projected to grow at a CAGR between 2025 and 2034, driven by the rising demand from cafés and specialty coffee outlets.
  • By packaging, the cartons (tetra packs) segment held a major market share in 2024, driven by preferred for extended shelf-life and sustainability.
  • By packaging, the single serve packs and cans segment is projected to grow at a CAGR between 2025 and 2034, driven by the increasing consumer trend towards on-the-go consumption.
  • By end use application, the Food & beverages (especially coffee & dairy alternatives) segment held a major market share in 2024, driven by the increasing primary use cases across the globe.
  • By end use application, the nutritional supplements & cosmetics segment is projected to grow at a CAGR between 2025 and 2034, driven by the rising innovation in oat-based wellness products.
  • By distribution channel, the supermarkets and hypermarkets segment held a major market share in 2024, driven by the increasing demand for offline stores.
  • By distribution channel, the online retail/e-commerce segment is projected to grow at a CAGR between 2025 and 2034, driven by the growing e-commerce trend.

Industry Coverage

Study Coverage Details
Growth Rate from 2025 to 2034 CAGR of 12.6%
Market Size in 2025 USD 3.67 Billion
Market Size in 2026 USD 4.13 Billion
Market Size by 2034 USD 10.68 Billion
Largest Market Europe
Base Year 2024
Forecast Period 2025 to 2034
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Increasing demand for Plant-based Alternatives May Revolutionize the Market Growth        

The oat milk market refers to the global industry focused on the production, distribution, and sale of plant-based milk alternatives derived from oats. Oat milk is made by blending oats with water and then straining the mixture to create a creamy, dairy-free beverage. It caters to consumers seeking lactose-free, vegan, and environmentally sustainable alternatives to traditional dairy milk. The market encompasses a wide range of products, including plain, flavored, and fortified oat milk, distributed through retail, food service, and online channels. Growth is driven by increasing health consciousness, rising veganism, and demand for sustainable food and beverage solutions.

The oat milk market is also driven by factors such as the increasing demand for plant-based alternatives, increasing popularity of low-cholesterol diets, increasing consumer awareness towards health and wellness and rising vegan population. In addition, increasing focus on animal protection, increasing consumption of plant-based food and beverages, increasing prevalence of lactose intolerance and allergies and rising product versatility and innovation are further expected to drive the growth of the oat milk market. 

  • Increasing diversification of product offerings: The increasing diversification of product offerings with barista-style, fortified and flavored variants, which may expected to drive market growth.
  • Rising innovation in packaging and extraction technologies: The rising innovation in packaging and extraction technologies enhances shelf life and quality of oat milk, which may expected to drive the growth of the oat milk market.
  • Increasing adoption of sustainable packaging: Due to its eco-friendly and lightweight nature, it attracts major investment from market players, which further expected to fuel the market growth during the forecast period.

Market Opportunity

Rising Product Varieties and Innovations 

One of the significant opportunities revolutionizing market growth is the rising innovation in oat milk. Manufacturers have responded by introducing a wide array of oat milk options to serve various usage scenarios, dietary demands and tastes, as consumer preferences evolve and diversify. Rising innovations in oat milk such as low-sugar or unsweetened variations, barista blends for coffee, flavored oat milk (vanilla, chocolate, etc.) and organic options have developed the appeal of oat milk to a huge consumer. From coffee to cooking and baking, these innovations ensure that oat milk can significantly integrate into several culinary applications.

In addition, increasing specialized formulations of dietary supplements, including nut-free and gluten-free oat milk have developed oat milk industry. In addition, manufacturers have managed to captivate the interest of consumers looking for customizable and novel alternatives to dairy milk by continuously pushing the boundaries of what oat milk can offer, which further expected to revolutionize the growth of the oat milk market in the coming years.

Market Challenge

Supply Chain Constraints

One of the major challenging factors restraining market growth is the increasing supply chain constraints. The increasing presence of disruptions in the supply chain may impact the pricing and availability of oat milk products, which may hinder market demand. In addition, increasing competition from other plant-based alternatives, regulatory requirements affection on product packaging, formulation and distribution practices, and limited education among consumers are further expected to restrain the growth of the oat milk.

Oat Milk Market Regional Insights

How Europe Dominates the Oat Milk Market Revenue in 2024?

Europe dominated the global market revenue for oat milk in 2024. The market growth in the region is driven by factors such as the increasing demand for plant-based and vegan diets, increasing widespread availability of oat milk in food service and retail channels, rising technological advancements in food infrastructure, rising innovative product offerings, like barista blends and organic, increasing focus on cruelty free products and increasing consumer preference towards vegan and plant-based diets for environmental and ethical reasons. UK, Germany and France are dominated countries driving the market growth.

Germany dominated the oat milk market revenue in 2024, driven by increasing prevalence of veganism and vegetarianism, increasing focus on health and sustainability, increasing consumer preference towards dietary trends, increasing environmental concerns, and increasing demand for plant-based alternatives. Oat milk gaining high popularity among consumers in Germany, due to taste and texture, product availability and dietary trends, which is expected to drive the demand for oat milk in Germany.

Asia Pacific Oat Milk Market Trends

Asia Pacific is expected to grow fastest during the forecast period. The market growth in the region is driven by factors such as the rising vegetarian and vegan population, increasing consumer awareness towards health and wellness, rising product innovation, increasing environmental and health awareness, increasing prevalence of lactose intolerance, and increasing versatility of oat milk in cooking and expansions. China, India, Japan and South Korea are the fastest growing countries fueling the market growth in Asia Pacific. 

Segment Insights

Product Insights

How Plain Oat Milk Segment Dominates the Oat Milk Market Revenue in 2024?

The plain oat milk segment dominated the global market revenue in 2024. Plain oat milk plant-based alternatives and play an important role in the oat milk industry. Plain oat milk has creamy texture, mild flavor and is allergen friendly. For the huge range of culinary applications, plain oat milk makes a versatile ingredient due to its mildly sweet and neutral taste. In addition, source of nutrients, improve blood sugar regulation, enhance digestive health, reduce the cholesterol levels and supporting overall heart health are the health benefits of plain oat milk, which further expected to drive the segment growth in the global market.

The Barista/Professional Oat Milk Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the global oat milk market is driven by factors such as enhanced texture and frothing, enhanced mouthfeel and flavor, offers greater consistency, enabling for a more harmonious blend of coffee and oat flavors and reduce coffee acidity. In addition, barista oat milk also provides a high-performing alternative for consumers who follow vegan or plant-based diets, have dairy allergies and are lactose intolerant, which is expected to accelerate the demand for barista/professional oat milk.

Packaging Insights

Why Cartons (Tetra Pak) Segment Dominates the Oat Milk Market Revenue in 2024? 

The cartons segment dominated the global market revenue in 2024. The segment growth in the market is driven by various benefits such as reducing food waste, increased nutritional integrity, portability, long shelf life, no added preservatives and food safety and quality. Tetra packs or cartons are aseptic, and six-layered packaging increases nutritional value, preserves quality and extends shelf life. By preventing contamination, it helps to ensure food safety and reduces the need for refrigeration. By making it readily available, shelf-stable and safe, it helps to support the convenience of oat milk, which may drive the segment growth in the global market.

The Single-Serve Packs Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the global oat milk market is driven by factors such as the increasing demand for lightweight and durable screw caps, increasing environmental concerns, growing sustainability, increasing durability and safety, increasing protection from oxygen and light and increasing shelf life with aseptic filling. In addition, due to their durability, convenience, and cost-effectiveness, single-serve packs are highly used for oat milk. These factors are expected to boost the demand for single-serve packs in the global market.

End Use Application Insights

What Factors Help Food and Beverages Segment Grow in 2024?

The food and beverages segment dominated the oat milk market revenue in 2024. The segment growth in the global market is driven by health benefits such as the increasing consumer preference towards sustainable food choices, enhanced texture and taste, increasing prevalence of lactose intolerance and dairy allergies, promotes healthy digestion, offer heart-healthy beta-glucans, provide necessary nutrients and rich in versatility and texture.

The Nutritional Supplements and Cosmetics Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the global oat milk market is driven by factors such as rising innovation in oat-based wellness products, increasing demand in cosmetics industry, increasing consumer focus on skincare, increasing demand for gentle and natural ingredient, and increasing demand for functional and fortified beverages.

Distribution Channel Insights

What Factors Help Supermarkets & Hypermarkets Segment Grow in 2024?

The supermarkets and hypermarkets segment dominated the oat milk market revenue in 2024. The segment growth in the market is attributed to the factors such as the increasing demand for offline stores, increasing consumer desire to shop offline without waiting for online delivery, availability and accessibility, increasing robust supply chains and growing urban population. In addition, hypermarkets and supermarkets make oat milk products readily available and act as the primary distribution channels. These retail formats offer a wide range of pack sizes, flavors and brands, which further expected to drive the segment growth in the global market.

The Online Retail and E-Commerce Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the oat milk market is attributed to the factors such as increasing digital adoption & doorstep delivery, growing e-commerce platforms, increasing changing and modern lifestyles, rising adoption of internet penetration, increasing brand sales and visibility, increasing consumer convenience, increasing direct consumer feedback and engagement and enhanced consumer engagement. 

Oat Milk Market - Value Chain Analysis

Raw Material Procurement

  • In the oat milk industry, the raw material procurement deals with strategic procedure of purchasing, evaluating and sourcing of oat milk from the various vitamins, minerals and other probiotics.

Packaging and Branding

  • Branding and Packaging for oat milk market focuses on creating packaging which may ensures remain stable, safe and fresh by protecting them from contamination, light and moisture.

Waste Management and Recycling

  • The waste management and recycling in the oat milk industry are including rejected batches and leftover raw materials such as sweeteners, flavors and tastes, which may drive market growth during the forecast period. 

Recent Developments in the Oat Milk Market

  • Launch: In June 2025, fitness and lifestyle brand, HRX launched its new plant-based Oat Milk Protein Shakes which is available in Instamart, Swiggy, Amazon, Zomato and HRX’s offline and online retail outlets across the country. (Source: Tripura Star News)
  • Launch: In March 2025, Baileys launched its new product offerings such as non-dairy liqueur with oat milk. This liqueur is available in coffee toffee and cookies and creamy flavors. (Source: Food Business News)
  • Launched: In July 2025, in the UK market, Califia, US brand launched two new nut-flavored blends to its line of oat barista drinks such as hazelnut and pistachio. This new plant-based blends provide a more cost-effective option for consumers and respond to increasing demand for flavored coffee. (Source: Plant Based News)

Oat Milk Market Leading Companies

Oat Milk Market Companies

Segments Covered in the Report

By Product Type

  • Plain Oat Milk
  • Flavored Oat Milk (Vanilla, Chocolate, Strawberry, etc.)
  • Barista/Professional Oat Milk (formulated for coffee-based drinks)
  • Fortified/Functional Oat Milk (added vitamins, minerals, probiotics)

By Packaging Type

  • Cartons (Tetra Pak)
  • Bottles (PET, glass)
  • Cans
  • Others (pouches, single-serve packs)

By End-Use Application

  • Food & Beverages
    • Coffee & Tea
    • Bakery & Confectionery
    • Dairy Alternatives
    • Smoothies & Shakes
  • Personal Care & Cosmetics (oat-based formulations)
  • Nutritional Supplements.

By Distribution Channel

  • Supermarkets/Hypermarkets
  • Convenience Stores
  • Specialty Stores (organic & vegan stores)
  • Online Retail/E-commerce
  • HoReCa / Foodservice Channels

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa (MEA)
  • Latin America
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  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Vidyesh Swar, Senior Research Analyst at Towards Food & Beverages, specializes in market research, focusing on supply-demand evaluation, pricing analysis, alternative proteins, plant-based foods, and sustainable food technologies within the industry.

Learn more about Vidyesh Swar

Aditi Shivarkar, with 14+ years in Food and Beverages market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards FnB's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

The global oat milk market is valued at USD 3.67 billion in 2025 and is projected to reach USD 10.68 billion by 2034, growing at a strong CAGR of 12.6%

Europe leads due to its strong vegan culture, while Asia Pacific is expected to grow fastest with rising lactose intolerance and plant-based innovations.

Plain oat milk dominates for versatility, while barista-style oat milk is the fastest-growing category, fueled by demand from cafés and specialty coffee outlets.

Key trends include diversified product launches (flavored, fortified, barista blends), sustainable packaging, and advanced extraction technologies improving taste and shelf life.

Challenges include supply chain disruptions, competition from other plant-based alternatives, regulatory packaging requirements, and consumer education gaps.

The market is fragmented with strong players like Oatly, Danone (Alpro), Califia Farms, Nestlé, and Chobani, competing through innovation, sustainability, and café partnerships.

Recent launches include HRX oat milk protein shakes (2025), Baileys oat milk liqueur (2025), and Califia’s flavored barista blends (2025), showing rapid product diversification.

By 2034, oat milk is expected to be a mainstream dairy alternative, deeply integrated into coffee chains, retail, supplements, and cosmetics, with sustainability as a key differentiator.