Oat Based Beverages Market

Market Perspective

The global Oat Based Beverages Market was valued at USD 754.6 million in 2022 and is projected to reach USD 1780.0 million by 2030, growing at a CAGR of 7.90% from 2023 to 2030.

The oat-based beverages have gained significant popularity in recent years due to their numerous health benefits and their appeal to both vegan and lactose-intolerant consumers. These beverages are made from oats, water, and sometimes additional ingredients like sweeteners or flavors. Due to their creamy and slightly sweet taste, they are considered a delicious alternative to dairy milk or other plant-based beverages. Additionally, oat-based beverages are often fortified with vitamins and minerals, providing a nutritious option for those looking to incorporate more plant-based foods into their diet.

Furthermore, oat-based beverages are also environmentally friendly, as oats require significantly less water and land compared to dairy farming. Furthermore, oat-based beverages are versatile and can be used in a variety of recipes, such as smoothies, baked goods, and coffee. Overall, these beverages provide a guilt-free and tasty option for individuals with dietary restrictions or those who simply want to make a healthier and more sustainable choice.

Analyst’s Review on Oat Based Beverages Market

The oat-based beverages market is growing significantly during the forecast period. This is a result of rising customer demand for beverages that are both healthy and useful. As customers become more aware of the negative consequences of sugary drinks and carbonated beverages, they are turning to healthier substitutes.

The rising popularity of health and well-being among consumers has also fueled an increase in demand for oat-based beverages. These drinks are frequently promoted as natural and organic to appeal to consumers who are looking for healthier options. Additionally, the ease of use that comes with oat-based beverages, such as ready-to-drink varieties, has increased their appeal. The market for oat-based beverages is anticipated to grow rapidly in the foreseeable future thanks to ongoing innovation and the introduction of novel tastes and ingredients.

Market Definition

Oat-based beverages, also known as oat milk, are plant-based drinks made from oats. They have gained popularity in recent years as a dairy-free alternative to traditional milk. Oat-based beverages are made by blending oats with water and straining the mixture to remove any solids. The resulting liquid is creamy and has a slightly sweet, nutty flavor.

Oat-based beverages are often fortified with vitamins and minerals, such as calcium and vitamin D, to provide a similar nutritional profile to cow's milk. They are also naturally lactose-free, which makes them suitable for individuals with lactose intolerance or milk allergies. Oat milk can be used in a variety of ways, including in coffee, smoothies, and baking. Its smooth and creamy texture makes it a popular choice for those looking for a non-dairy milk alternative.

Market Dynamics

Increasing awareness about the health benefits associated with oat-based beverages has led to a rise in their popularity among consumers. As more people become conscious of their dietary choices and seek out healthier alternatives, oat-based beverages have emerged as a popular option. These beverages are not only delicious and refreshing but also offer numerous health benefits that contribute to overall well-being. Oat-based beverages are known to be rich in fiber, which aids in digestion and helps maintain a healthy gut.

They also contain beta-glucan, a type of soluble fiber that has been found to lower cholesterol levels and reduce the risk of heart disease. Additionally, oat-based beverages are often fortified with essential vitamins and minerals and are thus considered a convenient way to meet daily nutritional requirements. With their growing popularity, the variety and availability of oat-based beverages in the market are foreseen to increase.

However, oats can cause allergies in some people, especially those who are sensitive to gluten which limits the appeal of oat-based beverages for certain consumers. However, health-conscious individuals who avoid dairy are interested in these oat-based beverages, which are often fortified with nutrients for added nutritional value. In addition, some companies ensure their oat-based beverages are gluten-free, addressing the concerns of gluten-sensitive individuals.

Segmentation Analysis

The global oat-based beverages market is segmented based on product type, flavor, source, distribution channel, and geography.

Based on product type, the oat-based beverages market is bifurcated into oat-based milk, oat-based protein shakes, and oat-based juices. Oat milk is dominating the market primarily due to its creamy consistency, mild flavor, and adaptability in a variety of recipes. In addition, it is considered a plant-based substitute for dairy milk and is a preferred option for consumers who are lactose intolerant or have dietary limitations. In addition, as oats take less water and space to grow than other crops used as milk substitutes, oat milk is frequently hailed for its environmental benefits and sustainability.

Based on source, the oat-based beverages market is bifurcated into organic and conventional. The conventional segment accounted for the largest market share in 2022, as conventional oat-based beverages have been on the market for a longer period of time and have already established a strong presence among consumers. Additionally, these products are often more affordable and easily accessible compared to their organic or specialty counterparts. The conventional segment also benefits from extensive distribution networks and strong marketing strategies, allowing them to reach a larger consumer base. Furthermore, conventional oat-based beverages often offer a wider variety of flavors and options, catering to different consumer preferences and increasing their appeal in the market.

Based on distribution channel, the oat-based beverages market is bifurcated into supermarkets/hypermarkets, retail stores, and online. Retail stores dominated the market in 2022 due to the convenience and accessibility offered by retail stores. Additionally, due to the widespread presence of retail stores in nearly every locality, individuals have convenient access to oat-based beverages without the need for extensive travel. Furthermore, these stores typically provide a diverse range of brands and flavors, enabling customers to compare and select the beverage that aligns with their specific preferences. Overall, the convenience, variety, affordability, and experiential advantages offered by retail stores contribute significantly to the dominance of these retail stores in the growth of the oat-based beverages market.

Geographical Analysis

Based on region, the global oat-based beverages market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America accounted for the largest market share in 2022, due to the increasing demand for plant-based substitutes and the rising awareness regarding the health advantages of oats, oat-based beverages have gained significant popularity among American consumers. Additionally, the has been a significant increase in the number of oat-based beverage brands and product offerings catering to a diverse range of tastes and preferences. Additionally, the presence of well-established distribution channels and a supportive regulatory environment are further contributing to the dominance of North America in the oat-based beverages market.

Europe is experiencing rapid growth in the forecast period, primarily driven by the increasing popularity of plant-based diets and the growing consumer awareness regarding the health advantages of oat milk. As a result, there has been a consistent rise in the demand for oat-based beverages in this region. Additionally, the presence of key market players and the availability of a wide range of flavors and varieties of oat-based beverages have further fueled the growth of this market in Europe.

Competitive Landscape

The global oat-based beverages market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Expansion & investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing extensively in R&D activities, building new manufacturing facilities, and supply chain optimization.

The major players in the Oat Based Beverages Market are

• PepsiCo
• Danone SA
• The Quaker Oats Company
• Oatly
• Pacific Foods
• SaskMade Marketplace
• Tetra Pak
• Oy Karl Fazer Ab.
• NOSH Direct
• TOATS OATS COMPANY

Key Developments

• March 2023 (Product Launch): Nestle launched the fava and oat blend in a new alt dairy drink. The company’s latest milk alternative combines two plant-based products to deliver higher nutrient levels.

The global Oat Based Beverages Market is segmented as:

By Product Type

• Oat-Based Milk
• Oat-Based Protein Shakes
• Oat-Based Juices

By Flavor

• Plain
• Flavored

By Source

• Organic
• Conventional

By Distribution Channel

• Supermarkets/Hypermarkets
• Retail Stores
• Online

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America