A Healthier Milk Choice: Oat Milk Market
The Global Oat Milk market size was valued at US$0.476 billion in 2020 and is anticipated to increase at a Compound Annual Growth Rate of 17.04% over the predictive period to reach US$1.432 billion by 2027. Oat milk is plant-based milk produced by separating the plant material from entire oat grains with water. Oat milk is high in protein and other nutrients, rich in fiber and good for the gut. Oat milk comes in a variety of tastes, including sweetened, unsweetened, vanilla, and chocolate, and has a creamy consistency and light oatmeal-like flavor.
Growing Prevalence of Heart Disease & Environment-Friendly Farming Techniques
High temperatures, floods, droughts, and water scarcity have been reported in countries throughout the world. The increased prevalence of natural disasters is attributed to the consequences of climate change and global warming. Governments around the world have begun to enact legislation to limit pollution and decrease carbon footprints in order to combat the growing consequences of climate change. People all around the world are becoming more aware of the negative impacts of climate change, which is driving the development of more environmentally friendly alternatives.
Dairy farming is one such activity that contributes to global warming and also produces a lot of waste. Moreover, milk and its by-products contain a significantly higher amount of calories, as compared to other alternatives. The higher amount of cholesterol and fat percentage in milk has shifted the interest of consumers towards alternatives such as oat milk. A standard cup of whole milk contains about 24 milligrams of cholesterol and about 8 grams of fat, as compared to oat milk which contains no cholesterol and about 2.5 grams of fat (figures from USDA). Therefore, oat milk serves as a better alternative for people with a higher risk of heart disease. The increasing heart disease cases worldwide are also expected to drive the oat milk market. According to the American Heart Association's 2022 Heart Disease and Stroke Statistics, 7.08 million individuals died worldwide from cerebrovascular disease in 2020 (Ischemic stroke caused 3.48 million deaths, 3.25 million deaths from intracerebral haemorrhage (ICH), and 0.35 million deaths from subarachnoid haemorrhage.). The American Heart Association also states that high BMI was responsible for 2.40 million deaths globally in 2020, an increase of about 131.46% from 1990.
Additionally, the increasing rate of allergies is also expected to drive the oat milk market. The growing instances of milk allergies in the younger population are expected to drive the oat milk market. According to a research report released in March 2022 by Food Allergy Research and education, self-reported allergic reactions from schools, including preschools, accounted for 7% of the total reports. In 35 states throughout the United States, 168 youngsters aged 1 to 18 had 173 school-based responses. Peanuts (25%) were the most commonly reacted to, followed by milk (19%) and tree nuts (16%). The increasing cases of allergies as reported in the research can be tackled by alternatives such as oat milk, which does not contain dairy or nuts, and is equally nutritious. Hence, with the growing prevalence of allergies, the market demand for oat milk is expected to rise substantially.
Recent Oat Milk Product Launches to Drive the Market
With the increasing reports of allergies among people and rising environmental awareness, the Oat Milk market has reported significant improvements.
Oatly Group AB has announced that its partnership with Espresso House has been extended and expanded to include all of the chain's cafés. Together, the companies will offer about 130,000 visitors the chance to minimize their carbon footprint by switching from dairy to oat milk in their coffee.
Ripple announced the launch of its new Oat milk product in May 2022. Ripple Oatmilk+Protien is a gluten, GMO, soy, nut, and lactose-free alternative to traditional milk products. It packs a thick and creamy milk beverage that is plant-based and is known to contain half the amount of sugar in normal dairy milk.
In September 2021, Alt Co., a sustainable plant-based firm, announced the launch of new plant-based oat milk, that will be accessible across both online and offline platforms. The product has been quite popular since its introduction, owing to its healthy and vegan attributes.
Asia Pacific Region to Lead the Market
The Asia Pacific region is expected to hold the largest market share in the oat milk market throughout the forecast period. The market is predicted to grow as a result of factors such as the rising disposable income, and lifestyle preferences in the area. The increasing health awareness and the rising number of cardiovascular and heart-related diseases in the area have also contributed to the preference shift among people. Moreover, the growing e-commerce sector in the region has also had a positive influence on the oat milk market. Furthermore, the increasing adoption of environment-friendly activities and the awareness of climate change effects have also resulted in increased market demand. Hence, the market is anticipated to increase significantly in the forecasted period.
The outbreak of the COVID-19 virus led to an economic downfall on a global scale. Governments of most countries imposed strict lockdown and social isolation regulations, which led to significant losses faced by companies. The closure of many major industries also led to a slowdown in other dependent industries. The oat milk market also faced losses due to the disruption of major supply and production lines. However, the market rebounded quickly enough, due to the increase in demand. Increased market demand was fueled by rising intolerance and allergy rates, as well as other health-related concerns. Due to the disruption in supply lines, the sector was confronted with a considerable rise in market demand, resulting in an imbalance in supply and demand. However, the industry is projected to grow dramatically as governments begin to relax their COVID-19 laws.
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