Oat milk is a type of plant milk produced from whole oat grains by extracting the plant material with water. Oat milk has a creamy texture and a characteristically oatmeal-like flavor, though it is sold commercially in several flavors such as sweetened, unsweetened, vanilla, and chocolate. Swedish scientist Rickard Oste created Oat milk in the early 1990s, it is a modern development. Oat milk can be consumed to replace dairy milk in vegan diets or in case of medical conditions where the diary is incompatible, such as lactose intolerance or an allergy to cow’s milk. It is a vegan-friendly milk substitute, with artificially infused nutrients like iron and vitamins A & D. the oat milk has calories and fibers as compared to its alternatives such as Almond Milk, Soy Milk or Cow’s Milk. It is made just with oats and water making it a lactose-free milk substitute. Rising intolerance towards lactose is the major demand driver of oat milk.
Health Benefits of Oat Milk are: –
- Oat milk is vegan, as well as Lactose-, Soy-, and Nut-Free
Oat milk is a good healthy option for people with dietary restrictions as it is made from just oats and water, its vegan and free of nuts, soy, and lactose. Oats are also naturally gluten-free, they can be processed in the same factories as gluten-containing grains, which may contaminate the oats. Few commercial oat milk brands are made with certified gluten-free oats and alternatively, oat milk can be made at home with certified gluten-free oats.
- Oat milk is a great source of Vitamin B
Oat milk is fortified with vitamin B, like riboflavin (B2) and vitamin B12. Vitamin B is essential for optimal health and it provides numerous benefits to the body like promote healthy hair in the body, elevate mood, combat oxidative stress, and promotes nails, skin.
- Oat milk helps in reducing Blood Cholesterol
Oat milk is high in beta-glucans which helps in decreasing the blood level of LDL cholesterol and even helps in reducing the risks of cardiovascular diseases. Beta-glucan was first discovered in lichens, and later in barley. Beta-glucan from a gel-like substance in the gut that binds the cholesterol and reduces its absorption. This helps in lowering blood cholesterol levels especially “ bad” LDL cholesterol by 5%.
- Oat milk is good for bone health
Oat milk is often fortified with calcium and vitamin D – helps benefits bones in the body. Calcium is essential for strong and healthy bones as it is the main mineral required to form bones. Vitamin helps in absorbing calcium, lack of vitamin D can stop the body from getting sufficient calcium. Commercial oat milk is a good source of Vitamin B12 which is required for making bones healthy and lowers the risk of osteoporosis.
The Oat Milk Market is estimated to reach US$1,694.667 million by 2024. The Oat Milk Market has been segmented on the basis of source, type, packaging, application, distribution channel, and geography. The Oat Milk Market is segmented by Source, on the basis of classification as Organic and Conventional. It has been classified as Flavoured and Unflavoured on the basis of type. By Packaging, segments formed are Carton and Bottle. Classification in beverage and bakery by application. Segmented on the basis of distribution channel in Online and Offline channels. By Geography, this market has been segmented as North America, South America, Europe, The Middle East and Africa, and Asia-Pacific. Asia-Pacific region is expected to witness a significant CAGR over the forecast period due to rising incomes and changing lifestyles.
Current Market Scenario: –
- The spring of 2018 was a bad time for baristas across the USA as there was a shortage of oat milk.
- In April 2019, Oatly Inc. began its operations in its new plant in Millville, New Jersey worth $15 million which can increase the production volume ten times and reduce the shortage of oat milk in the market. Producing about 750,000 gallons of oat milk on a monthly basis.
- Quaker Oats Company, owned by PepsiCo launched Oat Beverage in February 2019
- In February 2019, Danone’s Silk brand launched Oat Yeah, an oat-based beverage in multiple flavors.
- Oatly inc. to open a plant in Utah three-times larger than Millville and New Jersey plant by early 2020.
Drivers of the Oats Milk Market
- The rise in adoption of a vegan diet
With more people adopting vegan diets out of health reasons or concern for animals, demand for plant-based products is also rising. Cow and other bovine animals are a great source of greenhouse gas emissions, which adds more to the environmental concerns. Almond Milk, a substitute of the Oat milk market, involves excessive exploitation of water resources as almond is a water-intensive crop. This fuels the demand for oat milk as an eco-friendly product. Oat milk is also thicker and creamier than its alternatives which are its unique selling point. Oat milk is a great substitute for milk for such lactose-intolerant people. A major chunk of the population is experiencing deficiencies of B & D Vitamins (mainly B12 and D3), which are predominantly associated with monitoring stress & mood and bone health, due to less exposure to sunlight and poor eating habits. Oat Milk is a rich source of Vitamin B and D and thus, gaining traction among masses. Additionally, high-fiber content in oat milk is linked to a healthier heart and better digestive system. Due to lack of physical inactivity, cases of obesity are witnessing a surge and a focus is shifting towards fat-free milk products such as Oat milk.
- The entry of big players in the market
A lot of companies are investing in expanding their product range. The dairy company is investing in oat milk market due to high demand by consumers for a healthy and vegan diet. Producers are also bringing more flavored varieties of oat milk to augment the demand for oat milk, though unflavored milk holds the major share of the market. Organic oat milk is also growing its demand as more people are shifting towards chemical-free diets. Companies have also started using branding and packaging tools to attract new customers. It is believed that Oatly, a Swedish Oat Milk Company, has led to the rise of Oat milk due to its robust marketing tactics. Oat milk is not being sold as a substitute but also as a raw material to prepare several other products like bakery products or beverages.