The oat-based beverage market worldwide was USD 859.4 million in 2024. The international market proximately accounted for USD 924.7 million in 2025 with a 7.6% y-o-y demand growth for oat beverages. Sales are anticipated to undergo a healthy CAGR of 8.1% between 2025 and 2035, to reach a sales value of USD 2,012.9 million by the end of 2035.
One important factor driving the oat beverage market is the growing preference for plant-based and lactose-free alternatives. In particular, oat milk has drawn attention for its creamy mouthfeel, sustainable sourcing and digestive benefits. As a result, it is preferred by vegans, lactose-intolerant consumers, and environmentally-conscious buyers.
Oatly AB, Califia Farms, Alpro (Danone), and Quaker Oats Company (PepsiCo) are leading the innovation here by launching barista blends, flavored variants, and having organic product lines to support meet changing consumer needs. The category has experienced significant growth mainly from specialty cafés and foodservice channels with baristas and coffee chains increasingly using oat milk in their lattes and cappuccinos.
Additionally, brands such as Pacific Foods, Hälsa Foods, and Rude Health highlight clean-label formulations no gums, oils or additives appealing to consumers wanting transparency and few ingredients. Market will continue to be driven by clean label trend
Oat-based beverage example with strong market potential due to increasing health trends, increasing demand for alternative dairy, increasing presence on retail shelf maximizing strong growth potential through 2035
| Attributes | Description |
|---|---|
| Estimated Global Oat-based Beverage Industry Size (2025E) | USD 924.7 million |
| Projected Global Oat-based Beverage Industry Value (2035F) | USD 2,012.9 million |
| Value-based CAGR (2025 to 2035) | 8.1% |
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The table given below shows the comparison of the change in CAGR six months earlier for both base year (2024) and present year (2025) for the global oat-based beverage market. This analysis brings out the critical shifts in performance and elucidates revenue realization patterns to offer a clearer picture of the growth trajectory through the year to the stakeholders.
| Particular | Value CAGR |
|---|---|
| H1(2024 to 2034) | 7.4% |
| H2(2024 to 2034) | 7.7% |
| H1(2025 to 2035) | 8.0% |
| H2(2025 to 2035) | 8.1% |
The market for the first half (H1) of a decade such as 2025 to 2035 is estimated to grow at a CAGR of 8.0%, while the later half (H2) of the decade is estimated to grow at a marginally higher CAGR of 8.1% throughout its respective period. Into the next period from H1 2025 to H2 2035, the CAGR rose by 30 BPS in H1 and 10 BPS in H2.
Tier 1 also houses a competitive cohort of companies that are impactful in revenue, global presence, and brand awareness. These firms have large distribution networks, as well as a high investment ratio on R&D, product innovation, and marketing campaigns to remain at the position in the market. In this layer, Oatly AB is a premier brand often paired with spurring the international oat milk craze.
Oatly has established itself in the retail and foodservice space with strong branding, sustainability messaging, and barista-targeted products. Tier 1 also sees the introduction of new players that can give any brand a run for their money, like Califia Farms with its range of functional oat-milk, O&M and barista blends.
Its widespread footprint in North America combined with its innovation led strategy has made it one of the largest players in the industry. Through mass-market positioning and broad product portfolios, Alpro (a Danone brand) and Quaker Oats Company (PepsiCo) also contribute multinational power and legacy trust to the category.
Tier 2 consists of brands that are doing decent revenue, but with rapid growth potential and a good presence in certain geography or retail channels. These companies usually have innovation, clean-label or sustainability-oriented strategies to help them stand out.
Pacific Foods of Oregon, say, brings a brand loyalty in the organic and natural food space, where it sells oat beverages serving consumers who tend to be health-focused shoppers. The brand, hailing from the UK, promotes ingredient purity and lifestyle alignment, notably growing its sales through natural grocery retailers and specialty food stores.
The company, Hälsa Foods, has found a niche by offering oat drinks without the enzymes or artificial additives such as stabilizers or emulsifiers that shoppers sometimes want to see removed, catering to so-called clean-label purists. Tier 2 brands are typically competitive with Tier 1 players through premium positioning and lifestyle branding.
Tier 3, Emerging brands or local/boutique companies that are quickly becoming popular with consumers. These companies typically work with limited distribution but compensate with creative product positioning, innovation, and community-based marketing initiatives.
Elmhurst 1925, for example, is expanding rapidly, thanks to its patented HydroRelease method and more minimal ingredient lists, appealing to buyers concerned with both health and sustainability. Tier 3 players: Companies like Happy Planet Foods and Pureharvest are using regional strength and online channels to grow a brand. These brands often employ social media, direct-to-consumer models and partnerships with local cafés to access niche markets and differentiate themselves in an oversaturated market.
Healthier-Reformulated Products
Shift: As health concerns rise throughout the globe, more consumers are seeking beverages without added sugars, colors and preservatives. According to its data, oat-based drinks are now being clamoured for as their clean-label, gluten-free, low-allergen and high-fibre attributes.
In addition, the demand for functional supplements such as those containing calcium, probiotics, adaptogens and vitamins has exploded in places like North America, Western Europe and Australia. Consumers have come to demand that oat drinks meet dietary preferences including vegan, keto-friendly and non-GMO certified.
Strategic Response: Major players like Oatly and Califia Farms have reformulated their offerings with this clean-label trend in mind. Oatly launched its “No Sugar Added” line, fortified oat drinks with calcium and B12 responding to consumer needs.
Califia Farms launched protein-fortified oat milk products, infused with functional ingredients including turmeric and maca root. Danone has introduced Alpro's "Barista for Professionals," which blends performance with plant-based purity to seduce both health-conscious tea drinkers and plant-sipping café pros. Hälsa Foods avoided enzyme-processing, gaining a reputation in the organic and additive-free markets, and son't up the health-forward agenda.
Innovate to Capture Younger Consumers
Shift: Oat-based beverage segment is relatively new, which is attracting younger consumer demographics including Gen Z and millennials, who have a penchant for innovation, photography or aesthetics and sustainability. They are drawn to new flavors, barista levels of texture, and lifestyle-appropriate branding.” Engaging through social media, limited-edition collaborations and custom products have been key to capturing this audience.
Strategic Response: Elmhurst 1925 and Minor Figures countered with oat milk-based coffee blends boasting trendy and colorful branding targeting young creative and health-conscious consumers. Oatly attracted younger consumers with provocative ad campaigns and TikTok influencer partnerships, while the brand affinity with Gen Z increased meanwhile, Rude Health focused on premium, organic, and adventurous flavor innovations (e.g., cacao, turmeric, and beetroot oat drinks). Some brands Hälsa, to name one introduced oat drink subscription kits, some of which included DIY kits, so younger consumers could tailor their own oat experience.
Ready to Drink
Shift: Retail, Ready-to-drink (RTD) oat-based beverages are gaining traction as consumers move towards quick and easy, grab-and-go products. The rise in on-the-go lifestyles, especially among urban millennials and Gen Z, has prompted oat milk makers to offer functional and flavored beverages in portable formats. RTD oat milk lattes, smoothies, and protein drinks have become ubiquitous on supermarket shelves and vending machines in the USA, Japan, and the UK.
Strategic Response: Oatly was the trailblazer of this transition in the retail space with its RTD oat milk lattes, which were available at multiple channels such as Amazon, 7-Eleven, or Whole Foods. While Chobani is known as a dairy brand, it recently made its foray into oat-based beverages with oat-based RTD coffee and breakfast blends.
MOWI and CPM have launched oat RTDs throughout Asia-Pacific, while OCAK has expanded oat RTD availability through vending machine and convenience store distribution. Two, in Australia, Minor Figures tapped into this trend with its own chilled oat milk coffee in recyclable cartons, a hit with urban consumers wary of their ecological footprint.
Enhancing Partnerships with Cafés and Retailers
Shift: As demand for oat milk continues to grow at coffee shops and retail shelves, brands are forming more partnerships with cafés and large retailers to boost visibility and availability. Oat milk café lattes have exploded in places like London, New York and Melbourne, where oat milk has become the default non-dairy option in many third-wave cafés. Higher consumer turnover is resulting in more shelf space allocated to oat drinks.
Strategic Response: Oatly negotiated strategic deals with Starbucks, Pret A Manger and Blue Bottle Coffee to make oat milk the default plant-based milk option at many chain cafés. In the UK, Alpro has teamed up with Costa Coffee and Greggs to offer oat milk drinks as a regular menu item.
In the USA, Califia Farms stepped up, growing its café support program, providing barista oat milks to small and medium-sized cafés across states. Meanwhile, Pacific Foods expanded its retail partnerships with Kroger, Target and Sprouts resulting in a 10% increase in oat milk shelf space at major supermarkets.
Commitments to Sustainability and Ethical Sourcing
Shift: Consumers demand clarity about where they come from and how they are made. Oat-based drinks are increasingly being assessed for their carbon footprint, water usage, and responsible supply chains. And with over 60% of consumers in the UK and Germany stating a willingness to pay extra for environmentally sustainable products, sustainability is a competitive differentiator.
Strategic Response: The Swedish oat-milk giant communicates its climate footprint loudly, printing emissions data on its packaging and pouring money into building carbon-neutral production facilities. Minor Figures became carbon-neutral by offsetting its emissions through sustainable agriculture projects.
Califia Farms pledged that its packaging would be 100 percent recyclable and also operates solar-powered facilities. In Australia, Pureharvest relies on organic oats and reduces the use of water in their production processes. Such strategies have enhanced brand equity while also winning over eco-aware investors and customers.
Pricing Competing and Accessible
Shift: Oat-based beverages are increasingly being eaten by mid-range customers, with demand for mid-range and inexpensive varieties growing, particularly among middle-income groups and families, even as they are seen as a premium alternative to dairy. Affordability, coupled with taste and nutrition, has become paramount in purchasing decision-making in emerging parts of the world, including India, Brazil, and Southeast Asia.
Strategic Response: To address this demand, Alpro and Vitasoy launched competitively priced multi-pack options and family-size oat beverages. In price-sensitive markets Oatly in inverted commas ‘smaller packs’ at value-friendly price points to help lower barriers for the consumers.
Brands in India such as Raw Pressery and Only Earth have positioned their oat milk at almost the price of premium dairy brands, creating a 15% penetration in the market. Chobani cross-merchandised oat drinks with yogurt products to encourage volume purchases via retail promotions.
Harnessing E-Commerce and Subscription Models
Shift: The pandemic drove many consumers of oat-based beverages to prefer shopping digitally, with IND data showing that more than 40% of oat milk drinkers now prefer to shop more online than in-store. Accordingly, e-commerce and direct-to-consumer (DTC) channels have emerged as key growth engines. Subscriptions provide convenience, price savings and exclusivity appealing aspects for busy, digitally native consumers.
Strategic Response: According to Oatly, Elmhurst 1925 and Hälsa Foods, they've experienced huge growth through DTC websites and on Amazon, Thrive Market. Oatly's subscription model featured rotating flavor drops and exclusive early-access products, resulting in a 25% increase in repeat purchases.
The oat drinks were included in meal kits from HelloFresh and Mindful Chef, thanks to a partnership with Rude Health. Minor Figures arose by selling café-style items directly to homes with curated monthly boxes.
Regional Adaptation Strategies
Shift: Factors such as regional taste preferences, regulatory conditions, and cultural attitudes toward plant-based diets influence product development in the oat-based beverage space. For example, weakly sweetened and fortified drinks perform well in Asia, whereas sugar-free and functional blends reign in the USA and Europe.
Strategic Response: Vitasoy launched oat beverages regions up with added calcium and light vanilla notes to utilise regional taste preferences in Asia-Pacific. Oatly introduced unflavored, fortified oat beverages in Germany and Scandinavia, single-mindedly emphasizing purity and sustainability.
In the Middle East, Almarai and Koita launched oat drinks featuring Halal-certified, nutrient-enriching profile. Meanwhile in Latin America, NotCo customized its oat milk formula developed using AI to local tastes, resulting in double-digit growth for the brand in Chile and Argentina.
The following table shows the estimated growth rates of the top five territories. These are set to exhibit high consumption through 2035.
| Country | CAGR 2025 to 2035 |
|---|---|
| USA | 5.6% |
| Germany | 5.2% |
| China | 6.4% |
| Japan | 5.8% |
| India | 7.1% |
Consumer demand for oat-based beverages is growing worldwide with the rising preference for plant-based, dairy-free, and clean-label nutrition. Consumers, especially Millennials and Gen Z, want sustainable and ethical alternatives to dairy, and oat milk has taken the throne as the most-wanted dairy milk alternative for its creamy consistency and lower allergenic profile than soy or almond milk.
Consumer unease over lactose intolerance, cholesterol levels, and eco-sustainability is driving a switch to oat-based drinks. Brands such as Oatly, Califia Farms and Planet Oat have seized on this shift, and they’re able to fortify their oat beverages with added calcium, B12 and vitamin D to mimic the benefits of cow’s milk.
Its strong customer base in Germany, one of the fastest growing markets for the plant-based nutrition market in Europe, reflects the increasing turnover of climate-conscious consumers already familiar with oat-based beverages. With nearly 40% of Germans classed as flexitarians, oat milk in particular is set apart by its lower environmental footprint and its digestive health benefits.
Organic, locally sourced and non-GMO oat beverages appeal to consumers, who are increasingly interested in sugar-free options and functional products with added probiotics or fiber. To woo urban professionals, German brands such as Oatly GmbH, Alpro (Danone) and Berief are experimenting with flavored oat drinks and barista variants.
Strict food labeling regulations in Germany and EU-wide sustainability directives additionally facilitate the adoption of clean-label oat-based drinks. Plant-based dairy sections are expanding at retailers like REWE and Edeka, which allows oat beverages into both mainstream and specialty health shops.
With rapid urbanization, high dairy intolerance, and a growing focus on preventive health, China is an exciting new frontier for oat-based solutions. Plant-based milk alternatives are replacing traditional animal milk, particularly oat milk, which is easily digestible and mild in flavour, and with over 90% of Chinese people lactose intolerant.
Urban consumers are embracing Western-style café culture, where oat milk lattes doubled as markers of status and health. Meanwhile, local players such as OATOAT and Yili’s Satine Plant-Based lineup are also gaining traction among consumers as international brands like Oatly continue its slate of cafe and retail partnerships in tier-1 cities.
| Segment | Value Share (2025) |
|---|---|
| Organic (By Source) | 27.8% |
Some of the emerging trends that have a direct impact on the dynamics of the organic oat-based beverages industry include: Growing consumer awareness regarding chemical-free farming and sustainable agriculture is being increasingly proclaimed among consumers which is a key factor driving the growth of organic oat-based beverages.
As consumers are becoming more aware of their choices of food and beverages and are avoiding those that contain synthetic pesticides, GMOs, and artificial additives, the demand for organic oat milk segment is witnessing strong traction.
Major players such as Oatly AB, Califia Farms and Pacific Foods have introduced USDA-certified organic oat milk lines to satisfy consumer demand for purity, nutrition and environmental accountability. Further, organic oats meet clean-label ideals, instilling transparency and trust in sourcing practices.
In fact, millennial and Gen Z consumers are leading the charge for purchases in this category, attracted to eco-conscious packaging, plant-based nutrition and responsible sourcing. Moreover, increasing prevalence of chronic conditions, namely lactose intolerance, high cholesterol and gluten sensitivity have encouraged consumers to seek out organic oat drinks as a functional and natural alternative to dairy.
| Segment | Value Share (2025) |
|---|---|
| Flavour(By Product Type) | 36.6% |
Flavored oat-based products are catching the eyes and taste buds of shoppers over broad flavor profiles, from vanilla, chocolate and caramel, to seasonal flavors, such as pumpkin spice and matcha. This variety appeals to a wider demographic, especially younger consumers and families seeking palatable plant-based options.
The flavored sector thrives on its versatility in multiple roles as a health-conscious dairy alternative, as well as a delicious dessert. Brands including Minor Figures, Chobani, and Oatside have all wagered on this trend by bringing RTD (ready-to-drink) flavored oat beverages to market, alongside barista blends designed to work best with coffee.
It is a trend that caf é s and QSRs (Quick Service Restaurants) have also jumped on board, adding new flavored oat milk to seasonal and dessert drinks that have helped increase market penetration and broadened consumption occasions beyond breakfast.
In the words of Jack Harness, VP of marketing at Barilla: “Taste is still the No. 1 purchase driver and we’ve continued to have amazing growth from this perspective: the flavored segment continues to attract lots of innovation, emotional engagement and lifestyle marketing, promoting the idea of this product as ‘good and good for you.
Contalentaries: OatlyAB, Califia Farms, DanoneSA These companies have introduced new product lines, including flavored variants, barista editions, and fortified oat beverages, to appeal to a varied consumer base that ranges from the health-conscious to environmentally aware millennials. Strategic alliances show continued aggresive retail penetration is further shaping the competitive landscape.
Oatly, for example, has boomed by aligning with popular coffee chains and foodservice outlets, making oat milk a mainstream alternative in cafés. The closer inclusion into habitual consumption has created awareness and preference for oat-based drinks.
At the same time, private labels are expanding just like regional players with competitive pricing, often highlighting organic credentials and local sourcing. There may be challengers who focus on affordability and niche appeal but leading brands continue to have an advantage as premium brands with strong distribution networks and sustainable sourcing practices.
For instance:
The global industry is estimated at a value of USD 924.7 million in 2025.
Sales increased at 7.5% CAGR between 2020 and 2024.
Some of the leaders in this industry include Oatly AB, Califia Farms, Alpro, Quaker Oats Company (PepsiCo), Pacific Foods of Oregon, Hälsa Foods.
The Europe is projected to hold a revenue share of 36.8% over the forecast period.
The industry is projected to grow at a forecast CAGR of 8.1% from 2025 to 2035.
The industry is segmented into two sources, namely, organic and conventional.
Based on product type, the industry is categorized into plain or original and flavored.
The market has various specialties, including gluten-free, dairy-alternative, heart-healthy, and others.
The oat-based beverage market growth is attributed to various distribution channels that include retail stores, online retail, specialty stores, and food service/HORECA.
The market is segmented as North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, Central Asia, Russia and Belarus, Balkan & Baltic Countries, Middle East and Africa.
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