In the recent edition of the oat drink market report, Future Market Insights (FMI) finds growth prospects to go as high as 7.5% from 2024 to 2034. With the emergence of health-conscious consumers, key oat drink manufacturers are investing in the development of gluten-free products. Going by this pattern, demand could expand and equate to a market valuation of USD 1,684.5 million by 2034. Sales of oat drinks hold a current valuation of USD 799.4 million in 2024.
| Attributes | Key Insights |
|---|---|
| Expected Oat Drink Market Size in 2024 | USD 799.4 million |
| Forecast Market Value in 2034 | USD 1,684.5 million |
| Value-based CAGR (2024 to 2034) | 7.5% |
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The booming e-commerce industry has made oat drinks more accessible to several consumers in different parts of the globe. Adoption of innovative marketing strategies by companies producing and distributing oat-based drinks is contributing to organic oat milk market growth.
Healthy eating is specifically trending in the Middle East, leading to massive growth of the market in the region. While crowd favorites such as almond, soy, and coconut have been around on the market for several years, oat drinks have gone mainstream only recently.
Oat-based drinks currently hold a tiny percentage of the overall plant-based drink market. However, its penetration is increasing rapidly. This is due to several factors, such as creative marketing tactics pursued by companies such as Oatly AB.
Key companies are directly targeting cafés as part of their product launch strategy. The unique texture and thickness of drinks containing oats also make them a tasty and healthy alternative to animal-based drinks such as regular milk.
Europe is currently the most prominent market and will continue to be lucrative, exhibiting high demand. With rising trend among the youth and athletes turning toward veganism, demand for plant-based drinks is rising considerably.
Using oats in coffee-based drinks is particularly popular and accounts for the majority of the flavored drink segment. Also, people suffering from animal dairy allergies are a target segment for plant-based drinks.
The global oat drink market displayed robust growth from 2019 to 2023. Several factors influenced this growth. Reputed drink-based product manufacturers entered the market during this period.
Rising demand for drinks that are healthy and nutritious helped push market growth. Emergence of label-based products such as non-GMO & allergen-free also augmented sales. Consumer shift toward organic beverages contributed to growth of the overnight oats drink market.
Oat-based drinks are likely to continue to expand in terms of popularity among millennial consumers. Increased investment in research & development to improve the taste and texture of the drinks is predicted to propel sales of oat-based protein shakes. Introduction of new and attractive beverage flavors is another crucial factor augmenting demand.
The boom of oat beverages is unprecedented. One of the most significant factors propelling the market is the rising shift toward sustainable products. Modern consumers are looking at themselves as social and environmental guardians.
They are constantly seeking deeper connections with the environment. Hence, they are expecting the same characteristics in brands manufacturing the products they purchase on a regular basis. The high sustainability factor of oats is pushing consumers toward overnight oat drinks.
The table below showcases the CAGRs of several countries present in the oat drink market. India, China, and the United States are estimated to exhibit CAGRs of 9.2%, 8.7%, and 8.4%, respectively.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| United States | 8.4% |
| Brazil | 6.1% |
| Germany | 8.3% |
| China | 8.7% |
| India | 9.2% |
The United States will likely expand at a CAGR of 8.4% through 2034 and reach USD 321.9 million in the same year. The country is set to hold a prominent share of 23.9% by 2034.
Increasing focus on innovation is pushing the priorities of oatmeal drink vendors operating in the United States. Constant innovations are likely to help the country in maintaining its top position. Mastery over several supply chain issues that come with a market prone to variable production has also been a key factor in the success of leading players in the United States.
China’s massive middle-class population with a considerable disposable income will make it a crucial consumer in the market, with a share of 7.3% by 2034. Rising awareness of the delightful taste and texture of whole oat milk is set to push sales. This awareness of plant-based drinks among the masses might lead to a robust CAGR of 8.7% till 2034, helping China reach a market valuation of USD 114.1 million by 2034.
Germany is estimated to overtake the United Kingdom as a key country in Europe’s oat drink market by holding a share of 5.8% by 2034. With a considerable CAGR of 8.3% in the forecast period, Germany will reach an oat powder drink market valuation of USD 79.1 million by 2034.
A massive shift of the population in Germany toward vegetarianism and veganism is likely to propel demand. Increased preference for organic products has also led to strong growth in Germany.
In the table below, CAGRs of the top segments in the oat avoine drink industry are provided to help clients find the best investment area. By product type, the regular/full-fat segment is anticipated to witness a 7.2% CAGR through 2034. In terms of flavor, the natural/unflavored segment is set to expand at a 6.9% CAGR from 2024 to 2034. Based on end-use applications, the retail sales segment will likely showcase a 7.4% CAGR through 2034.
| Segment | CAGR (2024 to 2034) |
|---|---|
| Regular/Full-fat (Product Type) | 7.2% |
| Natural/Unflavored (Flavor) | 6.9% |
| Retail Sales (End-use Application) | 7.4% |
| Conventional (Nature) | 7.5% |
| Refrigerated (Format) | 7.3% |
In the end-use application segment, retail sales are set to register a CAGR of 7.4% for the forecast period. Retail sales channels are likely to offer consumers fewer shipping issues compared to online channels. Many times, supply chain disruptions lead to delayed product delivery.
Key players also have to deal with complex databases, lost packages, wrong customer addresses, and complicated tracking details. To prevent such issues, they are more likely to sell their products across retail outlets where consumers can be physically present to check the products and make purchase decisions.
By format, the refrigerated segment will likely dominate the global oat drink market with a CAGR of 7.3% from 2024 to 2034. Companies are striving to come up with organic oat drinks in the market that do not contain any chemicals or preservatives. Such drinkable oats have a relatively less shelf life compared to the ones infused with preservatives. Hence, they are launching refrigerated drinks that would help to keep their shelf life stable.
Competition is fierce as key oat-based drink companies are looking to increase their footing in the market by offering innovative drinks. Manufacturers and suppliers focus on meeting consumer needs for taste as well as affordable pricing. Mergers, acquisitions, and partnerships are common strategies in the landscape.
For instance
The oat drink market is projected to surge at a CAGR of 7.5% through 2034.
By 2034, the oat drink market is projected to be worth USD 1,684.5 million.
Increasing shift toward organic products and innovative marketing strategies.
Europe is set to generate the highest oat drink market share by 2034.
Regular/full-fat oat drink is set to be highly preferred.
Cereal Base Ceba AB, Pacific Foods of Oregon LLC, and Elmhurst Milked Direct LLC.
Oat drink is made of water and rolled oats.
Oat milk is consumed as a cereal drink and is higher in carbohydrates than oat drinks.
Oat milk has more fiber than cow’s milk, which makes it beneficial for consumers.
Oat Drink Market
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