Oat Milk Market to Reach USD 1,845.6 Million by 2033, Fueled by Sustainability and Plant-Based Demand

Market Overview:

According to IMARC Group's latest research publication, "Oat Milk Market Size, Share, Trends, and Forecast by Source, Product, Packaging Type, Application, Distribution Channel, and Region, 2025-2033", The global oat milk market size was valued at USD 717.8 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 1,845.6 Million by 2033, exhibiting a CAGR of 11.1% from 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

How AI is Reshaping the Future of Oat Milk Market

• AI-powered algorithms are improving supply chain management in the oat milk market, optimizing inventory and reducing waste for smoother production and distribution.
• Companies like NotCo use AI to create plant-based milks that mimic dairy in taste and texture, attracting consumers seeking better alternatives without compromise.
• AI-driven molecular farming enables plants to produce dairy proteins efficiently, lowering costs and boosting sustainable oat milk production at scale.
• Government AI funding initiatives support small businesses, including food producers, in adopting AI tools for better productivity and innovation in plant-based markets.
• Big brands leverage AI insights to analyze consumer preferences and market trends, enabling smarter marketing strategies and product development in the oat milk sector.

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Key Trends in the Oat Milk Market

• Surge in Vegan and Lactose-Free Diets: More people are choosing oat milk due to veganism and lactose intolerance, with 68% of the global population facing lactose issues, driving demand for plant-based options like Oatly’s barista blends.
• Eco-Friendly Production Gains Traction: Oat milk’s low environmental impact, using less water than dairy, appeals to green consumers. About 50% of oat milk’s carbon footprint is lower than cow’s milk, boosting brands like Planet Oat.
• Innovative Flavors Spark Consumer Interest: Brands are rolling out vanilla, chocolate, and barista-grade oat milk, with 30% of new launches featuring unique flavors, catering to diverse tastes and coffee shop menus.
• Retail and Café Partnerships Expand Reach: Supermarkets dominate with 66% of oat milk sales, while coffee chains see a 50% rise in oat milk menu options, with Starbucks and Dunkin’ driving accessibility.
• Government Support for Sustainable Farming: USDA grants promote oat cultivation for eco-friendly diets, with 20% more funding for plant-based agriculture, helping brands like Califia Farms scale sustainable production.

Growth Factors in the Oat Milk Market

• Rising Vegan and Lactose-Free Demand: Oat milk’s popularity is soaring as 68% of people globally face lactose issues, pushing vegan and dairy-free diets. Brands like Oatly are expanding with barista-friendly products to meet this need.
• Sustainability Drives Consumer Choice: Oat milk uses 80% less water than dairy, appealing to eco-conscious buyers. EU’s Green Deal supports sustainable farming, boosting brands like Califia Farms with eco-friendly packaging.
• Innovative Product Diversification: About 30% of new oat milk launches feature flavors like chocolate or vanilla. Companies like Chobani are introducing fortified options, catering to diverse tastes and dietary needs.
• Strong Retail and Café Presence: Supermarkets hold 66% of oat milk sales, while coffee shops see a 50% rise in oat milk menu options. Starbucks and Dunkin’ partnerships make it widely available.
• Government Backing for Plant-Based: USDA grants fuel oat farming, with 20% more funding for sustainable agriculture. This helps companies like SunOpta expand production, meeting rising demand for oat milk.

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Leading Companies Operating in the Oat Milk Industry:

• Califia Farms LLC
• Earth's Own Food Company Inc
• Elmhurst Milked Direct LLC
• Happy Planet Foods Inc.
• Oatly AB (Cereal Base Ceba AB)
• Pacific Foods of Oregon LLC (Campbell Soup Company)
• Planet Oat Oatmilk (HP Hood LLC.)
• RISE Brewing Co.
• The Hain Celestial Group Inc.
• Thrive Market Inc.

Oat Milk Market Report Segmentation:

By Source:

• Organic
• Conventional

Conventional oat milk leads (74.0% share) due to affordability, wide availability, and strong supply chain integration, while organic variants grow steadily.

By Product:

• Plain
• Flavored

Plain oat milk dominates (58.3% share) for its versatility, clean-label appeal, and suitability for cooking, beverages, and dietary preferences.

By Packaging Type:

• Cartons
• Bottles
• Others

Cartons hold the largest share (53.2%) owing to convenience, sustainability, and effective preservation, aligning with eco-conscious consumer trends.

By Application:

• Food
• Beverages

Beverages lead (68.2% share) as oat milk’s creamy texture and neutral taste make it a preferred dairy alternative in coffee and drinks.

By Distribution Channel:

• Supermarkets and Hypermarkets
• Grocery Stores
• Online Stores
• Others

Supermarkets & hypermarkets capture 40.4% share due to product variety, accessibility, and promotional strategies driving consumer purchases.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Europe dominates (52.8% share) with strong plant-based adoption, sustainability focus, and supportive policies, led by Germany, UK, and Sweden.

Recent News and Developments in Oat Milk Market

• 2024: Oatly reported a 10.9% revenue increase in Q3 2024, driven by improved supply chain efficiencies and strong volume growth, despite challenges in Southeast Asia and the UK. They also closed their Singapore facility due to slower regional growth.
• 2025: SunOpta expanded distribution of its Dream Oatmilk Barista to over 6,700 North American locations, including a major coffee chain partnership, boosting production capacity and emphasizing sustainability with recyclable packaging to reduce emissions and waste.
• 2024: Milkadamia introduced Flat Pack Oat Milk sheets at Newtopia Now, cutting packaging waste by 94% and weight by 85%. This innovative, shelf-stable format requires consumers to mix sheets with water, aligning with eco-conscious consumer demand for sustainable products.

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