Oat Drinks Market - Forecast(2024 - 2030)

Oat Drinks Market size is estimated at $441.1 million in 2020, projected to grow at a CAGR of 7.9% during the forecast period 2021-2026. Oat drinks is a lactose-free, plant-based beverage that is commonly used as a dairy milk substitute in tea, smoothies, coffee, and other health drinks due to its high iron, potassium, calcium, and vitamin D content. Further, oat milk comes and is used in different forms like plant milk, Protein Shakes and dairy alternatives. Calcium intake in sufficient amounts lowers the risk of osteoporosis and aids muscular and nerve function, as well as cardiovascular health. Lactose intolerance is on the rise, which is driving up oat drinks market demand. Furthermore, sales are fast increasing as a result of the Covid-19 epidemic. They are considered a lactose-free, affordable substitute made from plants. The growing popularity of plant-based diets is a major element driving the growth of the oat drink industry. Furthermore, individuals' preferences for various flavoured oat drinks, such as protein shakes, various fruit flavours, and others, have expanded, leading in increased demand for the oat drinks sector around the world. As consumer behaviour changes, the majority of main firms in the food and beverage industry have been pushed to improve the nutritional profile of their products in order to attract customers. Consumers have begun to spend exorbitantly on food products manufactured from health-beneficial substances, therefore the onset of COVID-19 is predicted to modestly raise demand for Oat Drinks market.

The report: “Oat Drinks Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the Oat Drinks Market.

By Flavor Type: Natural, Chocolate, Vanilla, Strawberry and Others.

By Source: Organic and Conventional.

By Packaging: Cartons, Bottles, Jar and Others.

By Distribution Channel: Offline – Supermarket/Hypermarket, Convenience Stores, Specialty Stores & Others and Online.

By Geography: North America (U.S, Canada and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia & New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina and Rest of South America) and RoW (Middle East and Africa).

 

Based on Source, Conventional Oat Drinks Segment accounted for the largest revenue market share in 2020 owing to the increased adoption of a vegan lifestyle which is anticipated to promote product demand. Oat milk is commonly used, owing to its nutritional profile and neutral taste, as an alternative to traditional milk in various forms and flavors like plant milk, Protein Shakes, dairy alternatives and others. In addition, its rich concentration of branched amino acids promotes proper growth without activating the level of blood insulin driving the segment growth. Organic Oat Drinks segment is anticipated to grow with the fastest CAGR of 8.7% in the forecast period 2021-2026 and is being pushed by rising disposable income levels and expanding customer knowledge of organic products health benefits. Furthermore, large-scale shops such as Target and Walmart have responded to the rising demand for organic oat milk in recent years. Improved living standards, government initiatives, and expanding consumer spending power are propelling the industry in emerging countries like as India, China, and Brazil.

Based on Distribution Channel, Online accounted for the largest revenue market share in 2020. This is owing towards ease of availability of a wide selection of products in various forms and uses as in various flavouring ingredient given by all brands at reasonable discounts. The growing number of smartphone and internet users is the primary driver of sector growth. Customers commonly order Oat Drinks with various plant milks, Protein Shakes, and dairy alternatives from internet websites to save time due to an increasingly hectic lifestyle. Furthermore, the online retail segment is expected to account for the largest share of the market, owing to the fact that online retailing offers more discounts and purchase options, and the online platform has grown in popularity as a result of its ability to deliver products to customers' doorsteps. Major corporations, such as Big Basket, are collaborating with internet shops to broaden their customer base. They also create their online portals and websites to promote the growth of the market in order to increase product sales, providing potential for the Oat Drinks Industry to flourish. Offline is projected to witness the fastest CAGR of 8.9% during the forecast period 2021-2026 as it provides convenience and variety of options that consumer seeks. Specialty merchants are launching several varieties of Oat Drinks such as plant milk, Protein Shakes, dairy alternatives along with healthy components, such as vitamin B1, to tempt customers, hence enhancing the market's growth.

Based on Geography, North America Oat Drinks Market accounted for the 41% revenue share in 2020 owing to their hectic work schedules, millennials, a big demand group in the region for plant milk, Protein Shakes, dairy alternatives and others. This can be attributed to the fact that the slow increase in demand for milk products represents a change in customer preferences. The dairy industry in North America, for instance, has seen slow development over the past few years. Fluid milk use has decreased gradually in the U.S., according to the Canadian Dairy Information Centre. In Canada and Mexico, a similar pattern is observed, making it a big potential market for Oat Drinks producers. Asia-Pacific is predicted to be the fastest growing region during the forecast period 2021- 2026 owing to increased convenience products demand over the projection period which propels the Oat Drinks Market. The region's beverage business like plant milk is predicted to grow at a faster rate than the rest of the world, due to growing middle class, economic marketization, urbanisation, and increased social media influence.

Consumers growing health concerns, particularly in North America and Europe, have resulted in a trend toward safer, healthier, and higher-quality plant milk, Protein Shakes, dairy alternatives products aiding growth to the market development. Growing demand for oat beverages among patients with cardiovascular disease and diabetes, as well as an increasing predisposition toward healthy drinks, is expected to boost the oat drinks consumption market. Another important driver projected to propel worldwide market expansion is the growing popularity of various morning cereal items among individuals, resulting in increased demand for oat drinks around the world. Product introduction and expansion are important strategies for milling firms looking to expand their presence in the Oat Drinks market. Oatly AB, for example, is actively targeting cafés as part of their product launch plan in the United States that will help the Oat Drinks Industry grow.

The Oat Drinks Market's growth is hampered by the stringent government regulations globally. In most nations, legislation has been enacted to safeguard food items against deterioration and contamination caused by poor manufacturing and refrigerated storage practices. As a result, each country has chosen agencies to check consumer health issues as well as the types of materials and procedures used in plant milk beverage operations to determine whether they are regarded safe which further restrains the Oat Drinks Market growth.

The Oat Drinks Market's main strategies include product launches, mergers and acquisitions, joint ventures, and regional expansion. Oat Drinks Market top 10 companies are Oatly AB, Alpro, Rude Health, LIMA, Hain Daniels (Brand Dream), Innocent Drinks, Pureharvest, Drinks Brokers Ltd, Amandin Organic Products and Valsoia S.p.A..