Flavoured Oat Milk Market Size (2023-2030)

The Global Flavoured Oat Milk Market was estimated to be worth USD 1.5 Billion in 2022 and is projected to reach a value of USD 2.78 Billion by the end of 2030, growing at a fast CAGR of 8% during the outlook period 2023-2030.

Flavoured oat milk is an oat milk that has been enhanced by adding various flavours to it. Oat milk is a plant-based milk that is made from oats and water and is prepared by soaking oats and water. Further, the mixture of oats and water is strained which removes the solid particles, giving it a smooth and creamy texture. Various ingredients are used to add flavour to oat milk. These include natural extracts, sweeteners, spices, and vegetable or fruit flavours. Moreover, plain and unsweetened oat milk is popular among health-conscious individuals as it is mild in taste and has a nutty flavour. Furthermore, vanilla, chocolate, caramel, and almond oat milk are some of the popular oat milk flavours among consumers. Other unique flavours such as lavender or tea flavour have become popular due to increasing health and wellness awareness among people. Flavoured oat milk can be enjoyed as a refreshing beverage, or can be consumed as a dairy-free alternative that can be added in coffee, smoothies, or other drinks to add flavour and creamy texture. Moreover, vanilla-flavoured oat milk witnessing an increased demand from consumers and is used to add sweet vanilla flavour in coffee, smoothies, and baked items such as cakes and pastries. The chocolate-flavoured oat milk is becoming popular among teenagers and young adults due to its rich creamy chocolaty taste and texture that can be used in various recipes or can be consumed as a standalone beverage by consumers. Apart from this, growing consumer demand has induced manufacturers to produce vegan and organic flavoured oat milk that provides various nutritional benefits to consumers.

Global Flavoured Oat Milk Market Drivers:

Rising demand for plant-based products has boosted the market for flavoured oat milk.

Consumers have become aware and conscious about the health benefits of plant-based products over conventional products, and hence are increasingly demanding flavoured oat milk. Plant-based diets are well-balanced and reduce the risk of various diseases. Flavoured oat milk is a plant-based milk that contains valuable nutrients including fibres, vitamins, and minerals. Further, due to increasing consumer demand for healthy and tasty plant-based products, companies added flavours that enhance the taste experience of consumers while maintaining the nutritional components. These flavours include vanilla, chocolate, strawberry, maple, and others. Apart from this, plant-based products ensure cruelty-free alternative to consumers that do not use animal and reduces their exploitation. In addition, these products contribute towards environmental sustainability and help in reducing greenhouse gas emissions during the production process.

Dietary allergies to boost the market for flavoured oat milk.

Many people face dietary allergies that restrict their intake of specific food or beverage. Milk allergy is one sort of restriction that limits the intake of milk by an individual. As per the American College of Allergy, Asthma, & Immunology, nearly 2% to 3% of children are allergic to milk. Moreover, these include allergies to cow milk that result in digestive problems. Lactose intolerance is another allergy common among adults that restricts the intake of milk and causes digestion issues in them. Therefore, this has increased the demand for flavoured oat milk in the market that provides nutritional benefits and tastes to consumers. Oat milk does not contain lactose – a specific type of sugar found in milk and dairy products. Moreover, oat milk allows consumers to consume milk without worrying about the negative effects of lactose consumption and hence has increased the demand for chocolate, vanilla, caramel, and other flavoured oat milk among consumers.

Global Flavoured Oat Milk Market Challenges:

The expensive price of plant-based products can decline the market growth of flavoured oat milk. Flavoured oat milk is prepared from rich plant extracts and flavours that are difficult to source and hence results in increased raw material costs for manufacturers. This lead to an increase in the final price of the product for the consumer.

Furthermore, managing the shelf-life of flavoured oat milk is one of the biggest challenges for manufacturers. These products require proper packaging that ensures long-lasting shelf life without the use of preservatives. Moreover, the addition of certain flavours such as strawberry and other fruits and vegetables requires perfect packaging that does not reduce its quality and maintains the freshness of the milk, which if not done properly can deter the market growth of flavoured oat milk.

Global Flavoured Oat Milk Market Opportunities:

The Global Flavoured Oat Milk Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches and agreements during the forecasted period. Furthermore, owing to the increase in demand for healthy products and tasty flavours such as coconut and maple is predicted to develop the market for flavoured oat milk and enhance its future growth opportunities.

COVID-19 Impact on Global Flavoured Oat Milk Market:

The pandemic had a mixed impact on the flavoured oat milk market. Due to the global lockdown and increased health awareness among consumers, flavoured oat milk witnessed an increase in demand during the pandemic. Further, due to the closure of shops and supermarkets, there was an increase in demand for flavoured oat milk from online channels as they provided 24*7 customer service and contact-less delivery options that ensured the safe delivery of food products to consumers. Moreover, immunity-boosting flavours such as spice-based oat milk containing turmeric and cinnamon, berry-based oat milk, tea, ginger, and honey-based oat milk were in great demand by consumers.

Global Flavoured Oat Milk Market Recent Developments:

• In July 2021, Happi Free launched flavoured oat milk in the UK. The product is available in strawberry and chocolate flavours with no refined sugars. Further, it comes with a 1-litre carton package, making it easier to consume.
• In April 2021, Bevry India launched coffee-based oat milk called Classic Cold Brew Coffee Oat Milk, in India. The company aimed to provide tasty and creamy coffee oat milk to cater to large consumer demand for vegan coffee products and contribute towards the growing culture of green cafés in the country. Further, the company also announced the launch of other flavoured oat milk such as hazelnut, vanilla, and mocha that suited varied consumer preferences.
• In May 2020, LaDiDa, a US brand launched two flavoured oat milk lattes with hemp extracts. The flavours include – Matcha Golden Turmeric and Honey Lavender Flavour. It aimed to cater to the growing consumer demand for eco-friendly caffeine products.

FLAVOURED OAT MILK MARKET REPORT COVERAGE:

Global Flavoured Oat Milk Market Segmentation: By Flavour

• Vanilla Flavour

• Chocolate Flavour

• Fruit-Based Flavour

• Spice-Based Flavour

• Exotic Flavour

• Others

Based on market segmentation by flavour, vanilla and chocolate flavour occupies the highest market share. Vanilla-flavoured oat milk has a smooth and creamy texture with a mild taste that makes it suitable to consume as a standalone beverage and in desserts such as cakes, pastries, muffins, and others. Chocolate-flavoured oat milk is delicious that offers a strong and creamy texture suitable to consume as a standalone beverage or as an additive in coffees and other beverages.

The fruit-based flavoured oat milk occupies a sizeable market share. Strawberry, raspberry, apple, and others are some of the commonly flavoured oat milk among consumers that provide them with a refreshing and sweet taste.

Spice-based flavours are commonly found in the Asia-Pacific region owing to their health benefits. These include tea, turmeric, cinnamon and other flavoured oat milk that are rich in vitamins and minerals and serve as an immunity-boosting beverage to consumers.

Other flavours that are gaining popularity in the market include hazelnut-flavoured oat milk, almond-flavoured oat milk, and coconut-flavoured oat milk, and the recent trend of coffee oat milk is fuelling the market growth for flavoured oat milk.

Global Flavoured Oat Milk Market Segmentation: By Packaging Type

• Cartons

• Bottles

• Tetra Packs

• Others

Based on market segmentation by packaging type, the cartons segment occupies the highest share of the market. Cartons are environment-friendly options that are made of paperboard and usually come with a resealable cap for easy pouring. They are convenient and lightweight, making them convenient to carry. Moreover, they ensure longer shelf-life, making them a popular storage option for consumers. Further, they come in different sizes that can suit various consumer preferences such as single-serve cartons for on-the-go drinks and large-family-sized cartons that can serve the entire family. Tetra packs are the fastest-growing segment during the forecast period. This is a popular type of packaging for milk and is made of either paper or plastic that protects the material from spoilage. Moreover, like cartons, tetra packs come in different sizes that can serve a single person or the entire family with large family-sized packs. Bottled packaging occupies a sizeable market share. Usually, they are made of glass, but growing environmental awareness and demand for convenient package products have induced manufacturers to sell plastic bottled flavoured oat milk that is lightweight and can be carried anywhere.

Global Flavoured Oat Milk Market Segmentation: By Distribution Channel

• Online

• Offline

Based on market segmentation by distribution channel, the offline segment occupies the highest share of the market. The offline distribution channel consists of supermarkets/hypermarkets, food & beverage stores, speciality stores, retail stores, and others. These channels offer a variety of healthy and nutritious options to consumers that offer tasty and fresh-flavoured oat milk to them. Further, the fear of receiving expiry date products and bad quality products through online channels has increased consumer demand for flavoured oat milk from offline distribution channels.

Global Flavoured Oat Milk Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

Based on market segmentation by region, North America occupies the highest share of the market. Growing demand for healthy beverages has boosted the demand for flavoured oat milk in the region. Flavoured oat milk is a dairy-free alternative that provides various nutritional benefits to consumers. Further, this milk is good for heart health and hence is increasingly demanded as an additive in healthy smoothies. Further, the growing coffee culture among young adults in the region has induced manufacturers to integrate coffee with oat milk and sell lattes, cappuccinos, mocha, and espresso-based oat milk that provide a unique taste and creamy texture to coffee lovers. During the forecast period, the Asia-Pacific region is the fastest-growing region. Growing Western influence on healthy beverages and cultural preferences such as the use of flavoured oat milk in traditional Asian recipes, desserts, food, and beverages, has boosted the demand for flavoured oat milk in the region.

Global Flavoured Oat Milk Market Key Players:

1. Nestle

2. Happi Free

3. Ladida

4. Oatly

5. Califia Farms

6. Chobani Oatmilk

7. Planet Oat

8. Slicc

9. Total