The global oat drinks market size is expected to reach US$698.8 million by the end of 2027 from US$ 372.5 million in 2019, according to a new study by FMI.
FMI expects the market to rise at an impressive 8.2% CAGR between 2019 and 2027.
Key findings from the report include:
- Western Europe is expected to emerge as a highly lucrative market for oat drinks
- Presence of limited number of companies presents opportunity for entry of new players
- Expansion of the food and beverages sector will bode well for oat drinks market
- The rising demand for plant-based dairy alternatives will drive the market over the course of the forecast period
Sluggish dairy creating opportunities
The demand for dairy products is increasing at a sluggish pace in North America and Europe. As data released by the Canadian Dairy Information Centre has showed, the per capita fluid milk consumption has slumped from 79.8 litres in 2008 to 65.2 litres in 2017 in the US. Similar decline is witnessed in Mexico and Canada, although the rate of decline in Germany, Italy, France, and other European countries is not as drastic.
Plant-based dairy alternative covers a gamut of products such as whipping cream, non-dairy toppings, yoghurt, and ice-cream among others. Although soya, almond, and coconut milk have remained crowd favourites, oat drinks have recently become mainstream. Oat drinks may account for a lesser share in the plant-based diary sector, but their entry is facilitated by strategies by leading companies in the beverages industry. In the coming years, the market is expected to pick pace and soon consumers will have a versatile option to choose from.
Focus on Health driving category growth
A little while ago organic oat drinks were just a specialty item for health-conscious consumers. The clock is however turning faster and now it has become a stable in retail channels around the world. The demand for organic drinks is increasing aiding expansion of this category. The consumers are more willing to spend on organic oat drinks in place of conventional drinks. This again is aiding the growth of the oat drinks market.
Who is winning?
Leading brands operating in the oat drinks market include Drinks Brokers, Alpro, Oatly Quaker Oats, Rude Health, Pureharvest, Kaslink Food, Pacific Foods of Oregon, Darkoff, Riso Scotti, Valsoia, Isola Bio, and BJORG.
Purchasing decision by consumers shopping this category is strongly influenced by the visual appeal and brand distinctiveness – and manufacturers in the oat drinks market are well aware of this, says FMI. Several among them, it says, are therefore investing in creative and innovative packaging of oat drinks to distinguish them from the growing range of alternative plant-based drinks on the market. Some of the leading brands have completely discarded their older packaging to adopt newer themes, with stories and ingredients labelled in detail. Such marketing tactics adopted by the leading players are likely to have positive impact on the overall market, notes FMI.