Oat drink is a dairy alternative made from sprouted whole grain oats and water. It is offered in various flavors such as original, vanilla, chocolate, etc. and is consumed as a substitute for cow's milk. It provides several health benefits such as less calories and fats compared to dairy milk. It is widely used by lactose intolerant individuals as an alternative to dairy milk.

The Oat Drink Market is estimated to be valued at Us$ 741.5 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.


Market Dynamics:

Increasing health consciousness among consumers is a major factor anticipated to drive growth of the global oat drink market over the forecast period. Consumers are increasingly adopting plant-based beverages as they provide various nutritional and health benefits. Oat drink contain antioxidants, vitamins, minerals and fiber which help in maintaining cholesterol levels and reducing the risk of heart diseases.

Secondly, rising cases of lactose intolerance is also propelling market growth. Lactose intolerance refers to the body's inability to digest lactose, a natural sugar found in dairy milk. Symptoms include cramps, bloating and diarrhea. Oat drink thus provide relief to lactose intolerant individuals from digestive issues caused by dairy milk.

SWOT Analysis

Strength: Oat drink is perceived as a healthy alternative to dairy milk due to high fiber content and low cholesterol. It is dairy-free and suitable for lactose intolerant consumers. The market is witnessing high product innovations with new flavors and variants.

Weakness: Production of oat drinks require high capital and resources. It has lower shelf life compared to dairy milk. Certain varieties contain added sugars.

Opportunity: Growing health awareness among consumers is fueling the demand. Increase in vegan and flexitarian population worldwide presents an opportunity. Product extension into various sectors like bakery, ice creams etc. can expand growth opportunities.

Threats: Regional dairy lobbies raise concerns against marketing of oat drinks. Fluctuations in raw material prices can increase input costs. Intense competition from other plant-based dairy alternatives like almond, soy etc.

Key Takeaways

The Global Oat Drink Market Size is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period, due to increasing health consciousness among consumers. There is a rise in preference for plant-based milk alternatives that are dairy-free and environment sustainable.

Regional analysis:

North America holds the major share in the global market currently. However, Asia Pacific is expected to witness the fastest growth owing to growing health awareness and rising veganism in countries like China, India and Japan. Europe is also one of the dominating regions due to increasing lactose intolerant population and stringent environmental regulations favoring plant-based products.

Key players:

Key players operating in the oat drink market are Cereal Base Ceba AB (Oatly), Dream Blends, Rude Health, Oatworks Inc and Califa Farms. Oatly dominates the global marketplace with wide distribution network across various countries. It offers wide range of flavored and unflavored oat drinks along with barista edition products.

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