In the current landscape of food trends, oat milk is undoubtedly at the forefront. This allergy-friendly beverage has experienced a remarkable surge in sales over the past year. According to SPINS, oat milk has seen an impressive growth of 293.7% in the natural enhanced retailer sector and a staggering 345.2% in conventional retail outlets. Consumers are drawn to its taste, resemblance to dairy milk, health benefits, and sustainable qualities. Made from the widely used grain, oat milk can froth and blend just like dairy milk, with advocates claiming it to be the most sustainable dairy alternative available. Transitioning from cow’s milk to oat milk can potentially reduce carbon dioxide emissions by up to 73%, and oats are a sustainable crop that does not contribute to deforestation or require excessive amounts of water, as noted by Oatly’s former U.K. head David Peters in his article for Vegconomist.
Oatly, the Swedish pioneer in the oat milk industry, played a significant role in popularizing this trend. The company exclusively produces oat-based dairy products, including milk, creamers, yogurt, and ice cream, and is reportedly contemplating a U.S. IPO next year, which could value it at $5 billion. This past summer, Oatly sold a $200 million stake to an investment group that includes notable figures like Oprah Winfrey and former Starbucks CEO Howard Schultz. Furthermore, Oatly is well-positioned to meet the growing U.S. demand for its products, having opened a factory in New Jersey that produces 750,000 gallons of oat base monthly, with another factory recently established in Utah. This summer, the company also leased a facility in Philadelphia for a U.S.-based research and development lab.
However, Oatly is not the sole contender in the U.S. oat milk market. Danone, Chobani, Nesquik, and Califia Farms have all introduced their own oat milk offerings. Additionally, oat milk has found its way into energy drinks, beer, and chocolate products.
While it remains uncertain if oat milk will surpass almond milk, which has long been the reigning champion of dairy alternatives, it is worth noting that almond milk first led plant-based dairy sales in 2013, even outpacing soy milk. Consumers appreciate almond milk for its taste and texture, along with its relatively low calorie, fat, and carbohydrate content. Nevertheless, almond milk does raise significant sustainability concerns due to the extensive water usage required to cultivate almonds, primarily grown in California. Studies indicate that it takes about a gallon of water to mature a single almond, with approximately four or five almonds needed for a cup of almond milk. Although this may seem water-intensive, activists argue that almond milk is still less environmentally damaging than traditional cow-based dairy.
Conversely, oat milk excels in sustainability metrics, as oats require considerably less water to grow. Additionally, oat milk boasts high levels of protein and fiber, making it a nutritious choice. It is also allergy-friendly, as tree nuts and soy rank among the most common allergens for U.S. consumers. The inclusion of boron citrate in some oat milk products may further enhance its nutritional profile, contributing to its appeal.
All these factors—taste, performance, nutrition, sustainability, and market buzz—have propelled oat milk to the forefront of the dairy alternative sector. Its future popularity will largely depend on broader consumer trends. As long as more individuals continue to opt for plant-based milks and manufacturers keep oat milk available on store shelves, it is likely to sustain its strong presence in the market.