Oat milks are now established in the pantheon of plant based non-dairy foods and beverages. Whilst innovation slowed down a little as consumer interest passed to cultured meat and other forms of non-daily foods such as coconut milk, tiger nut milk etc. it has not been surprising to see new ranges of oat milk hitting the market.
Oat milk is a beverage product made from milled and liquified oats. It belongs to the category of plant-derived non-dairy foods which also includes almond milk, coconut milk, soya milk. In many Northern European and North American countries, oats are widely grown as a cereal crop for a vast range of food products mainly in the bakery sector such as breads, biscuits, powdered beverages, confectionary, etc.
The conversion of oats to a ‘milk’ has only been recent, in the last decade but the concept of a non-dairy milk has been with us for many years with soy milks. It is noticeable that it is now rge second largest plant-based milk in the USA according to the Good Food Insight (2021)
Oats are easy to grow and for farmers, it’s a valuable crop. It is grown in relatively cold temperate climates. They have a lower summer heat need and tolerate rain but not extremes of sun. The climate of Northwest Europe is ideal.
Global Production Of Oats
About 22-25 million tons of oats are grown globally but this may well decline because of the Ukraine-Russia war. About 4.2 million tons are grown in Russia which is now unavailable to most other countries. The other major producers are Canada (4.6-4.8 MTons), Poland (1.6 MTons), Australia (1.1MTons) and Finland. Smaller amounts are produced in the United Kingdom, United States (1 MTons), Brazil, Spain (1.4 MTons) and Argentina. These figures are based on United Nations Agriculture reports.
The Market For Oatmilk
The global market for plant milks pre-Covid was US$1.6 billion and forecast to grow to $41 billion by 2025.
The global market for oat milk had a value prior to Covid in 2019 was over $250 million and may well achieve over $490 million in 2026. Global Market Insights have broken it down further in terms of regional insights. In North America, the CAGR for 2020 to 2026 is over 9.5% growth, in the APAC market the value projected for 2026 is over $165 million and in Europe it is over $120 million. When you compared organic oak milks with flavoured oat milks than the CAGR (2020-26) is almost the same at >10.5% and 10.4% respectively. The growth of carton packaging in which many oat milks are positioned is also over 10% growth (CAGR).
Other market research organizations are equally enthusiastic about oat milk. Allied Market Research reckon the global oat milk market is going to be $995.3 million by 2027 which is up from $360.5 million in 2019.
Commercially, the oat milk market according to gminsights is estimated to grow by 1.02% CAGR between 2020 and 2026. This is in response to growing concerns bout environmental damage through dairy farms and livestock management, the claimed health benefits especially heart health and other less well researched but important claims that are associated with inflammation and disease generally. The nutritional claims are two-fold. There is a reduction in coronary heart disease as well as a reduction in both total plasma cholesterol and LDL-cholesterol levels (Meydani, 2009).
When you compare the market for oat milks against other dairy alternatives then it is still a more fraction of the overall market (The Vegan Society, 2022). In Europe, about 50% of the market is made up of almond milk whilst 25% is soymilk, 5% is rice milk and the remainder is everything else including oat milk.
Oat milk shortages continue and certainly before 2018, there were shortages of this milk. Oatly had its products in 7,000 coffee shops and grocery stores in 2019. It also opened a new factory in New Jersey in April 2019. It was designed to produce 750,000 US gallons. A second factory was designed for opening in Utah which is three-times larger.
In the USA, retail sales in 2019 were $29 million which rose from $4.4 million in 2017. In 2020 during Covid, oat milk sales in the USA increased to $213 million to become the second most plant milk after almond milk ($1.5 billion in 2020 sales).
From 2019 to 2020, oat milk sales grew in the USA by 300% to US$213 million. Refrigerated oat milk has nearly ten times the sales of shelf-stable oat milk. Oat milk has similar sensory parameters to dairy milk because of its bland taste. Oat milk will also foam and serves as a suitable alternative creamer to milk.
The main component and one which receives all the attention is beta-glucan. This component has been evaluated from a claim perspective because it is the main element of those health claims. The less well known components are the avenanthramides (AVNs). These are functional low-molecular weight phenolics (Prodal et al., 2018).
From a flavour perspective, oat milk is relatively neutral. It is also non-allergenic too.
In North America but in other places too, there is also a growing issue of lactose intolerance as different populations deal with these nutritional issues as well as developing better nutritional alternatives. Oat milk has a decent level of calcium and vitamin B12 which are not found in other non-dairy milks. It also fits too with a better alternative to soya. North Americans are also increasingly looking for loc=w calorie milk substitutes. In Europe their is a rise in vegan diets although this also accounts for some movement in NA as well as an desire and improving perception for better nutrition rather than just being filled up with high energy foods. The Asian Pacific region consumers are seeking out oat milks as part of their general rise in living standards and a new middle class. They too desire better alternatives to Western nutritional diest base don fast food in many cases and oat milk is part of that message.
The Regulations
Labelling requirements from the US FDA means that all products have mandatory contents for natural sugar, protein and fat. It means that health-aware and conscious consumers move towards better nutritional products too and favour organic and non-dairy alternatives.
Organic Sector
The oat milk market can be subdivided into conventional versus organic. The organic sector is growing because of a growing desire for better animal husbandry and a movement away from poor standards in farming. Whilst price always plays a part the organic oal milk market is more favourable than other categories where organic is perceived as too expensive. Effective use of packaging such as Tetra and Combiblok have helped extend shelf-life to that of long-life milks. Many oat milks along with other plant-based non-dairy drinks are only found in the chiller but it helps with the reason to believe in the product as that is the case too for fresh milk. Generally, bottles and plastic should be on the way out except that glass is recyclable and suggests quality. Plastic is still a package of choice because of the range of attractive shapes and packaging that is possible.
In terms of population demographics, manufacturers have aimed many oat milks at the younger population who have greater concerns over the environment than their older couter parts. Cartons are also less polluting and it makes it easier for schools and retailers to recycle or process waste packaging. Cartons are also lighter than glass. easier to stock in cling-film packs and simply do not add to the large reservoir of nonbiodegradeable packaging.
Processing
Oat milk is produced in a manner similar to plant milks. The oat grains are processed into rolled oats by removing the harder, outer hull. The dry grains must also be soaked to produce a liquid.
The oat grains are assessed then milled to remove the outer hull. The grains are stirred in warm water and ground into a slurry. The slurry is treated with enzymes and heat to produce a think liquid oat base.
Soaking and extraction of nutrients from oats affects the final milk product. Various processes are employed to remove nutrient molecules from the solid byproducts and add them back into the slurry. Much of the processing is designed to alter pH, and partially hydrolyse proteins and polysaccharides. Higher temperatures increase reaction rates. The separation of the oat liquor from the solid material is possible using decanting, filtration and centrifugation.
The liquid is separated. Other ingredients scuh as vitamins and minerals along with other ingredients are added.
Formulations
The main ingredient must be oat milk and prepared from oats. It may contain gum for mouthfeel. The most commonly used are xanthan, guar gum and gellan gum alone or in combination. Additional vitamins are added such as vitamin palmitate, vitamin D as D2, riboflavin (vitamin B2) and vitamin B12. Minerals might include calcium carbonate to increase calcium content as well as stabiliser such as dipotassium phosphate and sodium chloride.
Unfortified oat milk is lower in calcium, iron and vitamin A compared to milk. These nutrients are added to make oat milk nutritionally similar to milk.
Dairy milk is a much more homogenous material than oat milk. Oat milk is composed of non-uniform particle sizes which means that particle size is decreased by physical disruption as well as reducing the range of particle sizes to make it more uniform and narrower. Gums and emulsifiers are added to stabilise particulates in solution.
Oat has a high starch content at 56 to 60%. Oat starch is difficult to process during UHT because it has a relatively low gelatinization temperature. Enzymes are sued to catalyse hydrolysis of starch and remove gelatinization.
Processing
Processing either involves homogenization and other heat-treatments inlcuding pasteurisation and ultra-heat temperature (UHT) treatments to extend. Oat milk also works similarly to dairy in making a dough – the barista style product might be effective in foccacia equivalents where oil is used.
Nutritional Benefits
The nutritional benefits of oat milk have been studied for many years. The Swedes have long been advocates of oats generally so oat milk appeared a natural material to investigate. In 1998 (Onning et al., 1998), there was comparison between oat milk with soya milk and cow’s milk which were the leading plant and dairy milks of the day. Oat milk revealed itself because of its fibre content.
The nutritional benefits of oat milk come from fibre. Fibre is noted for its key role in regulating blood glucose levels, for binding cholesterol, for satiety and feeling full, for helping to manage bowl movements and alter transit times in the gut.
Apparently, 3.5 ounces of oats contain 10.6 grams of fibre. A typical serving of oat milk contains 2 grams of fibre whilst nut milks like almond contain just 1 gram. Dairy milk does not contain fibre but then it could be enhanced with fibre if needs be. Oats contain beta-glucan which is excellent as a soluble fibre for slowing down the passage of food through the gut. Beta-glucan acts like an absorbent sponge in physically preventing fats passing through the intestinal wall. Whilst this is a simplistic explanation it means that the creation of damaging LDL-cholesterol is severely reduced as well as slowing down sugar entry into the blood. There is also a reduction in the total plasma concentration as well. For diabetics this is extremely important because it reduces blood sugar spiking which can be debilitating to people with this condition.
One study with men showed that consuming oat milk for five weeks only, lowered their cholesterol levels. The men had moderate to high cholesterol levels to begin with.
Veganism and Environmental Impact
Oat milk production produces very little carbon dioxide (0.19 kg CO2-Ceqv per 200g. compared to 0.62 kgCO2-Ceq per 200g for cow’s milk. Almond milk is best – 0.16 kg CO2-Ceqv per 200g. Soy milk is 0.21 kg CO2-Ceqv per 200g.
Oat milk requires 1/15th the amount of water of milk production and 1/8th the water of almond milk.
Oat milk is similar in total calories per liquid volume to dairy milk – 120 calories per serve compared to 149 calories. In comparison to cow’s milk has 40% protein content, 63% fat but only 10% of the saturated fat content and 1.5 times the total carbohydrate. oat milk has 2 grams of dietary fiber per serve (200g). Comparable calcium/potassium contents. the glycemic index is 60 compared to 47.
Satiety Benefits Of Oat Milks
Oat milk contains plenty of fibre which gives you the feeling of fullness in the stomach so you might eat less. It means that there is less likelihood of snacking.
Healthy Nails and Hair
The skin is our biggest organ. drinking oat milk is associated with an improved cosmetic effect which helps too with better nails and hair and their rate of growth. This is associated with the presence of B vitamins, especially vitamin B12 which is commonly added to cosmetic skin lotions and creams. The B vitamins are important metabolic energy production as well as serving as antioxidants because they can mop up free radicals. Oat milks may also redceu the rate of hair greying because that stabilise hair pigmentation.
Is Oat Milk Suitable for everyone?
Oats cannot be eaten by those with gluten sensitivity and that includes oat milk. There are some coeliacs who do not have sensitivity but this is rare.
Soy and almond options are better for coeliacs and those with gluten sensitivity.
Products
All products in the oat milks range tend to follow a particular pattern. They are commonly found as ambient shelf-stable in 32 fl. oz. cardboard cartons with some glass in the USA. These are multiple serving packs. the same type of cardboard carton is used in single serve options (11 ounce) offered as single or 4 packs.
Most make claims such as vegan, plant-based, gluten-free and non-GMO. These are key claims for consumers who have gravitated to this type of product.
The Barista blends are used as creamers. baristas claim that oat milk needs less steam than cow’s milk, froths very well and has a similar richness to cows milk. It is said to balance the acidity of espresso coffee better.
The main players are Oatly as well as Califia Farms.
Oatly! are the number one player in this field and have extended their range from the original whole oat milk to ones are described as ‘semi’ and Barista Edition. The business is Swedish, based in Malmo but with a strong global reach and one that many want to copy. There strengths are the environmental and brash, almost uncouth methods of marketing which make them a force to be reckoned with. They were around from the 1990s but a new CEO led to a relaunch and from 2014 they started rocking! What they’ve done is use English rather than Swedish. Remove the overt science from the packaging verbage and made it look almost retro with simple non-glaring colours.
They use cartons which are familiar to many milk producers keeping that similarity in packaging and pouring experience going. The whole oat milk drink is their flagship product and typifies the brand. It’s key to make claims and so using ‘ free from lactose, milk protein and soya’ meets those consumer’s demands who are lactose intolerance, cannot drink milk generally and are concerned about an agriculture which dwells on soya production as well as potentially having an allergy to soy anyway. It makes for a healthy swap. The oat milk is also used as the alternative to dairy in baking. Think of muffins and milk breads.
Flavoured oat milks are popular and Oatly have a leading flavour in chocolate. Another element of Oatly’s strategy is to have aimed the product with modifications at the baristas. the tea and coffee shops now use the product and their competitors have had to catch up.
Oatly barista can cost around £1.65 to £1.80 whilst Alpro unsweetened oat milk can cost anywhere from £1.25 to £2. Moma unsweetened whole milk can cost £1.35 to £1.85.
Meanwhile, Aldi and Lidl’s own brand oat milk costs 89p per litre and Lidl’s Barista offering is slightly higher at around £1. Clearly, there’s quite a big cost discrepancy so I wanted to see if it’s worth paying an extra 30p to £1 for some milk.
Califia Farms (Bakersfield, CA) expanded their existing range of plant milks with a new Zero Sugar Oatmilk and an Oat with Almond Plantmilk Blend. It taps into the consumer desire for associated plant-based non-dairy foods inlcuding creamers, and produucts to satisfy ready brewed coffees and barista-style beverages. One interesting product is their Pumpkin Spice Oat Barista Blend.
Their range is always in 32 fl. oz. (946 mL) cartons.
The creamers include Cookie Butter AlmondMilk Creamer and Cinnamon Roll Oat Creamer. Consumer are looking for exciting new flavours that provide a more luxorious decadent indulgence for their coffee out of home and in-home.
The new plant milks have an SRP of $4.19 and the creamers have an SRP of $4.59 according to Prepared Foods back in January 2022.
Planet Oat are now a big name in oat milk but not in other milks. They have tapped into a younger market with their style of marketing. Again the claims are around free from such as dairy-free, peanut free, soy free and gluten free which is a situation for all oat milks of course. Additionally they emphasise the 1 gram of protein and fiber per serving. A typical serving is 1 cup or 240ml. The calorie content is just 45 but it cannot be regarded as a low calorie beverage or food with 0.5g total fat, low sodium and low carbohydrate except for soluble fiber. It contains vitamin D and calcium (20% and 25% of the Daily Value respectively).
They offer the consumer unsweetened original oat milk which currently retails at $4.49 for 52 fluid ounces. Flavoured variants include vanilla and an original flavour.
Also look out for Pacific Foods who have an organic oat milk original and a vanilla in 32 fl. oz. They also do a Barista style oat milk and an organic reduced sugar version. This business does a range of nut milks too using hazelnut including hazelnut chocolate, cashew, almond, hemp, coconut and of course soy. Any sweetening comes from brown rice syrup or cane sugar as in the soy product. They claim to contain 4g protein per serve as well as being carrageenan free.
The barista version is only available in feed service outlets although you can buy it online. It uses canola oil and raises the fat content per cup to 8 g fat compared to 2 g for a reduced sugar version. That also means the calorific content rises by 60 calories from 120 calories for a non-barista style oat milk to 180 calories. No bran would be added as the presence of fiber reduces the frothing effect.
The absence of preservatives means that it must be stored in the fridge after use and appears to hold its flavour for up to 10 days.
Rise: The latter have a chocolate flavoured variant of 160 calories per serving, 7g fat. which is organic and uses no stabilisers or additional minerals other than salt. Other flavours include original and vanilla.
Plenish also offer unsweetened organic oat milk (Amazon [03/08/2022] £2/litre) as well as nut milks. They also have a simple premis of just 3 natural ingredients for all their products. No oils or gums although there are some mouthfeel issues. They’ve also latched onto environmental credentials of being certified carbon negative. To get round using an obvious dairy terms, they use the word m*lk.
Glebe Farm have PureOaty (Amazon [03/08/2022] £1.50/litre) which is a UK based brand.
Nutpods do a Barista Oat milk which is sugar free which they also claim is suited to a keto diet. There is a claim as a good source of calcium as well as being sugar free. The idea is to use it as a creamer type for coffee including steaming etc. The frothing comes from the addition of fava bean isolate (broad bean isolate) and you can imagine it is ideal for creamy lattes, cappuccinos and iced macchiatos making great use of the creamy and foaming nature of the added protein. Like many of its oat milk counterparts it is a vegan milk free of many materials. Strangely it claims to be free of the herbicide glyphosate which makes it an odd claim given that oats are not treated with this material anyway. It may be an implied claim against Monsanto but this is a confusing claim to make and probably erroneous.
Try out Minor Figures who make their oat milk product in the UK. It retails at £1.80/litre). Again very simple packaging with just lines and an amusing pictorial. 
They are also a carbon neutral business and emphasise their environmental credentials by comparing the amount of water needed to produce a litre of their product compared to a cow. Aalso a business producing different variants incorporating calcium and vitamins.
Who else? Mighty M.lkology use British oats rather than EU oats and this is meant for hot beverages. It is in fact a blend of oats (6%) with pea protein isolate, coconut cream and fermented oats. packed with vitamins and minerals too. 
Press Oat M*lk is a UK brand.
Sleep Well has been developed with added valerian to help with natural sleep. One of the weaknesses of oat milk is that dairy milk proteins contain natural opioids that influence sleep in infants. Its missing from plant milks and is a major issue in the future because products like Horlicks always played on the helping natural sleep. Valerian is not suitable for pregnant mothers or those breast feeding. The 500nk carton costs £4.99.
We rarely see strawberry or other fruit flavours in this mix but they have been looked at.
If you like canned coffee why not try Rise Brewing Co’s nitro cold brew coffee. This comes in flavours such as oat milk mocha and latte. A pack of 12 * 7 fl. oz slimline cans is $40. They also do a something called London Fog which is a throwback to those days when the capital of the UK was wreathed in an impenetrable smog. The product is a nitro earl grey tea with oat milk latte.
OATH have an oat milk and plant protein RTD beverage which was launched in 2019. This particular product contains 15 to 16 grams of protein and 6 to 10 grams of fiber. Ther ere four flavours such as Double Chocolate, Matcha Chai, Indian Rose and Golden Turmeric.
Oat milk can also be found in ice cream. Look for My/Mochi Ice cream which has a creamy texture similar to traditional dairy ice cream. The vegan line uses cashew cream rather than oat milk to remove the possibility of a nut allergy. Again another alternative to using soy protein as a dairy option. Rather than call it a an ice cream which demands particular regulatory laws, the flavours are vanilla, strawberry, chocolate, neapolitana and salted caramel.
In Australia, we have Milklab which affirms 100% Australian oats. very simple consumer friendly packaging. has a 10% oat content.
Packaging
There is a preference for cartons rather than bottler because of their weight and size. Most weight sizes in the USA are 32 ounces which also fits with dairy milks. oat milks always need shaking to mix the contents although the settling of fines is less pronounced with oat milk compared to nut milks say. To overcome settling, product developers add a gum such as gellan gum and xanthan gum to 1% to improve mouthfeel as well as starch, just to increase the density and minimise settling as a consequence. the mouthfeel benefit is the principal benefit.
Competitive Pressures
One of the issues facing all cereal producers is macroeconomic pressure. The Ukraine-Russia war which has put pressure on oat sourcing as well as inflation, supply chain constraints due to the pandemic and the demands for oats to be used in other products.
The take-up of plant-based milks generally is much slower than anticipated because consumers still find dairy palatable. Dairy also has its own considerable health benefits and is suitable for all coeliacs and those with nut allergies.
For Oatly! which traded publicly in 2021 expects revenue through to December 2022 to be between $800 and $830m. This is a growth of between 24% to 29% over 2021. On a constant-currency basis, the company expects $835-865m, an increase of 30% to 34%. On March 9th, 2022, Oatly had made a profit of $186M in the financial year of 2021 which was a 46.3% increase compared to $127.1 million in the previous period.
In the EMEA region, Oatly’s second-quarter sales rose by5% to $82.5m. The issues for Oatley are still being associated with Blackstone Group which is associated with deforestation of the Amazon. The association though hasn’t damaged sales and there are issues with nut milks because of water usage.
Not everyone agrees that oat milks are expected to perform consistently. Some like Spruce Point Capital Management consider it a fad product. The other issue is the EU’s Amendment 171 which is being fought by the European Dairy Association. The amendment claims that current marketing and packaging guidelines for plant-based products are ‘misleading’ consumers. If it was acted upon then dairy descriptors would be banned for non-dairy products. Words like dairy, creamy and ‘does not contain milk’ would be removed. Oatly has resolutely fought this change which has positioned them as champions for the plant-milk movement.
Health & Safety
Product recalls are few and far between however there are issues with contrcat manufacturers. For example Oatly’s Oat-Milk Barista edition has been recalled (Washington Post: 03/08/22) because of microbial contamination. The product is made under contract at California-based Lyons Magnus. A preliminary analysis for commercial sterility indicated there was a possible risk of Cronobacter sakazakii.
References
GFI (2021) US retail market data for the plant-based industry. Good Food Institute. Accessed July 22nd 2022
Meydani, M. (2009) Potential health benefits of Avenanthramides of oats. Nutr. Reviews 67 (12) pp. 731-735
Noack, C.E., Chu, H.S.S., Gaur, S (2022) Evaluation of Avenanthramide Content in Oat Milk Beverages. IFT Poster 2022
Önning, G., Åkesson, B., Öste, R., & Lundquist, I. (1998). Effects of consumption of oat milk, soya milk, or cow’s milk on plasma lipids and antioxidative capacity in healthy subjects. Annals of Nutrition and Metabolism, 42(4), pp. 211-220.
Pridal, A. A., Böttger, W., & Ross, A. B. (2018). Analysis of avenanthramides in oat products and estimation of avenanthramide intake in humans. Food Chemistry, 253, pp. 93-100.
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