In recent years, the rapid surge in popularity of oat milk within the specialty coffee scene has been impossible to overlook. Today, it’s rare to find a café that doesn’t offer it as an option.
Research from World Coffee Portal in 2021 shows that 16% of UK consumers had tried oat milk in a coffee shop over the previous year, making it the leading plant-based milk in the country. Additionally, sales of in the UK more than doubled between 2019 and 2020, reaching £146 million (around US $177.8 million).
But the UK is just one example. Oat milk has experienced remarkable growth in Europe, the US, Asia, and Latin America as well.
Interestingly, around five years ago, oat milk was virtually unknown, with almond, coconut, and soy milk dominating the plant-based milk market.
So, what sparkedoat milk’s rise to fame, and can it maintain its dominance? To explore this, I spoke with three industry experts. Keep reading to discover their insights.
The Origins of Oat Milk: When Was It First Created?
In recent years, plant-based milks have seen a significant rise in popularity, driven in large part by the growing environmental awareness of consumers, particularly among younger generations.
However, some varieties of plant milk have been around for centuries. For example, soy milk traces its roots back to 14th-century China, with its first commercial production beginning in the late 1910s in Europe, Asia, the US, and Australia.
In contrast, oat milk is a relatively recent innovation. It was created in the early 1990s by Swedish food scientist Rickard Öste, who was studying lactose intolerance and sustainable food alternatives. Öste went on to co-found Oatly with his brother Bjorn, establishing the first commercial brand of oat milk.
Initially, Oatly’s sales remained modest, due in part to limited branding and marketing efforts. This changed in 2012 when current CEO Toni Petersson took the helm, steering the company towards a sustainability-focused marketing strategy that resonated with millennials.
In 2017, as part of a push into the US and UK markets, Oatly distributed free samples of its barista-friendly oat milk to specialty coffee shops. Baristas, impressed by its neutral taste, creamy consistency, and ability to create high-quality microfoam, began incorporating it into their offerings. This surge in popularity even led to supply shortages as demand soared.
Since then, a number of competitors—such as Alpro, Minor Figures, Califia Farms, Pacific Foods, Elmhurst, and Chobani—have released their own versions of barista-style oat milk, fueling its continued growth in sales.
Exploring the Size and Growth of the Oat Milk Market
The sales of plant-based milks have surged in recent years, with experiencing the most remarkable growth. In the US, retail sales of oat milk jumped by over 50% in 2022, reaching US $527.44 million, highlighting its broad consumer appeal.
Pedro Lisboa, Head of Coffee Relations at Nude, an brand based in São Paulo, Brazil, notes that “the market is expanding rapidly in the US and Western Europe. In Germany, now accounts for 60% of the total plant milk market.” Although plant-based milks represent only about 3% of Brazil’s milk market, oat milk makes up a substantial portion of this segment.
Several factors are fueling the rapid growth of oat milk, one of which is increasing consumer awareness of both personal health and environmental impact. production generates lower carbon emissions than many other plant milks,” Pedro explains. “While oats require more land than almonds, they consume far less water. Additionally, producing cow’s milk demands significantly more land and water.”
Jacek Walterowicz, co-founder of the UK brand (Un)Ordinary, echoes these sentiments: “Consumers recognize the sustainability benefits of oat milk, making it one of the most eco-friendly dairy alternatives, especially when ingredients are sourced and produced locally.” (Un)Ordinary sources its oats from Britain to minimize the company’s carbon footprint.
Beyond sustainability, the rise of veganism has also contributed to growing popularity. A 2020 survey by German vegan supermarket chain Veganz revealed that 2.6 million people identified as vegan, double the figure from four years prior.
Additionally, higher rates of lactose intolerance are driving sales in certain regions. Studies show that 90% to 100% of East Asians are lactose intolerant, making plant-based milk options more appealing. While soy milk remains popular in many Asian countries, the oat milk market in the Asia-Pacific region is projected to grow by 14.7% annually through 2026.
Another key factor is that many consumers prefer the taste and texture of over other plant-based milks. Daisy Swiers, UK Country Manager for Califia Farms, says, “Many people choose because of its neutral flavor and creamy mouthfeel, which closely resembles cow’s milk. This familiar texture helps ease the transition to plant-based alternatives.
Why Has Oat Milk Become a Favorite in Specialty Coffee?
While oat milk sales have surged across many food and beverage categories, its growth in the specialty coffee market has been particularly significant.
Pedro Lisboa notes, “The specialty coffee sector has experienced massive growth over the past 15 years. In this space, baristas prioritize milks that allow the intricate flavor profiles of coffee to shine.” He explains that when steamed, has a natural sweetness similar to cow’s milk, making it an ideal pairing.
Jacek Walterowicz shares this sentiment, adding, enhances the coffee’s flavors without overwhelming them. It also steams well, producing a creamy microfoam with a smooth texture.”
Although contains fewer proteins and fats than cow’s milk—both crucial for creating stable microfoam—barista-specific oat milks often include plant-based gellan gum. This ingredient interacts with calcium molecules to stabilize and thicken the foam, allowing baristas to create high-quality latte art.
Some specialty coffee shops, like Blue Bottle and Onyx Coffee Lab, have even started using as their default option. Additionally, in recent years, some national Barista Championship competitors have used in their presentations, despite the unwritten convention against it.
Reflecting this growing acceptance, the Specialty Coffee Association has updated its rules for the 2023 World Coffee Championships, now allowing plant-based milks, including oat milk, in the milk beverage category.
The rise of plant-based ready-to-drink (RTD) coffee has also contributed to increasing popularity. More oat-based RTD coffee options—such as lattes, cold brews, and nitro lattes—are now available, further boosting its presence in the market.
What Does the Future Hold for Oat Milk?
Pedro believes that oat milk’s popularity is likely to persist for the foreseeable future. However, he also points out several challenges that could affect its growth.
“We anticipate an influx of competitor brands entering the market, along with potential declines in raw material supply, which could lead to price increases,” he explains. “Additionally, reaching smaller towns can pose distribution challenges. There are also regulations surrounding the branding and marketing of oat milk, as terms like ‘milk’ can create confusion for consumers.”
Since “milk” is traditionally associated with cow’s milk, some governments and regulatory bodies have placed restrictions on using the term on plant-based product packaging. For instance, current European Union regulations prohibit the use of “milk” on plant milk labels.
Despite these challenges, Pedro is confident that will continue to be the leading plant milk for the foreseeable future.” He adds that while there may be heightened competition from brands using cheaper ingredients, innovation within the market regarding production methods and quality is expected to be significant.
Jacek agrees, stating, “The coming years will be tough for the broader plant milk sector, but will maintain its market leadership.”
Daisy believes that the focus on health among consumers will further propel the growth of the oat milk market. “The plant-based beverage segment shows no signs of slowing down,” she notes. “Consumers are increasingly seeking plant-based drinks that offer complete nutrition, contain more natural ingredients, and have less sugar.”
She anticipates sustained growth over the next five to ten years as more people adopt plant-based diets, although she cautions that certain oat milk brands may contain more calories and sugars compared to other dairy alternatives.
Additionally, the recent rise of plant milk blends combining various ingredients, such as oat, soy, and sunflower seed, could impact oat milk sales. These blends are often designed to closely replicate the texture and creaminess of cow’s milk, a trend that seems to be gaining traction.
“Consumers now have a wide range of options, from artisanal brands producing fresh bottled plant milks to established companies that lead the market and set trends,” Jacek adds.
has undeniably become a staple in coffee shops worldwide, and its growth is expected to maintain momentum in the coming years.
However, with the plant milk market becoming increasingly crowded with new entrants, oat milk brands will need to find ways to differentiate themselves and stay competitive.
“Coffee shops and baristas now have more choices than ever when it comes to oat beverages, so it’s essential for brands to ensure their products stand out,” Daisy concludes.