Trend Report: Oat Milk Brands Go Beyond the Latte in New Era for the Non-Dairy Alternative

Oat milk continues to rise in popularity globally, thanks to its flavour and climate benefits – but it is so much more than simply another non-dairy alternative now.

Despite what was perceived as a bad year for the category, oat milk, with its taste neutrality and climate credentials, remains a firm favourite for baristas and shoppers alike.

The PR crisis for oat milk came as a group of influencers and media outlets questioned whether it is good for you, blaming it for blood glucose spikes, calling out its low protein content, bemoaning the inclusion of ultra-processed additives like emulsifiers and acidity regulators, and bashing its purported effects on bloating.

A slew of new launches attest to the fact that oat milk is going nowhere. Beyond lining grocery shelves the world over, oats are the chosen hero ingredient in a range of new, trendy non-dairy products that showcase the grain’s popularity, versatility and omnipresence.

Product innovators and market makers are creating new oat milk-based formats to serve new customer niches, making oat milk hot property in the plant-based dairy world yet again.

Below, we deep dive into what coult be oat milk’s new era.

Oat milk in numbers

• Globally, plant-based milk sales were up by 5% in 2024, reaching $22.4B. It is most popular in Asia-Pacific, followed by Europe and North America.
• While almond milk still accounts for a majority of the US non-dairy market, its share fell from 58% in 2022 to 54% last year. It was oat milk that capitalised, going from a 22% dollar share in 2022 to 25% in 2024.
• Dollar sales of oat milk were around $700M in the US last year – down by 1% – but the number of units sold increased by 1%.
• In 2024, the average retail price of oat milk reduced by 2% stateside.
• According to Oatly, oat milk’s household penetration is still under 30%, though its leaders did not say which markets this data is for.

• In the UK, oat milk is the best-selling dairy-free alternative, and it’s only becoming more popular, with its market share growing from 46% in 2022 to 52% in 2023 and 53% in the first half of 2024.
• Sales volumes of plant-based milk jumped by 2.1% in the year to February 2025 in the UK, with oat milk accelerating by 7.2%. In fact, Brits purchase half a million litres of oat milk every day.
• Annual sales of oat milk totalled £275M in the country in this period, up by 77% from five years ago. This year, analysts predict that oat will make up 40% of the market on a volume basis, with half a million litres sold each day in the UK.
• One in four coffees sold in the UK is made from plant-based milk, with oat milk the top choice. Meanwhile, non-dairy milk is purchased by 35% of British households.

• Blind taste tests have found that four times as many Brits prefer oat milk in their coffee than currently purchase it.
• The global market for oat milk is expected to triple between 2024 and 2032, reaching $10.8B, according to one market research firm.
• As of 2023, the Asia-Pacific region was the leading consumer of oat milk, responsible for half the market.

• In the 24 weeks to the end of March 2025, retail sales of oat milk grew by 3%, according to Nielsen data cited by Oatly, the world’s largest oat milk company.
• Oatly itself recorded its second-best quarter since its IPO in summer 2021 in Q1 2025, cutting losses by 73% and reaffirming its outlook for its first full year of profitable growth since going public.

The problem: Why dairy and other plant-based milks can fall short

• The climate question: Simply put, dairy is terrible for the environment, producing twice as many emissions as the entire aviation sector. Compared to oat, cow’s milk uses 11 times more land and 13 times more water, while producing 3.5 times more emissions. Plus, oat milk is one of the most water- and emissions-efficient than most plant-based counterparts.

• Non-dairy milks fall short on taste and texture: While Americans love the flavour of almond milk, baristas don’t as much, since it tends to change the flavour of the coffee significantly, while at the same time being harder to steam. Soy can be too beany, and coconut too overpowering. Oat milk is relatively neutral and performs ideally in coffee and cooking applications.
• Anti-allergen wins: Oat milk offers an alternative for people with allergies to nuts and soy. And while it has its own allergen concerns with gluten, many brands now offer gluten-free oat milk to meet a wider consumer base – this ability is unique to oat milk, as you won’t find a nut-free almond milk, for example.
• Opportunities for oat milk: The category has its own issues, too, such as the aforementioned concerns around ultra-processing and sugar content. There are opportunities for brands to clean up their labels and clarify how much sugar comes from the natural processing of oats, and how much is added sugar.

What are oat milk brands trying to solve?

Nutrition and functionality

Many new oat milk products are targeting the ultra-processed argument with cleaner-label formulations that do away with emulsifiers and other additives. Oatly’s Super Basic milk in the US is in direct response to this, containing just a base of oats, water and sea salt, plus citrus fibre. Meanwhile, its recently launched organic barista oat milk cleans up the ingredient list, with only rapeseed oil and an acidity regulator added to the oat milk base.

In addition, Oatly is aiming to bat away concerns around the sugar content by introducing unsweetened or No Sugars versions of its milk, just as Alpro has done in the UK too. While this could raise concerns around overprocessing, it will help them avoid being taxed under the extended soft drinks industry levy.

A growing number of oat milks are now skewing functional, and the UK is leading the charge here. Minor Figures recently unveiled its Hyper Oat range, featuring adaptogens and nootropics in berry, turmeric, matcha and mango flavours.

Plenish is claiming to be making the country’s “only clean-label fortified” oat milk with no oils or additives. Its Enriched Oat Milk contains water oats, chicory root and citrus fibres, and is fortified with calcium, vitamins and iodine. Plus, it’s gluten-free.

Another British brand adding adaptogens to oat milk is Floatmilk, whose additive-free oat milk won the Dairy Alternative Innovation category at the 2024 World Dairy Innovation Awards.

All in on coffee

Given baristas and their customers’ affinity for oat milk over other non-dairy alternatives, oat milk brands are making a big play in the coffee space.

Oatly, for instance, launched its Lighter Taste barista milk last year, designed to pair better with light-roasted coffees. Its ingredient list is identical to the flagship barista milk, but the proportions vary – this version has less fat and a more neutral flavour.

In Asia, Singapore-based Noomoo has also been working on two barista oat milks for different functions. The one titled ‘Barista’ is crafted from Australian oats and high-oleic canola oil, and geared towards medium to dark roasts, while the ‘Artisan’ version (still under development) preserves the pleasant acidity of light-roasted coffees with Mongolian oats and low-sodium lake salt.

Oatly is experimenting with packaging formats too; the company is expanding the reach of its barista line through strategic partnerships using its 20ml Jigger, including one with British Airways. Further, it collaborated with Nestlé to co-launch a Nespresso capsule “for use with oat milk only”.

Heightened sustainability

While oat milk is already very climate-friendly, some brands are pushing the envelope further through innovative formats and packaging solutions. Some, for example, sell oat milk in bottles, like Oato and Float in the UK, or OatMlk and Alterati in India.

A range of firms are making powdered oat milks, which aim to cut packaging waste, transport emissions, and water use. These include Overherd and Mighty in the UK, Blue Farm in Germany, Oatbedient in Singapore, JOI in the US, and Nimbus in Australia. In a similar concept, Germany’s Veganz offers 2D-printed oat milk sheets that can be blended with water.

Meanwhile, in the UK, MYOM makes an oat milk paste, with each 65g pouch making 500ml of milk (it comes with a reusable glass bottle).

Convenience and accessibility

‘Tis the damn season of flavoured plant-based milks. Alpro recently introduced a caramel barista milk made from soy and oats, while Oatly released vanilla and caramel barista milks at Nordic coffee chain Espresso House. Oddlygood and Califia Farms sell vanilla-flavoured barista oat milks too.

These milks lean into the demand for ease of use and convenience. Via Nature is a new British brand retailing Oat Shaker, a line of gut-friendly smoothies that blend oat milk with fruits – the three flavours are banana-coconut, blueberry-acai, and matcha-pineapple. They’re made for on-the-go snacking.

Still in the UK, YouTubers James Marriott and Will Lenney, meanwhile, have launched a ready-to-drink coffee brand called Rodd’s. The dairy-free line comprises an oat latte, a waffle oat latte, and a vanilla matcha oat latte.

And fellow British firm Potina is targeting gut health too, with a range of banana oat milks for kids. Minor Figures is leaning into this trend with the aforementioned Hyper Oat line too. Elsewhere, in Germany, Blue Farm’s oat milk powders come in a range of flavours.

Novel taste experiences

Oat milk is already loved for its largely neutral flavour, and some firms are banking on this to offer elevated flavour experiences in different formats.

US company Koatji, for example, blends oat milk with koji, the mould that forms the base of fermented products like miso, shoyu and soju. Designed by Michelin-starred chefs, its Oat & Koji Milk is being positioned as “the plant milk of the future”, with the fermentation process imparting an umami flavour to make dishes more complex and appealing to the palate, while complementing coffee and matcha’s tasting notes.

Speaking of fermentation, oat milk is being used to enhance alcoholic drinks. In the US, Misunderstood Whiskey makes oat milk cream liqueurs under its Oatrageous brand, which come in espresso, coconut and bourbon cream with 14% ABV.

More famously, Diageo recently released two oat milk versions of its popular Baileys cream liqueur, which are available across the US in Coffee Toffee and Cookies & Creamy variants. (The company’s previous dairy-free Baileys iteration, made from almond milk, has since been discontinued.)

Shrewed brands are noticing the potential of boozy oat milk. Oatly teamed up with Pernod Ricard’s coconut rum brand Malibu on a marketing drive in the UK last year, hosting a series of music, wellness, entertainment and lifestyle pop-ups to accompany the Piña Oatlada, a dairy-free soft serve featuring the brands’ oat milk and rum.

As oat milk continued to encroach upon its fellow plant-based rivals’ share, there are opportunities for brands across health, sustainability, and new formats to sow their wild oats. The question is: will consumers flock towards the grain?