Australia Oat Milk Market Report and Forecast 2025-2034

Australia Oat Milk Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia oat milk market size reached around USD 166.57 million in 2024. Aided by the rising consumer preference for plant-based alternatives and the growing focus on environmental sustainability and low-carbon footprints, the market is projected to grow at a CAGR of 19.50% between 2025 and 2034, reaching a value of nearly USD 950.50 million by 2034.

The Australia oat milk market growth is being driven by shifting consumer preferences toward plant-based alternatives and growing awareness of the health and environmental benefits of oats. Oat milk, made from oats and water, has gained popularity as a nutritious and versatile non-dairy beverage. It has become a popular choice for individuals who are lactose intolerant, vegan, or simply looking to reduce their consumption of animal products. This surge in demand for oat milk is reflective of broader trends in the food and beverage industry, where plant-based alternatives are increasingly replacing traditional dairy products.

One of the main factors aiding the Australia oat milk market expansion is the increasing number of consumers adopting plant-based diets. As more Australians choose to follow vegan, vegetarian, or flexitarian lifestyles, the demand for plant-based milk alternatives, including oat milk, has risen significantly. Oat milk, with its smooth texture, naturally sweet flavour, and nutritional profile, has become a go-to option for those looking to avoid dairy. It is rich in fibre, vitamins, and minerals, offering consumers a nutritious and dairy-free alternative to cow's milk. Oat milk's popularity is also due to its ability to froth well, making it ideal for use in coffee, lattes, and other café beverages.

The growing awareness of lactose intolerance among Australians has also contributed to the Australia oat milk market development. With a significant portion of the population experiencing some degree of lactose intolerance, many are turning to plant-based milk options to avoid digestive discomfort. Oat milk provides a viable alternative, as it is naturally lactose-free and easier to digest than traditional dairy products. Additionally, oat milk is free from many of the allergens found in other plant-based milks, such as soy and nuts, making it a more accessible option for those with multiple food sensitivities.

Another important Australia oat milk market trend is the increasing focus on sustainability and environmental impact. Oat milk is often seen as a more sustainable choice compared to other dairy and plant-based milks. The production of oats generally requires less water and land compared to dairy farming, and oats have a smaller carbon footprint than almond production, which has been scrutinised for its high water consumption. As consumers become more environmentally conscious and concerned about the ecological impact of their food choices, the demand for sustainable products like oat milk continues to rise. The environmentally friendly production process of oat milk appeals to consumers who are prioritising sustainability in their purchasing decisions.

The Australia oat milk market dynamics has also benefited from innovations in the food and beverage sector. As oat milk gains popularity, more brands are entering the market, offering a variety of oat milk products with different flavours, added vitamins, and sweeteners. These innovations have helped to diversify the product offerings, catering to a broader range of consumer preferences. Moreover, the increased availability of oat milk in supermarkets, cafes, and restaurants has made it easier for consumers to access the product, further driving its growth.

The rise of e-commerce has also played a role in shaping the Australia oat milk market dynamics. Online shopping platforms make it convenient for consumers to purchase oat milk and have it delivered directly to their homes. This is particularly appealing to consumers who prefer the convenience of online shopping or live in areas where plant-based milk options are less readily available. As e-commerce continues to grow, it is expected that more Australians will turn to online platforms for their oat milk purchases, further fuelling market growth.

Despite the growth of the Australia oat milk market, challenges remain. One of the main challenges is the competition from other plant-based milks, such as almond, soy, and coconut milk, which also enjoy strong consumer loyalty. Additionally, while oat milk is becoming more popular, its price remains higher than that of traditional dairy milk and some other plant-based alternatives. This price gap may limit oat milk's reach among price-sensitive consumers, though the premium nature of the product is often justified by its nutritional benefits and sustainability. As the market grows and production processes become more efficient, the price of oat milk is expected to decrease, making it more accessible to a broader consumer base.

The Australia oat milk market is expected to continue growing over the next decade, driven by increasing consumer interest in plant-based alternatives, health consciousness, and sustainability. As more Australians seek out alternatives to traditional dairy, oat milk will continue to be a key player in the market, offering a nutritious and environmentally friendly option. The growing popularity of oat milk in cafes and the expansion of product lines by leading brands will also contribute to the market’s success. With continued innovation and growing consumer demand, the market is set to remain a strong segment within the broader plant-based beverage category.

Market Segmentation

The market can be divided based on product type, source, flavour, packaging form, application, distribution channel, and region.

Market Breakup by Product Type

• Reduced Fat
• Regular/Full Fat
• Others

Market Breakup by Source

• Organic
• Conventional
• Others

Market Breakup by Flavour

• Plain
• Flavoured
• Vanilla
• Fruit
• Chocolate
• Others
• Others

Market Breakup by Packaging Form

• Cans
• Cartons
• Bottles
• Others

Market Breakup by Application

• Food and Beverages
• Nutraceutical and Baby Food
• Pharmaceuticals
• Personal Care
• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Channels
• Others

Market Breakup by Region

• South Wales
• Victoria
• Queensland
• Western Australia
• Australian Capital Territory
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia oat milk market. Some of the major players explored in the report by Expert Market Research are as follows:

• Chobani Pty Ltd.
• Inside Out Nutritious Goods Pty Ltd
• Califia Farms, LLC
• Australian Health and Nutrition Association Ltd
• Noumi Limited
• Wide Open Agriculture Ltd
• OatMilkGoodness
• Oatly Group
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.