Asia-Pacific Oat Milk Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Asia-Pacific Oat Milk Market Analysis

The Asia-Pacific Oat Milk Market size is estimated at 439.8 million USD in 2025, and is expected to reach 791.9 million USD by 2030, growing at a CAGR of 12.49% during the forecast period (2025-2030).

The Asia-Pacific oat milk market is experiencing significant transformation driven by evolving consumer preferences and lifestyle changes. The region has witnessed a substantial shift towards plant milk diets, particularly among younger generations influenced by Western dietary trends. This shift is notably evident in South Korea, where approximately 2.5 million people followed a vegan milk diet in 2021, marking a significant increase over previous years. The growing adoption of flexitarian lifestyles, coupled with increasing environmental consciousness, has led to a fundamental change in consumption patterns across major urban centers in the region.

The retail landscape for oat milk distribution has evolved significantly, with off-trade channels dominating the market dynamics. Supermarkets and hypermarkets have emerged as the primary distribution channel, accounting for 57.8% of oat milk sales in 2022, attributed to their ability to offer diverse international and local brands under one roof. The convenience store sector has also witnessed remarkable expansion, with major players like Easy Joy establishing extensive networks exceeding 27,600 outlets in China alone. This widespread retail presence has significantly improved product accessibility and visibility across various consumer segments.

The foodservice sector has emerged as a crucial growth driver for the oat milk industry, with numerous coffee chains and restaurants incorporating milk alternative options into their menus. The sector's evolution is particularly noteworthy in India, where consumers dine out approximately seven times per month, with over 80% expressing a preference for affordable casual dining options and quick-service restaurants. This trend has led to increased collaboration between oat milk manufacturers and foodservice operators to develop specialized products catering to specific preparation methods and consumption occasions.

Health consciousness and dietary requirements have become paramount factors influencing consumer choices in the oat milk market. The prevalence of lactose intolerance, particularly in East Asia where it affects approximately 70% of the population, has created a substantial consumer base for dairy alternative products. This health-driven demand is further amplified in markets like Australia, where recent studies indicate that one in 50 babies and young children show signs of cow's milk allergy. These health concerns, combined with growing awareness of nutritional choices among busy urban consumers, have established oat milk as a mainstream milk substitute in the region's beverage landscape.

Asia-Pacific Oat Milk Market Trends

The rising vegan population drives the consumption of oat milk

• Oat milk consumption per person has increased for the past few years due to the growing vegan population. Vegan music festivals are being conducted in numerous countries like Australia, which has the third-highest percentage of vegans per capita globally. As of 2022, the country had 2.5 million vegans and vegetarians. Similarly, around 2.8 million people in South Korea follow a vegan diet. This increased significantly in the past 2-3 years and was considered a major factor driving the consumption of dairy alternative products, including plant-based milk (oat milk).
• Lactose intolerance is most common in Asian countries, particularly in East Asia, where nearly 70-100% of the population is lactose intolerant. The growing volume of lactose-intolerant consumers in the region has been another important aspect. However, cow milk allergy is also a common food allergy in young children. Many Japanese consumers are lactose intolerant and do not consume milk or milk-related products. As of 2022, in Australia, around one in 50 babies and young children showed signs of an allergy to cow's milk. Thus, the demand for oat milk is increasing significantly across the Asia-Pacific region.
• There is a constant rise in the per capita consumption of oat milk due to consumer preference toward sustainable ingredient sourcing, which is concerned with the hormones (plant estrogen or isoflavones) found in soy milk. Oat milk also comes with GMO-free, low-fat, and allergen-free claims, giving consumers more plant-based options to choose from to diversify their diets. The per capita consumption of oat milk in the region is estimated to increase by 10.22% from 2023 to 2024.

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Segment Analysis: Distribution Channel

Off-trade Segment in Asia-Pacific Oat Milk Market

The off-trade distribution channel dominates the Asia-Pacific oat milk market, commanding approximately 95% market share in 2024. This channel's prominence is primarily driven by supermarkets and hypermarkets, which account for nearly 58% of off-trade sales due to their extensive product assortment and shelf space, allowing consumers to compare products effectively. The segment's growth is further supported by the rising number of convenience stores and specialist retailers offering oat milk products across the region. Online retail channels are also gaining significant traction, particularly in countries like Australia, where internet penetration stands at over 90%. The segment is projected to maintain its dominant position and experience substantial growth of around 12% during 2024-2029, driven by factors such as increasing product visibility, competitive pricing, and the convenience of product comparison that these channels offer to consumers.

On-trade Segment in Asia-Pacific Oat Milk Market

The on-trade distribution channel in the Asia-Pacific oat milk market has emerged as a significant segment, particularly due to the rising demand for out-of-home consumption of plant-based milk in various desserts, soups, and beverages. Major foodservice chains like Starbucks, McDonald's, The Coffee Bean & Tea Leaf, and Jamba Juice are increasingly incorporating oat milk options into their menus, offering various flavors under their dairy alternative or vegan segments. These establishments provide oat milk at varied price points, with oat milk-based coffee having an average selling price of USD 3.54. The channel's growth is further supported by the expanding network of cafes and restaurants across the region, with many establishments focusing on providing comfortable spaces for consumers to enjoy their oat milk beverages.

Asia-Pacific Oat Milk Market Geography Segment Analysis

Oat Milk Market in China

China dominates the Asia-Pacific oat milk market, holding approximately 19% market share in 2024. The country's market is primarily driven by the growing vegan population, which reached 5-6% of the total population in recent years, significantly influenced by Western cultural adoption. Many supermarkets in major cities like Beijing, Hong Kong, Shanghai, Shenzhen, Guangzhou, and Chengdu have expanded their vegan product offerings, including oat milk varieties. The high prevalence of lactose intolerance, affecting approximately 92.2% of the population, has further accelerated the adoption of oat milk as a dairy alternative. Supermarkets, hypermarkets, and convenience stores account for over 60% of oat milk sales across the country, leveraging their ability to influence consumer purchasing decisions. The expansion of café chains offering plant-based milk options has also contributed significantly to market growth, with Starbucks alone operating more than 6,000 outlets across China. The market's growth is further supported by consumers choosing plant-based diets for various reasons, including ethical, political, environmental, religious, and economic considerations.

Oat Milk Market in New Zealand

New Zealand's oat milk market is projected to grow at an impressive rate of approximately 17% during 2024-2029, marking it as the fastest-growing market in the region. The country's market growth is primarily driven by increasing consumer preference for vegan-based products, with oat milk gradually becoming a preferred milk substitute after soy and almond milk. Environmental consciousness plays a crucial role in market expansion, as oat milk production creates 93% fewer greenhouse gas emissions compared to dairy milk. The efficiency in land use for oat farming, requiring 70% less land than dairy to produce a liter, has strengthened its position as a sustainable alternative. Recent investments in local production capabilities have begun transforming the market landscape, with the government investing in regional oat milk producers and new manufacturing facilities being established. For instance, Otis opened a manufacturing facility in Auckland with the capacity to produce more than 50 million liters of plant-based milk annually. The market's growth is further supported by the coffee industry, where one in four coffee drinkers opt for oat milk due to environmental concerns.

Oat Milk Market in Australia

Australia's oat milk market has experienced significant growth driven by increasing health consciousness and dietary preferences among consumers. The rising incidence of irritable bowel syndrome (IBS) among Australians has particularly influenced the market's expansion, with oat milk being recognized for its digestive health benefits due to its soluble fiber content. The market has seen strong adoption among health-conscious consumers following calorie-deficit diet plans, appreciating oat milk's lower fat content compared to animal-based milk. Various flavors, including unsweetened, chocolate, and vanilla variants, are available through off-trade retailing modes, featuring popular brands like Oatly, Minor Figures, Alpro, and Califia Farms. The market's growth is further supported by the increasing awareness of vegan diet benefits and the rising number of consumers seeking lactose-free alternatives.

Oat Milk Market in Japan

Japan's oat milk market demonstrates robust growth driven by increasing environmental consciousness, particularly among younger generations. The market has benefited from the penetration of several international players, including Danone, Nestlé, Provamel, and Oatly. Within off-trade channels, supermarkets dominate the distribution landscape, accounting for over 72% of revenue generated across off-trade channels. The market's expansion is supported by evolving dietary habits among Japanese consumers, who are increasingly incorporating dairy alternatives into their regular diets. The Foods for Specified Health Use (FOSHU) certification has provided additional credibility to plant-based milk alternatives, contributing to market growth. Popular brands like Alpro, Otsuka Foods, Oatly, and Oatside have established a strong presence across key supermarkets and convenience stores, offering consumers diverse options in the category.

Oat Milk Market in Other Countries

The oat milk market in other Asia-Pacific countries, including India, Indonesia, Malaysia, Pakistan, and South Korea, shows varying degrees of development and growth potential. These markets are characterized by increasing awareness of plant-based alternatives and growing health consciousness among consumers. The expansion of modern retail channels and the introduction of international brands have played crucial roles in market development across these countries. Changing consumer preferences, influenced by Western dietary trends and growing environmental awareness, continue to drive market growth. The foodservice sector, particularly coffee chains and cafes, has been instrumental in introducing oat milk to consumers in these markets. The increasing prevalence of lactose intolerance and milk allergies, combined with rising disposable incomes and urbanization, creates favorable conditions for market expansion in these countries.

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