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The Rise of Oat Milk in Britain’s Plant-Based Market

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Oat milk has emerged as the leading choice in Britain’s plant-based market, with Alpro’s decision to produce British oats driving its success. The shift towards domestic production has improved taste and reduced carbon footprint, making oat milk a key player in the food industry.

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The UK’s plant-based milk market has experienced a significant surge in recent years, with oat milk emerging as the leading choice. ‘A lot of people prefer an oat flat white v a dairy flat white from a taste point of view’ , according to Tom Kerr, Danone‘s head of category management and commercial planning – plant-based. The company’s French owner, Danone, made a multimillion-pound investment in the Kettering site to produce the new recipe.

DATACARD
The Rise of Oat Milk: A Plant-Based Alternative

Oat milk is a plant-based beverage made by soaking oats in water and blending them with water.

It has become increasingly popular as a dairy-free alternative, with sales growing 51% between 2020 and 2021.

Oat milk contains only 2-3 grams of protein per cup, but it is often fortified with additional nutrients like calcium and vitamins.

Major brands have started to offer oat milk in various flavors, catering to consumers' preferences for sustainability and health.

The move towards domestic production is a key factor in oat milk‘s success. With the Navara Oat Milling facility processing oats grown within 80 miles, Alpro can now claim that its products are made from British ingredients. This shift has not only improved the taste but also reduced the carbon footprint of the product.

While some consumers may be drawn to oat milk due to its perceived health benefits, others simply prefer the taste. According to Tom Kerr, ‘A lot of people prefer an oat flat white v a dairy flat white from a taste point of view.’ The key to the success of plant-based foods lies in being clear and consistent in the health messaging around it.

DATACARD
The Flavor Profile of Oat Milk

Oat milk has a naturally sweet and creamy flavor profile, often described as neutral compared to other plant-based milks.

The taste is influenced by the type of oats used and the level of fortification.

Some common descriptors include vanilla-like sweetness, earthy undertones, and a hint of graininess.

Oat milk's flavor can also be affected by the brand and production methods, with some manufacturers adding flavor enhancers or thickeners.

food_industry,dairy_alternatives,sustainability,oat_milk,britain,plant_based_market

The UK’s cow’s milk market is currently 10 times the size of that for plant-based alternatives. However, with oat milk making up 40% of the market on a volume basis, it is clear that consumers are increasingly turning to plant-based options. The growth of this market is expected to continue, driven by younger consumers who have grown up with plant-based milks in their family fridge.

While oat milk is becoming increasingly popular, cost remains a limiting factor for many consumers. However, when comparing the prices of generic cow’s milk and trendy oat milk brands, it becomes clear that the premium paid for brand names can be misleading. The true cost of production is often lower than expected.

Interestingly, while dairy alternatives are often discussed as a way to combat the climate crisis, the environmental impact of food and drink is not the main reason people pick up plant-based milks. Perceptions that they are a ‘healthier choice’ , suitable for allergy sufferers, and tasty score higher as reasons to buy. The category has not escaped the recent spotlight on ultra-processed foods, but these views are not a major deterrent.

According to Mintel‘s research, plant-based milk will be a long-term growth story, thanks to its young customer base. While only 14% of over-45s use plant-based milk, nearly twice as many under-45s drink it. As younger consumers continue to drive the demand for plant-based milks, it is clear that this category will remain a key player in the food and drink industry.

DATACARD
Rising Demand for Plant-Based Milk

The global plant-based milk market has experienced significant growth in recent years, driven by increasing consumer awareness of the health and environmental benefits of dairy-free alternatives.

According to a report by Grand View Research, the market size is projected to reach $34.5 billion by 2025, growing at a CAGR of 13.3%.

Key drivers include rising demand for lactose-free and vegan products, as well as concerns over animal welfare and environmental sustainability.

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