U.K. Oat Milk Market Overview

The U.K. Oat Milk Market is experiencing significant growth as consumers increasingly adopt plant-based alternatives for health, environmental, and ethical reasons. Rising awareness of lactose intolerance, dairy allergies, and sustainable consumption is fueling demand for oat milk among diverse age groups. Additionally, the growing trend of veganism and flexitarian diets is reshaping the dairy alternatives landscape in the U.K.

The  U.K. Oat Milk Market size for oat milk is expanding rapidly, driven by product innovation, premiumization, and the inclusion of functional ingredients such as added vitamins, minerals, and protein. Oat milk is being positioned not only as a healthy and sustainable alternative to dairy but also as a versatile ingredient in coffee, cereals, smoothies, and bakery products, contributing to its increasing adoption across households, cafés, and restaurants.

According to Phoenix Research’s Demand Forecast Engine, the U.K. Oat Milk Market is valued at USD 512 million in 2025 and is projected to reach USD 1.04 billion by 2033, growing at a CAGR of 9.3% during 2025–2033. Rising health consciousness, environmental awareness, and availability through retail and online channels are the primary drivers of this strong market growth.

The U.K. Oat Milk Market is further strengthened by innovative product formats, sustainable packaging, and collaborations with major foodservice and beverage chains, positioning oat milk as both a mainstream beverage and a lifestyle choice in the U.K.

Key Drivers of U.K. Oat Milk Market Growth

1. Rising Health Awareness Among Consumers
   Increasing concern over lactose intolerance, dairy allergies, and overall wellness is accelerating market growth, as more consumers seek plant-based, nutritious alternatives.

2. Growing Popularity of Vegan and Flexitarian Diets
   The shift toward veganism and flexitarian lifestyles is driving growth, with oat milk emerging as one of the most preferred plant-based beverages in the U.K.

3. Expansion of Retail and E-Commerce Channels
   Wider availability in supermarkets, convenience stores, and online platforms is contributing to growth, making oat milk more accessible to households and cafés nationwide.

4. Product Innovation and Flavor Diversification
   Innovations including barista blends, fortified oat milk, and flavored variants are fueling market growth, catering to diverse consumer tastes and consumption occasions.

5. Sustainability and Eco-Friendly Packaging
   Consumer preference for environmentally responsible products is boosting the market , as brands adopt recyclable cartons, plant-based packaging, and carbon-neutral production methods.

6. Influence of Coffee Chains and Foodservice
   Partnerships with cafés and restaurants are enhancing market growth, as oat milk becomes a staple in coffee beverages, smoothies, and culinary applications.

U.K. Oat Milk Market Segmentation

By Product Type

• Barista Blends

• Original / Plain

• Flavored Variants (Vanilla, Chocolate, etc.)

• Fortified / Functional

By Distribution Channel

• Supermarkets & Hypermarkets

• Online Retail

• Convenience Stores

• Cafés & Foodservice Channels

• Direct-to-Consumer Subscriptions

By End User

• Adults

• Children

• Health-Conscious Consumers

• Vegan / Plant-Based Diet Consumers

Regional Insights of the U.K. Oat Milk Market

London & Southeast – Premium and Urban Adoption

High consumer awareness, café culture, and premium grocery presence make London and Southeast England the leading hubs for oat milk consumption.

Midlands & Northern England – Growing Mass-Market Segment

Expansion of supermarkets and retail chains is increasing adoption in the Midlands and Northern regions, reflecting strong growth potential in mainstream households.

Scotland & Wales – Niche Premium and Sustainable Growth

Environmental awareness and lifestyle-driven consumption are supporting gradual but steady market growth in Scotland and Wales, particularly among urban and younger populations.

Leading Companies in the U.K. Oat Milk Market

• Oatly AB

• Alpro (Danone Group)

• Minor Figures Ltd.

• Califia Farms

• Rude Health Ltd.

• Plenish Ltd.

• Happy Planet Foods Ltd.

These companies focus on product innovation, sustainability, and strategic partnerships, strengthening brand loyalty and expanding market penetration in retail and foodservice channels.Oatly AB is the largest company in the U.K. Oat Milk Market,

Strategic & Technological Insights

• Product Fortification and Functional Benefits: Brands are adding vitamins, calcium, protein, and probiotics to enhance nutritional value and consumer appeal.

• Sustainable Production and Packaging: Investment in eco-friendly cartons, renewable energy, and carbon-neutral processing supports market growth.

• Retail & E-Commerce Analytics: Online sales data and subscription models guide product development, marketing, and regional expansion strategies.

• Barista and Culinary Integration: Collaborations with cafés and foodservice chains drive premium adoption and consumer experimentation.

U.K. Oat Milk Market Forecast Snapshot (2025–2033)

Why the U.K. Oat Milk Market Remains Critical

• Promotes healthy, dairy-free, and plant-based lifestyles.

• Supports sustainability and eco-friendly consumption habits.

• Encourages product innovation and premiumization in plant-based beverages.

• Enhances availability across retail, café, and online channels.

• Integrates nutrition, taste, and lifestyle trends to drive consumer loyalty.

Final Takeaway of U.K. Oat Milk Market

The U.K. Oat Milk Market is a dynamic and rapidly expanding segment of the plant-based beverage industry. Rising health consciousness, sustainability awareness, and innovative product offerings are driving robust growth, making oat milk a mainstream lifestyle choice.

The market’s strong outlook is underpinned by digital and retail expansion, barista and foodservice adoption, and functional product innovation, ensuring long-term relevance for brands and stakeholders.

At Phoenix Research, our market forecasts and analytics help identify emerging trends, consumer insights, and growth opportunities, empowering companies to capitalize on the next phase of the U.K. plant-based milk revolution.