Once a niche dairy alternative, oat milk has cemented itself as a staple in households, coffee shops, and grocery aisles. With new product launches from Organic Valley and a high-profile collaboration between Oatly and Nespresso, the category’s rapid growth shows no signs of slowing down. Coffee remains one of the most significant drivers of oat milk consumption, with oat-based creamers and barista-friendly formulations rapidly gaining traction in both retail and foodservice markets.
Oat milk’s ascent is no accident. Consumer demand for plant-based dairy alternatives has skyrocketed, with a growing emphasis on health, sustainability, and dietary preferences. According to a 2024 report from Statista, the global oat milk market was valued at $4.3 billion in 2023 and is projected to reach $7.5 billion by 2028.
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In contrast, the traditional dairy milk market has been on the decline, with US milk consumption falling by nearly 20 percent over the past decade, per data from the USDA. Dairy milk sales in 2023 fell by 3 percent, continuing a long-term downward trend.
In the US alone, oat milk sales surged by 30 percent in 2023, making it the fastest-growing plant-based milk alternative, according to SPINS data. Consumers are making the shift away from dairy for numerous reasons, with health typically at the top.
Black and Asian communities tend to have higher rates of lactose intolerance. But environmental considerations are also playing a significant role in oat milk’s rise. Unlike almond milk, which has faced criticism for its high water usage, or soy milk, which has been linked to deforestation, oat milk boasts a lower environmental footprint.
Oatly
A study from the University of Oxford found that oat milk produces 80 percent fewer greenhouse gas emissions than dairy milk and requires significantly less water to produce. These sustainability factors have made it particularly appealing to younger consumers who prioritize eco-friendly choices in their shopping habits.
Organic Valley enters the oat milk space
Recognizing the widespread demand for oat-based alternatives, Organic Valley—best known for its organic dairy products—has officially entered the plant-based space with the launch of its first-ever oat-based creamers. The organic farmer-owned cooperative announced that its new Organic Valley Oat Creamers, made with oats sourced directly from US organic family farms, are now available nationwide.
“We’re excited to introduce the new Organic Valley Oat Creamers because we know that many of our loyal Organic Valley milk buyers also purchase plant-based beverages, which makes it a natural evolution for our cooperative,” Laurie Drake, Vice President of Marketing at Organic Valley said in a statement. “We’re always looking to raise the bar with product innovation and now our consumers have even more creamer options in a plant-based form.”
Organic Valley
The new oat creamers, available in vanilla, caramel, oatmeal cookie, and cinnamon spice, are dairy-free, nut-free, and lactose-free, making them a versatile option for consumers with dietary restrictions. Organic Valley’s oat creamers use oats directly sourced from the cooperative’s organic family farms, ensuring quality control from start to finish. The oats are grown in the Midwest without the use of GMOs, toxic pesticides, or herbicides, adhering to USDA organic standards.
“We know consumers care about where their food comes from,” Drake said. “By sourcing organic oats from our own family farms, we know our product from crop to carton. The new oat creamers are more than a new product line—we’re pushing forward our cooperative’s mission to offer innovative and delicious organic products while promoting regional farm diversity and supporting organic family farms with sustainable practices.”
Oatly and Nespresso’s collaboration brings oat milk to capsules
In another sign of oat milk’s growing ubiquity, Swedish oat milk pioneer Oatly has teamed up with Nestlé-owned Nespresso to introduce a limited-edition line of oat milk coffee capsules. Designed exclusively for Nespresso Vertuo coffee machines, the capsules contain a blend of roasted and ground coffee beans specifically crafted to complement Oatly’s Barista Edition oat milk.
According to the companies, the blend delivers a “creamy, biscuity and indulgent” flavor with a smooth texture, low bitterness, and strong cereal and sweet aromatics. The product launch reflects the ongoing shift toward plant-based milk alternatives for taste, ethical, environmental, and dietary reasons.
Nespresso
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Nespresso stated that the decision to release the oat-based coffee capsules aligns with research showing that one in two consumers in the US and Europe now use plant-based milk, while in the Asia-Pacific and Latin American regions, two-thirds of consumers incorporate dairy alternatives into their diets.
“Thanks to its neutral taste, Oatly Barista Edition brings out the best flavor in coffee. It’s why it is used by professional baristas and embraced by coffee enthusiasts all over the world,” Toby Weedon, Barista Development Director at Oatly, said in a statement.
Weedon further emphasized the significance of the collaboration, stating, “We’re delighted to have worked with the experts at Nespresso to finally bring to market a coffee capsule that was tried and tested, especially for the millions of oat drink lovers out there.”
The Oatly Barista Edition coffee capsules launched in more than 15 countries, including the US, UK, China, and Australia. Consumers can purchase them through Nespresso’s official online store and retail boutiques for a limited time.
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