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Oat milk, oat cheese, and other oat products have gone from niche alternative to fridge staple — and dairy giants like Chobani are taking notice

Kaitlyn WangJun 23, 2020, 04:04 IST

Dmitriy Savchuk for Business Insider Today

In the US, oat milk sales have jumped 90% in the last four years as consumers search for dairy-free alternatives.
Dairy giants like Chobani have recently begun to sell oat-based products as the dairy industry declines.
But the oat category is still relatively small compared to almond milk and soy milk.

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This mozzarella is made from oat milk. It's made by Rucksack Foods in McLean, Virginia.

Dmitriy Savchuk for Business Insider Today

Dairy-free cheese like this is just one of many oat-based products on the market.

Dmitriy Savchuk for Business Insider Today

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Kosta Drakakis, the cofounder and CEO, said his company wanted to make a dairy-free cheese that was also free from other common allergens like gluten and nuts.

Dmitriy Savchuk for Business Insider Today

But most importantly, "it has to taste good, meaning that a whole family can enjoy it at a dinner table," Drakakis said. "Not only your child that suffers from some food allergies, but the entire, entire family."

Dmitriy Savchuk for Business Insider Today

But most importantly, "it has to taste good, meaning that a whole family can enjoy it at a dinner table," Drakakis said. "Not only your child that suffers from some food allergies, but the entire, entire family."

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Oat milk and oat products are no longer a niche dairy alternative. They're everywhere, from coffee shops to the grocery store.

Kaitlyn Wang/Business Insider Today

Sales of oat milk in the US have risen 90% since 2015, according to Nielsen. And during the coronavirus pandemic, demand has soared even more.

Kaitlyn Wang/Business Insider Today

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During the third week of March, sales shot up 513% compared to the same time last year.

Patrick Malley for Business Insider Today

And even Greek yogurt-maker Chobani joined in on the trend. The company started making oat products like oat milk and oat yogurt last year at its plant in Twin Falls, Idaho.

Patrick Malley for Business Insider Today

And even Greek yogurt-maker Chobani joined in on the trend. The company started making oat products like oat milk and oat yogurt last year at its plant in Twin Falls, Idaho.

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"Plant-based is here to stay," said Chobani president Peter McGuinness. "We think oat is the king of the plants and for a lot of reasons: taste, versatility, nutrition. We wanted to put a better option out there. Which is why we decided to do it on our own."

Amelia Kosciulek/Business Insider Today

"Plant-based is here to stay," said Chobani president Peter McGuinness. "We think oat is the king of the plants and for a lot of reasons: taste, versatility, nutrition. We wanted to put a better option out there. Which is why we decided to do it on our own."

The oat milk process can take up to 14 hours from start to finish. At Chobani, making the base is a multi-step process.

Patrick Malley for Business Insider Today

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First, oat flour is steeped in water to hydrate.

Patrick Malley for Business Insider Today

Next, enzymes are added to the mixture to make the base more fluid.

Patrick Malley for Business Insider Today

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The oat fibers are then strained out of the mixture. The base is used in a variety of Chobani's oat products, from oat milk to oat-blend yogurt.

Patrick Malley for Business Insider Today

Oat milk has been trending thanks to the rise of alternative dairy products. "It has good nutrient density to it," McGuinness said, adding that it also requires less water to produce than almond milk.

Patrick Malley for Business Insider Today

Oat milk has been trending thanks to the rise of alternative dairy products. "It has good nutrient density to it," McGuinness said, adding that it also requires less water to produce than almond milk.

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But the oat category is still relatively small in comparison to other dairy-free alternatives. In 2019, oat milk made up just 3% of the market share.

Liz Kraker/Business Insider Today

And Chobani doesn't think that plant-based products will replace dairy anytime soon.

Patrick Malley for Business Insider Today

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"Most consumers are flexitarians," McGuinness said. "We're a company that are doing both. Why? Because consumers consume both. So it's not an either/or, or a 'one is better than the other' scenario."

Amelia Kosciulek/Business Insider Today

"Most consumers are flexitarians," McGuinness said. "We're a company that are doing both. Why? Because consumers consume both. So it's not an either/or, or a 'one is better than the other' scenario."

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