ESG has gained popularity in the investment community in recent years due to its importance. In addition to helping stakeholders understand how an organization manages sustainability risks and opportunities, oat milk has become a popular substitute for normal milk due to rising dairy milk allergies and interest in plant-based nutrition. Oat milk industry is interrelated to the ESG pillars where it is closely linked to the environmental and social factors.
The process of making oat milk consists of soaking whole groats or steel cut oats in water, blending them, and straining them with cheesecloth or a nut milk bag. As a result, it is packed with vitamins, minerals, and fiber, especially if it is fortified. Compared to almond, soy, and cow's milk, it has fewer calories, carbs, and protein.
There are many health benefits to using oat milk as an alternative to cow's milk. Oat milk is a good source of minerals, vitamins, and calcium, and manufacturers often fortify it with vitamin B12. Oat milk is suitable for people with dairy intolerances, and allergies, and those following a plant-based or vegan diet.
In the early phases of COVID-19 outbreak, supply chain and logistics interruptions occurred. However, the government's support to manage the demand for essential products has minimally affected the growth of plant-based products, such as oat milk, during the outbreak. With the pandemic, consumers became more aware of the importance of nutrition to their immune system and overall health by avoiding carbohydrates, fats, and sugary drinks, and switching to nutritionally balanced and nourishing products, increasing the demand for dairy alternatives.
A growing market for oat milk is observed due to its nutrients and lower environmental impact than cow's milk. The benefits of oat milk include not only being nutritious for the body, but also being environmentally friendly. Oat milk represents 17% of the plant milk market in the United States According to one study, oat milk uses 60% less energy than cow milk. As a result of this study, oats produce 80% fewer greenhouse gases and 80% fewer acres of land than cow milk, and they use the least amount of water among all plants.
In oat milk, beta glucan is the predominant soluble fiber, which promotes heart health. Beta glucan forms a gel-like substance in your gut that binds to cholesterol and reduces absorption. It has been linked to heart disease that LDL (bad) cholesterol levels may lower blood cholesterol levels. Oat milk is a suitable option for people with certain dietary restrictions. Despite being naturally gluten-free, oats are processed in factories where gluten-containing grains are also processed.
The milk product is one of the most nutritional foods on Earth, but traditionally it is produced from animals, including cows, sheep, buffaloes, and goats. Animals are sometimes severely harmed during dairy farming. Dairy cows are repeatedly impregnated via artificial insemination, and their newborns are taken away at birth. Due to veganism and lactose intolerance, the global industry is growing because of its health benefits and cruelty-free nature.
Since oat milk is a plant based product it gives benefits to the farmers in several ways. It contributes to local sourcing and helps farmers staying true to the land and becoming part of a sustainable future was made possible through plant agriculture.
Furthermore, the Oat milk industry has less impact and is safer on environment too. The water consumption for producing a liter of oat milk is 48 liters. This is significantly less water than it takes to make dairy, soy, and almond milk. The carbon dioxide emissions from a 200 milliliter glass of oat milk are 0.18 kilograms, which is relatively low.
There may be labor issues associated with oat production. worker exploitation and human rights concerns are associated with specific brands. Laborers may face harassment, humiliation, and violence as a result of unfair employers, who lack access to shade, drinking water, restrooms, and breaks. Worker mistreatment is similar to modern-day slavery. Many workers fear losing their jobs or being deported if they report mistreatment. Additionally, fair trade practice should also be give importance and people can live a sustainable life by purchasing these products that are certified fair trade.
In this market, land depletion may also be a concern as if oats are planted repeatedly on the same land, pests and crop fertility can increase. In the same way, an increase in demand for any product will negatively affect the supply chain, so farmers are constantly trying to improve production processes and share valuable oat production research.
In 2020, the global oat milk market was worth USD 2.23 billion and is expected to grow at a compound annual growth rate (CAGR) of 14.2% between 2020 and 2028. Increasing vegan populations, as well as health-conscious consumers, contribute to the market's growth. Manufacturers have introduced a wide range of plant-based alternatives because of lactose intolerance, allergies, and the popularity of low-cholesterol diets. Since oat milk caters to the customers' desire for allergy-free products, as well as offering a wide range of health benefits, it has benefited the market.
• Oatly, Rise Brewing
• Thrive Market
• Happy Planet Foods
• Califia Farms
• The Coca-Cola Company
• Pacific Foods
• HP Hood LLC
• Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape
• Key insights on infrastructure developments and ESG issues affecting the theme
• Identify key initiatives and challenges within the industry
• Identify ESG leaders within the industry
• Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process.
• Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment
• Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the Oat Milk Sector, globally.
• Key insights into Infrastructure developments and ESG issues affecting the theme.
• Identifying ESG risks and opportunities to business among leading players in the Oat Milk industry.
• Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment.
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