Coffee chain Starbucks added an oat milk beverage to its menu in the U.S., as the company taps into the growing demand for vegan alternatives to dairy.
The new plant-based milk is available at 1,300 locations in the U.S. Midwest. The chain also launched two new drinks made with coconut and almond milk in the United States and Canada.
Plant-based milk became very popular among the consumers as more people try to reduce dairy consumption for health and environmental reasons. Dairy sales have been falling for the last few years, and at least two of the largest U.S. dairy producers have filed for bankruptcy.
Market research firm Mintel projects sales of dairy-free milk to reach $3.1 billion by 2023.
Swedish plant-based milk producer Oatly supplies oat milk to Starbucks. Oatly Milk For Baristas is also used in a few other coffee chains including New York-based Boba Guys and Chicago-based Intelligentsia.
Starbucks has been selling lattes and cappuccinos with oat milk in Europe since 2018 and at a few of its upscale locations in the United States since 2019.