In the rolling hills of Northamptonshire, a sprawling complex owned by Navara Oat Milling might resemble a secret lair from a James Bond film, complete with white-suited operatives and a maze of heavy-duty pipes. However, instead of sinister plots for world domination, this facility is focused on meeting the growing demand for plant-based alternatives to dairy products, particularly oat milk. The air within the mill carries a comforting aroma reminiscent of fresh porridge, a stark contrast to the high-tech machinery that operates within its walls.

Navara Oat Milling is taking advantage of the rising popularity of plant-based diets in the UK, with trucks regularly transporting up to 30 tonnes of oat flour for an eight-mile journey to the Alpro factory in Kettering. Alpro, owned by the French food giant Danone, produces over 200 million liters of plant milk annually. The recent decision by Danone to source British oats instead of importing syrup for its main oat drink range highlights a trend towards local sourcing amid a resurgence in the plant-based food sector.

In recent years, the plant-based food industry has experienced a tumultuous journey. Consumer interest waned during the cost of living crisis, leading shoppers to shy away from expensive dairy and meat alternatives. Consequently, retailers reduced shelf space for these products, and some notable brands, such as Meatless Farm, faced the possibility of shutting down before being rescued from administration. However, the tide appears to be turning once again, particularly for dairy alternatives, as consumers increasingly choose plant milk, especially in their coffee. Reports indicate that oat milk is now the top choice for coffee beverages, with one in four major chain coffees prepared with it.

According to sales data from Kantar, UK shoppers are beginning to buy more plant-based beverages for the first time since 2022. In the year leading up to February 2025, plant-based drink sales volumes rose by 2.1%, with oat milk experiencing impressive growth at 7.2%. Additionally, nearly 35% of UK households now consume plant-based drinks, further underscoring the growing acceptance and popularity of these products.

As brands work to reclaim their footing in the market, innovative marketing strategies are being employed to attract shoppers. Plenish, a brand entering the fray, claims to be the UKs only clean-label fortified milk without oils or additives. Meanwhile, Oato has introduced fresh oat milk to differentiate itself from traditional UHT competitors. To make their products more accessible, both Alpro and Oatly have launched more affordable 500ml packages.

Navara's mill processes oats sourced from within an 80-mile radius, making Alpros choice to utilize British oats particularly noteworthy in a market that typically relies on overseas production. This local sourcing initiative stands in stark contrast to other major brands. For instance, last year, Oatly abandoned plans to open a factory in Peterborough. Alpro's packaging is also a nod to national pride, prominently featuring Union Jack motifs.

Historically, supermarket shelves once brimmed with a variety of plant milks, from traditional soy, oat, and almond to more exotic options like pea, potato, and various nuts. However, oat milk has emerged as the front-runner in the sector, with annual sales surpassing 275 million, up from 155 million five years ago. Current projections indicate that oat milk will account for 40% of the plant milk market by the end of this year, with daily sales of half a million liters across the UK.

Industry analysts attribute oats success to its favorable flavor profile and its perception as a healthy, recognizable ingredient. James Skidmore, the managing director of Navara, notes that despite the mill's 50 million investment in technology, the fundamental process of creating oat flour has remained largely unchanged since the days children learned about it through the classic children's program, Camberwick Green.

To reformulate Alpro's oat drink, Danone invested millions in upgrading the Kettering factory with the necessary machinery to transform oat flour into the "oat juice" that now forms the base of its products. Tom Kerr, Danones head of category management and commercial planning for plant-based products, emphasizes that while health benefits like low fat and high fiber content are significant draws, taste remains a critical factor in consumer choices.

Kerr further asserts the importance of clear health messaging in marketing plant-based foods, particularly in light of the challenges faced by alternative meat products. It was such an explosion; it almost became overwhelming for shoppers to understand what the benefit is, he stated. He advocates for consistent improvements and straightforward communication of the health benefits of plant-based foods.

Despite the ongoing competition between established brands like Oatly and dairy, many consumers do not see their choices as mutually exclusive. Insightful data shows that nine out of ten plant milk buyers also purchase cows milk, leaving higher-priced alternatives vulnerable during economic hardships when consumers are hesitant to pay for two versions of the same product. Smaller packaging has emerged as a potential solution, allowing single-person households and smaller families to afford plant milk options.

Experts like Kiti Soininen from Mintel project that plant-based milk will continue to flourish long-term, buoyed by its younger customer base. While only 14% of individuals over the age of 45 consume plant-based milk, nearly double that percentage is seen in consumers under 45. Many children in contemporary households are being raised on oat and nut milks, with a substantial portion of parents incorporating these products into their diets.

However, cost remains a significant barrier. Although plant milks are increasingly included in supermarket promotions, they still typically cost more than cow's milk. Thijs Geijer, an economist at ING Research, notes that comparing the price of generic cows milk with that of premium oat milk brands is somewhat misleading. The UK cows milk market is significantly larger than that of plant-based alternatives, allowing dairy companies to benefit from economies of scale and diversify their product lines for higher profits.

Interestingly, while plant-based alternatives are often touted as a sustainable solution to climate change, environmental impact is not the primary motivator for consumers purchasing these products. Instead, Mintels polling suggests that perceptions of plant-based milk as a healthy option, suitable for allergy sufferers, and, most importantly, tasty outweigh environmental concerns. According to Soininen, while the category has faced scrutiny over ultra-processed foods, negative views have not deterred consumers from exploring plant-based options.