Plant-based ingredient producer Unigrain says its proposed oat milk facility will be the first in Australia to integrate oat processing and oat milk base production.
Unigrain co-CEO Fiona May said the increasing demand for plant-based milk drove the investment decision, with the plant being the “most efficient, scalable and sustainable supply chain in the region”.
“Consumers are increasingly looking to non-dairy milk-based options, and oat milk has quickly become the fastest growing drink in this category.
“Relative to existing plant-based options, oats are more sustainably grown, and produce a non-allergen milk that is superior in taste and with a stronger nutritional profile,” May said.
The plant will be located at Unigrain’s oat cereal and pulse ingredient production site at Smeaton, Victoria.
Once operational, it will produce enough fresh oat milk base for a broad supply across the Australian market.
“The plant is designed to support the production of over 50 million litres of oat milk per year, with the intention to continue expanding capacity on the site as the oat milk market continues its rapid development,” May said.
The oat base, produced through the enzymatic treatment of oat flour, is the core ingredient in the production of all oat milk formulations.
Co-CEO Andrew May said, “There is great potential for Australia to produce high quality oat milk from locally grown oats, particularly in an environment where sustainability and provenance are becoming increasingly valued by consumers. Our investment continues our commitment and strategy to drive access to high quality, nutritious and locally grown plant-based ingredients.”
The plant-based milk market in Australia was worth more than $237 million in 2020, with sales increasing 8.3 per cent, while data agency SPINS found oat milk sales increased more than 50 per cent in 2021.
According to Allied Market Research, the Asia-Pacific region is expected to have the fastest growth, with a compound annual growth rate of 16.7 per cent from 2019 to 2026.
“Coupled with the current construction of our pulse protein facility at Smeaton, our confidence in the long-term trend towards the consumption of both plant-based foods and beverages remains very strong,” Fiona May said.
Construction is due to start later this year, with full scale production underway in 2023.
