Is Oat Milk Cheaper Than Cow Milk? A Detailed Cost Comparison

December 9, 2025 •

4 min read

According to a 2023 analysis by Purdue University, the average price per ounce of regular dairy milk in the US is significantly lower than most plant-based alternatives, including oat milk. However, this retail price doesn't tell the full story when comparing the two popular beverages, especially when considering different production methods.

Quick Summary

Comparing the retail price of oat milk versus cow milk reveals that store-bought oat milk is almost always more expensive. Several factors contribute to this cost difference, including subsidies, economies of scale, and processing overhead. However, making your own oat milk at home can be substantially cheaper than purchasing either dairy or plant-based alternatives from a store.

Key Points

Retail Cost: Store-bought oat milk is generally more expensive than commercially produced cow milk, largely due to differences in subsidies and economies of scale.
Homemade Savings: Making your own oat milk is significantly cheaper than buying either store-bought oat or cow milk, costing just pennies per liter.
Processing Differences: Higher processing and fortification costs for commercial oat milk contribute to its higher retail price compared to cow milk.
Subsidies and Infrastructure: The long-established dairy industry benefits from government support and efficient infrastructure that keeps its prices low for consumers.
Price vs. Preferences: The decision between oat and cow milk often balances retail price with other factors like nutritional profile, convenience, taste, and environmental concerns.
DIY Simplicity: With just a blender, oats, and water, you can create a fresh, low-cost oat milk alternative at home in minutes.

Store-Bought Showdown: The Retail Price Problem

When you walk down the grocery store aisle, the price difference between commercially produced oat milk and cow milk is immediately apparent. Data consistently shows that on a per-ounce or per-gallon basis, store-bought oat milk carries a premium price tag. For instance, a half-gallon of oat milk can easily cost as much as, or even more than, a full gallon of traditional cow milk. This retail disparity is influenced by a number of complex economic factors.

Why is store-bought oat milk so much more expensive?

Economies of Scale and Subsidies: The dairy industry benefits from a long-established, efficient supply chain and significant government subsidies in many countries, which help keep consumer prices low. Plant-based milk producers do not receive the same level of institutional support, meaning their costs are passed directly to the consumer.
Higher Production and Processing Costs: While the raw ingredient for oat milk—oats—is inexpensive, the processing required to turn it into a creamy, stable beverage is more intensive than dairy processing. This involves milling, enzyme treatment, and fortifying the milk with vitamins and minerals like B12, vitamin D, and calcium to match the nutritional profile of cow milk.
Packaging and Transportation: Plant-based milks often use more resource-intensive and expensive packaging (like Tetra Pak cartons) and may have different logistical costs compared to the highly optimized dairy distribution network.
Market Position and Branding: As a newer, trendy product, many premium oat milk brands focus on sophisticated marketing and branding, which contribute to their higher price point. As the market matures, prices may become more competitive.

The Game-Changer: Homemade Oat Milk

While store-bought oat milk is pricier, the cost narrative flips completely when you consider making it yourself. For those willing to invest a few minutes and have a decent blender, homemade oat milk is overwhelmingly more cost-effective than both store-bought oat milk and cow milk.

How making it at home drastically reduces cost

Inexpensive Ingredients: The core ingredients are simply oats and water. With a bulk bag of rolled oats, the cost per liter is minimal, potentially just pennies.
Zero Markup: You cut out all the middlemen, from manufacturing overhead to transportation, packaging, and retail markup. You are only paying for the raw materials.
Repurposing Pulp: The leftover oat pulp can be used in other recipes like baked goods, smoothies, or oatmeal, further maximizing your value and reducing food waste.

A Simple Recipe

Soak: Combine 1 cup of rolled oats with 3 cups of cold water. Let it soak for 20-30 minutes, or overnight for thicker milk.
Blend: Add the soaked oats and water to a high-powered blender. Blend for no more than 30 seconds to avoid a slimy texture. You can add optional ingredients like a pinch of salt or a date for sweetness.
Strain: Pour the mixture through a nut milk bag, cheesecloth, or fine-mesh strainer into a bowl. Gently squeeze the bag to extract all the liquid, but avoid over-squeezing, which can release starches and make it slimy.
Store: Transfer the milk into a sealed jar and refrigerate for up to one week.

Table: Store-Bought vs. Homemade vs. Dairy (Approximate per-gallon cost)


Factor	Store-Bought Oat Milk	Store-Bought Cow Milk	Homemade Oat Milk
Average Cost	$7-$9+	$3-$5	$1-$2
Processing	Intensive; enzyme-treated, fortified	Standardized, pasteurized	Minimal; relies on your blender
Packaging	Often multi-layered Tetra Pak	Plastic or cardboard cartons	Reusable glass jars
Shelf Life	Months (unopened)	Weeks (refrigerated)	About one week (refrigerated)
Best for...	Convenience, frothing	Classic flavor, high protein	Budget, customization

Conclusion: The Final Verdict

So, is oat milk cheaper than cow milk? On a retail level, no. Commercially produced oat milk is consistently more expensive than its dairy counterpart due to a confluence of market factors, including established infrastructure, economies of scale, and government subsidies favoring the dairy industry. However, the answer changes dramatically when you factor in the homemade option. If your goal is to minimize costs, making your own oat milk from scratch is the undisputed champion, beating out both store-bought options by a significant margin. The choice between convenience and cost-savings ultimately rests with the individual consumer, but the data is clear: homemade is the most budget-friendly path.

Authoritative Outbound Link

For more detailed information on agricultural policies and dairy industry economics, a helpful resource is the U.S. Department of Agriculture (USDA).

Additional Considerations for Consumers

Beyond price, consumers often weigh other factors when choosing their milk. Cow milk provides a complete protein source and is naturally rich in calcium, while oat milk is lower in protein but contains beneficial fiber. Environmental impact is another major consideration, with oat milk generally requiring less water and generating fewer greenhouse gas emissions than dairy production. Ultimately, the 'best' milk is a personalized decision based on a mix of cost, nutritional needs, taste, and ethical priorities.

Frequently Asked Questions

Yes, store-bought oat milk is generally more expensive than cow milk on a per-unit basis, primarily due to lower economies of scale and lack of the government subsidies that benefit the dairy industry.

Absolutely. Making your own oat milk from scratch is the most cost-effective option, with homemade versions costing significantly less than both store-bought oat and cow milk.

Dairy milk's lower price is a result of a highly efficient, mature supply chain, and government subsidies that have been in place for a long time, which help keep retail costs down.

You only need a blender and a straining method, like a nut milk bag or cheesecloth. While a high-speed blender is best for a creamy texture, a standard blender will also work.

Oat milk is typically lower in fat and calories and contains fiber, which cow milk does not. However, commercial oat milk is fortified with vitamins and minerals that are naturally present or added to cow milk, and cow milk is a complete protein.

Coffee shops charge an extra fee, often called a surcharge, for plant-based milks because of their higher wholesale cost. Since cafes aim for high-profit margins, they pass the increased ingredient cost onto the customer.

Generally, yes. Oat milk production uses significantly less water and land and generates fewer greenhouse gas emissions than cow milk production.