For Oatly, the battle has been uphill in every sense—first, gaining traction, and then regulatory changes that pit it against Big Dairy in some countries. It’s a battle much larger than itself as Oatly controls a tiny sliver of the dairy alternatives market, which has about 40 times lower per capita consumption in Europe than anything dairy-based. Oatly’s attempt to expand into the U.S. market looked like it was going to be a success almost immediately. It may have started out in trendy coffee shops, but it didn’t stay just there — before long, Oatly was everywhere. At one point in the company’s expansion, demand increased so quickly that Oatly couldn’t even keep up production. In the world of dairy alternatives, Oatly was on the front line of a wave of regulatory changes.
Pretty much everyone agrees that Oatly sells the best oat milk
- This approach helped establish Oatly as a preferred choice in coffee shops.
- Under Toni Petersson, Oatly aggressively expanded its presence in international markets.
- From its scientific origins to its global expansion, Oatly’s history reflects a blend of innovation, strategic marketing, and adaptation to market dynamics.
- The company is vocal about its belief that we should grow food for direct human consumption rather than for feeding livestock, which is an inefficient use of resources.
As it continues to expand and evolve, Oatly remains at the forefront of the plant-based revolution, leading the way with products that are as good for people as they are for the planet. Oatly, the brand synonymous with oat milk, has an incredible journey that began over 25 years ago in Malmö, Sweden. Founded by Rickard Öste—a scientist at Lund University, Oatly emerged from a mission to create a plant-based drink that was both nutritious and environmentally friendly. This mission led to the development of a now-patented process for transforming liquid oats into what we now recognise as oat milk.
Oatly is headquartered in Sweden, but you can find it across the world
- Not only a news provider, The Dairy News is a key organizer of significant events in the global dairy market, including the prestigious Dairy Olympics, Dairy Rally, Central Asia Dairy Congress etc.
- Researchers wanted to find a way to create milk from oats, and Oatly was born.
- Whether through introducing new products, advocating for plant-based diets, or simply questioning traditional dietary habits, Oatly has positioned itself as a leader in the plant-based movement.
- It made a special oat milk blend just for coffee, and the company started selling its product to coffee shops.
This approach allowed consumers to try Oatly products in an aspirational setting. By the end of 2017, Oatly products were available in over 650 coffee shops across the United States. This alternative to traditional cow’s milk has gained popularity for its creamy texture and environmental benefits. Originating from Sweden, Oatly has been on a mission to provide a nutritious drink that’s good for both people and the planet. International expansion continued with entry into China in 2018, replicating the successful coffee shop strategy.
Supply Chain Issues
Many people are interested in purchasing non-dairy milk because they’re lactose-intolerant. There are always going to be those people out there, and they have a wide variety of options to choose from if they’re looking for a dairy replacement. From soy milk to almond milk, the plant-based milks you’ll find in the grocery store are lactose-free. The early growth of the Oatly company was marked by a steady effort to establish oat milk as a viable alternative to dairy.
Supply Chain Innovations
That’s because Oatly released a complete line of oat milk ice creams in 2019, and plant-milk lovers everywhere rushed out to try the new releases. Mostly, it got pretty good reviews, considering it’s ice cream made from actual oats. However, the company lived in relative obscurity until 2014, when CEO Toni Petersson joined the company. He saw that there was an opportunity to build a super-popular brand, and he went for it. Petersson recognized that American consumers were buying a lot of plant-based milk, so he thought it was a good place to expand. Perhaps the first notable shift in the milk landscape was with the advent of the widespread use of soy milk.
Each fact on our site is contributed by real users like you, bringing a wealth of diverse insights and information. To ensure the highest standards of accuracy and reliability, our dedicated editors meticulously review each submission. This process guarantees that the facts we share are not only fascinating but also credible. Trust in our commitment to quality and authenticity as you explore and learn with us. Not only a news provider, The Dairy News is a key organizer of significant events in the global dairy market, including the prestigious Dairy Olympics, Dairy Rally, Central Asia Dairy Congress etc. As the one of the world’s major specialized media outlets for the dairy industry, The Dairy News is a highly influential and authoritative source.
Don’t cry over spilt milk
Customers would come in, try the milk, and decide that they liked it. This led to a customer base that was already excited to see the products in stores. This brilliant marketing idea is largely responsible for the brand’s success so far. Oatly’s rise to becoming the world’s leading non-dairy brand is a reflection of the power of innovation, purpose-driven marketing and unwavering commitment to sustainability. From its roots in Sweden to its global presence, the brand has successfully redefined what it means to be a plant-based company by focusing on quality, ethics and environmental impact. By staying true to its mission and continuously challenging the status quo, Oatly has not only captured the market but also inspired a movement towards more sustainable and conscientious consumption.
Oatly is better for the environment than real milk and other dairy alternatives
The company forecasts achieving group-level positive adjusted EBITDA of $5-$15 million in 2025, marking its first full year of profitable growth as a public company. Selective distribution and premium pricing strategies became limitations as the market evolved. The Oatly company’s origin can be traced back to February 17, 1994, when its parent company, Ceba AB, was established. Get exclusive articles, deals and giveaways delivered straight to your inbox.
In fact, some may even argue that secondary dairy products — not milk alone — are more difficult to cut out of some people’s diets. But don’t worry because Oatly has still got you covered if you’ve got a sweet tooth but dairy does bad things to your digestive system. Oat milks like Oatly have a less significant negative impact on the environment than other alternatives like almond milk (which actually has a pretty significant negative impact). In fact, it takes one-sixth of the water to grow a pound of oats as it does to grow a pound of almonds. Therefore, if you want to do something positive for the environment through your plant milk selection, oat milk is the way to go. Those who have been Oatly fans from the very beginning probably remember the first time they saw one of those iconic cartons.
From these humble beginnings, Oatly has grown into a global brand, known not only for its products but also for its strong opinions and commitment to sustainability. Imagine a world where your morning coffee is guilt-free and environmentally friendly – that’s the promise Oatly delivers. This Swedish sensation, born from a scientific quest, has revolutionized the food industry with its oat-based alternatives. From its humble beginnings, Oatly Canvas Business Model has challenged dairy norms and captured the hearts (and taste buds) of consumers worldwide, making it a fascinating story of innovation and growth. Oatly’s growth into an international powerhouse has been steady and strategic. The company now has a presence in over 20 countries, including key markets in North America, Europe and Asia.
What Drove the Early Growth of Oatly?
Be the first to know about new sales and ops communication insights to grow your brand faster with higher margins. Whether a brand is big or small, stockouts are an obstacle every brand faces. New technologies are making it easier for brands to avoid stockouts. They decided to start by being hyper-focused on families with children suffering from milk protein allergies—a group representing 1.5–2% of children globally. Oatly adopted what Björn Oeste called the “bowling pin” strategy, targeting niche audiences first. If you’re dying for some Oatly and you’re wondering where in the world you can try it without bringing home a What is NASDAQ whole carton, there is a tool for you.
Simultaneously, dairy milk is making a comeback with Europe’s younger generation, and its consumption is also ticking up in the U.S. Oatly’s revenues nearly doubled every year from 2015 to 2020, Flatin noted. It had successfully begun to “convert traditional dairy users to plant-based milk consumers,” it said in an earnings report. While Oatly’s current challenges are significant, its story remains a testament to the power of innovation, branding, and persistence in a competitive market.
Younger, more politically active consumers are looking for ways to vote with their dollar, and they often don’t want to support brands that don’t take ethics seriously. Oatly recently released its own version of yogurt, which the company charmingly calls “Oatgurt.” As you can imagine, people were pretty excited to try it out when it first came onto the scene. After all, Oatly claimed that the product tasted “just like normal yogurt” and that it offered a “similar creamy consistency.” Fast forward to 2020, and the reality of milk has fundamentally shifted. The vegans, the lactose-intolerant, the food Instagrammers all demand something different — and they can have it.
