‘Celebrate competition’: Oatly optimistic about plant-based milk category growth, strides forward in global expansion

25-Jul-2024 - Last updated on 25-Jul-2024 at 03:06 GMT

Demand for the oat drink category is said to remain strong as consumers continue to switch from cow's milk to dairy alternatives. ©Oatly

Oat drink major Oatly expects continuing demand for plant-based milks as its current generation of consumers mature, and believes that more players entering the market will help boost category growth.

While Oatly was not the first-ever oat milk brand, it has played a crucial role in spurring the category forward and continues to be a market leader today.

“We are proud to have ignited the plant-based milk movement in every region we’ve entered over the last 10 years. Plant-based milks have managed to cement their place in popular and consumer culture, and as current generations of consumers mature, we believe the switch from cow’s milk to plant-based milks will continue trending upward.

“We celebrate competition because it helps in increasing the conversion from dairy and in growing the category, which also has a positive effect on the planet. The more companies that promote oat milk, the better, as it enables people to eat better and live healthier lives without recklessly taxing the earth’s resources in the process,” Willy Low, Regional Director (South East Asia and North Asia) at Oatly, told FoodNavigator-Asia.

With presence across Europe, the US and Asia-Pacific, Oatly has been looking at expanding into new key countries, including France, Spain, Italy, Portugal, Belgium, and Mexico.

“Early returns show stable growth in these new markets, and we are poised to make even further progress in 2024, as underlying demand for the oat drink category remains strong.

“We will continue expansion into markets where we can help make it easier for consumers to choose more environmentally friendly options, such as low-climate-impact dairy alternatives, with the aim of creating a long-term shift towards a more sustainable global food system.”

Low touts Oatly’s strong branding, which claims to “really resonate with consumers”, as its “secret weapon”, adding that the company will continue to invest in and support brand-building efforts in each region.

People and planet

In terms of product innovation, Oatly’s focus is on addressing consumer and environmental needs.

“Our innovation and nutrition teams always consider different occasions of use to develop customised products and formats, with the goal of making oat drinks and products available wherever cow’s milk is available — from cafes to fast-food restaurants and local bistros etc.

“We offer a range of non-dairy milk alternatives that have the same creamy taste, frothy feel, and functionality as cow’s milk while generally having a lower environmental impact. Oatly’s fortified drinks contain the inherent goodness of fibrous oats, and in most markets where you find our products, also boast a variety of beneficial vitamins and minerals.”

For instance, its original oat drink is fortified with vitamins D, B2 (riboflavin), and B12, and minerals (calcium and iodine).

With more than two-thirds of the global population reportedly suffering from lactose intolerance, the crux is in creating a wide range of oat product offerings that make it easy for consumers to make the switch from dairy to plant-based without sacrificing taste, nutrition or sensory experience.

“We truly believe that we need a system change towards a more sustainable and plant-based food industry. On average, cow-based dairy has a much higher climate impact than plant-based.

“According to a recent study, Oatly Barista has between a 44% to 76% lower climate impact than comparable cow’s milk in cases analysed in Europe and the US. Taking this into account, plus the number of litres converted from cow’s milk to Oatly, we had avoided approximately 847,000 tonnes of carbon dioxide emissions by 2023,” Low shared.