Oatly, a popular plant-based milk company, is aiming to revitalize the demand for plant-based milk in the United States with a new strategy that CEO Jean-Christophe Flatin believes will lead the company to its first year of profitability as a public entity. During the company’s recent earnings call, Flatin shared plans for growth in Europe and China, where they have seen success by expanding into foodservice and launching aggressive marketing campaigns to connect with consumers. Oatly intends to implement a similar approach in North America, starting in the second half of 2025.
Despite facing challenges in the North American market, Oatly reported its best financial quarter since going public in 2021. The company is focused on reaching the Gen Z demographic by emphasizing trends such as health and sustainability, as well as expanding its presence in the coffee industry.
Oatly initially thrived during the plant-based milk trend of the late 2010s but has struggled to maintain profitability since becoming a publicly traded company. While experiencing growth in Europe and China, the company has seen a decline in revenue in North America, with a significant drop in sales compared to the previous year. Flatin acknowledged the sluggish demand for Oatly products in the U.S. and Canada but expressed confidence in the company’s ability to generate positive momentum moving forward.
To reignite interest in Oatly products, the company plans to increase product availability across various channels and address misinformation about the health benefits of their products circulating online. Oatly is particularly focused on the coffee market, as oat milk has become a popular non-dairy creamer option in coffee shops. The company’s collaboration with Nespresso on the Barista Edition espresso has been successful, and they are looking to capitalize on the growing demand for oat milk among coffee drinkers.
With 82% of U.S. consumers yet to try oat milk, Oatly sees a significant opportunity to introduce more people to their products. Flatin emphasized the company’s commitment to serving the new wave of coffee and beverage consumers, stating that while progress may not happen overnight, they are excited about the future.
In conclusion, Oatly’s strategic plan to boost demand for plant-based milk in the U.S. through targeted marketing campaigns and a focus on the coffee industry shows promise for the company’s future growth and profitability. By capitalizing on emerging trends and expanding their reach to new consumer segments, Oatly aims to solidify its position as a leader in the plant-based beverage market.
