Oatly looks to revive plant-based milk demand in US

AI News Q&A (Free Content)

Q1: What trends are influencing Oatly's strategy to target Gen Z consumers in the U.S.?

A1: Oatly is focusing on trends related to health and sustainability to appeal to Gen Z consumers in the U.S. The company is enhancing its presence in the coffee sector, where oat milk is increasingly popular as a non-dairy creamer, with 33% of all coffee orders containing the beverage. By promoting health and sustainability, Oatly aims to strengthen its connection with Gen Z, who are particularly drawn to these values.

Q2: How does Oatly's plant-based milk production impact the environment compared to traditional dairy milk?

A2: Oatly's plant-based milk production, particularly oat milk, has a lower environmental impact compared to traditional dairy milk. It requires less land and water, and produces fewer greenhouse gas emissions. This makes it an attractive option for environmentally conscious consumers who are concerned about the ecological footprint of their dietary choices.

Q3: What are the health benefits of consuming plant-based milk like oat milk?

A3: Plant-based milk such as oat milk offers several health benefits. It is free from lactose, making it suitable for those with lactose intolerance. Oat milk is also naturally high in fiber and beta-glucans, which can help reduce cholesterol levels. Furthermore, some fortified varieties provide additional nutrients like calcium and vitamins D and B12, which are essential for bone health.

Q4: What are the challenges faced by the plant-based milk industry in improving their products?

A4: One of the main challenges in the plant-based milk industry is enhancing the nutritional profile and physical stability of products. For example, fortified oat-based milk formulations can improve antioxidant properties but may affect physical stability due to increased separation during storage. Balancing the nutritional benefits with desirable sensory attributes is a key focus for producers.

Q5: How does the popularity of cold coffee among Gen Z impact Oatly's market strategy?

A5: The preference of Gen Z for cold coffee has significantly influenced Oatly's market strategy. About 57% of Gen Z consumers opt for cold coffee drinks, and Oatly has capitalized on this trend by promoting oat milk as a preferred non-dairy creamer. This aligns with the increasing demand for plant-based options in beverages, particularly in coffee shops.

Q6: What role does sustainability play in Oatly's marketing and product development?

A6: Sustainability is a core component of Oatly's marketing and product development. The company emphasizes the environmental benefits of oat milk, such as reduced carbon footprint and lower resource consumption compared to dairy milk. This approach resonates with consumers, especially Gen Z and millennials, who prioritize sustainable and ethical products.

Q7: What recent scholarly research supports the development of functional oat-based milk formulations?

A7: Recent research has focused on creating fortified oat-based milk using local agricultural byproducts to enhance nutritional and antioxidant properties. Strategies such as adding raspberry powder and using leaf infusions have shown promise in increasing polyphenol content and antioxidant activity, while also promoting sustainability by utilizing local resources and reducing food waste.

References:

• Oat milk
• Oatly
• Plant milk
• Oatly looks to revive plant-based milk demand in US
• What Does Gen Z Really Want From Brands?
• Valorization of Local Agricultural Byproducts for the Development of Functional Oat-Based Milk Formulations
• Published: 2025-04-21
• RTD Coffee Market Report 2023