It’s hard to sell oat milk in a doomsday atmosphere – Oatly’s growth has stalled

Fotó: Oatly/Plant Based News

The head of the Swedish oat milk brand told the Financial Times that many American consumers were disillusioned with green marketing and greenwashing, thus turning away from the sustainable food category.

While sales in Europe increased by 12 percent, Oatly’s revenues in China and North America fell by 6-7 percent in the second quarter of this year. In the US, plant-based milk sales were worth $2.8 billion in 2024, down 5% from the previous year – while cow’s milk sales rose by one percent.

The market is also being hit by inflation, consumer price sensitivity and a shift towards protein-rich, natural foods. Oatly, which was previously valued at $10 billion, is now worth just $411 million and has accumulated $1.2 billion in losses over four years.

The plant-based sector as a whole is experiencing a slowdown: after a boom during the pandemic, consumer interest has waned, and the growth trajectory of plant-based drinks has stalled for now due to a lack of innovation and distrust of ultra-processed products.