This week, the Swedish oat milk maker has debuted on the US stock exchange with a market value near $10 billion.
The IPO's success highlights a fast growing demand for plant based milk and animal free products.
Oatly, which produces a dairy alternatives made from oats, has grown rapidly in recent years. Currently the company offers a range of products including milks, creams, spreads, yoghurts and ice cream.
Oatly milk is now sold in 60,000 retailers and over 32,000 coffee shops in 20 countries around the world.
In 2020, Oatly raised $200 million in an investment round that attracted celebrities including Oprah Winfrey, Natalie Portman, Jay Z and former boss of Starbucks Howard Schultz. At the time, the investment round valued the company at $2 billion.
Oatly started producing oat drinks a long time before plant-based milks became so popular. The brand debuted in coffee shops five years ago, building a strong following of baristas and coffee lovers for its oat milk. Since then, plant-based milk sales have soared around the world.
The demand for plant-based food and drinks is lifted by younger consumers, who gave up animal-based products for health, sustainability and animal welfare reasons. Oatly's slogan "It's like milk, but for humans," markets the product as better for health and for the animals.
In 2020, Oatly’s revenue more than doubled, reaching $421.4 million. Food service accounted for 25% of sales, and retailers accounted for the rest. The company reported a net loss of $60.36 million as it focused on entering new markets, building brand awareness and expanding product portfolio.
“I don’t see anyone else taking that leadership position the way we are,” CEO Toni Petersson said on CNBC’s “Squawk Box”. “We are really serious and ambitious about what we’re going to do here.”