Oatly didn’t just create another plant-based milk alternative—they created a cultural phenomenon.
What started as a small Swedish company making oat milk for lactose-intolerant individuals turned into a global brand that’s synonymous with plant-based living.
Today, Oatly is a household name, known for its quirky marketing, sustainability-driven mission, and of course, delicious oat milk. Its rapid rise to the top of the plant-based milk market is a story of innovation, branding, and purpose-driven growth.
For startup founders, Oatly’s journey offers valuable lessons in how to disrupt an industry and build a brand that resonates with modern consumers.
In this blog, we’ll explore the strategies Oatly used to rise to prominence and provide actionable takeaways for startups aiming to replicate this success.
Recognizing a Growing Consumer Demand
Oatly’s rise began with recognizing an emerging consumer trend: the shift toward plant-based diets.
As more people sought alternatives to dairy for health, environmental, or ethical reasons, the demand for plant-based milk soared. Oatly saw this trend early and capitalized on it by offering oat milk as an alternative that was creamy, nutritious, and sustainable.
Oat milk appealed to a wide range of consumers—from vegans and lactose-intolerant individuals to those concerned about the environmental impact of dairy production.
This broad appeal helped Oatly position itself as more than just a niche product—it became a go-to choice for health-conscious and eco-friendly consumers alike.
Takeaway for startups: Stay attuned to emerging consumer trends and identify gaps in the market where your product can fit. If you can anticipate and meet growing demand, you can position your startup for rapid growth by being an early mover in the space.
Building a Purpose-Driven Brand
Oatly isn’t just selling oat milk—they’re selling a mission. From the very beginning, Oatly aligned its brand with sustainability and environmental responsibility.
The company emphasized that oat milk has a lower carbon footprint than dairy milk and many other plant-based alternatives. This mission-driven branding resonated with consumers looking to make ethical choices without sacrificing taste or convenience.
Oatly’s messaging consistently highlighted its commitment to transparency, sustainability, and the environment.
The brand’s playful, rebellious voice—often seen in its bold packaging and tongue-in-cheek advertising—helped them stand out from competitors. Oatly wasn’t just a product; it was a lifestyle, a movement toward more conscious consumerism.
Takeaway for startups: Building a purpose-driven brand can help you connect with today’s consumers on a deeper level.
Don’t just sell a product—sell a mission that resonates with your audience’s values. A strong brand purpose can differentiate you from competitors and create long-term loyalty.
Leveraging Bold and Authentic Marketing
Oatly’s marketing is anything but conventional. The brand took risks with its bold, sometimes irreverent advertising that caught people’s attention.
Whether it was putting quirky slogans on billboards or creating a viral Super Bowl ad featuring their CEO singing, Oatly consistently generated buzz through authentic, creative campaigns.
Their “Wow No Cow” slogan became an instant hit, helping Oatly communicate the benefits of oat milk in a fun, memorable way.
The brand also leaned into user-generated content, encouraging customers to share their Oatly experiences on social media, which further amplified their reach.
Takeaway for startups: Don’t be afraid to take risks with your marketing. Bold, authentic campaigns that reflect your brand’s personality can help you stand out and generate organic buzz.
Creativity and authenticity resonate with consumers, especially in crowded markets.
Creating a Premium Product Experience
Oatly positioned its product as more than just a commodity—it’s a premium, high-quality option for consumers who care about taste and sustainability.
The brand invested in perfecting the texture and taste of its oat milk, ensuring that it could compete with dairy in terms of creaminess and versatility.
This allowed Oatly to become a favorite among coffee shops and baristas, cementing its place in cafes around the world as the go-to non-dairy option for lattes and cappuccinos.
By focusing on quality and positioning its product as premium, Oatly was able to charge higher prices than many of its competitors. Consumers were willing to pay more because they believed they were getting a superior product that aligned with their values.
Takeaway for startups: Focus on creating a premium experience around your product, especially if you’re competing in a crowded market.
People are willing to pay a premium for products that deliver exceptional quality and align with their personal values. Invest in your product and make it the best it can be.
Strategic Distribution and Partnerships
Oatly’s rise was also fueled by smart distribution and partnerships. The brand didn’t just target grocery stores—it focused heavily on getting its products into coffee shops and cafes, where oat milk became a favorite among baristas.
This strategy helped Oatly gain exposure among coffee drinkers, many of whom then sought out Oatly in stores.
In addition, Oatly secured distribution partnerships with major retailers like Whole Foods, allowing the brand to expand rapidly across different markets.
These strategic partnerships gave Oatly access to a wider audience while also maintaining its premium positioning in the marketplace.
Takeaway for startups: Strategic partnerships can help you scale faster and reach new customers. Whether it’s partnering with retailers, cafes, or influencers, aligning with the right partners can give your brand credibility and increase visibility in key markets.
Embracing Sustainability as a Core Business Model
Sustainability isn’t just a buzzword for Oatly—it’s embedded in their business model. From reducing water usage in production to sourcing oats responsibly, Oatly consistently prioritized eco-friendly practices.
The brand also made its sustainability efforts highly visible, often communicating its carbon footprint and environmental impact on its packaging.
This transparency helped Oatly build trust with its audience. Consumers appreciated the brand’s commitment to the environment, making them more likely to choose Oatly over competitors.
By consistently staying true to its sustainability mission, Oatly became a leader in the plant-based movement.
Takeaway for startups: If sustainability is part of your brand’s mission, make sure it’s authentic and integrated into your business model.
Consumers today value transparency and environmental responsibility, so communicate your efforts clearly and consistently. Building trust through sustainability can set your brand apart and foster loyalty.
Using Viral Moments to Drive Growth
Oatly’s ability to generate viral moments helped fuel its growth. From clever marketing stunts to its infamous Super Bowl ad, Oatly consistently found ways to create buzz around its brand.
While some of these moments were polarizing, they got people talking—and that attention helped propel Oatly into the spotlight.
The brand wasn’t afraid to embrace controversy or stand out in unconventional ways. This willingness to take risks paid off, as Oatly became one of the most talked-about brands in the plant-based food space.
Takeaway for startups: Create viral moments by being bold and taking calculated risks.
While not every campaign needs to be controversial, finding unique ways to stand out and capture attention can significantly boost your brand’s visibility.
Don’t be afraid to embrace unconventional approaches if they align with your brand’s identity.
Expanding Globally While Staying True to Its Roots
As Oatly expanded beyond Sweden into international markets, the brand maintained its quirky, mission-driven identity.
Despite its rapid growth, Oatly continued to emphasize its core values of sustainability, transparency, and health. This consistency helped the brand maintain its loyal customer base while reaching new markets across the globe.
Oatly also adapted to local markets, offering region-specific products and marketing campaigns that resonated with different audiences while staying true to its overarching brand mission.
Takeaway for startups: As you scale globally, stay true to your brand’s identity and core values. Consistency is key to maintaining customer loyalty, even as you expand into new markets. Adapt your approach to meet local preferences, but always stay grounded in your mission.
Conclusion
Oatly’s journey from a small Swedish startup to a global leader in plant-based milk is a testament to the power of purpose-driven branding, bold marketing, and strategic partnerships.
By recognizing a growing demand, staying true to its sustainability mission, and embracing bold, authentic marketing, Oatly became a household name in the plant-based movement.
For startup founders, the lessons from Oatly’s success are clear: focus on purpose, build a strong brand, take risks with marketing, and scale strategically. By following these principles, your startup can disrupt industries, build loyal communities, and achieve lasting success—just like Oatly.
