Oatly, a serious ‘problem’ for the dairy industry? A case study

Abstract

This case study outlines the steps Oatly has taken so far to achieve its goal of becoming the largest ‘dairy and milk’ producer in the world. Oatly develops, produces and markets dairy and milk analogues, with an overriding ambition to promote structural changes in the dairy industry. Oatly’s approach relies on state-of-the-art technologies that can create dairy analogues and milk-like fluids. The resulting products are marketed under their own brand and promoted by provocative and innovative communication strategies that include storytelling, policy-related activities, social media campaigns and more traditional sales concepts. The company is constantly developing and opening factories that enable them to expand into foreign markets, whilst applying diverse marketing strategies. Following Oatly’s example, other retailers and food companies also expressed their interest in dairy and milk replacement products, increasing the market competition.