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22 March 2021

Totally Oatly

The global dairy alternatives market is one that never stands still. As consumers look for dairy-free products that are both better for themselves and the planet, the market is ever expanding on a global scale.

Researchers suggest that the dairy alternatives market was estimated to be valued at US$22.6bn in 2020, while it is projected to reach a value of US$40.6bn by 2026. When it comes to milk alternatives, almond and soy have previously led the way, but other plant-based alternatives are making headway.

Owing to the market’s rise in popularity, Oatly, the Swedish plant-based milk company, is planning to raise money in a stock exchange listing in the US. The move is part of the firm’s growth plan and vision of expansion.

One of the pioneers of the vegan milk business, Oatly is said to be seeking a valuation as high as US$10bn, despite suggestions last July that it would seek just US$2bn. Founded in 1994, the company’s products are now sold in more than 20 countries worldwide and amid the rapid rise in popularity of dairy-free milk products.

As part of Oatly’s own rise to prominence, the firm raised US$200m in investments from celebrities including Jay-Z, Oprah Winfrey and Natalie Portman. In fact, when Oatly launched in the US in 2016, it was so popular that it recorded stock shortages. Oatly also boasts partnerships with the likes of Starbucks. Now, oat milk has overtaken soy to become the second most popular form of dairy-free milk, second only to almond milk.

Meanwhile in the UK, Oatly is set to open a brand-new factory to cater for the British market. Opening in 2023 and creating over 200 jobs, the factory will be capable of producing 300 million litres of product per year in a country which Ishen Paran, General Manager of Oatly UK, describes as “a really important driver of the global plant-based movement.”

Please note that investments and income arising from them can fall as well as rise in value. This communication is for information only and does not constitute a recommendation to buy or sell the shares of the investments mentioned.
Totally Oatly
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