Oatly revealed the success of its approach during its second quarter results where it showed revenue hit $240.1m, a 15.2% increase compared to the prior year.
The strategy focuses on targeting younger consumers while communicating the taste, health and refreshment benefits of plant-based beverages. It has been supported by a wave of product innovation and driving new consumption through expanding its new retail and foodservice customers as well as expanding geographically.
Oatly said it saw accelerating growth in Europe and International markets, while North America, benefited from strong retail performance. It also saw volume growth in Greater China despite increased competition in the foodservice channel.
Daniel Ordoñez, Global President and COO, said the company had spent the past two years, focusing on addressing the barriers to consumption, creating new occasions, and driving consumer relevance.
“We remain well-positioned to serve the lactose-intolerant community and those who are primarily environmentally conscious in their choice,” he said.
However, he added, that there was further opportunities.
“As shown by the success of our growth playbook across European markets, established or new, multiple new doors are opening as Oatly pivots to become a full-on beverages company,” he said.
Oatly said it has expanded its portfolio of flavours and formats driving differentiation in a beverages market undergoing “significant change”, as customers renovate their menus and shelves to be more relevant in meeting the rising expectations of younger consumers.
The recent expansion of its Barista offering, including the launch of cold foam, has seen the brand position itself within the refreshment and mixology trend.
The company has introduced 63 new drinks, which include variants such as instance Coconut Matcha Cloud, Salty Banana Split, and the Matcha Jell-O-Shot.
The most successful drinks are launched into retail for in-home consumption, with the recent launches of Popcorn, Churros and Coconut-flavoured barista, as well as the expanding Matcha range.
Ordoñez added: “This model explains why we are growing penetration most strongly with younger consumers and we view this demographic as a strong foundation for multi-year growth.”
Research and development expenses in the second quarter of 2026 hit $4.6 million.