Oatly’s Digital Marketing Strategies and Insights For Growth

If you drink coffee, are a vegan, or are just a casual Internet user, there’s a good chance you’ve heard of Oatly. The dairy milk substitute jumped onto the scene in 1994, quickly becoming one of the most beloved and popular options worldwide.

Oatly may have started off selling oat milk — but they certainly have become one of the most beloved voices in a larger movement discussing health and eco-friendly options for environmentally conscious consumers. Let’s break down just how Oatly did it.

First things first: Oatly isn’t the only brand on the market. Far from it, in fact. With growing competitors entering the market, satisfying consumers of better-for-you food and beverage brands became challenging.

The Business Behind Dairy Alternatives (Like Oatly!)

Here’s one of the company’s biggest secrets: Oatly isn’t just about oats. The company targets a far larger audience: an audience talking about the massive progressive movement of health consciousness and eco-friendliness.

Recently, more consumers have begun seeking an alternative to animal-based milk protein. Some people worry about the environmental impact of consuming dairy, while others are more concerned about lactose intolerance. Past data shows that roughly 60% of adults can’t drink regular milk, while the NIH says around 30% of Americans are lactose intolerant.

As a result, plant-based milk alternatives made from soy, almonds, and oats have risen to save modern-day milk consumption. This is what Oatly is all about—manufacturing alternative milk from oats.

According to Fortune Business Insights, the market value of these alternative milk options (alt milk) is expected to reach $62 billion by 2030. That’s not all: A 2023 survey found that over 30% of participants said they switched to plant-based milk due to their health and vitality.

The fact that more people opt for plant-based milk represents more than just a dietary shift. It’s proof that society can embrace sustainable and health-conscious practices with the right budget — all with a little help from digital marketing.

This comprehensive digital marketing analysis for Oatly provides further rationale behind their success. Let’s dive deeper into Oatly’s successful strategies and the opportunities ahead for other food and beverage producers.

Analyzing Oatly’s Marketing Approach

Among brands, Oatly stands out as a strong creator in the digital space. They don’t just post about dairy-free alternatives — they create strong brand awareness about manufacturing milk best suited for humans. One of their catchphrases? “It’s like milk but for humans!”

Though Oatly first launched in the 1990s, their presence in coffee shops and grocery stores has grown substantially in the past five years. Data shows the company grew its sales from $800 million to $830 million in 2021, up 24% to 29% over full-year. This corresponds strongly with the growing plant-based milk market.

So how did they do it?

Oatly opted to expand its commercial reach and target vital product awareness in the US by going straight to the frontline: coffee shops.

The company collaborated with coffee shops whose regular customers would most likely seek an alternative to dairy in their morning cup of Joe. Additionally, the company expanded its product line by introducing the barista categories to elevate its products. As a result, many coffee shop customers have come to recognize Oatly as the primary brand associated with dairy milk alternatives.

As plant-based milk alternatives rose, so did Oatly’s brand profile. It’s one of the most successful campaigns to target US audiences. But they didn’t stop with brand awareness. Oatly thrives in the digital scene, too.

Here’s how they do it:

1. Building a Brand Story

Understanding your audience is critical when it comes to digital marketing. Why? Knowing your audience means understanding how they might interact with your product online — and how they will convert.

Oatly may be one of the most prominent modern-day examples of this. The foundation of their digital marketing lies in sustainability and plant-based alternatives. The brand’s website produces a yearly sustainability report detailing its sustainability efforts. It’s all part of a greater technique where the brand attracts consumers who align with its mission.

2. Robust Social Media Presence

Oatly’s social media accounts aren’t just about plant-based milk — they’re about a far greater mission. “We exist to make it easy for people to eat better and live healthier lives without recklessly taxing the planet’s resources,” their Instagram bio reads.

Oatly’s Instagram post

Their social media voice is relatable, funny, and accountable when it needs to be. Unlike traditional marketing, which targets consumers and markets products to them, Oatly opts for a more indirect method, selling products by building brand trust and creating a movement. Their creative-first marketing techniques reflect their own internal culture and their branding.

Genuine individuals with authentic narratives. Embracing the ‘Back to Basics’ strategy centers around prioritizing real people. Oatly utilized user-generated content, testimonials, and consumer narratives to forge an emotional bond with their audience, highlighting authenticity over polished marketing.

3. Strategic SEO Practices

When most people search for products or services, they turn to Google. That’s when Search Engine Optimization, or SEO, comes into play. As the company scaled its global presence, it built 16 global websites with its own localization and local SEO in just two months. It’s a move that helps the company strategically expand into new markets, offering new products and exposure, all while providing content in each country’s language. As a result, they enjoy significant online visibility among other better-for-you food and beverage brands.

4. Interactive Content

Interactive content continues to rise as a key player in digital marketing. What does that mean? Interactive content involves active consumer participation — think polls, answering questions, and more. Oatly may consider leveraging quizzes, polls, and immersive experiences to engage audiences in newer ways. This not only boosts the brand’s visibility but creates memorable interactions that set them apart in the minds of consumers.

Why does this matter? Because interactive content helps build a brand’s community online. Building robust communities on social media and other online platforms creates a space for Oatly consumers to connect. They can share experiences and champion the plant-based movement.

5. Ecommerce

Nowadays, the battle for consumer attention is often won on the online shelf. In fact, by 2026, 24% of retail purchases are expected to take place online. In 2024 and beyond, innovating and developing online e-commerce platforms is critical to gaining ground with consumers. Oatly thrives in the e-commerce scene — the company increased their sales by 188% last year through e-commerce initiatives such as:

• Optimize online shopping experience in key global markets
• Implement user-friendly interfaces with the latest tech
• Incorporate seamless checkout processes

Leveraging the power of e-commerce has attracted and retained more customers.

6. Reputation Management

As Oatly continues to flourish, maintaining a keen eye on online reviews and sentiments is essential. It’s never easy to grow a large brand — and Oatly is no exception. The company’s brand management team has begun to tackle this with their F*CK Oatly site, “a site devoted to helping our fans—and the thousands of people who hate us—better understand everything that’s “wrong” with our company.”

Yep, you read that right. The website thoroughly discusses all significant situations from Oatly’s past — and how they addressed it. Why do this? As the company says, “it’s super convenient to have the latest boycotts and criticisms all in one place. But more importantly, we’re not the type of company to hide from moments like these. We see all the negative headlines, posts and petitions as an inevitable consequence of trying to create positive societal change.” That’s a lesson every company can take to heart!

Growth Opportunities for Oatly in 2024

There’s no denying Oatly has skyrocketed to success in recent years. But in business and entrepreneurship, there is always room for growth. The plant-based alternatives sphere continues to grow rapidly, and brands always have room to follow. Here’s how Oatly and other plant-based milk alternatives can grow their brand and business.

Plant-based alternatives continue to rush onto the scene, trying to gain ground and wrestle away brand awareness from the market leader. And don’t forget about regular dairy milk, fighting to keep customers amid a shift in environmental awareness, especially with the younger generation. As a result, there is a critical need to leverage the power of digital marketing to scale sustainably and make a lasting imprint on the market.

Personalized Marketing

Personalized marketing means tailoring messages to different audiences in a manner that speaks directly to them. In this era of hyper-personalization, consumers respond well when they feel seen and heard.

How can Oatly tackle this? Leveraging customer data to tailor specific marketing messages. From personalized email campaigns that highlight clear product benefits to targeted social media content, personalization enhances the connection between Oatly and its diverse consumer base.

Influencer Collaborations

Influencer collaborations can play a big role in a brand’s success. Picking influencers that align with your brand and mission can help expose a product or service to a new audience — and, in turn, create converts. It’s not just influencer marketing that can turn the tide of a business. UGC campaigns, or user-generated content, can also drive customer interaction on social media. Their social team does a great job writing humorous content on Instagram, but influencer marketing remains a powerful growth area.

Sustainable Packaging

Sustainability remains a cornerstone of Oatly’s business. Their packaging, TetraPak, is recyclable in most of the markets we operate in, one of the many reasons they use this kind of packaging. However, there is surprisingly little discussion on their platforms about their packaging on Oatly’s website.

Recycling is only one element of the equation — and making the TetraPak involves a carbon footprint, too. And TetraPaks are not technically recyclable. “Right now, TetraPak is the best option for us. We’re constantly exploring and re-examining what the best options are. While we never claim to be perfect, it’s always our mission to do better,” a company representative writes on their community forum. Greater visibility on their packaging process and the carbon footprint will help support their mission and grow their loyal following.

Conclusion

The plant-based alternatives market has thrived since the pandemic — and planet-based milk alternatives take up a fair market share. As climate change progresses, more and more people want healthy, eco-conscious alternatives to their diet. Sometimes, making a difference can be as easy as swapping milk in your morning coffee.

That’s where Oatly comes in. Understanding Oatly’s success means understanding how other brands can adopt best practices and thrive in their own space. Connect with our digital marketing agency today to explore how we can elevate your brand’s experience to new heights.