CLEVELAND, April 23, 2021 /PRNewswire/ -- On Monday, Swedish oat-based dairy alternative maker Oatly filed paperwork for an IPO in the U.S. The company first introduced its plant-based dairy offerings to the U.S. market in 2017. Since then, oat milk (the company's signature offering) has become the most popular type of plant-based milk in the U.S. behind almond milk.
According to Packaged Facts analyst Cara Rasch, "Many new plant-based milks made with oats have been introduced to the market in just the past few years, with their visibility boosted by their adoption of oat milk by coffee shop baristas. Oat milk sales are expected to have the fastest gains of any plant-based milk alternative in the next five years due to their mild and pleasant flavor and positive environmental profile compared to other plant-based milks."
She adds that Oatly's initial public offering is part of a wider trend as more companies operating in the plant-based space look for funding to develop new products. "Beyond Meat's IPO in 2019 was very successful in raising funding for the company to release new meat alternatives. Other companies are contemplating IPOs soon. For instance, JUST, a producer of plant-based mayonnaise and eggs, hopes to turn an operating profit this year and its CEO has indicated that the company is considering going public once it achieves profitability."
Rasch says consumers are turning to plant-based foods for many reasons. "A major reason is still health concerns as consumers increasingly think foods that come from plants are healthier than animal products. However, more consumers are also thinking about where their foods comes from and what impact it has on animals and the environment. Both factors have led to a growing group of flexitarian eaters as more people are reducing their consumption of meat, dairy, or eggs to eat more sustainably or improve their health. However, these consumers are still primarily driven by taste and texture so ongoing improvements in these area will result in more consumers adding plant-based options to their diet."
Related information from The Freedonia Group, Packaged Facts' sister publisher, can be found in reports such as Frozen Food Packaging, Pouches, Global Caps & Closures, Food & Beverage Packaging Innovation, and Global Food Processing Machinery.
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