Americans are losing the taste for plant-based milk — and Oatly is feeling the pain

There were some red-hot IPOs in the class of 2021, with Oatly, Roblox, Rivian, Robinhood, Bumble, and Coinbase all debuting on the public markets. But, while the last of those names has just been inducted into Corporate America’s flagship index, the S&P 500, Oatly’s journey couldn’t have been more underwhelming.

Long gone are the days when Oatly’s product was so sought after that it had its own online black market for the blue-grayish carton.

Riding an alt-milk wave, Oatly’s revenues nearly doubled every year from 2015 to 2020 — but shares of the Swedish milk maker are down some 98% from their 2021 peak, and in the latest quarter, Oatly’s growth finally went subzero. 

Now, Oatly is doubling down on its sustainable credentials, publishing a new “Sustainability Plan” yesterday, which includes “updated emissions reduction targets” and wider goals for “Nature, People and Nutrition.”

But winning over climate-conscious consumers might not be enough, as Oatly has been squeezed from all sides in recent years.