In a broader historical context, the rise of oat milk lattes, now widely popular in coffee shops everywhere, originated from a bold experiment by the OATLY company. The oat milk latte's popularity is somewhat linked to Earth Day, but on a special day filled with love—May 20th (520)—it becomes especially favored. Major coffee brands have rolled out new oat milk latte variants, and the diverse creativity and quality oat milk offer consumers a more varied experience.

At the beginning of April, Starbucks launched a brand-new latte series themed after "Alice in Wonderland", combined with the vibrant spring, creating a "taste wonderland". On May 20th, KFC also launched a new sandalwood oat milk latte, which equally garnered attention. On the same day, Luckin Coffee included oat milk as an option for nine of its products. Earlier, on April 22nd, Luckin had already introduced the “Fully dense series” using OATLY's special oat milk. On May 18th, Cudy pioneered a new fresh bayberry oat milk smoothie that is delicious, refreshing, and low in calories, highlighting lactose-free and plant-based ingredients.

OATLY's oat milk latte, in fact, was first brought to people’s awareness during Earth Day activities. The backstory goes even deeper, as it represented a market “gamble” by OATLY. Thanks to the success of this decision, oat milk lattes transitioned from an obscure product to a mainstay in the market. From 2018 to 2023, OATLY sold enough oat milk in the Chinese market to make about one billion oat milk lattes. The company's bold experiment not only allowed the new plant-based category to flourish in China but also made OATLY a billion-level market contender, with its sustainable, kind-hearted business model reaching every consumer.

When OATLY first entered the Chinese market in 2018, their journey was not all smooth sailing. Faced with a market where the annual coffee consumption per capita was only 6.2 cups, OATLY made an unconventional decision. Instead of relying on its retail edge proven in the European market, it chose to start from boutique coffee shops in Shanghai. At that time, specialty coffee in Shanghai represented a trendy and fashionable lifestyle. The coffee made with OATLY's oat milk quickly became fashionable, reducing the bitterness of coffee, adding a natural grain flavor, and addressing the needs of the large lactose-intolerant population who couldn't consume traditional dairy products.

When the OATLY brand introduced oat milk lattes to the Chinese market, the product was initially considered a "trendy" item for its novelty and uniqueness. Although it drew a lot of attention, its future was filled with uncertainties. However, time flies, and six years have passed, the answer to this question is no longer elusive.

In the past six years, China's coffee market has experienced prosperous development. International brands have continued to expand, and local brands have sprung up rapidly, achieving remarkable growth in just a few years. Coffee consumption has become prevalent not only in first-tier cities but also gradually permeated everyday life in many more cities. The per capita coffee consumption in China has significantly increased.

Observing OATLY's performance over these six years, it is not difficult to see that its growth has almost seamlessly matched the rapid development of the Chinese coffee market. OATLY quickly took over specialty coffee shops and even entered thousands of outlets in less than half a year. By 2020, its products entered chain coffee shops, and oat milk lattes quickly became a well-known beverage. Following the steps of chain coffee, OATLY's products also appeared on the menus of various coffee brands.

OATLY's successful trajectory has clearly become a trend. If OATLY was known for being small but beautiful in the past, it has now transformed into a health drink brand for the masses, not only a new favorite of specialty coffee shops but also a regular on chain brand menus. Oat milk lattes have gone from being a novelty in tier-one cities to an everyday drink in lower-tier markets and are positioned as a familiar choice in the freshly made coffee domain through a wide B2B channel. In the retail ready-to-drink aspect, OATLY also makes oat milk lattes easily deliverable to thousands of homes through e-commerce platforms.

In China's complex, diverse, and rich market, coffee, as an imported product, oat milk and its new plant-based alternatives are targeting consumers of all levels and tastes. It is based on such market prospects that OATLY's oat milk sales can make nearly one billion cups of oat milk lattes, becoming a phenomenal consumer product from 2018 to 2023. Meanwhile, new plant-based products are also transitioning from a nascent phenomenon to a stage of sustained innovation and in-depth research. For example, companies like Qiaqia Food and Westmills Foods have achieved breakthroughs in related technical fields, which also indicates the market's long-term optimism for this sector.

Today's consumers can get oat milk lattes not only in high-end coffee shops but also in all kinds of coffee establishments and even small towns everywhere, available for enjoyment at any time. Even at home, one can easily use OATLY's barista-level oat milk to handcraft a delicious oat milk latte. Six years have given a clear answer: oat milk lattes are not just a product or a trend; they have integrated into people's daily lives, becoming a lifestyle, and have normalized. As for those voices that called it a "fad," they have naturally faded from view over time.

In China, new consumer brands are emerging constantly, and OATLY is such a model that continues to innovate and develop. However, brands that can sustain and maintain development are not so common, beyond the flashy appearances.

For OATLY, the so-called "luck" is not a simple coincidence. With keen market insight, continuous product innovation, and deep brand collaboration, OATLY has successfully predicted and catered to consumer trends, thus standing out in the fierce competition of the coffee market. Over the past six years, despite countless participants, contenders, and the rise and fall of brands in the market, OATLY has continued to grow and stands out as a leader in the industry.

To deeply understand how OATLY has surpassed the constraints of being a "trendy brand" and secured a solid market position amidst the surge of new coffee products, we must start from the product characteristics themselves. In the Chinese market, lattes, especially oat lattes, have always been the preferred choice for consumers. Therefore, for companies vying for this market, mastering the craft of making excellent lattes is key to capturing market share.

In an age where numerous brands are launching new products to cater to the tastes of Chinese consumers, OATLY has demonstrated sensitivity and creativity in product innovation. Its growth in the Chinese market, in cooperation with the company's internal product team, R&D team, and branding team, dedicated to developing oat milk products, has led to product diversification and localization. For example, the pistachio oat latte launched by OATLY caters to local consumers' pursuit of novel tastes and healthy choices and was widely popular upon release.

Another innovation from the OATLY team was to combine oat milk with sweet osmanthus, creating a new latte flavor. The sweet fragrance of osmanthus wonderfully melds with the grainy aroma of oats, offering an unforgettable taste that was quickly favored in the Chinese market. It represents a successful practice of the brand further localizing its products. Additionally, OATLY combined oat milk with other varieties like pumpkin and banana, innovating many new latte flavors that consumers love, enriching their choices.

With changing market dynamics and consumer needs, OATLY recognizes the importance of product innovation and contextual application. In today's China, coffee is no longer confined to business or social occasions. It has penetrated work, life, study, and even leisure aspects, becoming a part of people's lives. In such a market environment, OATLY, through continual innovation and sharp market insight, has successfully integrated its products into consumers' daily lives, becoming an indispensable part of their routine.

Traditional impressions among Chinese consumers tend to place plant-based products like soy milk and almond milk at the forefront. Confronted with oat milk, a new category, OATLY faces the dual challenge of starting from scratch and breaking entrenched consumer perceptions. After first tasting oat milk, some curiously asked, "Is this foreign soymilk?" This reaction also reflects the predicaments OATLY faced upon initially entering the Chinese retail market—products quickly disappearing in the marketplace due to a lack of category recognition and consumer education, with some stores even taking two days to sell a single bottle.

However, the OATLY team was not discouraged. Since oat milk's taste, nutrition, and health value had been verified in the European market, they believed there was an opportunity to introduce this innovative plant-based beverage to the Chinese market. In their view, a new plant-based product should not only use advanced technology but also possess an appealing appearance and taste while adhering to environmental protection and sustainable development. Regarding oat milk itself, OATLY has maintained the dietary fiber in oats through a unique enzymatic process, making the oat milk smoother in taste and richer in flavor, demonstrating a high technological barrier.

During the promotion of oat milk, OATLY adopted a broad vision, prioritizing category construction and industry prospects. In the past five years, OATLY has joined hands with Starbucks, Manner, KFC, McDonald's, FamilyMart, Ole’, and other brands to drive category innovation, jointly advancing the development of new plant-based markets. Therefore, OATLY is not just a brand, but a company representing the entire category.

Looking back, OATLY's selection has achieved remarkable accomplishments. Since the introduction of new plant-based products into the Chinese market in 2018, oat milk has established itself as a benchmark in the market. According to data from the Forward Industry Research Institute, by 2023, the size of China's plant-based market is expected to reach about 82.6 billion RMB, with a growth rate that is leading the world. This is a testament to a long-term development strategy, where OATLY courageously became a pioneer in the field.

For new plant-based products, there is an inseparable link with sustainable development of humans and the planet. Data shows that every cup of specialty beverage containing OATLY oat milk will reduce about 68% of greenhouse gas emissions. The climate footprint of the one-liter Barista Edition oat milk produced in OATLY's first factory in China is extremely low at 0.60kg CO2e per kilogram. The company has also set clear sustainability goals - by 2029, the climate footprint per liter of oat milk will be reduced by 70% compared to 2020, and 100% renewable energy (electricity and thermal energy) will be used in production.

Sustainable development is a broad and profound topic, and for a brand like OATLY, it represents a comprehensive set of industrial chain goals. The company is committed to improving the entire oat milk industry chain—from reducing carbon emissions and promoting biodiversity to increasing farmers' incomes—thereby promoting sustainable development globally. This means that from the cultivation of raw materials, product production, and packaging design to the retail link, all the way to reaching every consumer, OATLY will continue to practice comprehensive sustainability values.

In deciding on production locations, choosing partners, and even in finely managing every link in the supply chain, OATLY has made sustainability the core of its decision-making. As OATLY enters its sixth year in the Chinese market, as Zhang Chun, President of Greater China, said, this "small company" carries a "big dream"—which is to persist in doing things that are good for the planet and humanity.

OATLY strives to establish a simple and actionable plant-based concept in the minds of consumers. Simply by enjoying a delicious oat latte, customers can make their own contribution to reducing carbon emissions. In exploring the depth and breadth of the Chinese market, OATLY persistently turns the distant goal of sustainability into an everyday activity that everyone can easily participate in.

According to relevant data, OATLY's Barista Edition Oat Milk produced and sold in China has noticeable environmental advantages. Its climate footprint assessment in the Chinese market, covering from raw material acquisition to product sales, and including packaging waste management among other aspects, shows a significant difference compared to cow's milk.