Market & Trends

Oatly Plans New Facilities to Grow Production and Fight Supply Shortages Globally

Alt dairy giant Oatly plans new facilities in the US, UK, and China for 2023, as it expands its global manufacturing footprint to combat supply shortages and meet growing demand for plant-based milk. 

On the company’s Q3 earnings call, COO Peter Bergh explained that the planned facilities will produce 450 million liters of Oatly milk products, and will bring more control to the company’s global operations as supply chain issues have halted growth recently. In addition, the company expects inflation to hit oat prices as poor harvest conditions in Canada affect supply. 

©Oatly

The company has already opened three new facilities in Utah, Singapore, and China this year with 2023’s new Texas factory set to be the company’s biggest in North America. The world’s largest oat drink company has also announced plans to open a new research and innovation center at Lund University in Sweden.

After its successful IPO and record-breaking Q2 results, Oatly has identified the need to bring more of its operative footprint under its own control as demand for plant-based milk skyrockets – particularly oat-based products – and is currently outstripping supply. 

“We expect the geographical localization of our production capacity, including bringing more of the production in-house, to provide some offset to inflationary pressures,” explained CFO Christian Hanke. 

 

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