Exhibiting at HOTELEX Shanghai 2025

Oatly (Shanghai) Drinks Co., Ltd. is the Chinese subsidiary of Oatly Group AB, the globally recognized Swedish brand leading the plant-based beverage revolution. Operating in China since 2018, Oatly Shanghai has become a key player in the domestic plant-based milk market, offering a sustainable and dairy-free alternative that resonates with health-conscious and environmentally-aware Chinese consumers.

Core Business and Offerings

Oatly Shanghai focuses on producing and distributing oat-based food and beverage products, catering to both retail consumers and the foodservice industry. Its primary product lines include:

• Oat-Based Beverages

  • Barista Edition Oat Milk – Designed for coffee compatibility with superior froth and texture.
  • Oat Drink Chocolate – A creamy, plant-based chocolate beverage.
  • Oat Drink Semi and Organic – Variants with varying fat content and organic certification.

• Oat-Based Foods

  • Oat Yogurt – A dairy-free probiotic snack.
  • Oat Ice Cream – Plant-based frozen dessert.
  • Oat Cream and Oat Spreads – Used in cooking and baking as dairy substitutes.

These products are distributed across China via retail supermarkets, convenience chains, online platforms like Tmall and JD.com, and in partnership with coffee chains including Starbucks China.

Specialization and Unique Strengths

Oatly differentiates itself through:

• Use of proprietary enzyme technology that breaks down oats into a creamy, dairy-like beverage.
• Strong sustainability branding, emphasizing lower carbon, water, and land usage compared to dairy.
• Cultural localization, adapting flavor profiles and packaging for the Chinese market.

Oatly’s marketing strategy combines health, environmentalism, and youth culture—targeting urban millennials and Gen Z consumers who prioritize ethical consumption.

Financial Performance and Trade Data

Oatly Group AB is listed on NASDAQ (OTLY) and in its 2023 annual report, the Asia segment, led by China, accounted for USD 61.3 million in revenue, growing 41.9% year-over-year. Oatly Shanghai is the central hub for this growth, supported by regional operations in Shenzhen and a local production facility in Ma'anshan, Anhui province, launched in 2022.

Key trade insights:

• Oatly products are locally manufactured and imported, with ingredients sourced both domestically and from Sweden.
• Oatly’s Ma'anshan factory has a projected capacity of 150 million liters annually, targeting demand across East and Southeast Asia.

Target Market

Oatly Shanghai targets:

• Urban young professionals seeking dairy alternatives.
• Fitness and wellness communities focusing on lactose-free, low-sugar diets.
• Café and coffeehouse chains that use oat milk for non-dairy lattes and drinks.
• E-commerce consumers via partnerships with Tmall Global and JD Health.

Their marketing is focused on Tier 1 and Tier 2 cities such as Shanghai, Beijing, Guangzhou, and Chengdu, with plans for deeper expansion into lower-tier cities.

Capabilities and Infrastructure

Oatly has established significant infrastructure to support local growth:

• A state-of-the-art manufacturing plant in Ma'anshan with sustainability-first architecture.
• A R&D center in collaboration with food tech partners to localize oat innovations.
• Robust logistics and cold-chain distribution networks managed from Shanghai HQ.

The company also heavily invests in influencer marketing, digital campaigns, and retail co-branding initiatives in China’s competitive beverage sector.

Certifications and Compliance

Oatly products in China comply with:

• China’s National Food Safety Standards
• EU Organic Certification (for applicable SKUs)
• Plant-Based Certification by international food standard bodies

All product packaging includes detailed allergen and nutrition information, meeting China FDA requirements and aligned with Oatly's transparency ethos.

Recognition and Testimonials

Oatly has been recognized in China for:

• Winning Tmall’s Global Green Brand Award (2022)
• Being featured in Starbucks China’s ‘Greener Stores’ campaign as the default milk option for select beverages
• Generating over 100 million social media impressions during its launch collaborations with local influencers

Consumer reviews on Xiaohongshu and WeChat note:

• Superior taste and mouthfeel compared to other dairy alternatives.
• Appreciation for Oatly’s eco-conscious mission and brand storytelling.

Major Achievements

• Achieved triple-digit growth in China since 2020, one of the brand's fastest-expanding markets.
• Built the first oat milk plant in China, enabling localized production and faster market response.
• Integrated with over 5,000 cafes and restaurants across mainland China.
• Established long-term partnerships with Luckin Coffee, Starbucks, Pacific Coffee, and other major chains.

Oatly (Shanghai) Drinks Co., Ltd. stands as a beacon of sustainable innovation in China’s rapidly evolving plant-based food sector, aligning health, taste, and environmental care to lead the next generation of dairy-free living.