Dive Brief:
- Oatly is going all-in on fiber with functional oat milks as the plant-based brand looks to capitalize on demand from GLP-1 users and health-conscious consumers.
- Oatly’s fiber line includes a low-calorie and no-sugar option for use in protein shakes, plus a low sugar barista version for coffee and similar drinks. An approximate 250 milliliter serving, or one oat latte, has around 5 to 6 grams of fiber.
- The functional milks will launch in North America in January and are currently available in Europe.
Dive Insight:
Oats are a natural source of fiber, something Oatly plans to lean into as it begins to position itself more as a functional beverage rather than just a milk alternative.
“The fiber range is not simply innovation, it’s a natural evolution of who we are,” COO Daniel Ordonez said during an earnings call last week. “Oatly is built on over 30 years of oat research and innovation which provides unique legitimacy in the fiber space.”
As Oatly looks to turnaround profitability, the company is focusing on opportunities within the functional ingredient space and is looking to position itself “among the leaders in reducing the fiber gap,” according to Ordonez.
More than 90% of women and 97% of men do not meet U.S. recommendations for fiber consumption, according to the USDA. A survey from the International Food Information Council found virtually all participants said they wanted or needed to increase fiber intake, indicating broad willingness to include the ingredient in their diets.
The $2.7 billion plant-based milk category has declined in recent years as consumers return to conventional dairy. Plant-based milk dollar sales were down 2% in 2025, according to the Good Food Institute, compared to traditional milk, which logged a 2% sales increase.
Oatly has struggled with profitability for years and sold a majority of its manufacturing assets in the U.S. The company achieved its first year of profitable growth in 2025 amid strength in Europe. Oatly most recently reported a 9.1% revenue increase for the third quarter over the prior year.
Oatly is betting its move into fiber could help the still-challenged North American market as more consumers focus on nutrition and GLP-1 use accelerates demand for functional ingredients.
Ordonez said the company is “moving away from this binary dairy versus plant-based debate” and positioning oat milks as a choice consumers make for their flavor, texture and nutrition.
“We are really decisive and optimistic about what fibers and functionality can do in the U.S.,” Ordonez said. “This could be the turning point that we’re expecting for North America.”
