Oatly’s loss of market share is good for shoppers and the environment
Oatly is no longer the star of the oat milk scene. Planet Oat, a lower priced alternative, now makes up 37% of the US oat milk market, whereas Oatly accounts for 22%, according to data from IRI, a Chicago-based market research firm.
When Oatly, which is based in Sweden, first launched in the US in 2016, the company had the market largely to itself. But its fast growth and limited supply attracted rivals. Now a handful of oat milk brands including Planet Oat, Califia Farms, and Mooala are available on grocery store shelves.
Losing market share might be bad for Oatly, but the competition is good for consumers. Oat milk has become more affordable: The average price of a half-gallon carton of oat milk has fallen from $5.68 in 2017 to $4.44 now. The price of a half-gallon carton of Oatly is $5, whereas, for Planet Oat, it is $4.34, and for Chobani, it is $4.44, according to IRI. Meanwhile, the price of a half gallon of cow’s milk is $2.20, and a half gallon of almond milk is $2.96.
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