Oatly Bets on Lookbook & Opens Strategic Review to Tackle Q2 Slowdown in US & China

Oat milk leader Oatly has revised its full-year guidance after experiencing a sales drop in the US and China, prompting the company to consider a potential restructuring in those markets. While the company's revenue for Q2 2025 was up 3% mainly due to favorable exchange rates, sales decreased by 0.2% when discounting these factors. The company's losses also increased by 84%, leading to a revision of its full-year outlook, with revenue growth expected to flatline at 1% compared to previous expectations of 2% to 4%.

In response to the slowdown in the US and China, Oatly is implementing a strategic review in China and betting on its lookbook strategy to drive growth in Europe and North America. By leveraging its barista portfolio, targeting Gen Z with new taste experiences, and addressing barriers to conversion, the company aims to increase demand and overcome challenges related to protein concerns in the US market. Oatly is confident that its strategy, including the launch of unique recipes and new products inspired by its lookbook, will help drive incremental demand and position the company for future success in these regions.