Swedish oat milk manufacturer Oatly has chosen Singapore to land its first factory in Asia Pacific region.
The manufacturing plant, which is the result of about US$30 million in investment, is the partnership between Oatly and Singapore beverage giant Yeo Hiap Seng. Under the partnership, Yeo’s Senoko Way facility will begin producing Oatly’s enzyme-treated oat milk by the second half of this year, and roll out in China before expanding in other markets.
“This strategic partnership positions both companies to tap the surging demand in this region for plant-based dairy,” said Samuel Koh, CEO of Yeo’s Group.
“We believe that this segment will continue to grow exponentially as consumers become more aware of the impact of their food and beverage choices on their health and the environment.”
The partnership also marks Oatly’s first production outside Europe and the US. The expansion indicates the increasing demand for plant-based milk in the region as consumers have been shifting toward healthier and more sustainable options, especially since the pandemic.