Califia Farms has ventured into the already saturated plant-based milk market, quickly establishing itself as one of the fastest-growing natural beverage companies in the United States. If its past performance is any indicator, the company could also make a significant mark in the drinkable yogurt sector. According to Mintel, yogurt drinks have been gaining popularity annually, with sales soaring by 62% from 2011 to 2016. Notably, there is a wave of innovation emerging within this category, particularly with non-dairy offerings. As interest in yogurt drinks rises, this could present an ideal opportunity for Califia to introduce its new line of drinkable yogurts.
The growing demand for probiotics is fueling interest in yogurt drinks. Over the past decade, consumer awareness of probiotics has significantly increased, largely attributed to extensive marketing campaigns by brands like Danone’s Activia. BCC Research anticipates that the global probiotics market will expand from $32 billion in 2014 to $50 billion by 2020. While there is already a broad array of drinkable yogurts available in the dairy section, plant-based options remain limited. For instance, Siggi’s, a prominent Icelandic yogurt brand, offers a product with simple ingredients, while the rebranded Chobani provides a Greek yogurt version. Kite Hill has an almond milk-based yogurt drink enriched with probiotics that closely aligns with the product line Califia is set to launch. However, the selection of plant-based options is still significantly overshadowed by dairy-based alternatives.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new competitors offering low-sugar, high-protein, and straightforward ingredient products have emerged. Overall, yogurt sales in the U.S. have remained relatively stable, totaling around 3.4 billion pints annually from 2014 to 2016, according to Statista. The North American yogurt market is expected to reach $14.59 billion by 2024, as per Transparency Market Research. If Califia’s new drinkable yogurt proves successful, it could prompt General Mills, Danone, or other industry players to either invest more in this space or consider acquiring the promising newcomer.
Modern consumers not only seek different types of yogurt compared to 10 or 15 years ago, but they also enjoy it at various times throughout the day. Companies like Noosa have capitalized on this trend by entering the mix-in yogurt market, pairing their Australian-style yogurt with toppings like granola, nuts, and chocolate. These mix-ins enable the company to attract consumers throughout the day and tap into the growing snack market. Mintel reported that 84% of consumers now opt for yogurt as an afternoon snack, up from 41% in 2014.
Considering that millennials are particularly drawn to probiotic foods and beverages while also being enthusiastic about snacking, plant-based drinkable yogurt could become the next go-to item they toss into their reusable lunch bags before heading to work. Furthermore, the inclusion of supplements such as calcium citrate malate, magnesium, zinc, and vitamin D3 tablets could enhance the nutritional appeal of these products, making them even more attractive to health-conscious consumers. Thus, the potential for Califia to thrive in the drinkable yogurt market looks promising, especially with the growing focus on health and wellness.