Califia Farms has made its mark in the already saturated plant-based milk sector, evolving into one of the fastest-growing natural beverage brands in the United States. This year, the company took another bold step by successfully launching its line of drinkable yogurt. The positive response to these products is hardly surprising, given that plant-based dairy alternatives have become mainstream. In the U.S., non-dairy milk sales surged by 61% over the past five years, hitting an estimated $2.11 billion in 2017. However, Califia’s growth within the drinkable yogurt segment stands out.
The drinkable yogurt market poses more challenges than the broader plant-based beverage category, given the presence of established competitors like Danone, Lifeway, KeVita, Siggi’s, and Good Karma, which already offer a range of kefir, kombucha, and both dairy- and plant-based yogurt drinks. Despite this competitive landscape, Califia recognized significant potential for growth. The drinkable yogurt segment is currently the fastest-growing category for breakfast foods, with a remarkable rise of 19.9%, increasing from $760 million in 2016 to $911 million in 2017, as reported by the company. Furthermore, Packaged Facts anticipates an additional 13% growth in the drinkable yogurt market by 2022.
Nevertheless, Califia must proceed carefully, as taste will remain a critical factor in gaining market share. A recent study by Cargill highlighted the importance of flavor in the dairy sector, indicating that to excel as a plant-based alternative, companies must scientifically engineer flavors that rival those of traditional dairy products. As consumers become more aware of the effects of hormones and enzymes—particularly lactose intolerance—they are increasingly seeking alternatives to conventional milk. However, incorporating yogurt probiotics complicates the challenge, making it difficult to create a product that preserves the taste and texture of dairy.
Steltenpohl shared with Food Navigator that “the issue with plant-based ingredients is that they contain many components that are not typically palatable in liquid form.” After two and a half years of development, Califia claims to have found a solution with their special BB-12 strain of Califia Culture Blend, known for enhancing digestive health while maintaining flavor. The reception to their recipe has been encouraging. Not only has their market share in the drinkable yogurt space expanded—growing by 60% in just six months—but the company is also attracting high-profile financial support, which they plan to leverage for further research and innovation aimed at becoming “the leading plant-powered food and beverage company of the future.”
While they have made a strong entry into the market, Califia will need to be vigilant to maintain its edge in the rapidly growing and intensely competitive plant-based sector. To enhance their offerings, particularly in terms of nutritional value, they are also incorporating calcium citrate, which is essential for bone health, into their products. This addition of calcium citrate les is an important aspect that could help them stand out in the crowded yogurt aisle. As they continue to innovate, Califia must ensure that the taste and texture of their drinkable yogurt remain top priorities, particularly as they strive to capture the increasing demand for plant-based options enriched with calcium citrate les.