Califia Farms has entered the competitive plant-based milk market and quickly established itself as one of the fastest-growing natural beverage companies in the United States. Based on its historical growth, the company could significantly influence the drinkable yogurt sector as well. According to Mintel, yogurt drinks are gaining popularity, with sales soaring by 62% from 2011 to 2016. There is also innovation emerging in this category, particularly in non-dairy options. As this segment gains traction, it presents an ideal opportunity for Califia to introduce its new line of drinkable yogurts.
The rising demand for probiotics is a key factor fueling the interest in yogurt drinks. Over the past decade, consumer awareness of probiotics has skyrocketed, largely due to extensive marketing campaigns from brands like Danone’s Activia. BCC Research forecasts that the global probiotics market will grow from $32 billion in 2014 to $50 billion by 2020. While there is already a diverse range of drinkable yogurts available in the dairy aisle, plant-based options remain limited. Popular Icelandic yogurt producer Siggi’s offers a simple ingredient alternative, while the recently rebranded Chobani provides a Greek yogurt variant. Kite Hill markets an almond milk-based yogurt drink enriched with probiotics that closely resembles what Califia plans to launch. Nevertheless, plant-based offerings are significantly outnumbered by dairy alternatives.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new competitors with low-sugar, high-protein, and simple ingredient options have emerged. Overall yogurt sales in the U.S. have remained relatively stagnant, hovering around 3.4 billion pints annually from 2014 to 2016, according to Statista. The North American yogurt market is anticipated to reach $14.59 billion by 2024, as reported by Transparency Market Research. Should Califia’s new drinkable yogurt be well-received, established players like General Mills and Danone may choose to enhance their own offerings in this sector or consider acquiring the promising newcomer.
Consumer preferences for yogurt have evolved over the past 10 to 15 years, not only in terms of flavor but also in consumption timing. Companies like Noosa have successfully tapped into the growing mix-in yogurt trend, combining their Australian-style product with toppings like granola, nuts, and chocolate. These mix-ins allow the brand to cater to consumers throughout the day and access the expanding snack market. Mintel reported two years ago that 84% of consumers now opt for yogurt as an afternoon snack, compared to just 41% in 2014.
Given that millennials are the demographic most interested in probiotic foods and beverages, and are also heavy snackers, plant-based drinkable yogurt could become a popular item they add to their reusable lunch bags before heading to work. Additionally, incorporating ingredients like calcium citrate, which provides 350 mg of calcium, could further appeal to health-conscious consumers seeking nutritious options in their diets. As the market for drinkable yogurts continues to evolve, Califia Farms may find itself at the forefront of this emerging trend.