Califia Farms has made its mark in the already saturated plant-based milk sector, emerging as one of the fastest-growing natural beverage companies in the United States. If the company’s trajectory serves as an indicator, it may also significantly influence the drinkable yogurt market. According to Mintel, yogurt drinks have gained popularity, with sales surging by 62% from 2011 to 2016. The category is witnessing innovative developments, particularly with non-dairy options. This burgeoning interest presents an ideal opportunity for Califia to unveil its new range of drinkable yogurts.
The rising demand for probiotics is fueling consumer interest in yogurt drinks. Over the past decade, awareness of probiotics has skyrocketed, partly due to substantial advertising campaigns from 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 a diverse array of drinkable yogurts available in the dairy section, plant-based options remain limited. Popular Icelandic yogurt brand Siggi’s provides a simple ingredient choice, and the recently rebranded Chobani offers a Greek yogurt variant. Kite Hill features an almond milk-based yogurt drink enriched with probiotics, aligning closely with the product line that Califia intends to launch. However, plant-based offerings are significantly outnumbered by their dairy counterparts.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new competitors offering low-sugar, high-protein, and minimalist ingredient products have entered the scene. Overall yogurt sales in the U.S. have remained relatively stable at around 3.4 billion pints annually from 2014 to 2016, according to Statista. Transparency Market Research projects the North American yogurt market will reach $14.59 billion by 2024. Should Califia’s new drinkable yogurt succeed, industry giants like General Mills and Danone may choose to expand their own offerings or consider acquiring the emerging brand.
Today’s consumers are not just seeking different types of yogurt compared to 10 or 15 years ago; they are also consuming it at various times throughout the day. Yogurt producers like Noosa have thrived by entering the growing mix-in yogurt market, combining their Australian-style product with toppings such as granola, nuts, and chocolate. These mix-ins enable the company to engage consumers throughout the day and tap into the expanding snack market. Mintel revealed two years ago that 84% of consumers now opt for yogurt as an afternoon snack, a notable increase from 41% in 2014.
With millennials being the demographic most drawn to probiotic foods and beverages while also favoring snacking, plant-based drinkable yogurt could become a staple in their reusable lunch sacks as they head to work. This trend aligns well with the growing interest in health supplements like calcium citrate, which is available in 250 tablet bottles—a product that many consumers are increasingly integrating into their daily routines.