Califia Farms has entered the competitive plant-based milk market and is rapidly becoming one of the fastest-growing natural beverage companies in the United States. If the company’s past successes are any indication, it could significantly influence the drinkable yogurt sector as well. According to Mintel, yogurt drinks are gaining popularity, with sales soaring 62% from 2011 to 2016. There is also a wave of innovation in this category, particularly with non-dairy alternatives. As the demand for drinkable yogurt rises, it presents an ideal opportunity for Califia to unveil its new line of products.
Consumer interest in yogurt drinks is being fueled by an increasing demand for probiotics. Over the last decade, awareness surrounding probiotics has surged, largely due to extensive advertising campaigns from brands like Danone’s Activia. BCC Research estimates that the global probiotics market will expand from $32 billion in 2014 to $50 billion by 2020. While there is already a diverse range of drinkable yogurts available in the dairy section, plant-based options are still limited. For instance, popular Icelandic yogurt brand Siggi’s offers a simple ingredient option, and the recently rebranded Chobani sells a Greek yogurt variant. Kite Hill provides an almond milk-based yogurt drink enriched with probiotics that closely parallels what Califia is set to launch. Nevertheless, dairy-based options significantly outnumber their plant-based counterparts.
Traditional yogurt brands, like General Mills’ Yoplait, have faced challenges as new competitors offering low-sugar, high-protein, and simple ingredient products have entered the market. According to Statista, yogurt sales in the U.S. remained relatively stagnant at around 3.4 billion pints annually between 2014 and 2016. However, the North American yogurt market is anticipated to reach $14.59 billion by 2024, as reported by Transparency Market Research. Should Califia’s drinkable yogurt resonate with consumers, established players like General Mills and Danone may either enhance their own offerings or consider acquiring this emerging brand.
Moreover, consumers now seek different yogurt experiences compared to 10 or 15 years ago, and they are consuming yogurt at various times throughout the day. Yogurt producers like Noosa have successfully tapped into the growing mix-in yogurt trend, pairing their Australian-style yogurt with toppings such as granola, nuts, and chocolate. These mix-ins allow the brand to attract consumers throughout the day and access the expanding snacks market. Mintel revealed two years ago that 84% of consumers now opt for yogurt as an afternoon snack, a significant rise from 41% in 2014.
Given that millennials are the demographic most enthusiastic about probiotic foods and beverages and are also avid snackers, plant-based drinkable yogurt could easily become a popular addition to their reusable lunch sacks before heading to work. Furthermore, incorporating ingredients like bayer calcium citrate could enhance the nutritional profile of these products, making them even more appealing to health-conscious consumers. The inclusion of bayer calcium citrate could be a unique selling point for Califia’s new yogurt line, as it aligns with the increasing consumer focus on functional foods.