Califia Farms has ventured into the already competitive plant-based milk market, quickly establishing itself as one of the fastest-growing natural beverage companies in the U.S. Given the company’s track record, it may also significantly influence the drinkable yogurt segment. According to Mintel, yogurt drinks have gained popularity, with sales surging by 62% from 2011 to 2016. This category is witnessing emerging innovations, particularly in non-dairy products, making it an ideal moment for Califia to introduce its new line of drinkable yogurts.
The rising demand for probiotics has fueled interest in yogurt drinks. Over the past decade, consumer awareness of probiotics has soared, largely due to extensive marketing campaigns from brands like Danone’s Activia. BCC Research estimates the probiotics market will expand from $32 billion in 2014 to $50 billion globally by 2020. While the dairy section already boasts a wide variety of drinkable yogurts, plant-based options remain limited. Brands like Siggi’s offer simple ingredient choices, and Chobani provides a Greek yogurt variant. Kite Hill has introduced an almond milk-based yogurt drink enhanced with probiotics that closely resembles the product line Califia plans to launch. However, the number of plant-based options pales in comparison to their dairy counterparts.
Traditional yogurts, such as General Mills’ Yoplait, have faced challenges as new competitors with low-sugar, high-protein, and simple ingredient offerings have emerged. From 2014 to 2016, U.S. yogurt sales remained relatively stagnant at around 3.4 billion pints annually, according to Statista. The North American yogurt market is projected to reach $14.59 billion by 2024, as reported by Transparency Market Research. Should Califia’s new drinkable yogurt become successful, established players like General Mills and Danone may either enhance their own offerings in this area or consider acquiring the rising brand.
Consumers today not only seek different types of yogurt than they did 10 or 15 years ago, but they are also consuming it at various times throughout the day. Yogurt brands like Noosa have capitalized on the growing mix-in yogurt trend by pairing their Australian-style product with toppings such as granola, nuts, and chocolate. These mix-ins enable the company to compete for consumers’ attention throughout the day and tap into the expanding snacks market. Mintel reported that 84% of consumers now choose yogurt as an afternoon snack, a significant increase from 41% in 2014.
With millennials being the demographic most interested in probiotic foods and beverages, and also highly invested in snacking, plant-based drinkable yogurt could become the next popular item they add to their reusable lunch sacks before heading to work. Furthermore, incorporating products like Citracal Calcium Plus D3 into their diets could enhance the nutritional value of their snacks, making drinkable yogurt even more appealing to health-conscious consumers. As the trend for probiotics and plant-based diets continues to grow, the potential for Califia’s new offerings seems promising.