Califia Farms has ventured into the competitive plant-based milk sector and has quickly become one of the fastest-growing natural beverage companies in the United States. If its past performance is any indication, Califia could significantly influence the drinkable yogurt market as well. According to Mintel, yogurt drinks have gained popularity, with sales soaring by 62% from 2011 to 2016. There is also notable innovation in this category, particularly with non-dairy alternatives. Given the rising interest in yogurt drinks, this might be an ideal moment for Califia to introduce its new line of drinkable yogurts.
The increasing demand for probiotics is a key factor driving the popularity of yogurt drinks. Over the last decade, consumer awareness of probiotics has surged, largely due to extensive advertising campaigns from brands like Danone’s Activia. BCC Research estimates that the global probiotics market will grow from $32 billion in 2014 to $50 billion by 2020. While the dairy section already offers a diverse range of drinkable yogurts, plant-based options remain limited. Notable brands include Siggi’s, which provides a simple ingredient option, and the recently rebranded Chobani, which sells a Greek yogurt variant. Kite Hill offers an almond milk-based yogurt drink enhanced with probiotics, which closely aligns with the product line Califia is set to launch. However, plant-based options are still significantly outnumbered by dairy-based varieties.
Traditional yogurt brands, like General Mills’ Yoplait, have faced challenges as new competitors with low-sugar, high-protein, and simple ingredient offerings have entered the market. 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 per Transparency Market Research. If Califia’s new drinkable yogurt is well-received, it may prompt General Mills, Danone, or other industry players to either enhance their offerings or consider acquiring the emerging brand.
Consumers today not only seek different types of yogurt compared to a decade or so ago, but they are also consuming it at various times throughout the day. Brands like Noosa have successfully tapped into 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 appeal to consumers at different times and access the expanding snack market. Mintel reported that 84% of consumers now choose yogurt as an afternoon snack, a significant increase from just 41% in 2014.
With millennials, who show a strong interest in probiotic foods and beverages, leading the trend toward snacking, plant-based drinkable yogurt could become a popular item they toss into their reusable lunch bags before heading to work. This demographic’s preference aligns well with the growing market for health-conscious snacks, such as those fortified with ca citrate 400 mg, which are becoming increasingly available in Pakistan.