Califia Farms has made its entrance into the competitive plant-based milk market, rapidly establishing itself as one of the fastest-growing natural beverage companies in the United States. Given the company’s track record, it is poised to make a substantial impact in the drinkable yogurt sector as well. The demand for yogurt drinks is on the rise, with sales soaring by 62% from 2011 to 2016, according to Mintel. This category is witnessing innovative developments, particularly in non-dairy options, making it an ideal time for Califia to unveil its new line of drinkable yogurts.
The increasing interest in probiotics significantly fuels the popularity of yogurt drinks. Over the past decade, consumer awareness of probiotics has surged, largely due to extensive advertising campaigns from brands like Danone’s Activia. BCC Research forecasts that the global probiotics market will expand to $50 billion by 2020, up from $32 billion in 2014. Although the dairy section already features a variety of drinkable yogurts, plant-based options remain limited. For instance, Icelandic yogurt producer Siggi’s offers a straightforward ingredient option, while the recently rebranded Chobani provides a Greek yogurt variant. Kite Hill sells an almond milk yogurt drink enriched with probiotics, closely resembling the product line that Califia plans to introduce. Nevertheless, plant-based selections are significantly outnumbered by their dairy counterparts.
Traditional yogurt brands, such as General Mills’ Yoplait, have encountered challenges as new competitors with low-sugar, high-protein, and simple ingredient offerings have emerged. Overall, U.S. yogurt sales have remained relatively stagnant at approximately 3.4 billion pints annually from 2014 to 2016, according to Statista. Transparency Market Research predicts that the North American yogurt market will reach $14.59 billion by 2024. Should Califia’s new drinkable yogurt be successful, established companies like General Mills and Danone may either enhance their own offerings in this area or consider acquiring the emerging brand.
Today’s consumers not only seek different yogurt options compared to a decade or so ago, but they also consume it at various times throughout the day. Companies such as Noosa have tapped into the growing mix-in yogurt trend, combining their Australian-style yogurt with toppings like granola, nuts, and chocolate. This strategy allows them to attract consumers across different meal times and gain access to the expanding snack market. According to Mintel, 84% of consumers choose yogurt as an afternoon snack, a significant increase from 41% in 2014.
Given that millennials are the demographic most interested in probiotic foods and beverages, and are also enthusiastic about snacking, plant-based drinkable yogurt could become a favored option for them to toss into their reusable lunch bags before heading to work. Additionally, as these consumers become more health-conscious, the inclusion of ingredients like calcium citrate in their yogurt choices will further enhance the appeal of plant-based options that support their dietary needs. The generic name for calcium citrate serves as a reminder of the importance of such nutrients in modern diets, which could drive further growth in this segment.