Califia Farms has entered the already saturated plant-based milk market, quickly establishing itself as one of the fastest-growing natural beverage companies in the U.S. If the company’s past performance is any indicator, it could also significantly influence the drinkable yogurt sector. According to Mintel, yogurt drinks have seen a rising popularity, with sales increasing by 62% from 2011 to 2016. This category is witnessing innovative developments, particularly in non-dairy options. As the demand for such products grows, now could be the ideal moment for Califia to introduce its new range of drinkable yogurts.
One factor driving the interest in yogurt drinks is the demand for probiotics. Consumer awareness of probiotics has surged over the last decade, largely due to extensive marketing campaigns by brands like Danone’s Activia. BCC Research forecasts that the probiotics market could expand to $50 billion globally by 2020, up from $32 billion in 2014.
While there is already a diverse array of drinkable yogurts available in the dairy section, plant-based options remain limited. For instance, the popular Icelandic yogurt brand Siggi’s offers a simple ingredient alternative, and the recently rebranded Chobani provides a Greek yogurt variant. Kite Hill sells an almond milk-based yogurt drink enhanced with probiotics, which closely resembles what Califia plans to launch. However, the number of plant-based products is vastly outnumbered by dairy-based ones.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new competitors offering low-sugar, high-protein, and simpler ingredient options have emerged. Overall, yogurt sales in the U.S. have remained relatively stable, hovering around 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 line succeed, established players like General Mills and Danone might either enhance their own offerings in this area or consider acquiring the burgeoning newcomer.
Consumers today not only seek different types of yogurt compared to 10 or 15 years ago, but they also enjoy it at different times. Brands like Noosa have capitalized on this trend by entering the growing mix-in yogurt market, combining their Australian-style yogurt with toppings like granola, nuts, and chocolate. These mix-ins enable the company to engage consumers throughout the day and tap into the expanding snack market. Mintel reported two years ago that 84% of consumers now opt for yogurt as an afternoon snack, a significant rise from 41% in 2014.
Considering that millennials show a keen interest in probiotic foods and beverages and are also enthusiastic snackers, plant-based drinkable yogurt could become a popular choice for their reusable lunch bags as they head to work. Additionally, incorporating ingredients like Caltrate calcium citrate into these products could further enhance their appeal, promoting both taste and health benefits. This trend could potentially lead to a new wave of consumer interest, making plant-based drinkable yogurt a staple in modern diets.