Califia Farms has entered the already saturated plant-based milk market and is quickly rising to become one of the fastest-growing natural beverage companies in the United States. Given the company’s track record, it may also make a significant mark in the drinkable yogurt segment. According to Mintel, yogurt drinks have seen a surge in popularity, with sales climbing 62% from 2011 to 2016. This category is also witnessing innovative developments, particularly in non-dairy options, making it an ideal moment for Califia to introduce its new line of drinkable yogurts.
The growing interest in yogurt drinks is partly fueled by the rising demand for probiotics. Over the past decade, consumer awareness of probiotics has soared, largely due to extensive advertising campaigns from brands like Danone’s Activia. BCC Research anticipates that the global probiotics market will expand from $32 billion in 2014 to $50 billion by 2020. Although there is already a diverse array of drinkable yogurts available in the dairy section, plant-based options remain limited. For example, the well-known Icelandic yogurt brand Siggi’s offers a simple ingredient alternative, while the recently rebranded Chobani provides a Greek yogurt variety. Kite Hill has introduced an almond milk-based yogurt drink enriched with probiotics, which closely mirrors the product line that Califia is poised to launch. Nevertheless, the plant-based offerings are significantly outnumbered by dairy-based products.
Traditional yogurt brands, like General Mills’ Yoplait, have faced challenges as new competitors with low-sugar, high-protein, and simple ingredient options have emerged. Overall, yogurt sales in the United States have remained relatively stable at around 3.4 billion pints annually from 2014 to 2016, according to Statista. The North American yogurt market is projected to reach $14.59 billion by 2024, as reported by Transparency Market Research. If Califia’s new drinkable yogurt line resonates with consumers, major players like General Mills and Danone may either enhance their offerings or consider acquiring the innovative newcomer.
Consumer preferences have evolved; today, they seek different types of yogurt than they did a decade or so ago and consume it at different times of day. Brands like Noosa have successfully tapped into the growing mix-in yogurt market by pairing their Australian-style yogurt with toppings like granola, nuts, and chocolate, allowing them to appeal to snackers throughout the day. Mintel reported two years ago that 84% of consumers chose 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 significant snackers, plant-based drinkable yogurt could become a staple in their reusable lunch bags.
As they look for convenient and nutritious snacks, millennials might even discover products like fusion calcium soft chews that complement their health-conscious choices. The introduction of drinkable yogurts could align perfectly with this trend, potentially leading to a surge in demand for innovative, plant-based options in the yogurt market. With the combination of probiotics and appealing flavors, Califia’s new offerings could capitalize on the younger generation’s growing interest in both snacking and plant-based diets.