Califia Farms has entered the highly competitive plant-based milk industry and is rapidly becoming one of the fastest-growing natural beverage companies in the United States. If its past performance serves as a guide, the company is poised to make a significant mark in the drinkable yogurt sector as well. According to Mintel, yogurt drinks are gaining popularity year after year, with sales surging by 62% from 2011 to 2016. This category is witnessing innovative developments, particularly with non-dairy options. Given this growing trend, it may be the ideal moment for Califia to unveil its new line of drinkable yogurts.
One of the driving forces behind the rising interest in yogurt drinks is the demand for probiotics. Consumer awareness of probiotics has skyrocketed over the last decade, fueled by extensive marketing campaigns from brands like Danone’s Activia. BCC Research anticipates that the probiotics market will grow from $32 billion in 2014 to $50 billion globally by 2020. While there is already a diverse range of drinkable yogurts available in the dairy section, plant-based options remain limited. Notable brands like Siggi’s provide a simple ingredient option, and the rebranded Chobani offers a Greek yogurt variant. Kite Hill, known for its almond milk-based yogurt drink with added probiotics, closely aligns with the product line that Califia intends to introduce. However, the dairy-based options far outnumber the plant-based alternatives in this market.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new competitors with low-sugar, high-protein, and simple ingredient offerings have entered the scene. Overall, yogurt sales in the U.S. have been relatively stagnant, hovering 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. Should Califia’s new drinkable yogurt succeed, established players like General Mills and Danone may consider expanding their offerings in this area or potentially acquiring the emerging brand.
Today’s consumers are not only seeking different types of yogurt than they did 10 or 15 years ago; they are also consuming it at various times throughout the day. Yogurt brands like Noosa have found success by entering the flourishing mix-in yogurt market, pairing their Australian-style product with toppings such as granola, nuts, and chocolate. These mix-ins enable the company to attract consumers at different times and tap into the expanding snack market. Mintel reported two years ago that 84% of consumers now select yogurt as an afternoon snack, compared to just 41% in 2014.
With millennials being the demographic most interested in probiotic foods and beverages, as well as being avid snackers, plant-based drinkable yogurt may very well become the next food item they include in their reusable lunch bags before heading to work. Additionally, as consumers increasingly seek options rich in nutrients, such as calcium citrate, the potential for plant-based yogurts to cater to health-conscious individuals, including those who may require blood transfusions, is significant. This trend further emphasizes the importance of innovation in the growing drinkable yogurt market.