Califia Farms has ventured into the already saturated plant-based milk market, quickly establishing itself as one of the fastest-growing natural beverage companies in the U.S. Given its track record, the company may soon make a significant mark in the drinkable yogurt sector as well. According to Mintel, yogurt drinks have gained popularity, with sales surging 62% from 2011 to 2016. This category is also witnessing innovation, particularly with non-dairy alternatives. As interest in yogurt drinks rises, Califia could find this an opportune moment to introduce its new line of drinkable yogurts.
The growing demand for probiotics is fueling the fascination with yogurt drinks. Consumer knowledge about probiotics has skyrocketed over the past decade, largely due to extensive advertising from brands like Danone’s Activia. BCC Research predicts the probiotics market will expand from $32 billion in 2014 to $50 billion globally by 2020. While there is a wide variety of drinkable yogurts available in the dairy section, plant-based options remain scarce. Notable brands include Siggi’s, which offers a simple ingredient option, and the recently rebranded Chobani, which provides a Greek yogurt version. Kite Hill features an almond milk-based yogurt drink enhanced with probiotics, closely resembling the product line that Califia plans to unveil. However, plant-based alternatives 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 offerings have emerged. Overall, U.S. yogurt sales have remained relatively stagnant at around 3.4 billion pints per year from 2014 to 2016, according to Statista. The North American yogurt market is expected to reach $14.59 billion by 2024, as per Transparency Market Research. Should Califia’s new drinkable yogurt prove popular, established players such as General Mills and Danone may consider enhancing their offerings in this segment or even acquiring the budding newcomer.
Consumers today not only seek different yogurt varieties than they did a decade or so ago, but they are also consuming yogurt at different times throughout the day. Brands like Noosa have successfully tapped into the mix-in yogurt trend, combining their Australian-style product with toppings like granola, nuts, and chocolate. These mix-ins allow the company to cater to consumers at various times of the day and enter the expanding snacks market. Mintel revealed two years ago that 84% of consumers now opt for yogurt as an afternoon snack, compared to just 41% in 2014. With millennials being the demographic most intrigued by probiotic foods and beverages—and also enthusiastic about snacking—plant-based drinkable yogurt could become the next go-to item they toss into their reusable lunch bags before heading to work.
Furthermore, as the interest in yogurt products continues to grow, the potential for calcium citrate interactions with ingredients in these new drinkable yogurts may also attract consumer attention. With the increasing awareness of health benefits, including those related to calcium citrate, Califia’s entry into this market could capitalize on a dual trend of health-conscious eating and the demand for innovative dairy alternatives.