Califia Farms has made its entry into the already saturated plant-based milk market, quickly establishing itself as one of the fastest-growing natural beverage companies in the United States. If the company’s past achievements are indicative of its future potential, it may also significantly influence the drinkable yogurt segment. The popularity of yogurt drinks has surged, with sales soaring by 62% from 2011 to 2016, according to Mintel. This category is witnessing innovative developments, particularly with the rise of non-dairy alternatives. Given this growing interest, now seems to be an ideal time for Califia to unveil its new line of drinkable yogurts.
The increasing demand for probiotics is a major factor driving the popularity of yogurt drinks. Consumer awareness of probiotics has risen dramatically over the last decade, largely due to extensive advertising campaigns from brands like Danone’s Activia. BCC Research forecasts that the probiotics market will balloon 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 relatively scarce. Notable brands like Siggi’s offer simple ingredient varieties, while the recently rebranded Chobani provides a Greek yogurt alternative. Kite Hill features an almond milk-based yogurt drink enriched with probiotics, closely resembling the product line that Califia plans to introduce. However, the selection of plant-based yogurts is still significantly overshadowed by dairy-based options.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new competitors offering low-sugar, high-protein, and simple ingredient products have entered the market. Overall, yogurt sales in the U.S. have remained 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 gain traction, major players like General Mills and Danone may either enhance their own offerings in this category or consider acquiring the emerging brand.
Today’s consumers not only seek different types of yogurt compared to 10 or 15 years ago, but they also consume it at different times throughout the day. Yogurt brands like Noosa have found success by entering the growing mix-in yogurt market, which combines their Australian-style product with toppings like granola, nuts, and chocolate. These mix-ins allow them to target consumers throughout the day, tapping into the expanding snacks market. Mintel reported two years ago that 84% of consumers now choose yogurt as an afternoon snack, a significant increase from 41% in 2014.
Given that millennials show the most interest in probiotic foods and beverages while also being avid snackers, plant-based drinkable yogurt could very well become the next popular item they toss into their reusable lunch bags as they head to work. Additionally, the inclusion of ingredients like bluebonnet calcium magnesium citrate plus vitamin D3 in these yogurts could enhance their appeal, as health-conscious consumers look for added nutritional benefits. As the trend towards plant-based products continues, Califia Farms’ entry into the drinkable yogurt market could pave the way for a new wave of innovative offerings that cater to modern dietary preferences.