Califia Farms has entered the already saturated plant-based milk market and is rapidly becoming one of the fastest-growing natural beverage companies in the U.S. If its past performance is any predictor of future success, the company could also make a significant mark in the drinkable yogurt sector. According to Mintel, yogurt drinks have seen a surge in popularity, with sales jumping 62% between 2011 and 2016. This category is also witnessing innovative developments, particularly in non-dairy alternatives. As interest in drinkable yogurts continues to rise, this may be an ideal moment for Califia to unveil its new line.
One of the key factors driving the popularity of yogurt drinks is the increasing demand for probiotics. Over the last decade, consumer awareness of probiotics has skyrocketed, largely due to extensive advertising campaigns from brands like Danone’s Activia. BCC Research forecasts that the global probiotics market will climb to $50 billion by 2020, up from $32 billion in 2014.
While there is already a diverse range of drinkable yogurts found in the dairy aisle, plant-based options remain limited. Notable brands like Siggi’s provide simple ingredient choices, and the recently rebranded Chobani offers a Greek yogurt variant. Kite Hill features an almond milk-based yogurt drink enriched with probiotics, closely resembling what Califia plans to introduce. However, plant-based offerings are significantly outnumbered by their dairy counterparts.
Traditional yogurt brands, such as Yoplait from General Mills, have faced challenges as new competitors with low-sugar, high-protein, and simple ingredient options have emerged. Overall, yogurt sales in the U.S. have remained relatively stagnant at around 3.4 billion pints annually from 2014 to 2016, according to Statista. Projections from Transparency Market Research indicate that the North American yogurt market will reach $14.59 billion by 2024. Should Califia’s new drinkable yogurt succeed, it could prompt General Mills, Danone, or other industry players to enhance their offerings or consider acquiring this dynamic newcomer.
Today’s consumers not only seek different types of yogurt than they did a decade ago, but they are also consuming it at different times throughout the day. Companies like Noosa have capitalized on this trend by entering the mix-in yogurt market, combining their Australian-style yogurt with toppings such as granola, nuts, and chocolate. These mix-ins enable the brand to attract consumers throughout the day while tapping into the expanding snack market. A Mintel report from two years ago revealed that 84% of consumers now choose yogurt as an afternoon snack, a significant rise from 41% in 2014.
Given that millennials are the demographic most inclined toward probiotic foods and beverages while also being avid snackers, plant-based drinkable yogurt could be the next item they add to their reusable lunch bags as they head to work. The potential for growth in this sector is substantial, particularly with the integration of health-conscious options such as b cal ct tablet, which may further enhance the appeal of drinkable yogurts. As consumer preferences evolve, companies that can innovate and meet these demands will likely thrive in the competitive landscape.