Califia Farms has made its mark in the highly competitive plant-based milk sector, emerging as one of the fastest-growing natural beverage companies in the United States. If the company’s past performance is any indicator, it stands to make a significant impact in the drinkable yogurt market as well. Yogurt drinks are becoming increasingly popular, with sales rising 62% from 2011 to 2016, according to Mintel. This category is witnessing innovative developments, particularly with non-dairy options. As consumer interest in yogurt drinks grows, now may be the ideal moment for Califia to unveil its new line of drinkable yogurts, which could potentially include ingredients like calcium carbonate and calcium citrate.
The rising demand for probiotics is a key factor fueling the popularity of yogurt drinks. Over the past decade, consumer awareness of probiotics has surged, largely driven by substantial advertising efforts from brands like Danone’s Activia. BCC Research forecasts that the probiotics market will expand to $50 billion globally by 2020, up from $32 billion in 2014. While there is already a diverse array of drinkable yogurts available in stores, plant-based options remain scarce. Popular Icelandic yogurt producer Siggi’s offers a simple ingredient option, while the recently rebranded Chobani provides a Greek yogurt alternative. Kite Hill markets an almond milk-based yogurt drink enriched with probiotics, closely resembling what Califia is set to introduce. However, the number of plant-based choices is significantly overshadowed by dairy-based products.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new competitors offering low-sugar, high-protein, and simple ingredient alternatives have entered the market. Overall, yogurt sales in the U.S. have remained relatively stagnant at approximately 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 garner success, major players like General Mills and Danone may choose to enhance their own offerings in this segment or consider acquiring the emerging brand.
Consumers today desire a different type of yogurt compared to a decade or so ago, and they are also consuming it at various times throughout the day. Brands like Noosa have found success by entering the thriving mix-in yogurt market, combining their Australian-style product with toppings such as granola, nuts, and chocolate. These mix-ins enable the company to cater to consumers at all times of day, tapping into the expanding snack market. Mintel highlighted two years ago that 84% of consumers opt for yogurt as an afternoon snack, up from 41% in 2014. With millennials being the demographic most interested in probiotic foods and beverages, along with a strong inclination toward snacking, plant-based drinkable yogurt could easily become their go-to food item to pack in reusable lunch bags before heading to work. Integrating ingredients like calcium carbonate and calcium citrate into these products could further enhance their appeal and nutritional value.