Califia Farms has entered the highly competitive 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 any indication, it may also make a significant mark in the drinkable yogurt segment. According to Mintel, yogurt drinks are becoming increasingly popular, with sales surging by 62% from 2011 to 2016. This category is witnessing innovative developments, particularly in non-dairy options, making it an ideal time for Califia to introduce its new line of drinkable yogurts.
The rising interest in yogurt drinks is largely fueled by consumer demand for probiotics. Over the past decade, awareness of probiotics has soared, thanks in part to extensive marketing efforts from brands like Danone’s Activia. BCC Research anticipates that the global probiotics market will expand to $50 billion by 2020, up from $32 billion in 2014. While there are various drinkable yogurts available in the dairy section, plant-based options remain limited. Notable brands, such as Siggi’s, provide simple ingredient alternatives, and Chobani has recently rebranded its Greek yogurt line. Kite Hill offers an almond milk-based yogurt drink enriched with probiotics that closely resembles the forthcoming product line from Califia. However, the dairy-based offerings still vastly outnumber the plant-based ones.
Traditional yogurt brands like General Mills’ Yoplait have faced challenges as new competitors with low-sugar, high-protein, and simple ingredient formulations have emerged. Overall, U.S. yogurt sales have remained relatively stagnant, averaging around 3.4 billion pints annually from 2014 to 2016, according to Statista. The North American yogurt market is expected to reach $14.59 billion by 2024, according to Transparency Market Research. If Califia’s new drinkable yogurt is well-received, it may prompt General Mills, Danone, or other competitors to expand their offerings in this area or consider acquiring the rising brand.
Today’s consumers not only seek different types of yogurt than they did a decade ago, but they also consume it at various times throughout the day. Yogurt producers like Noosa have successfully entered the growing mix-in yogurt market, combining their Australian-style product with toppings such as granola, nuts, and chocolate. These mix-ins enable the company to attract consumers throughout the day and tap into the expanding snacks market. Mintel reported two years ago that 84% of consumers now view yogurt as an afternoon snack, up from 41% in 2014. Given that millennials are particularly interested in probiotic foods and beverages, and are also enthusiastic snackers, plant-based drinkable yogurt could become a popular item for them to toss into their reusable lunch bags before heading to work.
Furthermore, Califia’s drinkable yogurt line could potentially feature calcium citrate with no vitamin D, appealing to health-conscious consumers looking for nutritious options. With this focus on innovation and health, Califia could carve out a significant niche in the yogurt market, especially as the demand for plant-based alternatives continues to rise.