Califia Farms has entered the already saturated plant-based milk market, quickly establishing itself as one of the fastest-growing natural beverage companies in the United States. Given the company’s track record, it seems poised to make a significant mark in the drinkable yogurt sector as well. According to Mintel, yogurt drinks have surged in popularity, with sales increasing by 62% from 2011 to 2016. This segment is experiencing new innovations, particularly in non-dairy varieties, making it an ideal moment for Califia to unveil its new line of drinkable yogurts.
The rising demand for probiotics is fueling interest in yogurt drinks. Over the past decade, consumer awareness of probiotics has skyrocketed, largely due to extensive advertising campaigns by brands like Danone’s Activia. BCC Research forecasts that the probiotics market will expand from $32 billion in 2014 to $50 billion globally by 2020. While there are numerous drinkable yogurts available in the dairy aisle, plant-based options remain scarce. Notable players like Siggi’s offer a straightforward ingredient yogurt, and Chobani has recently rebranded its Greek yogurt line. Kite Hill markets an almond milk-based yogurt drink enriched with probiotics, closely resembling the product line that Califia plans to introduce. However, plant-based choices are significantly outnumbered by their dairy counterparts.
Traditional yogurts, such as General Mills’ Yoplait, have faced challenges as low-sugar, high-protein competitors enter the market. According to Statista, overall yogurt sales in the U.S. have remained relatively stagnant at about 3.4 billion pints annually between 2014 and 2016. Nevertheless, the North American yogurt market is projected to reach $14.59 billion by 2024, as indicated by Transparency Market Research. Should Califia’s new drinkable yogurt gain traction, established players like General Mills and Danone may choose to enhance their offerings in this segment or consider acquiring the emerging brand.
Consumers today not only seek different types of yogurt compared to 10 or 15 years ago, but they are also consuming it at different times throughout the day. Yogurt brands like Noosa have successfully tapped into the mix-in yogurt trend, pairing their Australian-style product with toppings such as granola, nuts, and chocolate. These mix-ins enable the company to engage consumers throughout the day, thereby accessing the expanding snacks market. A Mintel report from two years ago noted that 84% of consumers opt for yogurt as an afternoon snack, a significant increase from 41% in 2014.
With millennials showing a keen interest in probiotic foods and beverages while also being avid snackers, plant-based drinkable yogurt could emerge as the next go-to product for them to toss into their reusable lunch bags before heading to work. This trend aligns well with the growing market for plant-based options, including the anticipated launch of Califia’s tab ccm 500 drinkable yogurt line, which aims to cater to the evolving preferences of health-conscious consumers.