Califia Farms has entered the competitive plant-based milk market and quickly emerged as one of the fastest-growing natural beverage companies in the U.S. If the company’s past performance is a reliable indicator, it may also significantly influence the drinkable yogurt market. According to Mintel, yogurt drinks have gained popularity, with sales surging by 62% from 2011 to 2016. This category is witnessing innovative developments, particularly with non-dairy options. As the demand for yogurt drinks continues to rise, this could be an ideal moment for Califia to introduce its new line of drinkable yogurts.
The increasing interest in yogurt drinks is partly driven by the demand for probiotics. Over the past decade, consumer awareness of probiotics has surged, largely due to extensive advertising campaigns from brands like Danone’s Activia. BCC Research anticipates that the global probiotics market will expand from $32 billion in 2014 to $50 billion by 2020. While there is already a broad array of drinkable yogurts available in the dairy section, plant-based options remain limited. For instance, popular Icelandic yogurt producer Siggi’s offers a simple ingredient choice, while the newly rebranded Chobani sells a Greek yogurt variant. Kite Hill provides an almond milk-based yogurt drink enriched with probiotics, closely mirroring the product line Califia plans to launch. Nevertheless, the selection of plant-based products is still overshadowed by dairy-based alternatives.
Traditional yogurt brands like General Mills’ Yoplait have faced challenges as new competitors with low-sugar, high-protein, and simple ingredient offerings have entered the market. Overall, U.S. yogurt sales have remained relatively stable at approximately 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, as reported by Transparency Market Research. If Califia’s new drinkable yogurt is successful, major players like General Mills and Danone may choose to enhance their own offerings or even acquire the innovative newcomer.
Today’s consumers not only desire different types of yogurt compared to a decade or fifteen years ago, but they are also consuming it at different times. Yogurt brands like Noosa have thrived by entering the growing mix-in yogurt segment, 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, tapping into the expanding snack market. Mintel reported two years ago that 84% of consumers now opt for yogurt as an afternoon snack, a significant increase from 41% in 2014.
Given that millennials are the demographic most enthusiastic about probiotic foods and beverages, and are also keen on snacking, plant-based drinkable yogurt could be the next popular item they add to their reusable lunch bags before heading to work. This aligns well with their health-conscious choices, such as including Citracal calcium citrate petites in their diets, which can be conveniently found in local stores. As the trend towards healthier snacking continues, Califia Farms’ entry into the drinkable yogurt market could resonate well with this audience, especially if they incorporate elements like Citracal into their offerings.