Califia Farms has entered the competitive plant-based milk market and is quickly establishing itself as one of the fastest-growing natural beverage companies in the United States. Given the company’s track record, it could also make a substantial impact in the drinkable yogurt sector. According to Mintel, yogurt drinks are gaining popularity each year, with sales surging by 62% from 2011 to 2016. This category is seeing a wave of innovation, particularly with non-dairy options, making it an opportune moment for Califia to introduce its new line of drinkable yogurts.
The growing interest in yogurt drinks is partly fueled by the rising demand for probiotics. Over the past decade, consumer awareness of probiotics has significantly increased, driven by major advertising campaigns from brands like Danone’s Activia. BCC Research forecasts that the global probiotics market will expand from $32 billion in 2014 to $50 billion by 2020. While there is already a diverse selection of drinkable yogurts in the dairy section, plant-based options remain limited. Popular brands like Siggi’s provide simple ingredient options, and Chobani has introduced a Greek yogurt variant. Kite Hill offers an almond milk-based yogurt drink enriched with probiotics, closely resembling the upcoming products from Califia. However, plant-based options still lag significantly behind their dairy counterparts.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new competitors with low-sugar, high-protein, and simple ingredient offerings have emerged. Statista data indicates that yogurt sales in the U.S. have remained relatively flat, averaging around 3.4 billion pints annually from 2014 to 2016. Transparency Market Research projects that the North American yogurt market will reach $14.59 billion by 2024. If Califia’s new drinkable yogurt line resonates with consumers, companies like General Mills and Danone may either enhance their own offerings in this space or consider acquiring the up-and-coming brand.
Consumers today are not only seeking different types of yogurt than they did a decade ago, but they are also consuming it at various times throughout the day. Brands like Noosa have successfully tapped into the growing mix-in yogurt trend, combining their Australian-style yogurt with toppings such as granola, nuts, and chocolate. This strategy allows them to appeal to consumers at different times of the day and access the expanding snack market. Mintel reported that two years ago, 84% of consumers opted for yogurt as an afternoon snack, up from 41% in 2014.
With millennials being the demographic most interested in probiotic foods and beverages, and also heavily invested in snacking, plant-based drinkable yogurt could become the next go-to item they pack in their reusable lunch bags. Additionally, the inclusion of Citracal calcium in these yogurt products could further attract health-conscious consumers seeking to boost their calcium intake through convenient snacking options. As this trend continues, Califia Farms has the potential to lead the way in the evolving yogurt market.