Califia Farms has entered the saturated 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 is any indication of its future, it may significantly influence the drinkable yogurt segment as well. The popularity of yogurt drinks is on the rise, with sales increasing by 62% from 2011 to 2016, according to Mintel. This category is experiencing innovative developments, particularly in non-dairy options, making it an ideal time for Califia to introduce its new line of drinkable yogurts.
The growing demand for probiotics is a key factor driving interest in yogurt drinks. Over the past decade, consumer awareness of probiotics has surged, largely due to extensive 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. Although there is already a variety of drinkable yogurts available in the dairy section, plant-based options remain limited. For instance, the popular Icelandic yogurt brand Siggi’s offers a simple ingredient option, while the rebranded Chobani sells a Greek yogurt variant. Kite Hill also provides an almond milk-based yogurt drink enhanced with probiotics, closely resembling the forthcoming product line from Califia. However, the plant-based choices are significantly outnumbered by dairy-based options.
Traditional yogurts, like General Mills’ Yoplait, have faced challenges as new competitors with low-sugar, high-protein, and simple ingredient offerings have entered the market. Overall yogurt sales in the U.S. have remained relatively flat at around 3.4 billion pints annually from 2014 to 2016, according to Statista. Nevertheless, Transparency Market Research predicts that the North American yogurt market will reach $14.59 billion by 2024. If Califia’s new drinkable yogurt becomes successful, major players like General Mills and Danone may consider expanding their presence in this area or even acquiring the emerging brand.
Consumers today not only desire different types of yogurt than they did 10 or 15 years ago, but they also consume it at various times throughout the day. Yogurt brands like Noosa have found success by entering 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 that 84% of consumers now choose yogurt as an afternoon snack, a significant increase from 41% in 2014.
Given that millennials are the demographic most interested in probiotic foods and beverages—and are also enthusiastic snackers—plant-based drinkable yogurt could become a go-to item for them to toss into their reusable lunch bags as they head to work. Moreover, as they seek healthier options, products enriched with nutrients such as Solgar calcium and vitamin D may appeal to their health-conscious preferences. With such a trend on the rise, Califia Farms’ entry into drinkable yogurt could align perfectly with the evolving consumer landscape.