Califia Farms has entered the competitive plant-based milk market and is quickly becoming one of the fastest-growing natural beverage companies in the United States. With its history suggesting a promising future, the company could significantly influence the drinkable yogurt sector as well. According to Mintel, yogurt drinks are gaining popularity annually, with sales rising by 62% from 2011 to 2016. This category is witnessing innovative developments, particularly in non-dairy options, making it an opportune moment for Califia to introduce its new line of drinkable yogurts.
The increasing demand for probiotics is fueling interest in yogurt drinks. Over the past decade, consumer awareness of probiotics has surged, largely due to extensive advertising campaigns by brands like Danone’s Activia. BCC Research projects that the probiotics market will expand from $32 billion in 2014 to $50 billion globally by 2020. Although there is already a diverse range of drinkable yogurts available in the dairy section, plant-based options are still limited. Popular brands like Siggi’s provide simple ingredient choices, while the recently rebranded Chobani offers a Greek yogurt variant. Kite Hill’s almond milk-based yogurt drink, enriched with probiotics, closely mirrors what Califia plans to launch. Nevertheless, dairy-based products dominate this category.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges due to the influx of low-sugar, high-protein competitors. Overall, yogurt sales in the U.S. remained relatively stable at around 3.4 billion pints annually from 2014 to 2016, according to Statista. Transparency Market Research forecasts that the North American yogurt market will reach $14.59 billion by 2024. Should Califia’s new drinkable yogurt succeed, established players like General Mills and Danone may choose to enhance their offerings in this space or consider acquiring this emerging brand.
Consumer preferences have evolved; people now seek different types of yogurt than they did a decade or more ago, and they are consuming it at various times throughout the day. Yogurt brands like Noosa have successfully tapped into the mix-in yogurt trend, combining their Australian-style product with toppings like granola, nuts, and chocolate. These mix-ins allow companies to appeal to consumers throughout the day and access the expanding snack market. Mintel reported that 84% of consumers opted for yogurt as an afternoon snack, compared to just 41% in 2014.
With millennials, the demographic most enthusiastic about probiotic foods and beverages, also being avid snackers, plant-based drinkable yogurt could easily become a go-to item for them to toss into their reusable lunch bags before heading to work. As demand for products like now calcium citrate powder 8 oz continues to grow, Califia Farms could be well-positioned to capitalize on this trend in the drinkable yogurt market.