Califia Farms has entered the competitive plant-based milk market and quickly established itself as one of the fastest-growing natural beverage companies in the United States. Given the company’s track record, it could potentially make a significant mark in the drinkable yogurt sector as well. According to Mintel, yogurt drinks have gained popularity, with sales surging by 62% from 2011 to 2016. This category is also witnessing innovative developments, particularly in non-dairy options, making it an ideal time for Califia to introduce its new line of drinkable yogurts.
The rising demand for probiotics is contributing to the growing interest in yogurt drinks. Consumer awareness surrounding probiotics has surged over the past decade, driven largely by extensive advertising campaigns from brands like Danone’s Activia. BCC Research anticipates that the probiotics market will expand to $50 billion globally by 2020, up from $32 billion in 2014. While there is already a diverse range of drinkable yogurts available in the dairy section, plant-based options remain limited. Notable brands include Icelandic yogurt producer Siggi’s, which offers a simple ingredient option, and the recently rebranded Chobani, which features a Greek yogurt variant. Kite Hill provides an almond milk-based yogurt drink enriched with probiotics, closely resembling the upcoming product line from Califia. However, plant-based offerings are still significantly outnumbered by traditional dairy products.
Well-established yogurt brands, like General Mills’ Yoplait, have faced challenges as new competitors with low-sugar, high-protein, and simple ingredient options have emerged. Overall, yogurt sales in the U.S. have remained relatively stagnant at around 3.4 billion pints annually from 2014 to 2016, according to Statista. The North American yogurt market is projected to reach $14.59 billion by 2024, as reported by Transparency Market Research. If Califia’s new drinkable yogurt line becomes successful, major players like General Mills or Danone might either expand their own offerings in this category or consider acquiring the emerging brand.
Today’s consumers not only seek different types of yogurt compared to 10 or 15 years ago, but they are also consuming it at different times of the day. Brands like Noosa have successfully tapped into the growing mix-in yogurt market by pairing their Australian-style products with toppings such as granola, nuts, and chocolate. These mix-ins enable the company to cater to consumers throughout the day and gain access to the expanding snacks market. A report from two years ago highlighted that 84% of consumers now prefer 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 while also being avid snackers, plant-based drinkable yogurt could easily become the next food item they add to their reusable lunch bags before heading to work. Furthermore, as consumers explore the potential benefits of plant-based options, questions may arise about whether certain ingredients, such as calcium citrate, could affect their sleep patterns—does calcium citrate make you sleepy? This curiosity could further drive interest in innovative yogurt products that align with contemporary dietary preferences and health trends.