Califia Farms has entered the already competitive plant-based milk market and is quickly establishing itself as one of the fastest-growing natural beverage companies in the U.S. If their past achievements are any indication of what’s to come, they could significantly influence the drinkable yogurt sector as well. According to Mintel, yogurt drinks are gaining popularity each year, with sales soaring 62% from 2011 to 2016. Additionally, innovation in this category is emerging, particularly with non-dairy alternatives. As consumer interest in yogurt drinks rises, this could be the ideal moment for Califia to introduce its new line of drinkable yogurts.
The growing demand for probiotics is a key driver behind the increasing interest in yogurt beverages. 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 probiotics market will expand from $32 billion in 2014 to $50 billion globally by 2020. While there is already a diverse range of drinkable yogurts available in the dairy section, the plant-based options remain limited. Notable players like Siggi’s provide simple ingredient choices, and the recently rebranded Chobani offers a Greek yogurt variant. Kite Hill markets an almond milk-based yogurt drink with added probiotics that closely aligns with Califia’s forthcoming product line. However, plant-based selections are significantly outnumbered by dairy-based offerings.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new low-sugar, high-protein, simple ingredient competitors have emerged. Overall, yogurt sales in the U.S. remained relatively stagnant, at approximately 3.4 billion pints annually from 2014 to 2016, according to Statista. Transparency Market Research projects that the North American yogurt market will reach $14.59 billion by 2024. Should Califia’s new drinkable yogurt gain traction, larger companies like General Mills and Danone may either increase their efforts in this segment or consider acquiring the budding brand.
Consumers today not only desire different types of yogurt than they did 10 or 15 years ago, but they are also consuming it at various times throughout the day. Companies 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. These mix-ins enable the company to appeal to consumers at all times of the day, while also accessing the expanding snack market. Mintel revealed two years ago that 84% of consumers now opt for yogurt as an afternoon snack, up from 41% in 2014. Given that millennials are the demographic most interested in probiotic foods and beverages, and are also enthusiastic about snacking, plant-based drinkable yogurt could easily become a go-to item for them to toss into their reusable lunch bags before heading to work.
Additionally, as more consumers seek out functional foods, incorporating supplements like GSK Calcium Citrate Malate Vitamin D3 and Folic Acid Tablets may further enhance their interest in drinkable yogurts that promote health benefits. Integrating such nutrients into their products could provide Califia Farms with a competitive edge in the evolving yogurt market.