Califia Farms has entered the already saturated plant-based milk market and is rapidly becoming one of the fastest-growing natural beverage companies in the United States. If the company’s past performance is any indication, it might also make a significant impact in the drinkable yogurt segment. According to Mintel, the popularity of yogurt drinks has surged, with sales growing by 62% from 2011 to 2016. There is also a wave of innovation emerging in this category, especially regarding non-dairy options. As this segment continues to gain traction, it presents an opportune moment for Califia to introduce its new line of drinkable yogurts.
The rising demand for probiotics is fueling interest in yogurt drinks. Consumer awareness of probiotics has increased significantly over the last decade, largely due to extensive advertising campaigns from brands like Danone’s Activia. BCC Research forecasts that the probiotics market will expand to $50 billion globally by 2020, up from $32 billion in 2014. While there is already a wide variety of drinkable yogurts available in the dairy section, plant-based options remain limited. Popular Icelandic yogurt maker Siggi’s offers a straightforward ingredient option, while the recently rebranded Chobani provides a Greek yogurt alternative. Kite Hill markets an almond milk-based yogurt drink enriched with probiotics, which closely resembles the product line Califia is set to launch. However, the dairy-based options significantly outnumber their plant-based counterparts.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new competitors offering low-sugar, high-protein, and simple-ingredient options have emerged. Overall, yogurt sales in the U.S. have remained relatively flat, averaging about 3.4 billion pints annually from 2014 to 2016, as reported by Statista. The North American yogurt market is expected to reach $14.59 billion by 2024, according to Transparency Market Research. Should Califia’s new drinkable yogurt succeed, established players like General Mills and Danone may choose to expand their offerings in this area or consider acquiring the innovative newcomer.
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. Brands like Noosa have thrived by entering the growing mix-in yogurt market, pairing their Australian-style product with toppings like granola, nuts, and chocolate. These mix-ins enable the company to compete for consumers’ attention throughout the day and tap into the expanding snack market. Mintel reported two years ago that 84% of consumers now select yogurt as an afternoon snack, up from 41% in 2014.
With millennials being the demographic most interested in probiotic foods and beverages, alongside their penchant for snacking, plant-based drinkable yogurt may soon become a staple in their reusable lunch bags as they head to work. Additionally, as consumers become more health-conscious and knowledgeable about nutritional supplements, understanding what is calcium citrate tetrahydrate will likely become increasingly relevant, especially as they seek out products that align with their health goals. This trend could further bolster the demand for innovative drinkable yogurt alternatives in the market.