Califia Farms has made its entry into the already saturated plant-based milk market and has quickly become one of the fastest-growing natural beverage companies in the U.S. If the company’s past trends are any indication, it could potentially make a significant mark in the drinkable yogurt sector as well. According to Mintel, yogurt drinks are becoming increasingly popular, with sales surging by 62% from 2011 to 2016. There’s also notable innovation occurring in this category, particularly with non-dairy alternatives. As the demand for these products rises, it seems like an opportune moment for Califia to unveil its new line of drinkable yogurts.
The growing interest in yogurt drinks can be attributed, in part, to the demand for probiotics. Over the past decade, consumer awareness of probiotics has skyrocketed, driven by extensive marketing efforts from brands like Danone’s Activia. BCC Research anticipates that the global probiotics market will expand from $32 billion in 2014 to $50 billion by 2020. While the dairy section already offers a variety of drinkable yogurts, plant-based options remain limited. Notable brands include Siggi’s, which provides a simple ingredient Icelandic yogurt, and the rebranded Chobani, which offers a Greek yogurt version. Kite Hill markets an almond milk-based yogurt drink infused with probiotics that closely resembles the upcoming offerings from Califia. However, dairy-based products continue to dominate this space.
Traditional yogurt brands like General Mills’ Yoplait have faced challenges as new competitors with low-sugar, high-protein, and simple ingredient offerings have emerged. Overall, yogurt sales in the U.S. 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 per Transparency Market Research. If Califia’s new drinkable yogurt gains traction, industry giants like General Mills and Danone may decide to enhance their presence in this area or consider acquiring the emerging brand.
Today’s consumers are seeking different types of yogurt compared to a decade or so ago, and they are also consuming it at various times throughout the day. Brands like Noosa have successfully tapped into the growing mix-in yogurt trend, pairing their Australian-style product with toppings like granola, nuts, and chocolate. These mix-ins enable the company to cater to consumers at different times of the day, thereby gaining access to the expanding snack market. Mintel reported that two years ago, 84% of consumers chose yogurt as an afternoon snack, a significant increase from 41% in 2014.
Considering that millennials are the demographic most enthusiastic about probiotic foods and beverages and are also keen on snacking, plant-based drinkable yogurt could become the next popular item they add to their reusable lunch bags before heading to work. Furthermore, as consumers look for healthier alternatives that are rich in nutrients like calcium citramate, Califia’s new offerings may resonate well with this trend, especially if they incorporate additional benefits such as enhanced calcium content. The potential for success in the drinkable yogurt market for Califia Farms appears promising, especially among health-conscious consumers who are increasingly prioritizing plant-based options.