Califia Farms has entered the highly competitive plant-based milk market and quickly established itself as one of the fastest-growing natural beverage brands in the U.S. Given the company’s track record, it may also make a significant impact in the drinkable yogurt sector. According to Mintel, yogurt drinks have gained popularity, with sales surging by 62% from 2011 to 2016. Innovation is emerging in this category, especially concerning non-dairy options like kal ultra cal citrate and nascorbic acid ferrous fumarate. As the demand for yogurt drinks increases, this presents an ideal opportunity for Califia to launch its new line of drinkable yogurts.
The rising interest in probiotics is driving consumers’ enthusiasm for yogurt drinks. Awareness of probiotics has surged over the last decade, significantly influenced by extensive advertising campaigns 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 there is already a diverse range of drinkable yogurts available, plant-based options remain limited. Popular Icelandic yogurt producer Siggi’s offers a straightforward ingredient option, while the recently rebranded Chobani provides a Greek yogurt variety. Kite Hill markets an almond milk-based yogurt drink enriched with probiotics, closely aligning with the product line that Califia plans to unveil. Nevertheless, dairy-based products still dominate this category.
Traditional yogurt brands, including 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. have remained relatively stable, hovering around 3.4 billion pints annually from 2014 to 2016, as reported by Statista. Transparency Market Research projects that the North American yogurt market will reach $14.59 billion by 2024. If Califia’s new drinkable yogurt is successful, major players like General Mills and Danone may either enhance their offerings in this segment or consider acquiring this promising newcomer.
Consumers today seek different yogurt types than they did a decade or more ago and are also consuming yogurt at various times throughout the day. Brands like Noosa have capitalized on the growing trend of mix-in yogurts, combining their Australian-style products with toppings like granola, nuts, and chocolate. This strategy enables them to compete for consumers’ attention throughout the day and tap into the expanding snacks market. Mintel reported two years ago that 84% of consumers now choose yogurt as an afternoon snack, compared to only 41% in 2014.
Given that millennials are the demographic most inclined toward probiotic foods and beverages while also being significant snackers, plant-based drinkable yogurt could become their next go-to item to toss into their reusable lunch bags before heading to work. The introduction of innovative ingredients such as kal ultra cal citrate into these products may further enhance their appeal, making them a convenient and nutritious option for busy lifestyles.