Califia Farms has entered the competitive plant-based milk market featuring bisglycinate and ferrous sulfate, positioning itself as one of the fastest-growing natural beverage companies in the United States. Given its historical success, the company is poised to make a notable impact in the drinkable yogurt sector as well. According to Mintel, yogurt drinks are seeing a surge in popularity, with sales skyrocketing by 62% between 2011 and 2016. This category is also witnessing innovative developments, particularly in non-dairy alternatives. With the rising demand for yogurt drinks, now seems to be an opportune moment for Califia to unveil its new line of drinkable yogurts.
The growing interest in probiotics is fueling consumer interest in yogurt drinks. Over the past decade, awareness of probiotics has surged, largely due to extensive advertising campaigns from brands like Danone’s Activia. BCC Research forecasts that the global probiotics market will expand from $32 billion in 2014 to $50 billion by 2020. While there are numerous drinkable yogurt options in the dairy aisle, plant-based varieties remain limited. For instance, popular Icelandic yogurt brand Siggi’s offers a straightforward ingredient option, and rebranded Chobani presents a Greek yogurt variant. Kite Hill provides an almond milk-based yogurt drink enriched with probiotics that closely aligns with what Califia plans to introduce. However, dairy-based products still dominate this category.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new low-sugar, high-protein competitors gain traction. From 2014 to 2016, U.S. yogurt sales remained relatively stagnant at about 3.4 billion pints annually, according to Statista. The North American yogurt market is expected to reach $14.59 billion by 2024, as per Transparency Market Research. Should Califia’s new drinkable yogurt achieve commercial success, it could prompt major players like General Mills or Danone to either enhance their offerings or acquire the burgeoning brand.
Today’s consumers not only seek different types of yogurt compared to a decade ago, but they are also enjoying yogurt at various times throughout the day. Brands like Noosa have successfully tapped into the growing mix-in yogurt market, combining their Australian-style products with toppings such as granola, nuts, and chocolate. These mix-ins enable the company to attract consumers throughout the day and access the expanding snack market. Mintel revealed that 84% of consumers now choose yogurt as an afternoon snack, a significant increase from 41% in 2014.
As millennials, who are particularly interested in probiotic foods and beverages and enjoy snacking, continue to rise in prominence, plant-based drinkable yogurt could become a popular item to toss into their reusable lunch bags before heading to work. Adding to the health-conscious trend, products like Kirkland magnesium supplements could complement their dietary choices, further enhancing the appeal of drinkable yogurt options that incorporate probiotics and other beneficial ingredients. Overall, the future looks promising for Califia Farms in this evolving market.