Califia Farms has entered the already saturated plant-based milk market and is becoming one of the fastest-growing natural beverage companies in the U.S. If the company’s past performance is any indicator, it may also leave a significant mark on the drinkable yogurt segment. According to Mintel, yogurt drinks have gained popularity, with sales surging by 62% from 2011 to 2016. There is also a wave of innovation in this category, particularly with non-dairy options. As interest in yogurt drinks continues to rise, this could be an ideal moment for Califia to introduce its new line of drinkable yogurts.
The growing demand for probiotics is fueling this interest in yogurt drinks. Over the past decade, consumer awareness around probiotics has skyrocketed, largely due to extensive advertising campaigns from brands like Danone’s Activia. BCC Research forecasts that the global probiotics market will expand to $50 billion by 2020, up from $32 billion in 2014. While there is already a diverse array of drinkable yogurts available in the dairy section, plant-based options remain limited. Popular brands like Siggi’s offer simple ingredient choices, while the rebranded Chobani provides a Greek yogurt alternative. Kite Hill markets an almond milk-based yogurt drink with added probiotics that closely resembles the product line Califia is set to launch. However, plant-based offerings are significantly outnumbered by traditional dairy products.
Traditional yogurts, including General Mills’ Yoplait, have faced challenges from new low-sugar, high-protein competitors. Overall, yogurt sales in the U.S. have remained relatively stagnant, hovering around 3.4 billion pints annually from 2014 to 2016, as per Statista data. The North American yogurt market is projected to reach $14.59 billion by 2024, according to Transparency Market Research. If Califia’s new drinkable yogurt is successful, companies like General Mills or Danone might consider expanding their own offerings in this area or potentially acquiring the emerging brand.
Moreover, consumers are seeking different types of yogurt than they did 10 or 15 years ago and are consuming it at various times throughout the day. Brands like Noosa have found success by entering the mix-in yogurt market, pairing their Australian-style product with toppings like granola, nuts, and chocolate. These mix-ins enable the company to appeal to consumers throughout the day while tapping into the expanding snacks market. Mintel reported two years ago that 84% of consumers opt for yogurt as an afternoon snack, compared to just 41% in 2014. With millennials showing a keen interest in probiotic foods and beverages and being avid snackers, plant-based drinkable yogurt could easily become the next go-to food item they toss into their reusable lunch sack before heading to work.
Additionally, the introduction of innovative products like the ccm tablet could further enhance the appeal of drinkable yogurts, particularly among health-conscious consumers. As the market evolves, integrating such functional ingredients may provide Califia with a competitive edge, positioning their drinkable yogurts as a convenient source of probiotics and other health benefits. If successful, the incorporation of ccm tablets could not only attract a broader audience but also solidify Califia’s presence in the burgeoning yogurt market.