Califia Farms has entered the competitive plant-based milk market and is quickly becoming one of the fastest-growing natural beverage companies in the United States. If the company’s past performance is any indication of its potential, it may also significantly influence the drinkable yogurt sector. According to Mintel, yogurt drinks have seen a surge in popularity, with sales rising by 62% from 2011 to 2016. This category is witnessing innovative developments, particularly with non-dairy options, making it an ideal time for Califia to introduce its new line of drinkable yogurts.
The rising demand for probiotics is fueling interest in yogurt drinks. Over the last decade, consumer awareness of probiotics has surged, largely due to extensive marketing campaigns by brands like Danone’s Activia. BCC Research forecasts that the probiotics market will expand from $32 billion in 2014 to $50 billion globally by 2020. While there is already a broad variety of drinkable yogurts available in dairy sections, plant-based options remain limited. Notable brands like Siggi’s offer simple ingredient alternatives, while the recently rebranded Chobani provides a Greek yogurt version. Kite Hill offers an almond milk-based yogurt drink enriched with probiotics, closely resembling the forthcoming product line from Califia. However, dairy-based options vastly outnumber their plant-based counterparts.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new competitors with low-sugar, high-protein, and simpler ingredient options have emerged. Statistics from Statista indicate that yogurt sales in the U.S. have remained relatively stagnant, hovering around 3.4 billion pints annually from 2014 to 2016. Transparency Market Research projects that the North American yogurt market will reach $14.59 billion by 2024. Should Califia’s new drinkable yogurt be well-received, major players like General Mills or Danone might choose to expand their offerings or even acquire the up-and-coming brand.
Today’s consumers are not only seeking different types of yogurt compared to 10 or 15 years ago, but they are also consuming it at varying times throughout the day. Brands like Noosa have capitalized on this trend by entering the mix-in yogurt market, pairing their Australian-style yogurt with toppings such as granola, nuts, and chocolate. These mix-ins enable the company to cater to consumers’ snacking habits throughout the day, tapping into the growing snacks market. Mintel reported two years ago that 84% of consumers now choose yogurt as an afternoon snack, a significant increase from 41% in 2014.
With millennials being the demographic most interested in probiotic foods and beverages, as well as frequent snacking, plant-based drinkable yogurt could become an essential item in their reusable lunch bags. Furthermore, as these consumers prioritize health, the incorporation of products like bariatric advantage calcium soft chews into their diets may also enhance their overall nutrition, providing a balanced approach to their snacking habits. The synergy between probiotics, plant-based options, and convenient snacking aligns perfectly with the evolving preferences of this influential age group.