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 guide, it has the potential to make a significant impact in the drinkable yogurt sector as well. According to Mintel, yogurt drinks are gaining popularity annually, with sales soaring by 62% from 2011 to 2016. There is also a surge in innovation within this category, particularly with non-dairy options. This trend might present an ideal opportunity for Califia to launch its new line of drinkable yogurts.
The growing demand for probiotics is fueling interest in yogurt drinks. Over the past decade, consumer awareness of probiotics has surged, largely due to extensive advertising campaigns from brands like Danone’s Activia. BCC Research anticipates that the global probiotics market will grow to $50 billion by 2020, up from $32 billion in 2014. While there is already a diverse range of drinkable yogurts available in the dairy section, plant-based options remain limited. Notable players include the Icelandic yogurt brand Siggi’s, which offers a simple ingredient option, and the recently rebranded Chobani, which features a Greek yogurt variant. Kite Hill markets an almond milk-based yogurt drink enriched with probiotics that closely resembles the product line Califia is set to introduce. However, dairy-based options far outnumber plant-based ones in this segment.
Traditional yogurt brands, such as 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 stagnant at around 3.4 billion pints annually from 2014 to 2016, according to Statista. Transparency Market Research projects that the North American yogurt market will reach $14.59 billion by 2024. If Califia’s new drinkable yogurt becomes popular, companies like General Mills and Danone may choose to expand their own offerings in this area or consider acquiring the rising newcomer.
Consumers today seek different types of yogurt compared to 10 or 15 years ago, and they also prefer to enjoy it at various times throughout the day. Brands like Noosa have found success by entering the growing mix-in yogurt market, combining their Australian-style yogurt with toppings like granola, nuts, and chocolate. These mix-ins not only allow the company to appeal to consumers throughout the day but also provide access to the expanding snacks market. Mintel reported that 84% of consumers now opt for yogurt as an afternoon snack, up from 41% in 2014.
With millennials being the demographic most interested in probiotic foods and beverages, and with a penchant for snacking, plant-based drinkable yogurt could become the next trendy food item they toss into their reusable lunch bags before heading to work. Retailers like Costco may also capitalize on this trend, potentially offering options rich in magnesium and zinc to cater to health-conscious consumers. As the market evolves, it will be interesting to see how Califia Farms and other brands adapt to meet the changing preferences of today’s yogurt lovers.