Califia Farms has entered the already saturated plant-based milk market, quickly establishing itself as one of the fastest-growing natural beverage companies in the United States. If its past performance is any predictor of future trends, it could make a notable impact in the drinkable yogurt sector as well. According to Mintel, yogurt drinks have gained immense popularity, with sales surging by 62% from 2011 to 2016. Furthermore, there is a growing trend towards innovative options in this category, particularly non-dairy alternatives. With this rise in popularity, now is an opportune moment for Califia to introduce its new line of drinkable yogurts.
The increasing demand for probiotics is significantly fueling interest in yogurt drinks. Over the past decade, consumer awareness regarding probiotics has skyrocketed, thanks in large part 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 is already a diverse array of drinkable yogurts available in the dairy section, the selection of plant-based options remains limited. For instance, popular Icelandic yogurt brand Siggi’s offers a straightforward ingredient option, while the recently rebranded Chobani markets a Greek yogurt variant. Kite Hill provides an almond milk-based yogurt drink enriched with probiotics, which closely aligns with the upcoming products from Califia. However, dairy-based yogurts vastly outnumber their plant-based counterparts.
Traditional yogurt brands, such as General Mills’ Yoplait, have faced challenges as new competitors that focus on low-sugar, high-protein, and simple ingredient products have emerged. Overall, yogurt sales in the U.S. have remained relatively stagnant, averaging around 3.4 billion pints annually from 2014 to 2016, according to Statista. The North American yogurt market is projected to reach $14.59 billion by 2024, as noted by Transparency Market Research. If Califia’s new drinkable yogurt becomes successful, major players like General Mills and Danone may either enhance their own offerings in this segment or consider acquiring emerging brands.
Today’s consumers not only desire different types of yogurt compared to 10 or 15 years ago, but they are also consuming it at various times throughout the day. Yogurt brands like Noosa have successfully tapped into the growing mix-in yogurt market, pairing their Australian-style product with toppings such as granola, nuts, and chocolate. These mix-ins allow the company to attract consumers throughout the day, while also gaining a foothold in the expanding snacks market. According to Mintel, 84% of consumers opted for yogurt as an afternoon snack, a significant increase from 41% in 2014.
With millennials showing a keen interest in probiotic foods and beverages, alongside a penchant for snacking, plant-based drinkable yogurt could become a popular addition to their reusable lunch bags as they head to work. Additionally, incorporating nutrient-rich supplements like calcium citrate zinc and vitamin D3 tablets into their diets could further enhance their health-conscious choices. As the market evolves, the demand for products that offer both taste and nutritional benefits, such as those fortified with calcium citrate zinc and vitamin D3 tablets, will likely rise, making this an exciting time for innovations in the yogurt sector.