(191) Start a Frozen yogurt drinks Manufacturing Plant
The yogurt drinks market is slowly beginning to come into its own, though it has yet to entirely live up to expectations of an industry that has long been predicting the mainstream acceptance of yogurt drinks as a viable snack or beverage. Yogurt drinks suffer from an awareness problem, in that they are a product not necessarily top of mind for most consumers. In fact, the key reason stated as to why consumers do not drink yogurt drinks is simply because they did not think of it. Mainstream yogurt drinks are certainly a relatively new phenomenon, having emerged onto the American market only within the last six years. While they have benefited from their association with yogurt and its health benefits, they have yet to find a focus and anchor segment among consumers, perhaps due to their potentially broad appeal.
Yogurt drinks are in many ways the perfect answer to the problems consumers face in today's hectic society: they are portable, nutritious, easy to consume with just one hand, and relatively low in calories. They also have considerable health benefits, and are easy on the digestive system. While they may be relatively expensive compared to many beverages and need to be refrigerated, it seems within reach that the industry can show that the benefits outweigh these considerations, thus leaving yogurt drinks poised to grow even more substantially than they have in recent years.
With its current market size of $450 million at FDM, excluding Wal-Mart, the yogurt drinks market had sales growth of 16% in 2005. Yet, the market is far from saturated, with relatively low consumer penetration. Thus, as manufacturers and retailers begin to put more effort into their marketing campaigns for yogurt drinks, the market will remain healthy and should continue to experience well above 10% annual growth.
Drinkable yogurt is defined as a dairy-based yogurt that is drinkable and in a liquid form that may or may not include fruit or fruit flavoring. Some yogurt drinks are further described as smoothies, such as Yoplait Nouriche, which are also included here. Some of the products included in this report carry the term "smoothie" in their name, but are included here because their formulation of half juice, half fat-free yogurt best fits the definition of yogurt drinks.
There are certainly many similarities between yogurt drinks and RTD smoothies, not just in targeted consumers but also in how these beverages are perceived by consumers and manufacturers alike. While some made-to-order smoothie retail chains claim that drinks made only with fruit and yogurt can technically be considered smoothies, large manufacturers are much less rigid about the distinctions between these two types of beverages. For example, while Yoplait Nouriche falls under the drinkable yogurt category, the company considers it a form of smoothie and positions it as such, thus riding on the coattails of the smoothie's popularity. This position also helps bridge the gap for consumers that are familiar with yogurt, but not in its drinkable format.