Organic Beverage Market

Organic Beverage Market Size, Growth (2023-2028)

The Global Organic Beverage Market size was worth US$ 20.31 billion in 2022, and it is estimated to reach a valuation of US$ 47.78 billion by the end of 2028, rising at an annual compound rate of 13.0% between 2023 and 2028. The demand for sugar-free caffeine-free beverages will increase demand for products in the coming years.

Market Overview:

Organic drinks are made without the use of synthetic pesticides, genetic engineering, artificial flavors, preservatives, and colors. Natural juices are, among other things, a type of drink without synthetic pesticides, growth hormones, genetic engineering, and artificial flavors, pigments, and preservatives. The organic drinks market is approaching as people begin to take an interest in natural drinks instead of carbonated drinks. Organic juices offer several health benefits.

Recent Developments in Organic Beverage Industry:

• Nestlé in May 2019 confirmed that it is planning to extend its existing product portfolio with the addition of organic food portions to Nestlé Ceregrow, India. This expansion increased the product portfolio and grew the company's market share in the Indian market.
• In March 2018, VegMart started operating to supply organic products to the market. They will offer the product at a little cost to expand the company to customers and increase customer retention.
• In March 2018, Truefarm Foods started selling organic products on the Amazon e-commerce platform. This increases the company's profits, as the product can reach more customers.
• April 2017: Danone acquired WhiteWave to expand its dairy portfolio. Additionally, the acquisition will strengthen the company's product line with brands, including Horizon Organic milk.
• In 2017, a quarter of all food and beverage products launched in Germany in 2017 were organic, and almost three-quarters of consumers want a much more extensive range of organic food and beverages at the point of sale.
• Prairie Organic Spirits have started new packaging. Prairie Organic Spirits launched new packaging to demonstrate the company's commitment to agriculture.

REPORT COVERAGE:

Organic Beverage Market Growth:

The rise in demand for organic and clean label ingredients in different parts of the planet is primarily driving the demand in the organic beverage market.

Drivers:

As awareness of the health benefits associated with consuming organic products increases, demand is expected to increase in the coming years. High global demand for products and rising disposable income levels in developing countries are some of the main drivers of market growth. The need for sugar-free caffeine-free beverages will increase demand for products in the coming years. The availability of products with new flavors and ingredients such as turmeric, aloe vera, and activated charcoal will also spur demand for attractive, portable retail packaging. The non-dairy beverage product segment held the largest market share in 2018. Non-dairy beverages are made from sources such as legumes, vegetable ingredients, nuts and grains, thus acting as functional beverages. Organic drinks can also be used in place of milk.

Furthermore, initiatives aimed at raising awareness of organic and non-GM products by governments around the world are driving demand to drive market growth further. Different certification processes and standards for different products to channel products in specific regions are some of the main limitations for market growth. However, extensive R&D from leading manufacturers to improve product shelf life, texture, taste and nutritional value are likely to have a positive impact on market development. Demand for organic beverages is increasing in developed countries such as the United States, the United Kingdom, France and Germany. It is supposed to lead the growth of the global market in the coming years as awareness of personal health increases. The incidence of diseases, such as diabetes and obesity, is assumed to support the growth of potential markets.

Additionally, consumer preference for natural products over products made with synthetic ingredients is anticipated to drive growth in the organic beverage market. Increased awareness of the benefits of eating the organic food and beverage industry is assumed to spur market growth in the near future. The impact of these drivers is presumed to increase significantly due to increasing consumer health problems. Organic drinks still occupy a small portion of the health and wellness market but show growth opportunities based on changing consumer priorities for natural beverage consumption and a greater interest in social and environmental responsibility. The increase in numerous supermarkets, retail stores, and convenience stores has also accelerated growth as the global organic drinks market showcases its products, with some having assigned different sections for organic foods in stores.

Restraints:

If the price of organic drinks is relatively high compared to general products, it is challenging to grow the market. Furthermore, the high cost of manufacturing organic beverages compared to other drinks produced through synthetic chemicals is an essential factor in inhibiting growth in the target market.

Organic Beverage Market Segmentation Analysis:

By product, the global organic beverage market is divided into non-dairy drinks (soy, rice, and oats), fruit drinks, coffee, and tea, beer, and wine, etc. Non-dairy drinks held the largest market share in 2018, which is made from sources such as legumes, vegetable ingredients, nuts, and cereals to serve as functional drinks. The coffee and tea are the fastest growing sectors with a compound annual rate of over 13.0% and is presumed to remain the fastest-growing market during the forecast period. Factors such as increased health awareness, preference for organic and natural drinks, and lifestyle changes are accelerating the growth of the segment.

According to distribution channels, the global organic beverage market was classified as offline and online. Online distribution channels are anticipated to show the fastest growth of CAGR 13.6% from 2020 to 2025, which is driven by the increasing popularity of e-commerce platforms, the positive impact of social media advertising and the higher use of smartphones and the Internet. As the number of organic food restaurants and coffee shops increases, the offline distribution channel is suspected of having the largest market share by 2025. Natural drinks are widely used in coffee shops and restaurants around the world.

Organic Beverage Market Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Regional Analysis:

North America continues to be the largest market for organic beverages as consumer attention shifts to clean, original label products. In the United States, biological products, including drinks, have changed from lifestyle choices to what most Americans consume. Along with consumer products that contain pure, natural ingredients, factors such as shifting consumer preferences toward healthy lifestyles are foreseen to support the growth of the organic beverage market during the projection period. Organic fruit and vegetable juices continue to work well as consumers grow and their knowledge of certifications like the USDA increases. The Asia Pacific is estimated to be the fastest-growing market during the prediction period. This growth is due to rapid urbanization, rising disposable income levels, and the establishment of several international outlets in emerging countries such as China and India.

Leading Company:

Nestle SA, Anheuser-Busch InBev, Danone SA (Horizon Organic), PepsiCo (Lipton) and Parkers Organic Juices are the leading companies operating in the global organic beverage market.

Key Players in the Market:

Major Key Players in the Global Organic Beverage Market are

• Boncafe International
• Empresa
• Uncle Matt's Organic Inc
• Parker's organic juices
• Bison organic beer
• Heavenly Body Servant
• Belvoir Fruit Farms Ltd
• Coca-Cola Corporation
• Whitewave Foods Company
• PepsiCo, Inc