Global Organic Drinks Market 2016-2020

Outlook of the organic drinks market

Technavio’s market research analyst predicts the global organic drinks market to grow at a CAGR of around 17% until 2020. The demand for organic drinks is likely to rise during the forecast period owing to an increase in the health conscious population and the rising preference for organic products. One of the major factors for the strong growth of this market is the populace’s growing awareness about various health and environmental issues, which are caused due to GM farming and the growing utilization of genetically modified organisms (GMOs).

The numerous health benefits provided by natural and organic food products have propelled the demand for organic drinks among the population. In recent times, it has been observed that consumers are spending more time in reading labels and searching for information before purchasing any products. According to the International Food Information Council (IFIC) Foundation, around 71% of the consumers preferred health as the major factor behind their purchasing decisions for food and beverages. It also indicated that about 32% of the consumers purchase products that are labeled “organic.” Consumers perceive organic food products to provide better nutritional benefits than non-organic foods as they do not contain artificial chemicals, hormones, and pesticides.

Segmentation by product and analysis of the organic drinks market

• Non-dairy drinks
• Hot drinks

The hot drinks segment was the largest market segment in 2015 and is envisaged to retain its dominating hold over the market by 2020. Factors like rising awareness about the health benefits of organic drinks, such as herbal and organic tea, will boost the demand for organic hot drinks during the forecast period. Recently, it has been observed that the sale of organic certified RTD tea has increased worldwide. This increase in the sale of organic RTD tea has compelled vendors to focus on portfolio expansion, which in turn has bolstered the growth prospects for this market segment during the forecast period.

Geographical segmentation of the organic drinks market

• North America
• Europe
• APAC
• ROW

In this market study, analysts have estimated the North American region to be the largest market for organic beverages during the forecast period. In North America, more than three million hectares of farmland were managed organically in 2012. Factors such as the recent increase in the number of arable land undertaken for organic farming and rising awareness, because of the enormous increase in the demand for organic drink products, are driving the growth prospects for this market in North America.  

Competitive landscape and key vendors

The global organic drinks market is highly fragmented due to the presence of numerous small and large vendors. The vendors in the market compete on the basis of factors such as price, quality, innovation, service, reputation, distribution, and promotion. Intense competition among vendors has led to an increase in the number of M&As; wherein smaller entities are being acquired by or are being merged with, the major players.

Key vendors in the market are -

• Suja Juice
• The Hein-Celestial Group
• PepsiCo
• Coca-Cola
• Organic Valley

Other prominent vendors in the market include Amy & Brian Natural, Blue Diamond Growers, Califia Farms, Dean Foods International, Dole Food, Green & Black's, Asda Group, Groupe Danone, J M Smuckers, Lactalis Group, Nestle, Newman’s Own, Nourish Organic Juice, Organic Kitchen, Peet’s Coffee & Tea, Starbucks, Suma, Sunopta, Tesco¸ and Whole Foods.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global organic drinks market?
• What are the key market trends impacting the growth of the global organic drinks market?
• What are the challenges to market growth?
• Who are the key vendors in this market space?
• What are the market opportunities and threats faced by the vendors in the global organic drinks market?
• Trending factors influencing the market shares of North America, APAC, Europe, and MEA.
• What are the key outcomes of the five forces analysis of the global organic drinks market?

Technavio also offers customization on reports based on specific client requirement.

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