Our September sale is now live until 30th September 2021! Apply a 15% discount to your cart in Store using promotional code: EQLYSEP21

Certified Organic: Opportunities in Food and Beverages

July 2017

Consumers’ perception of organic food and beverages as natural and more sustainable has resulted in growing demand for them. Although organic products have already moved into the mainstream in developed markets, they are also seeing development in some emerging geographies. This report gives an overview of the global organic food and beverages industries, exploring key growth areas and challenges and delving into selected markets to understand the most important trends in the organic space.

USD 1,325
Request More Information

Growing potential for organic ranges

Organic packaged food and drinks, valued at USD37 billion at a global level, still represents a small part of the health and wellness market, but shows growth opportunities based on the evolution of consumers’ priorities towards the consumption of natural foods and beverages as well as the increasing interest in social and environmental responsibilities. Both trends will keep driving growth over the forecast period.

The US and Western Europe dominates the organic space

Consumers in more economically developed geographies, mainly the US and Western Europe, are demanding greater transparency in their food and drinks. In addition, they are willing to pay a premium in order to support ethical responsibilities and human rights. Organic ranges fit into these trends and therefore are increasingly demanded in these geographies.

China emerges as a key market for organic offerings

China has been awash with food safety scandals in the past. The melamine-tainted milk formula scandal that took place in the country in 2008 made parents increasingly interested in more premium brands and organic ranges as they are perceived as more reliable and trustworthy. This is particularly true in the baby food category, which is boosting growth in China.

M&A activity within organics is strong

As consumer desire for organic ranges grows, manufacturers respond and key players are increasingly investing in the category. Danone acquiring WhiteWave Foods, the largest organic food company in the US, and Coca-Cola investing in Aloe Gloe, a line of organic aloe-water beverages, made clear the position that key players are taking close order to meet consumers’ demand for organic products.

Brazil a long way to go in the organic space

Emerging markets follow on the footsteps of developed markets regarding food and drinks trends but they are still far away. Brazil is a good example of an emerging country that even being the largest organic market in Latin America lags far behind in the global ranking of organic sales. However, it presents growth opportunities with a main focus on improving distribution.

Introduction

Scope
Objectives of the global briefing
Examples of country- or region-specific organic logos
Key findings

Global Market Insight

Developed countries boost organic sales
Organic offering keeps growing
Organic products outperform regular offerings
Organic retail value sales boost growth globally
Key features boost organic sales
Organic directly linked to a natural perception
Natural gets top billing among consumers
Mindful/clean eating disrupts old world of health and wellness

Key Growth Drivers

China emerges as a key spot for organic milk
Organic juice following on the natural trend
High sugar content restricts growth of juice in developed countries
Premiumisation and functionality can outweigh calories
Organic fresh food is also flourishing

Focus on Selected Markets

North America and Western Europe dominate the market
Developed markets (and China) dominate organics

Focus on Selected Markets: US

Organic certification expected to boost growth of HW in the US
WhiteWave leads in the US
Danone acquires WhiteWave
A plethora of new organic product launches in 2016
Top drinks players segment portfolios to include organic ranges
Unilever bets for organic ranges for their RTD tea

Focus on Selected Markets: Germany

German consumers embrace organic ranges
Alnatura focuses on sustainable value creation
Vio Bio Limo jumps to first position in first year

Focus on Selected Markets: China

Organic milk formula boosts organic market in China
Eleva Organic is the key launch of organic milk formula
Yili leads organic market in China

Focus on Selected Markets: Brazil

Free from movement stands out in Brazil
Organic market in Brazil shows flat growth
Brazil’s leading company relies heavily on sustainability issues
Distribution is one of the main challenges for organic ranges
Safety issues create opportunities for organic ranges

Key Recommendations

Key recommendations

Appendix

Health and wellness product coverage
Health and wellness category definitions
Organic definitions: IFOAM and The Codex Alimentarius
National and international definitions of organic

Appendix: Competitor Analytics

Competitor Analytics tool
Overview
Competitors
Market Overlap
Treemap
Overlap Matrices

Appendix: Industry Forecast Model

About Euromonitor International’s Industry Forecast Model
Soft drivers and the Industry Forecast Model
Growth decomposition explained
Significance and applications for growth decomposition
Key applications for Industry Forecast Model
Share:

NEW REPORT GUARANTEE

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page