Organic Beverages in Argentina

PROSPECTS

High prices limit growth opportunities

Awareness and acceptance of the benefits of organic beverages still remains somewhat limited in Argentina, despite government efforts to change this, such as through its National Organic Production Day and Organic Food Week. Furthermore, organic beverages carry a higher price than standard varieties and demand is typically limited to higher income consumers.

Organic fruit/vegetable juice offers strong promise

Organic 100% juice and organic juice drinks (up to 24% juice) are the only categories with a significant presence in organic beverages in Argentina, with the latter only entering the market in 2016. These products appeal to higher income health-conscious consumers.

Competition and distribution set to expand

Sales of organic beverages should also be supported by the entry of more players, including lower-priced brands, with private label having already entered organic 100% juice. The number of retailers offering organic fruit/vegetable juice is also likely to expand, which would also support growth, with access to these products being an issue for some consumers.

COMPETITIVE LANDSCAPE

La Brisas remains popular thanks to wide offer of premium products

Las Brisas SA retained the lead in organic beverages in 2019, although it lost share due to growing competition within the category. The company offers organic 100% juice while it is also the sole player present in organic juice drinks (up to 24% juice) having launched its Las Brisas Smoothies brand into the market in 2016.

High prices see Maoar lose share

Maoar SRL was the only other player with a significant value share in 2019 in an otherwise fragmented category. The company offers its Natufresh brand in health food shops, convenience stores and small supermarkets in Federal City and the greater Buenos Ares area, while it is also available online.

Local players gain ground with more affordable prices

“Others” was the winner in organic beverages in 2019, with a growing number of smaller local players winning share. These local players are competing by offering lower prices than the leading brands, although to date their more limited distribution has acted as a barrier to more significant development.

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