Organic Beverages in Australia

PROSPECTS

Organic coffee appeals to environmental and ethical concerns of consumers

While organic coffee made up a small proportion of overall Australian coffee sales in 2018, it continued to record strong growth in both off-trade value and volume. In line with growing demand for organic coffee products Lavazza SpA chose Australia as the first country globally to introduce ¡Tierra! Bio-Organic, with the brand referring to the ¡Tierra! venture, the company’s original corporate social responsibility enterprise introduced in 2002.

Organic green tea records significant growth due to the product’s health positioning

Organic green tea recorded higher off-trade value growth in 2018 than in 2017. The appeal of organic green tea derives from its health positioning, with Dr Howard Sesso from Harvard Medical School and Brigham and Women’s Hospital stating on Harvard Health’s website that the positive health impacts of tea are believed to come from catechins and epicatechins.

Organic 100% juice sales supported by consumers’ health consciousness

Growing health consciousness encouraged the strong growth of organic 100% juice in 2018. The trend of parents seeking out healthier lunchbox beverages for their children encouraged the growth of Sunraysia Organic over the review period.

COMPETITIVE LANDSCAPE

Nerada Tea the largest player in organic beverages

Nerada Tea Pty remained the leading player in organic beverages in 2018. The company benefits from local consumers appreciating the variety of its organics range, with products ranging from rooibos and vanilla and peppermint to green tea and chai.

Aldi Stores Supermarkets focuses on organic products

While Aldi Stores Supermarkets made up only a small percentage of organic beverages sales in 2018, the company has indicated it will make organic products a greater focus. The Australian reported in September 2018 that the company would introduce “Organics Month” in October 2018 and that the company is looking to offer organic products at lower prices than organic products usually retail for.

Republica Coffee records share growth, appealing to consumers’ environmental and ethical concerns

Republica Coffee Pty Ltd saw its share within organic beverages increase year-on-year throughout the review period as the company’s central philosophy of “ethics with impact” resonated with consumers. The company uses coffee beans that are grown organically and guarantees a fair compensation for farmers.

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