Organic Beverages in Brazil

PROSPECTS

Organic beverages registers steady but slower current value growth

While earlier in the review period, organic beverages registered double-digit current value growth, in 2017, the category continued to record a positive performance, but with only single-digit growth. This was mainly because organic beverages was still a niche category in Brazil.

Brazilian consumers still do not have a clear understanding of what organic products are

Apart from higher-income families, most Brazilians do not have a clear understanding of what organic products are – many still confuse them with natural products or those containing no GMO (genetically modified organisms). As these products are usually positioned at higher unit prices, the lack of understanding of the organic concept discourages consumers from trying such brands.

Organic nectars (25-99% juice) registers the worst performance

Nectars in general lost a significant part of their appeal among consumers over the last couple of years of the review period. This was mainly because 100% juice manufacturers invested a great deal in democratising the category, setting prices close to those of a premium nectar.

COMPETITIVE LANDSCAPE

Usina São Francisco remains the leading player within organic beverages

With more than a third of value sales within organic beverages in 2017, Usina São Francisco remained the leading player. Such a position is a direct result of a robust portfolio of products, ranging from coffee to juices (nectars, 100% juice and coconut water), among a wide variety of packaged food types.

Small and regional players continue to dominate

More than half of value sales of organic beverages in 2017 were accounted for by small and regional players. Most of these players’ brands have high-price positioning, with limited distribution in specialised channels or being only sold close to the production plant.

Unilever acquires Mãe Terra Produtos Naturais in Brazil, marking its entrance into organic beverages

Although Mãe Terra Produtos Naturais still accounted for only a low value share within organic beverages in Brazil in 2017, the company and its brand image among consumers has gained the interest of multinationals. In 2017, Unilever acquired Mãe Terra Produtos Naturais, marking the entrance of the first multinational into organic products in the country.

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