Organic Beverages in Brazil

PROSPECTS

Organic beverages remains a niche

Organic beverages struggled for any significant gains in 2018 with it remaining a relatively niche category in Brazil. Organic products are significantly more expensive than non-organic options in the country meaning the consumer base is limited largely to mid- to high-income households.

Further education required on the benefits of organic beverages

Many consumers in Brazil are unclear on the difference between NH beverages, which are much cheaper, and organic beverages, which further limits the potential of the category. For example, many still confuse organic beverages with natural products or those containing no genetically modified organisms (GMO).

Organic 100% juice sees dynamic growth but from a low base

Organic 100% juice witnessed the most dynamic value growth in 2018 in absolute terms, with this also being the largest category in organic beverages. Consumers are becomingly increasingly drawn to 100% juice with it seen as a natural and healthy product and an organic claim provides added value in the minds of some consumers.

COMPETITIVE LANDSCAPE

Native brand prominent in organic beverages

Usina São Francisco SA retained a strong lead in organic beverages in 2018 thanks its wide portfolio, with it dominating organic hot drinks while also holding a strong lead in organic soft drinks. The company was one of the first players to bring organic products to retailers’ shelves under its Native brand, while it now also offers an online shop where consumers can order its products directly.

CIA organic coffee proving popular

The only other player with a significant value share in organic beverages in 2018 was second-ranked CIA Orgânica de Café. This local company is present with its eponymous range of organic coffee, while it also produces organic coffee for private label.

Small and regional players continue to dominate

More than half of value sales of organic beverages were accounted for by small regional players in 2018. Most of the brands on offer from these players have a high-price positioning, with limited distribution in specialised channels or only being sold close to the production plant.

Files are delivered directly into your account within a few minutes of purchase.