Organic Beverages in Brazil

PROSPECTS

Organic beverages remain a very specific niche in the post crisis due to high prices

Organic beverages has grown in Brazil over the last few years, but struggles to increase its pace and should continue to present relatively flat performances over the forecast period. It remains a niche category, being considerably more expensive than non-organic products, and is relatively distanced from the general public, given that the organics consumer base is composed of a minor part of the population who actually understand the concept.

Benefits of organic beverages are unknown among the general public

The difference between organic and non-organic beverages is still unclear to Brazilian consumers. Organic beverages have many health benefits that are largely unknown among the general public, being most often confused with natural products or free from genetically modified organisms (GMO).

Organic beverages production demands wide investment and industry struggles to ensure return

Organic beverages production in Brazil is challenging for many reasons. According to industry experts, the main barrier to production is to achieve the Brazilian Seal of Organic Conformity Assessment, a certification that allows brands to insert an organic claim on the front of their packaging.

COMPETITIVE LANDSCAPE

Native Brand reinforces leadership distancing from other players

Native from Usina São Francisco SA keeps growing thanks to its wide portfolio and the brand’s history of pioneering innovation, which gives it a competitive advantage over other players. In addition, the brand undertakes effective activity in its social media, promoting its products and the whole category by investing in education about the benefits of organics and promoting actions for the environment, thus building a solid relationship with its consumers.

CIA Orgânica de Café maintains share amid fierce competition

Occupying second place in value share terms, CIA Orgânica de Café maintained its share in 2019. This company benefits from an extensive organic coffee portfolio, besides producing coffee for private label and supplying retail and foodservice channels in Brazil.

Small and regional players losing share

Regional and small brands dominate organic beverages in value share terms, holding more than half of total sales in 2019. However, in recent years, these brands have been threatened by the growth of popular brands such as Native, which have an extended portfolio of organic foods and drinks, scalable production and costs and the trust of organic beverages’ target audience, as well as the possible entry of large companies such as Nestlé SA, which invested in organic beverages in 2019, launching its new product Ninho Orgânico.

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