Organic beverages saw significant double-digit current value growth in 2020 and continued to see good but more muted growth in 2021. Increasingly, organic labelling is something that consumers associate with healthy products while aiming for a healthy lifestyle became even more important for many during the time of the COVID-19 pandemic.
As international borders in Denmark closed for a part of 2020 in response to the COVID-19 pandemic, consumption of organic beverages shifted to domestic retailers, boosting retail volume sales for organic beverages. It was primarily exports of organic beverages and foodservice sales that were negatively impacted towards the end of the review period, with domestic retail demand remaining robust.
Coop Danmark A/S maintained its lead in organic beverages in Denmark ahead of Rynkeby Foods A/S in 2021, as the retail giant has long focused heavily on its organic private label ranges such as Änglamark. Organic products are now a major focus for private label players in Denmark and they are launching more high-quality products in order to improve the way consumers perceive private label.
The increased unemployment rate in 2020 and into the start of 2021 impacted organic beverages only to an extent. Moreover, Danish unemployment benefits announced by the Danish government as a result of the pandemic also helped, as Danes were protected and they were able to retain approximately 80%-85% of their income for an expected two years.
It is expected that private label will remain a key strategic focus area for the major Danish retailers over the forecast period. With demand for organic beverages set to continue to increase, it is likely that a number of new organic private label beverages will be introduced.
Working from home was a strong trend towards the end of the review period, as consumers sought to stay protected during the pandemic and adhere to government guidelines. This contributed to increased retail sales of organic beverages.
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Certified organic products are those which have been produced, stored, processed, handled and marketed in accordance with precise technical specifications (standards) and certified as "organic" by a certification body such as the Soil Association in the UK, the European Union or the US Department of Agriculture. It is important to note that an organic label applies to the production process, ensuring that the product has been produced and processed in an ecologically sound manner. The organic label is therefore a production process claim as opposed to a product quality claim. Note: For organic products to be included, the organic aspect needs to form a significant part of the overall positioning/marketing of the product, including the organic certification label in the packaging. For product category definitions please refer to the definitions section (can be found under the "Help" section on Passport) for the respective system: Packaged Food, Hot Drinks, Soft Drinks.See All of Our Definitions
This report originates from Passport, our Organic Beverages research and analysis database.
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