Organic coffee in Norway witnessed steadily increasing sales over the review period, along with the general development of the organic trend in beverages and food. Industry sources report that consumers are generally interested in the whole aspect of sustainability in their purchases, of which they consider organic only one part.
Organic tea’s growth is being increasingly driven by novelty value and premiumisation, rather than the element of organic itself. Over the review period, organic fruit/herbal tea witnessed a dynamic performance owing to brands such as Pukka Tea and Yogi Tea, both launching a steady flow of new flavours and carrying a comparatively high unit price; the fashionable appeal of these brands has led to an increasingly young consumer group in Norway.
Although organic beverages witnessed a solid performance in 2018, further growth was inhibited by increasing cross-border trade following a tax hike on confectionery and soft drinks, which has a spillover effect on other categories such as organic beverages. The tax hike encouraged consumers to stockpile on their daytrips to Sweden.
In 2018, organic beverages continued to be led by players with leading positions in hot drinks, as soft drinks accounted for a relatively low share in retail value terms. Coop Norge Kaffe continued as the overall leader with the eco-orientated private label line Coop Änglamark kaffe.
With the private label line Coop Änglamark kaffe leading organic coffee in 2018, many consumers became accustomed to purchasing organic coffee at a price level which is not viable for smaller players that wish to enter. This price pressure is expected to favour companies with a certain level of economies of scale in grocery retailers over the forecast period.
Organic coffee manufacturers face competition from standard coffee, as consumers tend to consider organic as only one in a range of factors regarding a brand’s sustainability. An example of such competition is grocery retailer Rema 1000’s 2017 launch of Kolonihagen Kaffe; this is a private label series of fresh ground coffee and fresh coffee beans, which claims to be produced according to standards for organic production but is not certified as organic.
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Overview: Discover the latest market trends and uncover sources of future market growth for the Organic Beverages industry in Norway with research from Euromonitor's team of in-country analysts.
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