Organic Beverages in Poland

PROSPECTS

Widening availability impacts sales of organic beverages

The main hindrance to the growth of organic drinks in Poland is their lack of availability, as they are mainly sold via specialist shops and the internet. As a result, they lack a presence in major retailers, which helps explain the small size of the category in Poland.

Strong performance of organic fruit/vegetable juice

The dynamic growth of organic farms in Poland (from 3,700 farms in 2004 to 23,400 in 2017), due to their higher profitability than regular ones, is directly influencing the good performance of organic beverages. To date these farms mainly focus on the production of fruit and vegetables which are retailed through vegetable markets and shops, although an increasing number of juice manufacturers are cooperating with farmers, making organic fruit and vegetable juice available to the masses via distribution networks across Poland.

Issues regarding awareness of organic drinks

The main handicap to the potential growth of organic beverages over the forecast period will be a lack of consumer knowledge about the properties of organic products. Some Poles know that organic products do not contain chemicals and that they are produced in a controlled climate and in an environmentally friendly manner.

COMPETITIVE LANDSCAPE

Dual leadership

Two companies – Zywnosc Ekologiczna Bio Food and Symbio Polska – led organic beverages in Poland in 2018. These two domestic players mainly benefitted from their focus on organic 100% fruit and juice, originated from certificated domestic eco-farms and imported drinks with organic certificates.

Organic beverages category heads towards concentration

While there were a small number of organic manufacturers in Poland in 2018, their number is unlikely to increase soon. In fact, despite the rapid sales growth, concentration among the largest companies has taken place at the expanse of the smallest players.

Lack of private label

Unlike most HW beverages, organic beverages is almost completely deprived of private label. High production costs, the requirement for an extensive and costly certification process, paired with manufacturers’ unwillingness to cooperate with large transnational giants, which usually do not profess to environmental-friendliness of organic producers, were the main reasons for the lack of presence of private label in organic beverages.

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