Organic Beverages in the United Kingdom

PROSPECTS

Organic claims remain widespread in hot drinks...

Organic beverages continued to experience steady retail current value growth in the UK in 2019, showing consistent growth as consumers continued to place more trust in organic variants and were willing to pay a premium price for such beverages. In addition, packaging and wider environmental issues are continuing to influence shoppers’ decisions, leading them to be more careful in their purchases.

...and post timid, yet promising growth in soft drinks

Traditionally, organic products have struggled to maintain stable growth in soft drinks, as manufacturers tend to invest in new flavours and formats rather than ethical claims in their business strategy. In soft drinks, sales of organic beverages remain low as they require more complex production and sourcing of ingredients.

Independent outlets and home delivery fuel the growth of organic products

As consumers across the UK continue to face busier lifestyles, no longer do they peruse aisles of products at their local grocery store to get their shopping for dinner or restock their cupboards. Today, grocery shopping has moved online, with home delivery posting continued growth as consumers enjoy selecting products from the comfort of their own homes.

COMPETITIVE LANDSCAPE

Pukka gains ground in organic hot drinks

Benefiting from the strong support of leading player Unilever, Pukka continued to grow in organic tea in 2019, thanks to its wider portfolio and impressive flavour options. This enabled the brand to drive growth in organic green tea.

Opportunities for growth in organic soft drinks

With continued innovation in the soft drinks landscape, a few beverage manufacturers are investing in organic and ethical claims to provide product differentiation in this increasingly competitive environment. Whole Earth continues to expand in carbonates with Organic Sparkling Elderflower Drink, Organic Lemonade and Organic Ginger, while Karma Cola is challenging the existing cola players with its organic and fair trade soft drinks, publishing all its ingredients on-pack.

Private label struggles to innovate in organic beverages

As the consumption of organic products is often linked to the consumer preference for local brands and the trend of moving away from big multinationals, there is an opportunity for local players to make their mark in the organic segment. In terms of private label, discounters such as Aldi and Lidl are setting the agenda for organic products, but have struggled to invest in organic beverages.

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