Organic Beverages in the US

PROSPECTS

Organic hot drinks key to a premium coffee and tea experience

Organic products are not sought in isolation when it comes to hot drinks. Instead, consumers who are looking for high-quality coffee and tea expect the products to be organic by necessity.

Organic certification an advantage for premium juice

Organic fruit/vegetable juice continued to perform well in 2018 despite the decline in the overall juice category. As Americans become more aware of the growing processes as well as the types of certifications available for fruit and vegetables that can be used in the production of juice, they are increasingly opting for beverages made from organic sources rather than conventional ones.

Consumers increasingly embrace organic RTD tea

Interest in brewed tea products with organic production methods is significantly higher than in other beverage categories. As consumer knowledge about tea production methods increases over the forecast period, it can be expected that organic RTD tea will continue to benefit and post consistent growth.

COMPETITIVE LANDSCAPE

Welch’s loses ground to private label in organic fruit/vegetable juice

Private label fruit/vegetable juice manufacturers have begun to take advantage of the increased draw that organic certification provides by releasing their own products with this certification. Until recently, organic certification was pursued mainly by manufacturers of premium fruit/vegetable juice.

Coca-Cola, Pepsi and Citrus World face tough competition from smaller producers

Coca-Cola, Pepsi and Citrus World characterise the orange juice category both in concentrates and 100% juice varieties. As orange juice has struggled in recent years due mostly to health and wellness concerns, leading players have also failed to introduce any new varieties, such as organic versions.

Small market share for organic beverages as consumers prioritise other HW attributes

Organic beverages accounted for a small share of the overall HW beverages market in the US in 2018. Much of this lack of popularity stems from consumer priorities, where they are more concerned about the sugar content in their beverages than buying products specifically for their organic credentials.

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