Organic Beverages - US

Published by: Mintel International Group Ltd.

Published: Oct. 1, 2007 - 75 Pages

Table of Contents

Scope and Themes

What you need to know

Definition

Resources used for The Consumer sections

A note about the six-year data set

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Market continues to grow, but more slowly

Food safety remains a major market driver

Organic vs. natural: clearer messages are needed

Need for more organic resources in the U.S.

Price is an issue for organic consumers, but conventional prices rising faster

Foodservice embracing the organic movement

Segmenting the organic food market

Major manufacturers include big names and smaller players

FDM channel larger than natural supermarket channel

26% of respondents buy organic beverages

Respondents express concern about organic and non-organic foods

Market Drivers and Future Trends

The integrity of the food supply

The current situation: concern about foodborne illness drives organic purchases

Future trend: Foodborne illness will continue to influence purchase patterns

Market opportunity

Distinguishing between organic and natural products: clearer points of differentiation needed

Figure 1: New food and beverage products making a claim of organic or all natural, 2002-07

Opportunities in being clear about benefits

U.S. organic resources are growing, but not fast enough

Figure 2: Total organic acreage and animal herds, 2000-05

Organic dairy prices remain high, even though supply has increased

The relative price difference between organic and non-organic products

The current situation: the price of conventional foods continues to rise

Figure 3: Price of specific non-organic food items, 2006 and 2007

Future trend: price may not be an issue in the future

Narrowing the gap even more: store brand organics

Organics on the menu: foodservice plays catch-up

Figure 4: Share of green ingredient claims, Q4 2006

Figure 5: Organic ingredients, by dining type, Q4 2006

Food safety vs. health and wellness issues

Market Size and Trends

Figure 6: Total U.S. retail sales of organic beverages, at current and constant prices, 2002-07

Market trends

Figure 7: International new product launches, organic beverages, 2002-07

Organic versions of popular mainstream brands

Organic manufacturers also contribute to market innovation

Store brand/private label launches are significant

Figure 8: International new product launches, private label organic beverages, 2002-07

Market Segmentation

Figure 9: Sales of organic beverages market, segmented by type, 2005 and 2007

Organic non-dairy beverages

Figure 10: Sales of organic non-dairy beverages, at current and constant prices, 2002-07

Organic dairy beverages

Figure 11: Sales of organic dairy beverages, at current and constant prices, 2002-07

Supply Structure

Companies and brands

Figure 12: Manufacturer sales of organic food and drink in the U.S., 2004/05 and 2006/07

Organic non-dairy beverages

Figure 13: Brand sales of organic non-dairy beverages in the U.S., 2005 and 2007

Organic dairy beverages

Figure 14: Brand sales of organic dairy beverages in the U.S., 2005 and 2007

Retail Distribution

Introduction

Figure 15: U.S. retail sales of organic beverages*, by channel, 2005 and 2007

FDM

Figure 16: U.S. FDM sales of organic beverages*, at current and constant prices, 2004-07

Natural food stores

Figure 17: U.S. natural food store* sales of organic beverages, at current and constant prices, 2004-07

The Consumer: Purchase of Organic Products

Summary

Purchase of organic products

Figure 18: Purchase of organic food and beverage products, by gender, age, household income, race/ethnicity and region, July 2007

Frequency of purchasing organics

Figure 19: Frequency of purchase of organic food and drink, by age, July 2007

Where organic products are purchased

Figure 20: Purchase venues for organic foods and beverages, 2006 and 2007

Figure 21: Purchase venues for organic foods and beverages, by age, July 2007

Figure 22: Purchase venues for organic foods and beverages, by income, July 2007

Are farmers’ markets and co-ops preferred for organics?

Figure 23: Purchase of organic food at farmers’ markets and co-ops, by income, July 2007

Types of organic drinks purchased in past year

Figure 24: Types of organic beverages purchased in past year, by age, July 2007

Branded vs. store-branded organic beverages

Figure 25: Branded and store-branded organic beverages purchased, 2006 and 2007

Figure 26: Branded and store-branded organic beverages purchased, by age, July 2007

Figure 27: Branded and store-branded organic beverages purchased, by income, July 2007

The Consumer: Attitudes Towards Organic Products

Summary

Opinions about genetically modified foods

Figure 28: Concern about genetic modification of food, by age, 2006 and 2007

Opinions about organic food and drink

Figure 29: Opinions about organic food and drink, 2006 and 2007

Figure 30: Opinions about organic food and drink, by age, July 2007

Figure 31: Opinions about organic food and drink, by respondents who purchased organic food in the past year, July 2007

Opinions concerning price and availability of organic products

Figure 32: Opinions about price and availability of organic food and drink, by age, July 2006

What respondents look for when purchasing organic beverages

Figure 33: Criteria for purchasing organic beverages, July 2007

Motivations for trying new beverages

Figure 34: Motivations for trying new organic beverages, 2006 and 2007

Forecast

Market forecast

Organic beverages

Figure 35: Forecast of total U.S. retail sales of organic beverages, at current and constant prices, 2007-12

Forecast factors

Appendix: Trade Associations

Abstract

This report provides market data and trends, as well as the results of an exclusive consumer survey about organic beverages. The market has grown 97% between 2002 and 2007. Driven by concern for the integrity of the food supply, the organic beverage market has moved from a natural food store, counter-cultural setting to the mainstream. More than a quarter of respondents to Mintel’s exclusive survey purchased organic beverages in the past year.

Mintel’s report isolates trends in organic beverages, revealing consumer attitudes, concerns, and behavior that will help marketers find opportunities and maximize growth potential.

For this report, organic beverages are defined as those produced according to standards defined by the USDA:

• Crops grown without the use of conventional pesticides, artificial fertilizers, or sewage sludge
• Animals reared without the routine use of antibiotics and without growth hormones
• Food processed without ionizing radiation, and without a wide range of food additives
• Food produced on all levels without the use of genetically modified organisms

Segments include the following:

Dairy beverages

• Milk, half and half, and cream
• Drinkable yogurt and kefir

Non-dairy beverages

• Carbonated, functional and ready-to-drink tea and coffee beverages
• Coffee, coffee substitutes, and cocoa
• Frozen juice and beverages
• Refrigerated juice and functional beverages
• Shelf-stable juice and functional drinks
• Tea
• Water

Not included in this report are private-label brands, and products sold PLU or in bulk.

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