Organic Beverages - US

Published by: Mintel International Group Ltd.

Published: Sep. 1, 2008 - 65 Pages

Table of Contents

Scope and Themes

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Organic beverage market increases 117% in review period

The biggest competition is from natural products

Non-dairy beverages lead the market

FDM channels account for 70% of sales

Organic beverage market is driven by younger and higher-income shoppers

Dean Foods leads all other manufacturers in organic beverages and in organic food

A great number of smaller players

Innovations in products and positionings

Who drinks organic beverages?

Supermarkets top other shopping venues

Orange juice is most popular organic beverage

What organic beverage purchasers are seeking

Why do respondents eat/drink organic?

Thoughts about organic products

Market Size and Forecast

Key points

An organic tipping point?

Market sales and forecast

Figure 4: Total U.S. sales and forecast of organic beverages, at current prices, 2003-13

Figure 5: Total U.S. sales and forecast of organic beverages, at inflation-adjusted prices, 2003-13

Competitive Context

Key points

The biggest competition: Natural beverages

Figure 6: New product launches of organic and natural beverages, 2003-08

How important is organic vs. natural?

Segment Performance

Key points

Organic dairy beverage sales catching up

Segment sales and forecast

Figure 7: U.S. sales and forecast of organic beverages, at current prices, by segment, 2003-13

Figure 8: U.S. sales of organic beverages, by segment, 2006 and 2008

Segment Performance—Non-Dairy Beverages

Key points

Increased variety leads to increased sales

Organic non-dairy beverage sales and forecast

Figure 9: U.S. sales and forecast of non-dairy beverages, 2003-13

Segment Performance—Dairy Beverages

Key points

Organic dairy milk drives the segment

Organic dairy beverage sales and forecast

Figure 10: U.S. sales and forecast organic dairy beverages, 2003-13

Retail Channels

Key points

Sales through FDM channels continue to be strong

Figure 11: U.S. sales of organic beverages, by retail channel, 2006 and 2008

Retail Channels—FDM

Key points

FDM channels dominate organic beverage sales

Biggest competitors are other milk products

Figure 12: U.S. sales of organic beverages at FDM channels, 2003-08

Retail Channels—Natural Supermarkets

Key points

Price matters

Figure 13: U.S. sales of organic beverages at natural supermarkets, 2003-08

Market Drivers

Key points

Younger consumers more likely to use organic beverages

Figure 14: Population, by age, 2003-13

Organic beverages appeal to higher-income households

Figure 15: Household income distribution, 2007

Leading Companies

Key points

Mainstream and natural manufacturers vie for lead in organic food and beverage markets

Figure 16: Sales of leading organic food and beverage companies, 2006 and 2008

Brand Share—Non-Dairy Beverages

Key points

Soy beverages lead the market

Tea: fermented, iced, or regular

Figure 17: FDM and natural channel brand sales of organic non-dairy beverages, 2006 and 2008

Brand Share—Dairy Beverages

Key points

Dean Food’s Horizon is market leader

Figure 18: FDM and natural channel brand sales of organic dairy beverages, 2006 and 2008

Brand Qualities

Key points

Organic energy drinks

Innovation and Innovators

Key points

Pushing boundaries, organic beverages extend flavor and benefit horizons

Figure 19: New product launches, organic beverages, by sector, 2003-08

Organic beverage claims

“Compassionate organics”—products showing concern for societies around the world

Figure 20: Top ten claims, launches of new organic beverages, 2006-08

Organic Food and Drink Buying

Key point

Purchase of organic food and beverages

Figure 21: Purchase of organic food and beverage products, by gender, age, household income, race/Hispanic origin and region, July 2008

Frequency of Purchase

Key points

Young respondents, those from higher-income HH, key to organic market

Figure 22: Frequency of purchase of organic food and drink, by age, July 2008

Figure 23: Frequency of purchase of organic food and drink, by household income, July 2008

Purchase frequency steady or up compared to previous year

Figure 24: Purchase of organic beverages compared to previous year, July 2008

Purchase Venues for Organic Products

Key points

Natural food stores losing ground, farmers markets see boost

Figure 25: Purchase venues for organic foods and beverages, 2006-08

Figure 26: Number of operating farmers markets, 1994-2008

Cost is driving factor behind purchase locations

Figure 27: Purchase venues for organic foods and beverages, by age, July 2008

Figure 28: Purchase venues for organic foods and beverages, by household income, July 2008

Types of Organic Beverages Purchased

Key points

Purchase of all listed organic beverages down from 2007

Figure 29: Types of organic beverages purchased in past year, 2007 and 2008

Males important to growth of organic orange juice, beer and wine

Figure 30: Types of organic beverages purchased in past year, by gender, July 2008

What Purchasers Look for in Organic Beverages

Key points

No artificial ingredients or preservatives falling in importance

Figure 31: Criteria for purchasing organic beverages, 2007 and 2008

Branded or Private Label?

Key points

Preference for name brands not apparent, half buy “whatever is available”

Figure 32: Branded and store-branded organic beverages purchased, 2006-08

Reasons for Eating Organic Products

Key points

Health concerns important, but reasons for eating vary greatly

Figure 33: Reasons for eating organic foods and beverages, July 2008

Genetic Modification of Food

Concern with GMOs steady over time

Figure 34: Concern about genetic modification of food, by age, 2006-08

Figure 35: Concern about genetic modification of food, by gender, age, household income and race/Hispanic origin, July 2008

Distinguishing between Natural and Organic

Less than half distinguish between natural and organic foods

Figure 36: Distinguishing between natural and organic foods/beverages, by gender, age, household income and race/Hispanic origin, July 2008

Opinions about Organic Foods and Beverages

Key points

Trends in organic opinions

Figure 37: Opinions about organic food and drink, 2006-08

Older consumers most resistant to organic products

Figure 38: Opinions about organic food and drink, by age, July 2008

Reasons for Not Purchasing Organic Foods and Beverages

Key points

Highest-income non-users demonstrate most resistance

Figure 39: Reasons for not purchasing organic food and beverages, by household income, July 2008

Appendix: Other Useful Consumer Tables

Reasons for eating/drinking organic food and beverages

Figure 58: Reasons for eating organic foods and beverages, by age, July 2008

Figure 59: Reasons for eating organic foods and beverages, by race/Hispanic origin, July 2008

Appendix: Trade Associations

Abstract

• How the market has grown over the past six years, and how Mintel projects sales will increase through 2013
• The forces driving the organic beverage market and the importance of providing products that appeal to the two major user groups: younger adults and higher-income consumers
• The opportunities that will grow the market in the future-as well as those that may cause its sales to slow: the effects of higher food prices and the importance of quality
• The key players in the marketplace, both in dairy and in non-dairy beverages
• What consumers feel is important when they choose organic beverages; how and where they shop for these products; and how they feel about organic products in general

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 250,000 market research reports, company profiles and country profiles from over 650 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.