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
- Milk, half and half, and cream
- Drinkable yogurt and kefir
- 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
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
- igure 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
