Global organic beverage market is projected to grow at a CAGR of 12.3% during the forecast period (2020 - 2025).

  • The growth in the Organic beverage market is largely driven by demand for natural and clean label products among the consumers globally.
  • The North American region is the largest market for organic beverages with Asia-Pacific is projected to grow at a faster rate during the forecast period. The Increasing awareness level for organic products among the consumers as well as the continuous launch of new product variants is supporting the organic beverages market growth across the Asia Pacific region.
  • Anheuser-Busch InBev, Nestl SA, PepsiCo (Lipton), Danone SA (Horizon Organic) and Parkers Organic Juices are the major players who are operating in this market.

Key Market Trends

Non-Alcoholic Beverages Leading the Organic Beverage market

Globally, there is an increase in demand for organic beverages as consumers are becoming health conscious and are preferring beverages that are free from flavoring agents, preservatives and synthetic pesticide-free. Fruits and Vegetables contributed to a major share among Non-alcoholic beverages owing to their high nutrient content. Manufacturers are focusing on new product development by bringing various blends of fruit and vegetable juices to attract the consumer base. Further, companies have embraced the organic trend by reformulating their beverages brands, including juice, tea, coffee, and dairy products or introducing a new product line. With an increase in supportive policies from various countries towards organic business, the market growth for Non-alcoholic beverages is expected to grow further during the forecast period.

North America is the Largest market for Organic beverages

North America remains to be the largest market for organic beverages owing to the shift in consumer interest towards natural and clean label products. In the United States, organic products, including beverages have shifted from being a lifestyle choice to being consumed at least occasionally by the majority of Americans. Organic fruit and vegetable juices continued to perform well as consumers become more aware of the growing process and as well as certifications such as USDA, which is driving them to go for beverages from organic sources rather than conventional ones. With the number of private-label beverage manufacturers entering the segment, the market for organic beverages is projected to grow further during the forecast period.

Competitive Landscape

Anheuser-Busch InBev, Nestl SA, PepsiCo (Lipton), Danone SA (Horizon Organic) and Parkers Organic Juices are the major companies that are operating in this market. These companies are embarking into mergers and acquisitions and new product development as their key strategies to strengthen their position and optimize their offerings respectively.

Apr 2017: Danone acquired WhiteWave to expand its product portfolio for dairy products. Further, the acquisition will strengthen the company’s product line with brands including Horizon Organic milk.

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