The organic drinks market is currently witnessing significant trends that underscore a growing shift in consumer preferences and a broader movement towards healthier and more sustainable beverage options. One noteworthy trend contributing to the market's expansion is the increasing consumer inclination towards organic and natural beverages. Consumers are seeking alternatives that go beyond traditional drinks, placing a premium on products that offer health benefits and are produced through environmentally friendly practices. This trend aligns with a global awareness of the potential advantages of consuming beverages free from synthetic pesticides, herbicides, and genetically modified organisms.
Another key driver of market trends is the rising popularity of organic and natural teas and coffees. These daily staples have seen a notable shift in consumer preferences, with individuals opting for organic variants. The desire for a more wholesome and natural experience in these widely consumed beverages is propelling the growth of the organic drinks market. Consumers are increasingly associating organic with better taste, quality, and health benefits, leading to a surge in demand for organic tea and coffee products.
The market is also witnessing a positive impact from the broader trend of organic food consumption. As consumers become more health-conscious and environmentally aware, the demand for organic products, including beverages, continues to rise. The organic drinks market benefits from this overarching trend, as consumers seek beverages that align with their overall commitment to a healthier and more sustainable lifestyle.
Furthermore, the desire for transparency and authenticity in food and beverage choices is influencing the market trends of organic drinks. Consumers are more interested in understanding the sourcing and production processes behind the products they consume. This has led to increased scrutiny of labels and certifications, with the organic label becoming a symbol of trust and adherence to high-quality standards. Companies in the organic drinks market are responding by providing clear information about their sourcing practices, production methods, and adherence to organic standards to meet consumer expectations for transparency.
Innovation in product offerings is another significant trend shaping the organic drinks market. Key players are focusing on introducing a diverse range of organic drink varieties to cater to evolving consumer tastes. From unique flavor combinations to functional beverages, the market is witnessing a dynamic array of options that go beyond traditional offerings. This innovation not only caters to the changing preferences of consumers but also enhances the overall appeal of organic drinks in the competitive beverage landscape.
The market trends also highlight the global nature of the organic drinks movement. As awareness of health and environmental issues grows, consumers around the world are embracing organic beverages. The demand for organic drinks is not limited to a specific region, indicating a widespread shift towards conscious and mindful consumption on a global scale.
Organic Drinks Market Size was valued at USD 19.07 billion in 2023. The Organic Drinks industry is projected to grow from USD 21.54 Billion in 2024 to USD 50.76 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.30% during the forecast period (2024 - 2032). Increased health concerns and challenges have led to more expensive operations and more bariatric procedures are the key market drivers enhancing the organic drinks market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
In addition to the related natural health advantages, consumers are adjusting their consumption choices in favor of developing novel tastes. Instead of drinking numerous fizzy drinks, consumers are turning to organic beverages. The industry is seeing a tremendous increase in demand for organic drinks due to the organic trend, which is encouraging the producers. To meet customer demand for organic drinks, more producers of organic beverages are on the market. Thus, this factor is driving the organic drinks market CAGR.
The main factors driving consumer demand are the characteristics and advantages of organic beverages over carbonated and traditional drinks. The beverage industry is expanding due to consumer modernization and urbanization. Due to the numerous health and sensory advantages, people are beginning to choose beverages prepared organically. Organic tea and coffee are two of the most organic drinks with sizable market shares worldwide, which are anticipated to enhance the industry's expansion on a scale.
The market under investigation is being pushed by consumers' increased knowledge of the need to reduce their exposure to the hazardous chemicals used in manufacturing conventional beverages and the advantages of buying organic goods. The popularity of clean-label products and healthier diets also influence the industry under study. The demand for fresher and healthier food and beverage alternatives among consumers worldwide is rising. Innovative packaging and the usage of organic ingredients, which primarily focus on cognitive and physical development and have considerable health advantages, are two additional notable trends in the industry under study. Organic drinks can enhance gut health by preserving gastrointestinal equilibrium and boosting immunity. Because of the rising demand for natural and pure components in organic beverages, the major market players have expanded their product lines to include a wide variety of genuine fruit-based organic beverages. The availability of new flavors and ingredients like turmeric, aloe Vera, and activated charcoal in appealing, convenient-to-transport packaging and in-store packaging, in addition to rising consumer demand for non-sweet, non-caffeinated beverages, is likely to aid in the expansion of the organic beverage industry. Thus, this aspect is anticipated to accelerate organic drinks market revenue globally.
Based on type, the Organic Drinks market segmentation includes Alcoholic and Non-Alcoholic. The non-alcoholic segment dominated the market, accounting for 35% of market revenue. Juices and nectars are the market's largest section and are extremely popular with customers. Due to the accompanying natural advantages, customers drink organic vegetable juices. Athletes, gym goers, and other health-conscious customers are incorporating organic fruit and vegetable drinks like cucumber, spinach, and beetroot juice into their diets. Another beverage created with organic milk and sugar-free sweeteners is organic tea and coffee.
The Organic Drinks market segmentation, based on distribution channels, includes store-based and Non- store based. The store-based category generated the most income. It is projected that mass merchandisers, such as supermarkets and hypermarkets, would be the main distribution channels and be largely in charge of the increase in sales of organic drinks. The massive consumer reliance on supermarkets and hypermarkets for the acquisition of food and alcoholic drinks is anticipated to have a substantial impact on the expansion of organic beverages. Due to their accessibility to consumers and convenience, convenience shops and internet shopping are predicted to have tremendous development in the future.
Figure 1: Organic Drinks Market, by Distribution Channel, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on Packaging Type, the Organic Drinks industry has been segmented into Bottles, Cans and Others. Bottles held the largest segment share in 2022. Food, drink, medicines, personal care & cosmetics, home care, and chemicals are just a few sectors that employ bottle packaging. The availability of new flavors and ingredients like turmeric, aloe Vera, and activated charcoal in appealing, convenient-to-transport packaging and in-store packaging, in addition to rising consumer demand for non-sweet, non-caffeinated beverages, is likely to aid in the expansion of the organic beverage industry. Innovative packaging and the usage of organic ingredients, which primarily focus on cognitive and physical development and have considerable health advantages, are two additional notable trends in the industry under study.
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Organic Drinks market accounted for USD 7.74 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. Consumer use of organic drinks has increased due to the Region's growing interest in health and well-being. In several nations, like the U.S. and Mexico, consumers are embracing the meal replacement trend, raising the demand for organic drinks. The organic drink market is anticipated to increase sales value due to the expansion in demand for such beverages.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: ORGANIC DRINKS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Organic Drinks market accounts for the second-largest market share during the forecast period. Natural and nutritious beverages are becoming more popular among the nation's health-conscious customers. There is a great need for organic beverages in the area since shoppers are concerned about the effects of synthetic components, food additives, and stabilizers used by beverage production corporations. Emerging businesses earn considerable market share through unconventional sales channels like social media and e-commerce. Further, the Germany Organic Drinks market held the largest market share, and the U.K. Organic Drinks market was the fastest-growing market in the European Region.
Asia-Pacific Organic Drinks market is also emerging at a rapid rate. The consumption of alcoholic beverages is rising in countries such as India, China, and Australia. The rising economic conditions and wellness concerns among consumers are shifting towards organic beverages, driving the demand for organic alcoholic beverages throughout the Region and contributing to the growth of the organic beverages market. Moreover, China's Organic Drinks market held the largest market share, and the India Organic Drinks market was the fastest-growing market in the Asia-Pacific region.
Leading industry companies are investing significantly in R&D to broaden their product offerings, which will spur further expansion of the organic drink product market. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants also engage in several strategic actions to increase their worldwide presence. The Organic Drinks industry must offer reasonably priced products to grow and thrive in a more cutthroat and competitive environment.
One of the primary business strategies manufacturers employ in the worldwide Organic Drinks industry to benefit customers and expand the market sector is local manufacturing to reduce operating costs. The Organic Drinks industry has recently provided some of medicine's most important benefits. Major players in the Organic Drinks market, Hain Celestial (U.S.), Suja Life LLC (U.S.), the Coca-Cola Company (U.S.), Danone S.A. (France), Purity Organic LLC (U.S.), the Better Drinks Co. (New Zealand), Parker's Organic Juices Pty Ltd (Australia), Bison Organic Beer (U.S.), James White Drinks Ltd. (U.K.), PepsiCo Inc. (U.S.), Nutrition & Sante Iberia S.L. (Spain), Republica Coffee (Australia), The WhiteWave Foods Company (U.S.), Alnatura Produktions & Handels GmbH (Germany), Parkers Organic Juices PTY LTD (Australia), and others, are attempting to increase market demand by investing in research and development operations.
The only spirits firm that distills its alcoholic beverages using solely natural cane sugar grown in Colombia's Cauca Valley is Drake's Organic Spirits, certified USDA Organic, Gluten Free®, Non-GMO, Vegan, and Kosher. Drake's Organic Spirits debuted a brand-new BOXTAIL flavor in January 2022 called Drake's Perfect Margarita BOXTAIL. It joins Drake's lineup of RTD drinks, including the Black Cherry Limeade, Watermelon-Tini, Mango Punch, and Minted Mojito.
Anheuser-Busch InBev SA/NV, also known as A.B. InBev, is a Belgian beverage and brewing business headquartered in Leuven, Belgium. A worldwide functional management office for A.B. InBev is in New York City. At the same time, regional offices are also located in So Paulo, London, St. Louis, Mexico City, Bremen, and Johannesburg. In March 2022, Anheuser-Busch InBev will introduce a new line of Michelob Ultra hard seltzers that use coconut water as an ingredient. There are four tastes in all in this line: Kiwi Lime, Berry Hibiscus, Strawberry Guava, and Blueberry Watermelon.
Organic Drinks Industry Developments
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