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Organic Soft Drinks Global Market Report 2020-30: Covid 19 Growth and Change

Organic Soft Drinks Global Market Report 2020-30: Covid 19 Growth and Change

  • June 2020
  • 200 pages
  • ID: 5917858
  • Format: PDF
  • The Business Research Company

Summary

Table of Contents

Major players in the organic soft drinks market are Berrywhite, Honest Tea, Luscombe, Phoenix Organics, Galvanina, Bionade, Hain Celestial Group, and Suja Life.

The global organic soft drinks market is expected to decline from $5.55 billion in 2019 to $5.33 billion in 2020 at a compound annual growth rate (CAGR) of -3.84%. The decline is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and other commercial activities. The entire supply chain has been disrupted, impacting the market negatively. The market is then expected to recover and reach $6.80 billion in 2023 at a CAGR of 8.42%.

The organic soft drinks market consists of the sale of organic soft drinks and related services. Organic soft drinks are drinks made from fresh organic fruits or vegetables grown on farms without insecticides or pesticides, products made without ionizing radiation and without the use of a wide variety of food additives.

North America was the largest region in the organic soft drinks market in 2019.

In September 2018, Keurig Dr Pepper, a USA-based producer and distributor of hot and cold beverages acquired Core Nutrition LLC which produces bottled water and organic beverages for $525 million. This acquisition helps KDP to cater to the customers preferring organic drinks and will help the company realize its full growth potential. Core Nutrition is a start-up founded in 2015 that manufactures Core Hydration and Core Organic, the former being a nutrient-enhanced bottled water and latter an organic fruit-infused beverage.

The organic soft drinks market covered in this report is segmented by product type into organic soft fruit drinks; organic soda pops; others and by distribution into supermarket; convenience store; online store.

The high cost of organic products including soft drinks acts as a hindrance to the organic soft drinks markets. The cost of organic soft drinks is high when compared with that of conventional soft drinks. For example, the cost of Galvanina - Cola sparkling soda 350ml is $82.99 for 12 bottles, whereas the cost of 15 bottles of coco-cola 330ml cost around $27. Some of the factors which contribute to the high price of organic soft drinks are that these have no chemicals and need more labor, the gap between demand and supply, post-harvest handling cost, organic certification, cost of covering higher loss, organic food grows more slowly, all of which are a cost to the company that eventually leads to an increase in the product cost. Consequently, the high cost is causing a hindrance to the growth of the organic soft drinks market.

Cannabidiol and hemp (CBD) are a new category of drinks that are fast-growing among organic soft drinks. According to the survey of 230 natural brands by New Hope Network in January 2019, 65% of the respondents reckon to launch a new CBD product within a span of 1 to 2 years. Organic soft drink companies are coming up with new CBD drinks especially in the USA, owing to the USA farm bill in 2018 that supports the companies to sell CBD beverages. Sati organics is selling CBD infused soda in 3 flavors. There will be a rise in the CBD drinks in the forecast period.

Increasing awareness of the benefits of organic foods and beverages have contributed to the growth of the organic soft drink market. Organic soft drinks are made from products produced by organic farming which does not contain artificial flavors and preservatives which contain natural sweetening agents, low calories and high nutritional value. People are becoming more health-conscious and are looking for more organic food products that they feel are healthier and safer for the environment. According to a report by Mintel in October 2019, new launches in the food and beverage industry which are certified organic have seen growth from 6% in 2009 to 10% in 2019. Similarly, according to another report on organic soda pops in July 2018, there is an increase in the market share of organic soda in the USA to 22% in the last five years from 428 million USD in 2011 to 541 million USD in 2016. The increased awareness of the benefits of organic foods has helped in the growth of the organic soft drinks market.



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