Organic beverages are extracted from or created from organic sources. They don’t contain any type of synthetic pesticide, artificial flavor, growth hormone, or preservative. They offer a number of health benefits, such as boosting the immune system, balancing cholesterol, boosting oxygenation, and improving skin health. Besides, organic beverages come in two varieties: alcoholic and non-alcoholic.
Market Drivers and Stats
According to OMR Research, the global organic beverage market is projected to grow at a CAGR of 13% during the forecast period (2023-2029). The major factor that is driving the market’s growth is the increasing number of health-minded people, since these beverages offer a variety of health benefits and are GMO-free. Parents are also replacing their children’s normal drinks and juices with organic ones. According to the Organic Trade Association's statistics, 81% of family customers with children claimed they occasionally use organic beverages.
Additionally, the gluten-free property and natural flavor of organic beverages are becoming increasingly popular across the globe due to the increasing celiac diseases. Individuals are preferring beers or other drinks made from organic ingredients that are gluten-free as well. Moreover, according to MDPI’s report in 2020, beer is the most consumed beverage across the globe. Hence, the organic beer segment will hold the largest share of the market in the coming years as well.
The companies are also offering organic ingredients to food and beverage manufacturers, which simplifies the manufacturing process of such products due to the ease of ingredient availability. Recently, in January 2023, Fiberstar, Inc., the pioneer of unique citrus fibers, introduced the Citri-Fi® 400 series of organic citrus fibers. These novel citrus fibers are being developed in response to rising consumer demand for natural, sustainable, and organic food components. Due to its dual functionality, Citri-Fi 400 enhances the texture, stability, and nutrition of a wide range of foods and beverages at less than 1% usage rate.
Further, the increase of distribution channels such as online and offline in the market is also proliferating the market’s growth. Due to the high demand for chilled and alcoholic beverages, offline channels account for the majority of the market.
Recent Developments
The key companies in the market include Anheuser-Busch InBev, Bison Organic Beer, Danone SA, Drake's Organic Spirits LLC, James White Drinks, Lacorata Beverage LLC, Nestle SA, Organic Valley, PepsiCo Inc., PS Organic LLC, SYSTM Foods Inc., Whitewave Foods Company, and others. These companies are offering a variety of new products to the market on a regular basis and expanding their market reach through various marketing activities, resulting in increased market growth. Some recent developments in the market include-
• In January 2023, Califia Farms, a leading premium plant-based beverage brand, added USDA-certified Organic Oatmilk and Almondmilk to its portfolio of dairy-free products. With only three basic ingredients—purified water, sea salt, and oats or almonds—and no oils or gums, the company built its current offerings to fulfill the demands of consumers looking for goods with fewer ingredients at an affordable price range. They are sold at Kroger, Whole Foods Market, Sprouts Farmers Market, and other locations around the country.
• In January 2023, Speakeasy, a US alcohol e-commerce site, partnered with Sorel to debut the liqueur brand online. Sorel is available in three sizes on Speakeasy's official website. Sorel is prepared from Moroccan hibiscus, Brazilian clove, Indonesian cassia, Nigerian ginger, Indonesian nutmeg, cane sugar, and organic grain alcohol and is inspired by a classic Caribbean cocktail.
• In November 2022, RECOUP® Beverage introduced a new range of organic, vegan recovery beverages at Showfields' newest concept, House of Showfields, in Brooklyn. The beverages are non-GMO Project Verified, vegan, kosher certified, gluten-free, and available in three "ginger-powered" varieties.
• In September 2022, Uncle Matt's Organic introduced two new products for children- No Sugar Added Strawberry Lemonade Juice Boxes and No Sugar Added Lemonade Juice Boxes. These beverages are sold at stores around the US, including Whole Foods Market, The Fresh Market, and MOM's Organic Market.
• In August 2022, Freshie, a zero-carbon beverage company and the first USDA-certified organic tequila seltzer brand, launched its new tequila seltzer packs in Grapefruit-Guava and Blood Orange-Habanero flavors.