Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Organic beverage market increases 117% in review period
- The biggest competition is from natural products
- Non-dairy beverages lead the market
- FDM channels account for 70% of sales
- Organic beverage market is driven by younger and higher-income shoppers
- Dean Foods leads all other manufacturers in organic beverages and in organic food
- A great number of smaller players
- Innovations in products and positionings
- Who drinks organic beverages?
- Supermarkets top other shopping venues
- Orange juice is most popular organic beverage
- What organic beverage purchasers are seeking
- Why do respondents eat/drink organic?
- Thoughts about organic products
Insights and Opportunities
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- Key points
- Price matters, especially in the current economy
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- Figure 1: Food price changes, by food category, July 2007-July 2008
- But emphasizing quality is a key to retaining customers
- Are organic products better than non-organic products?
Fast Forward Trends
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- Trend 1: Trading up, trading down, trading over
- What’s it about?
- Let’s make an organic deal
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- Figure 2: New product introductions—private label organic beverages, by sector, 2003-08
- Trend 2: Trust in Me
- What’s it about?
- “Most trusted brands” are age-sensitive
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- Figure 3: Top ten “most trusted brands,” 2007 and 2008
- Organics are trustworthy, or are they?
Market Size and Forecast
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- Key points
- An organic tipping point?
- Market sales and forecast
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- Figure 4: Total U.S. sales and forecast of organic beverages, at current prices, 2003-13
- Figure 5: Total U.S. sales and forecast of organic beverages, at inflation-adjusted prices, 2003-13
Competitive Context
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- Key points
- The biggest competition: Natural beverages
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- Figure 6: New product launches of organic and natural beverages, 2003-08
- How important is organic vs. natural?
Segment Performance
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- Key points
- Organic dairy beverage sales catching up
- Segment sales and forecast
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- Figure 7: U.S. sales and forecast of organic beverages, at current prices, by segment, 2003-13
- Figure 8: U.S. sales of organic beverages, by segment, 2006 and 2008
Segment Performance—Non-Dairy Beverages
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- Key points
- Increased variety leads to increased sales
- Organic non-dairy beverage sales and forecast
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- Figure 9: U.S. sales and forecast of non-dairy beverages, 2003-13
Segment Performance—Dairy Beverages
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- Key points
- Organic dairy milk drives the segment
- Organic dairy beverage sales and forecast
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- Figure 10: U.S. sales and forecast organic dairy beverages, 2003-13
Retail Channels
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- Key points
- Sales through FDM channels continue to be strong
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- Figure 11: U.S. sales of organic beverages, by retail channel, 2006 and 2008
Retail Channels—FDM
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- Key points
- FDM channels dominate organic beverage sales
- Biggest competitors are other milk products
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- Figure 12: U.S. sales of organic beverages at FDM channels, 2003-08
Retail Channels—Natural Supermarkets
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- Key points
- Price matters
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- Figure 13: U.S. sales of organic beverages at natural supermarkets, 2003-08
Market Drivers
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- Key points
- Younger consumers more likely to use organic beverages
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- Figure 14: Population, by age, 2003-13
- Organic beverages appeal to higher-income households
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- Figure 15: Household income distribution, 2007
Leading Companies
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- Key points
- Mainstream and natural manufacturers vie for lead in organic food and beverage markets
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- Figure 16: Sales of leading organic food and beverage companies, 2006 and 2008
Brand Share—Non-Dairy Beverages
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- Key points
- Soy beverages lead the market
- Tea: fermented, iced, or regular
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- Figure 17: FDM and natural channel brand sales of organic non-dairy beverages, 2006 and 2008
Brand Share—Dairy Beverages
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- Key points
- Dean Food’s Horizon is market leader
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- Figure 18: FDM and natural channel brand sales of organic dairy beverages, 2006 and 2008
Brand Qualities
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- Key points
- Organic energy drinks
Innovation and Innovators
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- Key points
- Pushing boundaries, organic beverages extend flavor and benefit horizons
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- Figure 19: New product launches, organic beverages, by sector, 2003-08
- Organic beverage claims
- “Compassionate organics”—products showing concern for societies around the world
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- Figure 20: Top ten claims, launches of new organic beverages, 2006-08
Organic Food and Drink Buying
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- Key point
- Purchase of organic food and beverages
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- Figure 21: Purchase of organic food and beverage products, by gender, age, household income, race/Hispanic origin and region, July 2008
Frequency of Purchase
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- Key points
- Young respondents, those from higher-income HH, key to organic market
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- Figure 22: Frequency of purchase of organic food and drink, by age, July 2008
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- Figure 23: Frequency of purchase of organic food and drink, by household income, July 2008
- Purchase frequency steady or up compared to previous year
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- Figure 24: Purchase of organic beverages compared to previous year, July 2008
Purchase Venues for Organic Products
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- Key points
- Natural food stores losing ground, farmers markets see boost
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- Figure 25: Purchase venues for organic foods and beverages, 2006-08
- Figure 26: Number of operating farmers markets, 1994-2008
- Cost is driving factor behind purchase locations
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- Figure 27: Purchase venues for organic foods and beverages, by age, July 2008
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- Figure 28: Purchase venues for organic foods and beverages, by household income, July 2008
Types of Organic Beverages Purchased
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- Key points
- Purchase of all listed organic beverages down from 2007
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- Figure 29: Types of organic beverages purchased in past year, 2007 and 2008
- Males important to growth of organic orange juice, beer and wine
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- Figure 30: Types of organic beverages purchased in past year, by gender, July 2008
What Purchasers Look for in Organic Beverages
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- Key points
- No artificial ingredients or preservatives falling in importance
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- Figure 31: Criteria for purchasing organic beverages, 2007 and 2008
Branded or Private Label?
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- Key points
- Preference for name brands not apparent, half buy “whatever is available”
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- Figure 32: Branded and store-branded organic beverages purchased, 2006-08
Reasons for Eating Organic Products
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- Key points
- Health concerns important, but reasons for eating vary greatly
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- Figure 33: Reasons for eating organic foods and beverages, July 2008
Genetic Modification of Food
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- Concern with GMOs steady over time
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- Figure 34: Concern about genetic modification of food, by age, 2006-08
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- Figure 35: Concern about genetic modification of food, by gender, age, household income and race/Hispanic origin, July 2008
Distinguishing between Natural and Organic
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- Less than half distinguish between natural and organic foods
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- Figure 36: Distinguishing between natural and organic foods/beverages, by gender, age, household income and race/Hispanic origin, July 2008
Opinions about Organic Foods and Beverages
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- Key points
- Trends in organic opinions
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- Figure 37: Opinions about organic food and drink, 2006-08
- Older consumers most resistant to organic products
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- Figure 38: Opinions about organic food and drink, by age, July 2008
Reasons for Not Purchasing Organic Foods and Beverages
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- Key points
- Highest-income non-users demonstrate most resistance
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- Figure 39: Reasons for not purchasing organic food and beverages, by household income, July 2008
Cluster Analysis—Organic Enthusiasts, Occasional Organics, Aspirational Organics
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- Organic enthusiasts
- Occasional Organics
- Aspirational Organics
- Cluster characteristics
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- Figure 40: Organic beverage purchaser clusters, July 2008
- Figure 41: Organic food purchase, by cluster, July 2008
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- Figure 42: Frequency of purchase of organic food and drink, by cluster, July 2008
- Figure 43: Purchase venues for organic foods and beverages, by cluster, July 2008
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- Figure 44: Organic drink purchases, by cluster, July 2008
- Figure 45: Criteria for purchasing organic beverages, by cluster, July 2008
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- Figure 46: Branded and store-branded organic beverages purchased, by cluster, July 2008
- Figure 47: Reasons for eating organic foods and beverages, by cluster, July 2008
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- Figure 48: Organic beverage purchase habits, by cluster, July 2008
- Figure 49: Food concern and differentiation, by cluster, July 2008
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- Figure 50: Attitudes towards organic food and beverages, by cluster, July 2008
- Cluster demographics
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- Figure 51: Organic beverage purchaser clusters, by gender, July 2008
- Figure 52: Organic beverage purchaser clusters, by age, July 2008
- Figure 53: Organic beverage purchaser clusters, by household income, July 2008
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- Figure 54: Organic beverage purchaser clusters, by race/Hispanic origin, July 2008
- Methodology
Custom Consumer Groups—Moms and Females without Children
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- Figure 55: Purchase of organic food and beverage products and reason for purchase, by moms/females without children, July 2008
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- Figure 56: Purchase venues for organic foods and beverages, by moms/females without children, July 2008
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- Figure 57: Organic drink purchases, by moms/females without children, July 2008
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Appendix: Other Useful Consumer Tables
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- Reasons for eating/drinking organic food and beverages
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- Figure 58: Reasons for eating organic foods and beverages, by age, July 2008
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- Figure 59: Reasons for eating organic foods and beverages, by race/Hispanic origin, July 2008
Appendix: Trade Associations
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