Dive Brief:
- Three emerging trends will expand the organic drink market through 2020, Technavio’s research found.
- The trends are tied to increases in product innovations, the expansion in the number of private label brands, and the expansion of organic wines and beers.
- The proximity to organic crops and arable land bodes well for North America as the key market for the consumption of organic drinks.
Dive Insight:
Other factors at play in the global expansion of this market include government regulations to curb the use of artificial flavors and ingredients in foods and beverages, and the widening of distribution channels for organics.
Ingredient manufacturers will find many ways to tap into the three emerging trends, including supporting companies in developing beverage variants. What’s more, companies such as PepsiCo are filling vending machines with better-for-you drinks; Technavio believes similar initiatives will further spark the growth of the organic drink market.
Supplying ingredients to private label organic drink brands is yet another opportunity. Private labels made up a fifth of the USD $530 billion food and beverage market in 2013; the market is expected to grow at a CAGR of 4%, reaching nearly $122 billion by 2018.
Another opportunity is to supply ingredients used in the production of organic beers and wines, a market which is expected to expand at a rate of 24.5% from 2013 to 2019. Organic craft beers are also making a splash, where sales expanded 20.7% between December 2013 and 2014.
