Organic Beverages - US - September 2008

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Sales data
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• 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
• Market Size and Forecast
• Key points
• An organic tipping point?
• Market sales and forecast
  • 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
• Key points
• The biggest competition: Natural beverages
  • Figure 6: New product launches of organic and natural beverages, 2003-08
• How important is organic vs. natural?
• Segment Performance
• Key points
• Organic dairy beverage sales catching up
• Segment sales and forecast
  • 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
• Key points
• Increased variety leads to increased sales
• Organic non-dairy beverage sales and forecast
  • Figure 9: U.S. sales and forecast of non-dairy beverages, 2003-13
• Segment Performance--Dairy Beverages
• Key points
• Organic dairy milk drives the segment
• Organic dairy beverage sales and forecast
  • Figure 10: U.S. sales and forecast organic dairy beverages, 2003-13
• Retail Channels
• Key points
• Sales through FDM channels continue to be strong
  • Figure 11: U.S. sales of organic beverages, by retail channel, 2006 and 2008
• Retail Channels--FDM
• Key points
• FDM channels dominate organic beverage sales
• Biggest competitors are other milk products
  • Figure 12: U.S. sales of organic beverages at FDM channels, 2003-08
• Retail Channels--Natural Supermarkets
• Key points
• Price matters
  • Figure 13: U.S. sales of organic beverages at natural supermarkets, 2003-08
• Market Drivers
• Key points
• Younger consumers more likely to use organic beverages
  • Figure 14: Population, by age, 2003-13
• Organic beverages appeal to higher-income households
  • Figure 15: Household income distribution, 2007
• Leading Companies
• Key points
• Mainstream and natural manufacturers vie for lead in organic food and beverage markets
  • Figure 16: Sales of leading organic food and beverage companies, 2006 and 2008
• Brand Share--Non-Dairy Beverages
• Key points
• Soy beverages lead the market
• Tea: fermented, iced, or regular
  • Figure 17: FDM and natural channel brand sales of organic non-dairy beverages, 2006 and 2008
• Brand Share--Dairy Beverages
• Key points
• Dean Food' s Horizon is market leader
  • Figure 18: FDM and natural channel brand sales of organic dairy beverages, 2006 and 2008
• Brand Qualities
• Key points
• Organic energy drinks
• Innovation and Innovators
• Key points
• Pushing boundaries, organic beverages extend flavor and benefit horizons
  • Figure 19: New product launches, organic beverages, by sector, 2003-08
• Organic beverage claims
• "Compassionate organics"--products showing concern for societies around the world
  • Figure 20: Top ten claims, launches of new organic beverages, 2006-08
• Organic Food and Drink Buying
• Key point
• Purchase of organic food and beverages
  • Figure 21: Purchase of organic food and beverage products, by gender, age, household income, race/Hispanic origin and region, July 2008
• Frequency of Purchase
• Key points
• Young respondents, those from higher-income HH, key to organic market
  • Figure 22: Frequency of purchase of organic food and drink, by age, July 2008
  • Figure 23: Frequency of purchase of organic food and drink, by household income, July 2008
• Purchase frequency steady or up compared to previous year
  • Figure 24: Purchase of organic beverages compared to previous year, July 2008
• Purchase Venues for Organic Products
• Key points
• Natural food stores losing ground, farmers markets see boost
  • 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
  • Figure 27: Purchase venues for organic foods and beverages, by age, July 2008
  • Figure 28: Purchase venues for organic foods and beverages, by household income, July 2008
• Types of Organic Beverages Purchased
• Key points
• Purchase of all listed organic beverages down from 2007
  • Figure 29: Types of organic beverages purchased in past year, 2007 and 2008
• Males important to growth of organic orange juice, beer and wine
  • Figure 30: Types of organic beverages purchased in past year, by gender, July 2008
• What Purchasers Look for in Organic Beverages
• Key points
• No artificial ingredients or preservatives falling in importance
  • Figure 31: Criteria for purchasing organic beverages, 2007 and 2008
• Branded or Private Label?
• Key points
• Preference for name brands not apparent, half buy "whatever is available"
  • Figure 32: Branded and store-branded organic beverages purchased, 2006-08
• Reasons for Eating Organic Products
• Key points
• Health concerns important, but reasons for eating vary greatly
  • Figure 33: Reasons for eating organic foods and beverages, July 2008
• Genetic Modification of Food
• Concern with GMOs steady over time
  • Figure 34: Concern about genetic modification of food, by age, 2006-08
  • Figure 35: Concern about genetic modification of food, by gender, age, household income and race/Hispanic origin, July 2008
• Distinguishing between Natural and Organic
• Less than half distinguish between natural and organic foods
  • 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
• Key points
• Trends in organic opinions
  • Figure 37: Opinions about organic food and drink, 2006-08
• Older consumers most resistant to organic products
  • Figure 38: Opinions about organic food and drink, by age, July 2008
• Reasons for Not Purchasing Organic Foods and Beverages
• Key points
• Highest-income non-users demonstrate most resistance
  • Figure 39: Reasons for not purchasing organic food and beverages, by household income, July 2008
• Appendix: Other Useful Consumer Tables
• Reasons for eating/drinking organic food and beverages
  • Figure 58: Reasons for eating organic foods and beverages, by age, July 2008
  • Figure 59: Reasons for eating organic foods and beverages, by race/Hispanic origin, July 2008
• Appendix: Trade Associations