News | January 1, 2018

Global Organic Food And Beverages Market - New Product Launches To Promote Growth | Technavio


Technavio’s latest market research report on the global organic food and beverages marketprovides an analysis of the most important trends expected to impact the market outlook from 2017-2021. The market is predicted to grow at a CAGR of close to 14% by 2021. Technaviodefines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.

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Technavio has published a new market research report on the global organic food and beverages market ...

Technavio has published a new market research report on the global organic food and beverages market 2017-2021 under their food and beverages library. (Graphic: Business Wire)

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The top three emerging market trends driving the global organic food and beverages market according to Technavio research analysts are:

  • Innovation in products and new product launches
  • Increased marketing and promotions
  • Growing demand for organic wine

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Innovation in products and new product launches

Growth in the organic food and beverages market has been steady and strong. To remain lucrative this market requires product innovations and dynamism. Innovation in terms of nutrition and health are the main focus of producers of organic products. Consumers are becoming gradually aware of the ill-effects associated with the consumption of inorganic products, and in order to gain greater market share the organic products manufacturers are developing greater varieties and newer products. Organic bamboo tea, organic soy sauce, and biological milk are some of the well-admired innovations in the organic food and beverages market.

According to Manjunath Reddy, a lead analyst at Technavio for food “Due to the presence of a number of small and international brands, the organic food and beverages market is experiencing high competition. To maintain market share and customer base, vendors are trying to launch innovative food products. Manufacturers are developing new varieties of organic food by formulating new ingredient combinations, and flavors.”

Increased marketing and promotions

Many vendors in the European market are spending heavily on marketing and promotional activities to target all the consumer segments in the organic food and beverage market. Through various marketing campaigns and activities, and through various media, they are trying to build a large consumer base in Europe. Retailers are also carrying out various promotional activities such as live cooking, in-store promotions, price cuts, and free samples to market their own brands or other company’s brands. Such initiatives help increase the demand for their products. It is necessary for vendors to launch effective marketing campaigns for their products by leveraging on unique features and benefits of the product such as the use of natural and organic ingredients and regulatory bodies' approvals due to the increase in competition in the market.

Growing demand for organic wine

Due to the increasing popularity of organic food and beverages and increasing health consciousness among the consumers, the demand for organic wine is increasing in the Americas. The demand for organic wine is expected to remain high during the forecast period. The switch to organic winemaking owing to the increasing demand from consumers is being adopted more and more among winemakers in Brazil. Supermarkets and convenience stores in Brazil are including certified organic wines on their shelves. The demand for organic wine in Mexico is also high.

“In the APAC region, the demand for organic wine is increasing due to the rise in health consciousness among the consumers. 37 million people will reach drinking age in China and this proves to an attractive target for players in the market. Online channel distribution is expected to drive the market in China during the forecast period.” says Manjunath.

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