Organic juice market maintains strong double digit growth
propel the organic juice sales in North America to increase by a
considerable 21.4 per cent in 2005, claims UK market analysts
Organic Monitor.
Data from the London-based firm implies the market is showing rapid expansion due to higher consumer demand for organic beverages, combined , crucially, with a rise in retailer penetration.
Large conventional juice firms are now bustling for a slice of the growing market, launching organic versions of their juice products.
They are dominating the supply side, either acquiring organic juice firms or adding organic juices to their product lines.
"Companies with extensive distribution networks have taken up high market share relatively quickly in a market that increasingly resembles the conventional juices market," says the report.
Their entry into the market has consequently improved the flow of volume to supermarkets and discount stores, contributing again to wider penetration and easier access for consumers.
"Although natural food shops still dominate with 59 per cent market share, mainstream retailers are forecast to comprise most organic juice sales from 2007 onwards," claims the report.
The growing number of organic juices marketed under retailer private labels is also boosting sales volume. Private labels have had most impact in the Canadian market where they comprise over 30 per cent of all organic juice sales. The high market share is due to an absence of national brands, with the majority of organic juices imported from the US, say the market researchers.
Not surprisingly, the study found that sourcing raw materials is becoming a major problem for organic juice producers since the Florida hurricanes.
The hurricanes that swept through the US last year caused great devastation to many crops. Grapefruit prices, in particular, soared: grapefruit oil that had retailed for around $10-$11 a kilo for the past five years, was suddenly worth $75-$80 a kilo.
And undersupply remains a feature of the refrigerated organic juice market: supplies are not expected to come into line with demand for a number of years. According to Organic Monitor, while shelf-stable organic juices account for 72 per cent of total revenues, refrigerated organic juices are predicted to show higher market growth in the coming years.
"More companies are launching refrigerated organic juices as retailers expand their shelf-space for organic beverages," adds the report.
In Europe, the organic juice market has leapt by 20 per cent annually since 1998. While consumer demand in other organic products is slowing down, the report claims that interest in organic juices remains high, through consumer awareness in diet and health interests.
The German organic juice market is the largest in Europe, accounting for over 40 per cent of total volume and is expected to increase by 50 per cent in the near future. Apple and orange juice are, by far, the largest segments of the organic juice market.
