Organic Soda Market

Organic Soda Market Outlook (2022-2032)

Among the several other industries, the beverage sector is noticing the rise of various drink options and people often get to choose from a variety of products with many benefits and tastes. Manufacturers are meeting both business and health benefits with organic segment investment. The global arcade for organic food was valued at USD 227.1 billion in 2021.

Market Dynamics: Drivers

Organic beverages are given priority by consumers when they consider good meal choices. Fresh and processed drinks made with natural methods are often soothing to the digestive system. Without the addition of any synthetic additives and chemical sugar, these drinks make it to the table on the basis of health consciousness.

Another reason for organic preferences is environmental concerns. The majority of customers simply know what "organic" means in terms of being chemical-free and are unaware of the regulations and procedures involved in organic farming. Therefore, it is not surprising that consumer purchases of organic food and beverages have been proven to be driven more by personal health than by environmental concerns.

Carbonated drinks are mainly consumed to enhance digestion and swallowing ability. Further drinking soda can reduce constipation issues and it’s also a calorie-free drink to address health needs. Organic has become widely used in daily life because it is packed with the nutrients and advantages required for healthy growth and diet. Additionally, the school of thought agrees to substitute organic drinks for meals and other drinks.

With the rise in urbanization in developing countries there is significant growth in lifestyle standards and per-person income which makes people make smart product choices. With the penetration of the internet and digital tools, health awareness has increased which enhances consumer preferences for organic beverages.

“Consumer behavior undergone changes post Covid-19 Pandemic.”

After the 2020 coronavirus outbreak in the US, consumers were most likely to have tried new brands of healthy foods and planned to keep purchasing those brands. 35 percent of respondents said they were experimenting with new healthy food brands, while 29 percent said they were doing the same with new snack and junk food brands. Consumer preferences for non-alcoholic drinks and healthy foods have increased post-pandemic.

Restraints

Many consumer companies are recently rising the prices of soda drinks and shoppers seem to still accept these changes due to changes and situations imposed by the pandemic. However, these high prices won’t be accepted for longer, and have to revive their pricing strategies in upcoming years. Food and beverage sector companies often have to deal with the waste generated and have to focus on the creation of consumer value to mark differentiation from other brands.

Price can have a good or negative impact on consumers' purchasing decisions. When costs are high, people perceive that a sacrifice must be made in exchange for quality and status. In this regard, research has demonstrated that consumer's perceptions of price act as a deterrent to the purchase of organic beverages, particularly those who are on a tight budget. In addition, consumers frequently overestimate the cost of this category of beverage when they lack information about it.

Sustainability has emerged as a key challenge for firms in the beverage industry as producers have to pay attention to many environmental, social, and economic conditions at the same time. F&B sectors have enough eco- footprint which is due to manufacturers having to monitor the use of land, water, and chemicals.

Segment wise insights

On the basis of consumers, the beverage is likely to appeal to young and adult consumers of age 20 to 35. A busy group of consumers who frequently eat and drink while traveling makes up the on-the-go drinks sector. This market sector is expanding and widespread across several markets for convenience beverages. Based on the distribution channels, supermarkets and stores are reigning the share and volume of drinks being sold.

Market players and their strategies :

Leading players dominate the organic soda market globally, and the study covers the analysis of the major players to give a thorough assessment of the competitive landscape. Product innovation and sustainability will be market differentiators for the firms. Many firms opt for sustainable packaging and recycling of bottles which is likely to gain the attention of consumers.

Beverage sector firms now than ever should understand consumers apart from what they buy and also focus on how the products are produced which will likely impact the environment. The Tractor Beverage Company, Organic Soda Pops, Rocky Mountain Soda Company, Maine Root Handcrafted Beverage, Boylan Bottling, MATI Energy, Crater Lake Soda, Spindrift, Hotlips Sod, and Virgil's Soda are a few of the well-known industry participants.

Regional Insights

The European region is likely to reign the market among all other regions. Countries like the UK have diversified and owe many consumption patterns that make the region a leading market. further canned beverages are also widely popular in these countries likely to remain dominant in the forecast period. The European market for the beverage sector is anticipated to grow with fastest CAGR of 12.23% till 2027.

Asia pacific markets are anticipated to grow with the fastest growth rate including east Asia, south Asia, and Oceania owing to the increasing number of health-conscious people & rise in demand for the organic product in the region. North America is likely to be another prominent region holding a significant share followed by Asia Pacific. Both regions are growing with a significant CAGR during the forecast period.

Organic Soda Market : Segmentation

• By Product Type :

  • Flavored organic soda
  • Craft organic soda
  • Others (others include plain soda or soda water)

• By End-user :

  • Teenagers
  • Young adults
  • Middle-aged adults
  • Aged population

• By Sales Channel :

  • Supermarket & hypermarket
  • Direct-to-customer channel
  • Third-party online channel
  • Specialty (food chain & others) stores
  • Convenience stores

• By Region :

  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Chile
    • Peru
    • Rest of Latin America
  • Europe
    • EU-4
    • BENELUX
    • Nordic
    • U.K.
    • Eastern Europe
    • Rest of Europe
  • East Asia
    • China
    • Japan
    • South Korea
  • South Asia
    • India
    • Malaysia
    • Thailand
    • Indonesia
    • Rest of South Asia
  • Oceania
    • Australia
    • New Zealand
  • Middle East and Africa
    • GCC Countries
    • Turkey
    • Iran
    • Israel
    • South Africa
    • Rest of MEA