Organic tea to experience a 15% growth over the next 5 years, according to TechSci Research.
In its Global Organic Beverages Market by Type, by Region, Competition Forecast and Opportunities, 2011–2021 report, leading global market research firm TechSci Research predicts 15% growth in the organic beverages market from 2016–2021.
“Growing health concerns, increasing pesticide and chemical poisoning cases and improving per capita spending on organic products are expected to boost the demand for organic beverages across the globe during (the) forecast period,” the report states. It also cites continuous product innovations and aggressive marketing strategies by organic beverage manufacturers and online retailers as reasons for the growth.
Health benefits associated with organic beverages due to less use of fertilizers for cultivation of raw materials will push the sales of organic beverages during this period, and “growth in organic agriculture to avoid chemicals containing harmful toxic residues are proving good for the environment as well,” the report states.
The Global Organic Beverages Market report examines five segments of the organic beverages market—organic coffee and tea, organic dairy alternatives, organic soft drinks, organic alcohol beverages, and others—and notes that the organic coffee and tea segment dominated the global organic beverages market in 2015. Furthermore, it predicts that organic tea and coffee will continue to dominate for the next five years.
“With consumers becoming more calorie-conscious and growing prevalence of obesity, organic coffee and tea are being considered as healthy drinks for the body as they contain antioxidants and beneficial nutrients,” the report states.
According to TechSci Research, in 2016, about 43.7 million hectares of agricultural land was under organic cultivation, managed by more than 2.3 million producers worldwide. Government initiatives to promote and encourage organic farming and the use of organic products with favorable policies and regulations aimed at increasing the quality standard of crops have led to an increase in the adoption of organic farming worldwide. Health and environmentally conscious consumers are further lured by environment-friendly packaging, the report notes.
Europe was the largest demand-generating region for organic beverages in 2015, due to improving lifestyle and growing awareness regarding the health benefits associated with organic products, according to the report.
“Increasing average household annual spending on food, rising awareness about health benefits associated with organic foods, greater accessibility of these products through small-to-medium-scale retailers, continuous development in supply chain network and implementation of initiatives to encourage farmers to switch to organic farming are projected to fuel organic food sales across the globe,” said Karan Chechi, Research Director with TechSci Research. “Additionally, a number of organic food manufacturers are also complying with international standards and are labelling their products accordingly in order to increase acceptability of these products across the globe.”
Source: TechSci Research