Research and Markets: Mainstream Retailers Driving Organic Juice Sales in North America

August 15, 2005 (PRLEAP.COM) Lifestyle News
Dublin - Research and Markets (http://www.researchandmarkets.com/reports/c22463) has announced the addition of The North American Market for Organic Juices to their offering

Consumer demand for organic beverages continues to strengthen in North America with organic juice sales projected to expand by 21.4% in 2005.

Increasing distribution in mainstream retailers is driving market growth. Most organic juice sales have traditionally been from natural food shops, however increasing volume is going into supermarkets, club & discount stores and mass merchandisers. Although natural food shops comprise most sales with 59% market share, they are projected to be overtaken by conventional grocery channels in 2007.

The growing market share of mainstream retailers is partly due to conventional juice firms entering the organic sector. Companies have gained high market share by utilising their distribution infrastructure to roll out organic variants of their juice products. Retailer private labels are also driving sales growth with a growing number of supermarkets launching organic juices. Retailer private labels have been highly successful in the Canadian market where they account for over 30% of organic juice sales.

Undersupply has been a feature of the organic beverages industry for a number of years due to demand exceeding supply. Production of organic citrus juices has been hit by the Florida hurricanes, which devastated citrus groves in 2004. Retail prices of refrigerated organic juices have risen as producers struggle to find raw material. The study predicts undersupply to continue for a number of years with the shortfall met by imports.

Organic juice revenues are predicted to double over the forecast period. The market share for organic juices is expected to remain low however due to the high price premium and competing products limiting consumer appeal. Organic juice producers are advised to undertake strategies based on product differentiation and brand-building to overcome such market barriers.

This report analyses the shelf-stable and refrigerated juice segments in the North American organic juices market. Market & competitive information includes market sizes, revenue forecasts (2005-2011), market drivers & restraints, distribution & pricing trends, market shares and profiles of leading producers & retailers.

For more information visit http://www.researchandmarkets.com/reports/c22463

Laura Wood
Senior Manager
Research and Markets
press@researchandmarkets.com
Fax: +353 1 4100 980