5 reasons consumers are going organic
Sep. 16, 2016
There’s been a lot of buzz around organic products recently, but what does “organic” actually mean? More importantly, what is organic alcohol? According to organicalcohol.com, alcohol is considered an organic product if it’s produced from an organically grown crop and all phases of the production process – including fermentation, distillation, packaging, and shipping – are completed under strict organic guidelines.
Organic craft beer saw a 20.7% growth in sales volumes between 2013 and 2014, and Technavio predicts that organic beer and wine will continue to steadily grow through 2019. What’s causing this growth of organic alcoholic beverages, and why are consumers jumping on board?
The organic movement has been around for decades; however, with the increase of chemicals and the use of artificial ingredients, consumers are going organic now more than ever. According to the Organic Trade Association, total organic product sales hit a new benchmark of $43.3 billion in 2015, up 11% from the previous year’s record level. Experts don’t expect the trend to slow any time soon.
According to Nielsen, 75% of consumers worldwide say they’re concerned about the long-term health impact of artificial ingredients, and 44% of global consumers desire more organic options in the market. Organic alcohol is produced free of pesticides, fertilizers, and chemicals that can potentially increase the risk of cancer and other health problems.
Using synthetic pesticides and fertilizers can deplete soil of key nutrients as well as increase the environmental cancer risk. By using methods such as crop rotation, organic agriculture and production help build up soil, keep our water supply clean and reduce our carbon footprint.
Some of Technavio’s lead industry analysts say that the proximity to arable land and organic crops make the North America region a key consumer of organic drinks.** In 2012, the U.S. represented 8% of the world’s agricultural land, and according to the most recent Organic Survey, there were 14,093 organic farms producing $5.5 billion in organic products in 2014.
Millennials are every company’s focus these days, as they represent 24% of the global population, with 80 million millennials in America alone. More importantly, they account for $200 billion in annual buying power. But, where does organic fit into all of this? Millennials are a very health-conscious and forward-thinking consumer group. According to Nielsen, 36% of millennials say organic is a very important health attribute that influences their purchasing decisions, and 73% say they’re willing to pay more for sustainable brands. Additionally, 51% of millennials check packaging labels to ensure positive social and environmental impact.
With no end in sight for this trend, consumers will be looking more and more to purchase organic alcoholic products. And with September being National Organic Harvest Month, now is the ideal time to support and promote organic products.
Talk to your sales consultant today about Breakthru’s organic portfolio!
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Sources:
http://www.organicitsworthit.org/join/organic-harvest-month
https://organicalcohol.com/faq/
http://www.nielsen.com/us/en/insights/reports/2016/whats-in-our-food-and-on-our-minds.html *
http://www.businesswire.com/news/home/20160415005013/en **
https://www.ota.com/news/press-releases/19031
https://www.fona.com/sites/default/files/Millennials_alcoholic%20beverages_0116.pdf
http://www.forbes.com/sites/danschawbel/2015/01/20/10-new-findings-about-the-millennial-consumer/#6785d4ca28a8