Natural Beverages and Organic Drinks Are Here to Stay

Heightened awareness around health and wellness has prompted a notable increase in the demand for natural and organic products. Consumers are committed to prioritizing their health, and this commitment has led to lasting changes in their buying habits.

What Are Natural and Organic Beverages?

According to the United States Food and Drug Administration, all-natural beverage options must be formulated without unnecessary additives or processes. They are free from artificial dyes, excess sugar, genetically modified organisms (GMOs) and pesticides. Organic drinks, meanwhile, meet specific criteria regarding the production methods used. In the U.S., the organic label only goes to products with at least 95% certified organic content. 

Given the growing interest in health and nutrition, it's no surprise that natural beverages and organic drinks are here to stay.

The State of the Natural Food and Drinks Market

The natural and organic products industry is on a strong growth trajectory, with organic sales accelerating at their fastest pace in recent years. According to the Organic Trade Association, organic sales increased by 5.2% in 2024, exceeding $71 billion. The growth of organic sales was more than double the 2.4% increase seen in conventional grocery sales, underscoring the rising consumer preference for foods and beverages that use specific production methods. The natural products market is also projected to grow and reach $343 billion in sales in 2025.

Beverages represent one of the largest segments within the natural and organic market, with sales of organic beverages exceeding $9.5 billion in 2024. They are also the leading growth category in functional products that target specific health goals, such as hydration, energy, focus, digestion and sleep. 

While supermarkets and hypermarkets continue to dominate distribution, convenience stores and online retailers also contribute significantly to organic and natural drink sales. Many emerging brands lean on nontraditional sales channels like social media and e-commerce to gain market share.

The competitive landscape includes both major beverage brands and independent companies. Customers can choose from "clean" versions of familiar products or explore innovative new drinks with unique health claims or flavors. For example, brands like Olipop offer alternatives to sodas with natural ingredients and familiar flavors like vintage cola, while Tractor Beverage Co. offers certified organic craft beverages in unique flavors like lemongrass. As consumers prioritize their health and well-being, organic and natural beverages continue to outperform conventional options.

Why Is There Growth in Organic and Natural Drinks?

In 2024, beverages positioned around wellness saw substantial growth. Here's why that growth will continue. 

1. Increased Public Perception of Health and Evolving Definitions of 'Healthy'

The growth in the natural and healthy organic drinks industry is primarily driven by increased public awareness of health and nutrition. More consumers are incorporating natural and organic beverages into their diets as part of a broader commitment to wellness, whether they're looking to improve their sleep or power through an afternoon slump at work.

Another key factor in this trend is the evolving definition of "healthy." Many consumers are seeking clean, unprocessed ingredients, such as fruits, vegetables and whole grains, rather than merely eliminating fats, sugars and other components from their diets. This shift toward viewing food as medicine is prompting brands to incorporate functional ingredients into their beverages, such as collagen, adaptogens and plant-based caffeine. Other functional ingredients include the following:

• CBD
• Nootropics
• Mushrooms
• Adaptogenics
• "Super" greens
• Prebiotics, probiotics and postbiotics
• Botanicals

While many consumers are focused on adding new ingredients rather than taking ingredients away, brands can also see success by removing components like added sugars, caffeine, animal-based products, alcohol or GMO ingredients.

2. Ability to Reach New Consumers

As consumers increasingly prioritize wellness, brands are adapting their natural and organic offerings to cater to diverse demographics, such as individuals seeking weight loss or those who adhere to a specific diet. The rise of niche brands focusing on specific segments, such as organic keto-friendly sodas or paleo-friendly juices, has further expanded the market, allowing these products to reach consumers who may have previously overlooked conventional options.

3. Growing Demand for Personalization in Beverage Formulation

Consumers, especially in the younger generations, are looking for more personalized beverage options that align with their individual health goals and preferences. Brands are responding by developing beverages that offer specific functional benefits, such as immunity support, energy or gut health, often using natural and organic ingredients.

Consumers are increasingly looking for drinks that combine clean labels, recognizable ingredients and health benefits, all of which are core attributes of organic beverages.

4. Greater Focus on Sustainability and Transparency

Another significant part of the natural and organic drink sector lies in sustainability and transparency. Customers want to know where their food is coming from and to purchase from ethical companies. Clean labels, organic certifications and other industry credentials offer peace of mind. Brands can appeal to these buyers with initiatives focusing on sustainability and transparency:

• Ingredient traceability: Many consumers look for visibility into ingredient sourcing and want to buy from companies that are transparent about where their products come from. For example, a brand that sources local ingredients can avoid the significant environmental effects of long-distance transit and support smaller farmers. Health and wellness buyers often appreciate these positive impacts.
• Healthy production methods: Some natural and organic drinks tout production processes that are better for the environment or the consumer. For instance, plant milk comes in many types, and each varies in how much land and water they require and the amount of greenhouse gas emissions created during manufacturing. Brands can choose options with less of an impact or share how they're optimizing resources.
• Sustainable packaging: Sustainable packaging is a significant challenge for the food and beverage industry. The "green" nature of natural and organic brands lends itself to environmental stewardship and sustainable packaging. One of the latest beverage trends customers appreciate is dynamic and engaging packaging that highlights a brand's commitment to sustainability or reveals how they sourced ingredients.
• Ethical practices: Many buyers prefer brands committed to treating humans, animals and the planet ethically. They may look for claims and certifications like "fair trade," "cage-free" or "plant-based" on their products.

5. Greater Accessibility and Evolving Retailer Landscape

Organic and natural beverages have moved beyond niche stores to mainstream supermarkets, convenience stores and online retailers, making them more accessible to a broader audience. E-commerce is also playing a significant role, with online sales of natural and organic products surging.

Social media is another key driver, especially among younger consumers, who are increasingly influenced by digital marketing and peer recommendations. They may see their favorite influencers or friends trying new drinks on social media and feel tempted to try them themselves.

As consumers seek quick and healthy options, brands are leveraging omnichannel strategies to reach their target audiences. This allows natural and organic drinks to gain traction in mainstream retail environments and boost their visibility and sales.

6. Rise in Nonalcoholic Beverages

The adult nonalcoholic beverage sector grew an estimated 10% in 2024. Alcohol moderation has become mainstream, with consumers across all age groups seeking flavorful, sophisticated and functional nonalcoholic alternatives that replicate the ritual and experience of alcohol without its effects. This shift has fueled a surge in demand for adult-oriented nonalcoholic beverages that emphasize clean labels, natural ingredients and organic certifications. Brands like Curious Elixirs are responding by crafting alcohol-free craft cocktails using organic juices, herbs, botanicals and more. 

Consumers are also increasingly gravitating toward options that offer functional benefits — such as adaptogens, botanicals, and low or no sugar — attributes that align closely with the values of the natural and organic beverage category. Together, these trends are driving strong growth in wellness-focused drinks and expanding both the nonalcoholic and organic beverage markets. 

The Future of Natural and Organic Beverages

In the United States, the organic food and beverage market was valued at around $65.55 billion in 2024. Since health and wellness are sticking around, we can expect natural and organic drinks to have a steady future. While consumer perceptions of health will be a strong force in the market, other key factors will help shape the future of natural and organic beverages:

Younger Generations and Values-Driven Purchasing

As Gen Z gains purchasing power, their commitment to health and wellness is expected to drive demand for natural and organic drinks. Younger generations are particularly attracted to clean labels and products that align with their values.

Distribution Diversification

While supermarkets currently reign supreme in natural and organic beverage distribution, rising consumer demand is driving greater availability in convenience stores, food service outlets and value-focused retail channels. At the same time, e-commerce and social media are fueling significant growth in online and direct-to-consumer sales, giving emerging brands powerful new ways to reach consumers where they are.

Convergence of Health Trends

The rise of glucagon-like peptide-1 (GLP-1) medications and the growing focus on functional beverages could accelerate demand for natural and organic drinks that are low-calorie, functional and gut-friendly — driving innovation in clean-label drinks that support satiety, digestive health and mindful nutrition. 

GLP-1 users are increasingly interested in products that help manage appetite and support overall health, with a preference for clean, minimally processed and recognizable ingredients. Natural and organic beverages, especially those fortified with protein, fiber, probiotics or adaptogens, can meet these expectations. 

Beverages Specific to Women's Health

Brands can develop stage-specific products, including prenatal hydration formulas, postpartum recovery tonics and menopause-support elixirs, that feature organic and botanical ingredients. Some women prefer hormone-supporting products that are free of endocrine-disrupting chemicals, preservatives or synthetic hormones. 

Sustainability and Ethical Practices

Environmental sustainability concerns are influencing consumer choices. As awareness of climate change and pollution grows, consumers are favoring brands that adhere to eco-friendly sourcing and manufacturing methods. The demand for clean labels and transparency in ingredient sourcing will continue to shape the market.

Plant-Based and Clean-Label Ingredients

Plant-based, minimally processed ingredients remain a priority, with consumers valuing plant-based claims for their own merits — not just as alternatives to animal-based products. Clean-label formulations and transparent sourcing and production will continue to strongly influence purchasing decisions.

Cultural and Global Flavor Exploration

Expect more natural and organic brands to tap into global inspiration — think botanicals, adaptogens and traditional wellness ingredients from around the world.

Navigate the Organic and Natural Drink Market With BevSource

The beverage industry is unique, especially in categories like natural and organic products. Set yourself up for success by working with beverage professionals. The experienced team at BevSource can usher your brand through the entire process, from development to sourcing and post-production. We have access to competitive pricing from a vast network of dealers and extensive insights to help you make the best business decisions. Whether your biggest roadblock is limited time, money or knowledge, we can help you get to market quickly with minimal risk.

BevSource is your one-stop shop for all-natural and organic drinks, with the resources to help established brands and new ones in the North American market. Speak to an expert today to learn more about how BevSource can help you launch or build on your natural or organic drink brand!