The global market for fruit and vegetable juices is forecast to reach 64.46 billion liters by the year 2015, encouraged by steadily increasing emphasis on health and nutrition. Fruit and Vegetable juices continue to exist as one of the most competitive segments in the beverage industry competing strongly against RTD drinks, sports & energy drinks and bottled water.
Despite being hit by the global recession, the market will pick up pace over the near term, powered by gains made from natural juices, fortified juices and juices made with healthier ingredients.
Fruit juices form part of what are termed as the “New Age Beverages”. These products vie intensely with alternative beverages such as bottled water, RTD (ready-to-drink), sports and energy drinks and various other herbal concoctions promising a unique taste and flavor. Per capita consumption of juices witnessed strong growth rates in developed and emerging markets alike despite volatile economic conditions worldwide.
Juices, more importantly fruit juices, sustained momentum as the most competitive segment in the beverages industry with more number of people across the globe incorporating fruit juices in their meals amidst rising awareness of maintaining healthy and nutritious eating habits.
Currently, natural beverages, manufactured without any additives or preservatives are dominating the fruits and vegetables market. Nutritious food products and drinks manufactured using organic ingredients are gaining preference. In sync with increasing consumer preference towards healthier lifestyles, manufacturers are switching over to healthier ingredients in their juices. Fruit juice companies are adding ingredients such as plant sterols, probiotics and fibers, which lower cholesterol and aid in digestion. Additionally, vitamins, minerals, phytonutrients and antioxidants are also being included in juices and products are being tagged as ‘organic’ or ‘premium’. On the other hand, the high-fructose corn syrup that goes into the manufacture of these juice drinks tarnished their healthy image leading to decreased consumer interest. In order to revive the market for drinks, manufacturers are offering healthier choices in the category with claims such as “no high-fructose corn syrup” on labels. Diet Drinks appear to be a promising market worldwide, particularly so in the US, where it is targeted specifically at a growing number of Americans battling obesity and diabetes. This trend has also created parallel demand for fruit-flavored beverages free from sugar.
The juice drinks segment is expected to witness increased demand levels in both value and volume terms as the overall market returns back to pre-crisis levels of growth. Demand is also triggered by the prevalent trend of preference for juice drinks over fruit juices, in majority of Asian and Latin American countries. Growing economies such as China and India present lucrative opportunities in terms of potential consumers.
Chinese, Indian markets offer major opportunity
Producers are aggressively promoting and expanding their operations into these countries, localizing their products to reflect tastes and preferences of specific demographic and regional consumer groups. Despite the potential of the fast growing regions, the importance of large and mature market such as US, Canada, Japan and Europe cannot be denied. The US per capita consumption for the year 2009 was the highest followed by Canada and Japan, with orange juice continuing to rule the market, despite slight setback due to economic slowdown..
The global market for fruit and vegetable juices experienced slow growth in the years 2008 and 2009 with demand declining in major markets of North America and Europe. Premium products were the worst hit as people looked for value during times of limited finances. The category of fruit drinks also suffered with decreased sales, not sparing even the highly popular orange fruit juice market. The category of orange juice accounting for over 35% of fresh juice sales worldwide, witnessed a marginal dip in sales during the recession period. In Europe, the clear preference for low priced products, vis-à-vis, expensive branded juice brands lead to heavy leaning towards the economically priced private label products. However, decline in demand for fruit juice drinks was largely offset by increased sales in the natural juices category as well as demand increase in the rapidly developing Asian markets. Increase in fruit and vegetable juice consumption in the rapidly advancing Asian countries, including China and India is forecast to steer the market through the declines caused by the recession. Demand for fruit juices and smoothies remained more or less immune to the trend, recording increased amounts of spending, particularly in the UK.
Europe represents the single largest regional market, as stated by the new research report on Fruits and Vegetable Juices. The US follows as the second largest market globally. Asia-pacific is forecast to emerge as the region holding fastest growth potential at a CAGR of 4.6% over the analysis period. Fruit Juices constitutes the largest product category, amassing a gigantic share of the global market, strengthened by sustained demand from chilled ready to serve juice segment. The market is also forecast to race ahead at the overall highest compounded growth rate through 2015.
The fruit and vegetable juices market is highly competitive and fragmented in nature with scores of medium and large player competing fiercely for a larger share of the pie. Private label manufacturers hold a large share of the market. Key market participants profiled in the report include Del Monte Foods, Cadbury Plc, Mott’s LLP, Minute Maid Company, Odwalla Inc, Nestle SA, Ocean Spray Cranberries, Tropicana Products Inc, and Welch Foods, Inc.
The research report titled “Fruit and Vegetable Juices: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends & issues, industry overview, market segmentation, product introductions, recent industry activity and profiles of market players worldwide. Analysis and overview is provided for major geographic markets such as US, Canada, Japan, Europe, Asia-Pacific, Latin America and the Middle East. Market analytics are provided in terms of Volume (liters) for product segments Fruit Juices (Frozen Concentrates, Chilled Ready to Serve Juices and Shelf Stable Juices) and Vegetable Juices. The study also provides historic data for an insight into market evolution over the period 2000 through 2006.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Fruit_And_Vegetable_Juices_Market_Report.asp