JUICE & JUICE DRINKS
Fruit/Flavoured Still Drinks
RTD (ready to drink) non-carbonated beverages which are fruit or non-fruit flavoured. Determination is dependant on % of juice, which tends to be less than 24% juice or vegetable content. Excludes flower/herbal drinks such as mixed herbal with flowers, red dates, Ior han gwa, don gwai, and other Chinese herbal ingredients, these are categorised under Tea. Includes vegetable based still drinks like green pumpkin, asparagus, white gourd, lotus root, lemon barley, water chestnut, herbal jelly drink, ginseng and sugar cane. Still drinks that are marketed as flavoured waters are categorised under Flavoured Waters.
Products that are 100% fruit or vegetable juice. Includes 100% pure fruit or vegetable juice with no added ingredients. Includes freshly squeezed, from concentrate, and not from concentrate juices. These products can be fortified or enriched with other ingredients.
Products that are 25-99% juice. Described as diluted fruit juice or pulp beverages with added sweeteners. Can be fortified with vitamins. Includes vegetable nectar drinks.
- Market Overview
- Key issue: ‘Clean label’: the centre of innovation for global juice operators
- What does it mean?
1. GLOBAL OVERVIEW
The juice and juice drinks category in mature markets such as the US, Australia, UK and France have seen volume declines for many years. The Chinese market, which has got significant potential to increase consumption from a relatively low per-capita base has also struggled for growth over the last five years. Other developing markets such as India, Indonesia and Brazil have maintained a much stronger average value growth.
2. Key issuse: Global new product launches in the juice and juice drinks category are leaning towards ‘clean-label’ claims due to the pervasive feeling among consumers that a simpler, more natural-sounding ingredient list means a healthier product. As a result, brands are increasingly emphasizing natural credentials on the packaging.
3. What does it mean?
When natural claims have become a common place in the market, there is an opportunity for brands to be more specific about how their practices differ from conventional brands.
Market Overview: Juice (retail).
The juice and juice drinks category in mature markets such as the US, Australia, UK and France have seen volume declines for many years. The Chinese market, which has got significant potential to increase consumption from a relatively low per-capita base has also struggled for growth over the last five years. However, other developing markets such as India, Indonesia and Brazil have maintained a much stronger average value growth during the same period.
Source: Retail World, Convenience World, ABIR, Statistics Canada, UNIJUS, Destatis, VdF, GfK Group, ASRIM (Association of Beverages Indonesia), INEGI, Market Analitika, MAGRAMA, MEYED, LSA Magazine, Information Resources, Inc.The Nielsen Company, Economist Intelligence Unit/Mintel
‘Clean label’: the centre of innovation for global juice operators
Global new product launches in the juice and juice drinks category are leaning towards ‘clean-label’ claims due to the pervasive feeling among consumers that a simpler, more natural-sounding ingredient list means a healthier product.
As a result, natural claims such as ‘no additives and preservatives’, ‘organic’ and ‘GMO-free’ continue to remain the focus of innovation in the category.
The growing use of natural claims in the juice category aligns with Mintel’s 2016 food and drink trend “Artificial Public Enemy No.1”, which reinforces that consumers are increasingly demanding more information about a product.
Artificial: Public Enemy No. 1 – What is it?
Consumer demands for natural and “less processed” food and drink are forcing companies to reformulate to remove artificial ingredients. Consumers are also demanding more information about products’ ingredient list, provenance, manufacturing process, shipping and storing methods, as well as safety testing.
This trend established in Europe, Australia and New Zealand and is mainstreaming in North America where many consumers are changing their preferences toward all natural products.
However, it is still emerging in Latin America, Middle East and Africa and North and South Asia, where consumer preferences and regulations have yet to demand artificial-free formulations.
- Juice & juice drinks make no additives and preservatives claims.
- GMO-free claims clustered around the US: While there has been a notable uptick in natural claims globally, the GMO-free claim is more clustered around one main market. In the last 12 months to January 2017, the US accounted for 51% of the total juice and juice drink introductions with a GMO-free claim.
- Organic claim reassures that products contain simpler, more natural ingredients: For some consumers, organic claims offer reassurance that products contain simpler, more natural ingredients, and only the most necessary ingredients (i.e., no unfamiliar or unnecessary additives).
- Products with more specific “natural” references emerge: The term ‘natural’ has been a hot button issue in the juice and juice drink category globally. However, recent launch activity shows a significant rise in more specific claims pertaining to no additives, fillers or unnecessary ingredients, and more specific “provable” claims that signify a product’s natural credentials.
What does it mean?
Consumers’ interest in products made with simple and recognizable ingredients will continue to grow – and so natural claims and ‘clean label’ juices are expected to remain an important area of innovation over the next few years.
However, when natural claims have become a common place in the market, there is an opportunity for brands to be more specific about how their practices differ from conventional brands.
Organic juices provide consumers with shortcuts to choosing a beverage that is free from genetically modified ingredients, artificial preservatives and a perception of quality.
In response to consumer concerns, juice brands made without GM ingredients could add labels and logos to reassure consumers about GMO-free formulations.
- Market Overview
- Key issue: Can cold-pressed juice turn around the Australian juice market?
- Key issue: Consumption in China gradually shifts to products with more juice
- Product Spotlight
- What does it mean?
1. Market Overview
China is the largest juice market in Asia with 13.9 million litres in retail market volume. India is the standout market in the region. Other mature markets such as Japan and Australia have been relatively static in terms of growth.
2. Key issues
The retail market for juice in Australia has been in decline for a number of years. However, the category is getting some positive influence from the growing juice bars in the country.
Juice consumption in China is gradually shifting towards products with more juice content.
3. What does it mean?
Cold-pressed juices can lend positive associations to the juice category in terms of nutrition, variety and uniqueness - which offer a chance to help regain some of the category’s positive image.
Brands that are not pure juice can take advantage of the trend by highlighting their strong juice content and methods that help retain freshness or nutrition.
�Market Overview: Juice (retail)
China is the largest juice market in Asia, with 13.9 million litres in retail market volume. In addition, China’s per capita consumption rate of juice is around 10 litres, leaving plenty of room to expand. India is the standout market in the region with an average value growth of 17.5% over the last five years. Other mature markets such as Japan and Australia have been relatively static in terms of growth.
Note: The size of each bubble represents the respective size of the market in volume.
Source: Retail World, Convenience World, ASRIM (Association of Beverages Indonesia), The Ministry of Internal Affairs and Communications of Japan, Economist Intelligence Unit/Mintel.
Can cold-pressed juice turn around the Australian juice market?
The retail market for juice in Australia has been in decline for a number of years. The category’s downturn has mainly been influenced by the negative publicity about sugar consumption and its impact on health.
Market Overview: Juice Drinks in Australia:
The emergence of cold-pressed juices in retail
One positive influence on Australia’s juice category is the recent popularity of juice bars in major cities such as Melbourne. The fresh juice trend has also resulted in an emergence of cold-pressed juices in the retail market, with new product launches including terms such as “cold pressed”, “high pressure processed”, HPP or unpasteurized in the product description. This was virtually non-existent in the market in 2013.
Cold-pressed juices spark an interest in premium varieties in Australia
Cold-pressed juices, which often carry a higher price point and more premium image, could inject much-needed momentum into the category. Premium claims in general have increased in the category, accounting for 13% of the total new product launches in the last 12 months to January 2017, compared to 7% in 2013. Australia’s consumers have shown themselves to be quite receptive to premium concepts in other drink categories, and cold-pressed products at the premium end of the category could help revive interest in juice as well.
Cold-pressed juice is a new trend, but is having an effect on flavour innovation
Cold-pressed juices are having an influence on flavour trends in Australia, as they have in other countries during the past several years. Flavour components common to the trend, such as beetroot, ginger and vegetable flavours have all increased in the last year.
However, while the vegetable juice trend is most pronounced in the cold-pressed segment, it is appearing in more traditionally processed juices as well.
Coconut water also gets revamped
Cold-pressed juice is not the only segment of the juice market in Australia to get an innovation boost. Coconut water has been one of the major gainers in terms of juice innovation.
Introductions of juice drinks with coconut water have grown over the past several years — from 4% in 2012 to 18% in 2016.
Consumption in China gradually shifts to products with more juice
The packaged juice market in China has strongly leaned toward juice drinks with low juice content. But in recent years, that trend has shifted and pure juice and nectars (containing 25% to 99% juice) have gained share of market.
This can be explained by consumers’ growing demand for “pure” products and the development of cold chain logistics that allow companies to transport and sell more chilled products.
Pure juice is a leading purchase motivator
The move to juice products with higher juice content is also being driven by consumer preference. More than six in 10 adults aged 20-49 in Tier 1-3 markets in China say a product made from 100% juice would encourage them to buy one packaged juice product over another.
“Not from concentrate” gains popularity in China
The demand for more pure juices has also led to a rise in not-from-concentrate juice products (NFC). The number of juice and juice drink introductions in China that make an NFC or “not from concentrate” reference on pack is still quite small, but has increased significantly in the past few years. China differs from many markets in that not-from-concentrate is part of consumer messaging, not just something that appears on the ingredients label.
Products highlight strong juice content
The vast majority of the volume in China is still dominated by juice drinks, and there is room for brands to highlight strong juice content, even in products that are not 100% juice. Brands can also take a page from NFC juice and communicate production and processing that keeps juice fresh and retains nutrients, especially in cases where these differ from the traditional packaged juice drinks that consumers are used to.
What does it mean?
Australian consumers have proven to be receptive to premium innovation in other drink categories, which offers potential for juice brands that can project more premium positioning and offer a point of difference from the rest of the market.
Cold-pressed juices are unlikely to reverse volume declines in a significant way in Australia but can lend positive associations to the juice category in terms of nutrition, variety and uniqueness, which offer a chance to help regain some of the category’s positive image.
The majority of the juice market in China still represents products with less than 100% juice, suggesting that brands that are not pure juice can highlight the high percentage of juice that they do contain.
Processing and packaging that highlight freshness or nutrient retention can also tap into changing consumer preferences.
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