With the development of consumers' demand for sugar-reducing products, some traditional beverage industries have already experienced the consequences. Coupled with the surge in bottled water and the growing popularity of energy drinks, the $16.6 billion juice beverage industry has really not received The small impact, only last year's sales fell by 7.5% year-on-year, sales fell by 12%.
The overall performance of the juice beverage market is weak
Lemonade and coconut water grow against each other
IRI data from the Chicago market consultancy show that in the 52 weeks ending October 8, 2017, US supermarkets, pharmacies, large buyers, gas stations and convenience stores, specialty stores, and selected clubs and retail chains were refrigerated. Sales of orange juice contracted by 4.5% year-on-year, totaling more than $2.94 billion.
▲ TOP 5 brand of refrigerated juice in the US market (Source: IRI)
▲ TOP 5 brand of refrigerated orange juice in the US market (Source: IRI)
Gary Hemphill, R&D director of New York Beverage Marketing (BMC), said, “In recent years, the market performance of juices and juice drinks has been poor, with many factors, including high calorie and high sugar content, high prices and lack of innovation. Etc. The sales of orange juice and grapefruit juice have also been difficult to grow in recent years. With fewer and fewer people eating breakfast at home, the sales of orange juice that was used for breakfast at the same time have been affected."
In its US juice report released last February, Euromonitor pointed out that due to concerns about high sugar content in juice, the per capita consumption of juice dropped from 47 liters in 2002 to 33 liters in 2016.
In May 2017, Mintel also pointed out the weak market performance of juice, juice drinks and Smoothis in the US juice and juice beverage report. In 2016, the total sales of this category reached US$19.8 billion, compared with 2011. Less than 3%.
In recent years, sales of 100% pure juice have declined year by year in the US market. On the one hand, this type of product is more used as a breakfast drink, and the consumption scene is relatively simple; on the other hand, it is affected by the excellent flavor and taste of other juice drinks, and the sales growth is limited. Although 100% pure fruit juice contains natural ingredients, its high sugar content makes consumers discouraged. Starting to change its nutrition label may change the status quo, but it is still difficult to increase its sales.
Mintel predicts that juice market sales will reach $20.8 billion by 2021; however, this figure means that the market value of the juice market will fall by 7% between 2016 and 2021.
▲ US market aseptic juice TOP 10 brand (source: IRI)
Kevin Weissheier, head of consumer insights at the Kyodo Consumer Index, said that although juice and juice drinks have performed poorly in terms of consumer penetration, the decline has begun to ease. In the past year, consumers have become more aware of fruit drinks and are more willing to get more nutrients from these food drinks, although some products have higher calories.
Weissheier added, “Orange juice sales have been steadily declining, but lemonade consumption has increased significantly. Obviously, lemonade is becoming a source of lemon water cleansing, purity, and the love of some yoga-loving consumer groups. A typical alternative. In addition, the market share of mixed drinks, such as coconut water, is also growing. These beverages cater to the growing functional health of consumers such as hydration, purification and cleaning in the body. Demand.
Jordan Rost, vice president of consumer insights at Nielsen, also noted opportunities in the fruit beverage segment. “Despite the overall decline in the beverage market, pineapple and tropical fruit drinks at room temperature have increased in the last 52 weeks of sales, up by 19% and 7.5% respectively, as of October 28, 2017,” he said.
Ultra high-end juice will be a flash point in the industry
Consumer concerns and changes in the health, nature and functionality of products are affecting the juice and juice beverage industries. On the one hand, consumers like natural, organic products, but on the other hand, the high sugar, high calories and high prices are also deteriorating. As a result, health claims are driving the growth of low-sugar, organic and natural high-end juices in the market.
IRI's Viamari pointed out that “ultra-high-end juice will be a breakthrough point in the industry. New ready-to-drink teas, such as Kombucha or probiotic beverages, have become market-developed due to their low-sugar, natural, refreshing and other healthy functional types. The main driving force. Some healthier alternatives, such as coconut water, natural/organic juices; and some low-sugar products, such as juice/tea, or a mixture of fruit and vegetable juices; and the ingredients are more simplified, such as not adding high fructose corn Syrups, preservatives, artificial flavors, etc., these types of products will be more popular."
The Mintel report points out that many of the growth brands in the juice beverage market are blended beverages, especially carbonated mixed juice beverages. The very simple addition of carbonation may make the juice more attractive in terms of taste, especially in other consumer scenarios other than breakfast, such as the Ocean Spray Sparkling.
▲ Ocean Spray Sparkling
According to Euromonitor's report, the rise of cold-pressed juice in the high-end juice market is also an opportunity. Opportunities in the juice market have arrived, especially through the “raw juice” (not pasteurized), cold pressed or high pressure HPP-treated juices, such as coconut water and other plant waters, juice Smoothie and other high-end juices. Although they are also affected by high sugar content, the natural health of these beverages has positioned them to thrive, with an average unit price increase of 2% in 2016.
Coconut water, once a relatively niche product, is only attractive to health food lovers and is now found on the juice shelves of mass retailers. Total sales of coconut water and other plant water have increased from $217 million in 2011 to $889 million.
Mintel's report also highlights the unique position of coconut water in the juice market because it meets consumers' demand for water rather than juice, and the overall growth trend of bottled water is a good sign for coconut water.
To meet these trends, many juice producers have begun to introduce cold pressed juice. For example, Frey Farms, the parent company of the Tsamma Watermelon Juice Company in Illinois, has launched a new blend of watermelon juice + coconut water, Tsamma Watermelon + Coconut Water Blend. The company claims that it can provide a rich source of potassium and L-citrulline, which helps reduce muscle fatigue, accelerate muscle recovery and replenish moisture.
▲ Tsamma Watermelon + Coconut Water Blend
According to BMC's DrinkTell database, sales of long-term stagnant fruit drinks market increased by 0.4% in 2016, which is the first increase in more than a decade, while the ultra-high-end juice market has grown by 8%. They are considered to be more common than ordinary fruits. Drinks are healthier and can alleviate concerns about calories.
In addition, Euromonitor's report pointed out that mixed juices and their unique exotic flavors have become increasingly popular. For example, in 2017 Orchard Island juice company released three new flavors: blood orange, carrot - ginger turmeric, and matcha lemonade. The product claims to contain only five or fewer ingredients, all hand-made, freshly pressed and processed in a minimal way to maximize the retention of its nutrients.
▲ Natalie’s Orchard Island Juice Co. three new varietals
Other companies, such as Welch in Concord, Mass., have also introduced non-GMO 100% grape juice, which is sugar-free and beneficial for heart health, and its new packaging was launched in 2017.
Growth Opportunity Point: Juice Smoothie
In addition to new products and new packaging, health, functionality, and clean labeling are also the future of the juice industry. Mintel reports that juice Smoothie has been another growth opportunity for this category, although in the near term, its market is still relatively small.
Although the concept of Smoothie still looks quite new, more and more consumers are integrating the blend of fruit and vegetable Smoothie into the health of their daily lives. The Smoothie drink that emerged throughout the United States just confirms this.
The report shows that sales of Smoothie in the US market have experienced strong growth, but it is still less than 6% of the juice market. Smoothie is still a bright spot in the juice market, however, the growth rate of bottled Smoothie is expected to slow in the next few years. Because like ordinary juice, it needs to compete with a variety of different beverages, such as functional drinks, milk drinks, ready-to-drink soup, and even food channels. And consumers usually only buy Smoothie occasionally, not a necessity, so it's spending less often than 100% pure juice or juice drinks.
▲ Juice & Juice Drink Smoothie TOP10 Brand (Source: IRI)
Refrigerated Smoothie for children is also extraordinary in the market. For example, IRI data show that sales of DannonDanimals Children's Yogurt and Smoothie nearly tripled, up nearly 122%, and total sales in multi-channel retail stores in the US reached 15.2 million in the 52 weeks ended October 8, 2017. Dollar.
▲ Dannon Danimals kids’ yogurt and smoothies
In addition, New York-based PepsiCo's Naked Juice has a 63% market share in juice and Smoothie products, ranking first. The data shows that the product's cumulative sales over the same period at multiple points of sale in the United States exceeded $ 584 million.
▲ PepsiCo’s Naked Juice Protein Smoothie
Weissheier of Kaidu consumers pointed out that consumer demand for clean labels and functional beverages will not only affect the juice and juice beverage industry, but also affect the entire food and beverage industry. In particular, functionality has become a popular term, and it has also played a key role in the revival of juice drinks. Consumers want more benefits from beverages such as energy, refreshment and hydration.
In order to attract consumers' desire to purchase healthy beverages, juice producers should focus on products that focus on health, or those that are better-for-you, such as sugar-free/low-sugar or non-man-made. pigment.
▲ Stoneridge Tart Cherry Concentrate
Nielsen's Rost believes that natural sweetener substitutes may create new opportunities for beverage manufacturers. Such as organic sucrose syrup, organic agave nectar, honey, chocolate and vanilla extract, etc., they can make the product sweet, and the glycemic index is low, it is worth considering as a substitute for sucrose. Data show that sales of juice products containing natural alternative sweeteners increased by 116% in the 52 weeks ended December 31, 2016. ”
In addition, the cross-border integration between the various categories will also be a major direction for juice drinks, such as adding juice to soda and tea, coffee and so on. Juices provide a refreshing and unique flavor, so they work perfectly with many categories.