Global Fruit Juice Industry

About the Industry

The fruit juice market is growing at a healthy clip across various developing and developed
countries. The mounting focus of consumers toward a healthier consumption of fruits and
vegetables and recent changes in their dietary habits are the key factors driving the evolution
of the juice market. A increasing convenience foods segment in emerging regions and
increasing awareness about the nutritional benefits of juices have provided a robust boost to
the consumption of packaged fruits juices. The growth of the juice market is governed by a
variety of region-specific factors, such as geographical distribution of fruits and vegetables.
For instance, the consumer preference toward the consumption of fresh fruits may hinder
the demand for fruit juices in some regions.

Emerging players and new entrants in the food and beverages sector seeking to capture a
significant share of the juice market are focusing on varied tastes, flavours, and preferences
specific to a region. This is a key factor affecting their decisions on where to source fruits from
and also shapes their brand positioning strategies. Prominent manufacturers of processes
fruits are focusing on offering blended fruit juices with natural flavours. In recent years,
several emerging players have been focusing on their strategy of targeting mass as well as
premium consumer segments in order to present a stiff competition to leading companies in
the food and beverages sector. The advent of products claiming to be diet juices and no-
sweetener juices are promising developments in the market.

Global Juice Market: Trends and Opportunities

The global juice market is likely to be driven by the mounting consumer inclination towards
juice. The demand for healthy food products from diet and fitness conscious consumers is
one of the leading drivers of the global juice market. To meet the requirements of consumers,
manufacturers of juice products are focusing on introducing different varieties and flavours
of juices along with innovative packaging, and product development. As dietary and health
concerns are rising among consumers, the demand for vegetables and fruit juices is also rising.
Manufacturers of juice are striving to capitalize on the opportunities arising from the advent
of new products such as blended vegetable and fruit juice. At present, the demand for orange
juice is significantly high owing to its easy availability and health benefits of the fruit.
However, single and mixed juice of vegetables and fruits such as grapefruit, tomato,
pineapple, grape, and apple are likely to gain popularity over the next couple of years. Juices
that contain antioxidants made from fruits such as acai berries are also expected to gain
prominence by 2021. The advent of diet juice and no-sweetener juice is anticipated to provide
manufacturers with lucrative growth opportunities. However, the prime factor that is likely
to inhibit the growth of the global market is the availability of substitutes such as carbonated
soft drinks.

Classification of Fruit Juice

 Fruit Juice- The juice is extracted from the fruits and marketed.
 Concentrated Juice-The juice is obtained from various fruits by removing water from
the fruits.
 Nectar-Some fruits naturally contain so much fruit acidity or fruit pulp that they
cannot be sold as 100% fruit juice; they can only be made palatable using water and
sugar, which is called fruit nectar.
 Powdered Fruit Juice- A method of manufacturing a powder that may be reconstituted
as a fruit drink by addition of water to the powder includes the use of dextran as a
drying agent for the fruit juice that is to be rendered to powder.
Indian Juice Market

According to "India Juice Market Overview", the juice market in India registered a CAGR of
15-20% in the last six years. India is known to be a fruit basket of the world and has been
considered as the second largest producer of fruits after China. The fruit and vegetable
processing industry in the country is highly decentralized, having wide capacities. The wastage
of fresh fruit, produce has been estimated to be of a very high order in India, i.e. around 30-
35% of the total production during harvest, storage, grading, transport, packaging and
distribution because of the challenges involved in the industry. The current Prime Minister of
India Mr. Narendra Modi recently proposed the big players like Coca-Cola and Pepsi to add
2% of fruit content in the aerated drinks, which will thereby help the farmers to cultivate more
in fruits and can generate profit. These kinds of initiatives are also expected to promote the
inclusion of real fruits in the packaged juices available in the Indian market.

The segmentation in the Indian juice market is done on the basis of fruit content like fruit
juices, fruit drinks and nectar drinks. Fruit drinks dominate the market with more than half of
the market share. Street vendors find this product feasible as the product comes cheap and
viable. The consumers of India are price sensitive and go for the cheaper options without
realizing the side effects. However, with the increasing awareness about the deteriorating
health due to such drinks, the market is expected to decline in the coming five years. Top
players are working rigorously on fruit drinks that contain 100% juice content. The health
conscious people are also shifting from the fruit drinks to the fruit juice segment as it is
healthier and does not contain added preservatives or artificial flavours. Dabur, Parle,
PepsiCo, Coca-Cola are some of the major companies operating in the Indian market.