Innovations in Fruit and Vegetable Juices

C O N S UM E R

Innovations in Fruit and Vegetable JuicesEmerging opportunities in premiumization, sustainabilityand positive health

by Business Insights

2

About the author Business Insights has a team of in-house consumer goods analysts drawn from consulting, R&D and

competitive intelligence backgrounds. Our analysts specialize in providing detailed insight into the future of

the industry and have extensive analytical, forecasting and research experience in the food & drinks,

ingredients and packaging sectors. Our team maintains regular contact with industry executives to track

market developments and base their market models on a wide range of proprietary databases to provide up

to date, accurate strategic insight on the future of the consumer goods market.

Disclaimer Copyright © 2010 Business Insights Ltd

This Management Report is published by Business Insights Ltd. All rights reserved. Reproduction or

redistribution of this Management Report in any form for any purpose is expressly prohibited without the prior

consent of Business Insights Ltd.

The views expressed in this Management Report are those of the publisher, not of Business Insights.

Business Insights Ltd accepts no liability for the accuracy or completeness of the information, advice or

comment contained in this Management Report nor for any actions taken in reliance thereon.

While information, advice or comment is believed to be correct at the time of publication, no responsibility

can be accepted by Business Insights Ltd for its completeness or accuracy.

3

Table of Contents

About the author 2

Disclaimer 2

Executive summary 10

Market drivers and resistors 10 Growth opportunities in fruit and vegetable juices 10 NPD in juices 11 Key trends and product examples 12

Chapter 1 Introduction 13

What is this report about? 13 The market defined 13 Report structure 14

Chapter 2 Market drivers and resistors 15

Summary 15 Introduction 16 Consumer drivers 17 Health 17 Increased use of superfruits 17 Removal of artificial sweeteners 18

Premiumization 19 Rise in disposable income 19 Increased travel and demand for exotic flavors 20

Regulation 22

Chapter 3 Growth opportunities in fruit and vegetable juices 25

Summary 25 Introduction 26 Overview of the global market for juices 26 Comparing juices with other soft drinks 29 Juices market value by geography 31 Top 10 countries by juices market value 32

4

Juices market value by category 34 Performance of juice categories by geography 36 Europe 36 The Americas 41 Asia Pacific 43

Emerging markets for juices 45

Chapter 4 NPD in juices 48

Summary 48 Introduction 49 Innovation type 49 Comparison of NPD in juices with other soft drinks 50 Category analysis 53 Fruit drinks (0–29% juice) 54

Nectars (30–99% juice) 56

100% fruit juice (from concentrate) 57

100% fruit juice (not from concentrate) 58

Vegetable juice 60

Regional analysis 61 Europe 62

Asia Pacific 66

The Americas 70

Packaging analysis 73 Packaging overview 73

Bottles 74

Carton 76

Resealable 77

Changing positioning in juices 78 Flavor trends 80

Chapter 5 Key trends and product examples 83

Summary 83 Introduction 84

5

Health and wellness 85 Superfruit juices 85

High-fiber juices 86

Functional juices 87 Calcium fortification in juices 90 Emulating features of other functional soft drinks in juices 91

Indulgence 92 Packaging 95 Ethical 95 Organic juices and provenance 96

Green packaging 98

Fairtrade juices 100

Private label 101

Chapter 6 Conclusions 103

Key trends for the future 103 1 – Fortified juices 103

2 – 100% pure fruit juices 103

3 – Premiumization 105

4 – Sustainable consumption 105

5 – Adding ingredients used in other beverage markets 105

6 – Emerging markets 106

6

Table of Figures Figure 1: Consumer and regulatory drivers and resistors 16 Figure 2: Fruite Entreprises S.A. 18 Figure 3: Trop 50 from PepsiCo and Odwalla Juice Drinks 19 Figure 4: Middle class population by region (m), 2009–30 20 Figure 5: Revive Juice Bar 21 Figure 6: The 5–a–day meal campaign by the National Health Service in the UK 22 Figure 7: NHS promoting effectiveness of beetroot juice in blood pressure reduction 23 Figure 8: Value of global juices market ($bn), 2009–14 27 Figure 9: Volume of global juices market (bn liters), 2009–14 29 Figure 10: Comparison of juices volume consumption with other soft drinks categories, 2009–14 30 Figure 11: Juices market value by geography (%), 2009–14 32 Figure 12: Top 10 countries by juices market value ($bn), 2009–14 34 Figure 13: Juices market value by category (%), 2009–14 35 Figure 14: Performance of juice categories by geography (%), 2009–14 36 Figure 15: Select European markets for 100% fruit juice (not from concentrate) forecast to grow at fastest CAGR (%), 2009–14 39 Figure 16: Comparison of juices categories in North America and South and Central America based on forecast CAGR (%), 2009–14 43 Figure 17: Comparison of forecast growth in juices categories in China, Japan and rest of Asia Pacific 45 Figure 18: Key emerging markets for juices ($m), 2009–14 47 Figure 19: Share of juice launches by innovation type (%), 2007–10 50 Figure 20: NPD performance of soft drinks categories (%), 2010 52 Figure 21: New product launches in juices by categories (%), 2007–10 53 Figure 22: Joker Vital Protect lingonberry 54 Figure 23: Lessini Light fruit drink 55 Figure 24: Gloria chicha morada (purple corn extract) and fruit juice 56 Figure 25: EVGA Power Genius fruit juice and Dimes Life mixed fruit nectar 57 Figure 26: Drenchers Fit ‘N Lean juice beverages 58 Figure 27: Fruit2day juice 59 Figure 28: Bolthouse Farms' Heart Healthy apple pear and merlot juice blend 59 Figure 29: Pasteur organic sprouts with vegetables juice 60 Figure 30: Share of juice launches by region (%), 2007–10 62 Figure 31: Waitrose pineapple, banana and coconut smoothie 65

7

Figure 32: Knorr Vie Kidz juice: pumpkin and peach 65 Figure 33: JU fruit juices 66 Figure 34: Bright Dairy 100% fruit juice with blends of cucumber and kiwi juices 69 Figure 35: Luye Yuanjiang Aloe with rock candy 70 Figure 36: Embodi 'all-natural' fruit juice blend 71 Figure 37: Tree Top Trim fruit beverage 72 Figure 38: Tizane 100% organic beverage 72 Figure 39: Wild Bunch 100% organic juice 75 Figure 40: Ito En's Reito Bottle Kachiwari lemon and DyDo's Toketsu Sharishari Bottle Reito melon and strawberry 75 Figure 41: Xymbiot's Zimbi Aerodynamic Nutrition Super Juice 76 Figure 42: Eager Drinks' grapefruit, apple and pineapple juice 77 Figure 43: Michel & Augustin's Fruits Entiers Mixés and Vimto's mixed fruit drink in resealable pouches 78 Figure 44: Glow Mama RTD natural kiwi juice 80 Figure 45: Ocean Spray 100% fruit juice with cranberry 82 Figure 46: Key trends in fruit and vegetable juices 84 Figure 47: Gloji all-natural juice and Lakewood pomegranate with goji organic 100% fruit juice blend 86 Figure 48: V8 100% vegetable juice (high-fiber) 87 Figure 49: Minute Maid Omega-3 beverage, made from 100% mango orange and passion fruit juice 88 Figure 50: Bravo Friscus apple and cranberry juice 89 Figure 51: Firefly fruit drink with botanical extracts 90 Figure 52: Woongjin high-calcium orange, aloe and grape juices 90 Figure 53: Hello fruit drink and Asahi's strawberry fruit wine 91 Figure 54: YJ Youth Juice 92 Figure 55: Trader Joe's apple, mango and mangosteen juice blend 93 Figure 56: Super Premium Sensora 100% pure squeezed Florida orange juice 93 Figure 57: Froose kids' drink 94 Figure 58: Tropicana Pure Premium 100% pure and natural orange juice in an easy-to-pour pitcher 95 Figure 59: Gregory's Box'd Beverages' 100% Natural Old Time LemonadeError! Bookmark not

defined. Figure 60: I Sapori dell'Oasi di Galbusera Bianca Cuore di Bue fruit nectar 96 Figure 61: Dr. Antonio Martins Coco pure organic coconut water with banana, pineapple and acerola 97

8

Figure 62: RDA Organic Squeeezy fruit drink for kids 98 Figure 63: F&N Fruit Tree Fresh mixed fruit juice and Compal Light pineapple juice with spearmint, in aseptic cartons 99 Figure 64: Naked Juice in 100% recycled PET bottles 100 Figure 65: Calypso Fairtrade Pure Tropical Juice with FAIRTRADE mark on packaging 101 Figure 66: Wal-Mart 100% Acai Mixed Berry juice 102 Figure 67: Key future trends in fruit and vegetable juices market 104

9

Table of Tables Table 1: Value of global juices market ($bn), 2009–14 27 Table 2: Volume of global juices market (bn liters), 2009–14 28 Table 3: Comparison of juices with other soft drinks categories, 2009–14 30 Table 4: Juices market value by geography ($bn), 2009–14 31 Table 5: Top 10 countries by juices market value ($bn), 2009–14 33 Table 6: Juices market value by category ($bn), 2009–14 35 Table 7: Juices market by category in Europe ($bn), 2009–14 37 Table 8: Top 10 European markets for 100% fruit juice (not from concentrate) ($bn), 2009–1438 Table 9: Top 10 European markets for vegetable juices ($m), 2009–14 40 Table 10: Top 10 fruit drinks (0–29% juice) markets in Europe ($bn), 2009–14 41 Table 11: Juices market by category in the Americas ($bn), 2009–14 42 Table 12: Juices market by category in Asia Pacific ($bn), 2009–14 44 Table 13: Key emerging markets for juices by geographic regions ($m), 2009–14 46 Table 14: Share of juice launches by innovation type (%), 2007–10 49 Table 15: Share of soft drinks categories in NPD (%), 2007–10 51 Table 16: Share of juice launches by region (%), 2007–10 61 Table 17: Share of NPD by category in Europe (%), 2007–10 63 Table 18: Top 10 tags on new juices launched in Europe (%), 2007–10 64 Table 19: Share of NPD by category in Asia Pacific (%), 2007–10 67 Table 20: Top 10 tags on new juices launched in Asia Pacific (%), 2007–10 68 Table 21: Share of NPD by category in the Americas (%), 2007–10 70 Table 22: Top 10 package types used in new juices launches (%), 2007–10 73 Table 23: Performance of materials used for packaging juices (%), 2007–10 74 Table 24: Top 20 tags on new juice launches (% of products with tag), 2007–10 79 Table 25: Top 20 flavors used for NPD in juices (%), 2007–10 81

10

Executive summary

Market drivers and resistors The growing consumer focus on preventive healthcare has increased demand for superfruits

such as açaí, goji, cranberry and pomegranate. This is driven by the inherent health benefits of

superfruits allowing manufacturers to position juices as functional beverages with specific health

benefits.

The rising disposable personal income of average consumers and corresponding emergence of

middle class households have been the most important drivers of demand for premium juices.

Growing consumer awareness about sustainable cultivation and processing methods has also

increased demand for fairtrade juices and 100% pure organic juices.

The healthcare authorities in EU countries promote the importance of a balanced diet through

awareness campaigns such as ‘5–a–day’ meal campaigns encouraging consumers to eat five

portions of fruit and vegetables on a daily basis.

Growth opportunities in fruit and vegetable juices The global market for juices was valued at $79bn in 2009. This market is forecast to grow at a

CAGR of 3.4% during 2009–14 to reach a value of $93bn in 2014. In 2009, 52bn liters of juices

were sold globally, with sales volumes forecast to grow at a CAGR of 3.8% during 2009–14 to

reach 62bn liters in 2014.

Europe continues to be the largest market for juices, valued at $38bn and accounting for 47.7%

share of the global market in 2009. During 2009–14, the European juices market will grow at the

highest CAGR of 5.2% to reach a value of $48bn in 2014.

The juice market in the Americas was worth $26bn in 2009. This region will register lowest CAGR

of 1.0% among all geographic regions during 2009–14. The juices market in North America faces

11

stiff competition from functional drinks and smoothies, the fastest growing non-alcoholic beverage

categories in the region.

The top 10 countries together accounted for a 74.6% share of the global market value for juices

in 2009. The US was the largest market for juices, $21bn in 2009, followed by the UK and

Germany, $8bn and $7bn, respectively.

Fruit drinks (0–29% juice) is the largest juice category with a share of 27.2%, accounting for

$21bn in sales in 2009. However, the 100% fruit juice (not from concentrate) category will

outperform not only the global industry, but also all the other categories with a CAGR of 8.0%

through 2009–14

NPD in juices Among all new product launches across soft drinks categories, juices accounted for a 30.9%

share in 2010, an increase of 7.8 percentage points over 2007. Additionally, juices outperformed

functional drinks in new product development (NPD) in 2010.

During 2007–10, only 2.6% of all new juices launched were innovative. In 2010, 63.6% of all

innovations in juices were in formulation. Health and wellbeing continued to be a key growth

driver for innovation in juice formulation.

Fruit drinks continue to dominate all other juice categories with a share of 46.1% in NPD in 2010,

an increase of 5.8 percentage points over 2007. The share of nectars (30–99% juice) in NPD

increased by 4.2 percentage points over 2007 to reach 17.0% in 2010.

Europe remained the leading region for NPD in juices during 2007–10, while the share of Asia

Pacific declined. The Americas region continues to register a decreasing share of NPD in juices,

while the Middle East and Africa (MEA) doubled its contribution to NPD from 2007 to reach 5.6%

in 2010.

In 2010, 'no preservatives' garnered the highest share of 11.3% among all claims with an

increase of 3.7 percentage points since 2007, replacing 'high vitamins' as the most used claim.

12

The latter accounted for a 9.3% share of all claims used in new product launches in 2010,

representing a decline of 1.7 percentage points from 2007.

Apple and orange continued to be the leading flavors for NPD during 2007–10, accounting for

respective shares of 9.8% and 8.6% in 2010. Apple replaced orange as the leading flavor used in

juices in 2010, while fruits such as peach, grape and raspberry, among others, registered a

decline during 2007–10.

Key trends and product examples The growing prevalence of obesity, diabetes and cardiovascular disease coupled with a rising

consumer focus on preventive healthcare continues to drive for the health and wellness trend in

fruit and vegetable juices market.

The purity, freshness and natural sweetness of 100% pure fruit juice drinks are the key selling

propositions for the manufacturers targeting health-conscious consumers.

The global market for functional beverages is forecast to grow at a CAGR of 5.8% during 2009–

14, which is almost double the growth forecast for the overall soft drinks market. Juice

manufacturers are also adding ingredients with health benefits such as omega-3, probiotics and

calcium to their beverages in order to capitalize on the growing demand for functional drinks.

By emulating features of other functional soft drinks, juice manufacturers are producing blends of

beverages typically seen in other product categories such as RTD tea, to provide variety in flavor

and enhance the health benefits of juices.

A significant increase in demand for 100% juice (not from concentrate) is primarily being driven

by a rise in consumers' desires for more indulgent, luxurious and healthy natural products.

Juice manufacturers are launching new products in innovative packaging to meet the growing

consumer preferences for juices with a longer shelf life and on-the-go juices.

13

Chapter 1 Introduction

What is this report about? Juices are naturally occurring liquids found in fruit and vegetable tissue that can be classified into five

categories, as listed below. The global fruit and vegetable juices market was valued at $79bn in 2009 and is

forecast to grow at a CAGR of 3.4% during 2009–14 to reach a value of $93bn by 2014. In the developed

markets of Western Europe, the UK will lead the growth for 100% pure fruit juices categories, while a

significant rise in demand for fruit drinks from emerging markets such as China and Russia will drive growth

for the juices market.

This report contains a summary of the innovative and novel fruit and vegetable juice launches between June

2006 and May 2010, as reported by Product Launch Analytics, an in-house database of new product

launches in fast-moving consumer goods. This report analyzes market data on the value and volume growth

of the fruit and vegetable juices market. Innovation and NPD are analyzed by region and category, and

emerging market trends are illustrated in the report. Moreover, this report enables manufacturers to identify

the emerging trends and growth opportunities in fruit and vegetable juices.

The market defined Within this report, the soft drinks market is segmented into five categories:

Fruit drinks (0–29% juice).

100% fruit juices (from concentrate).

100% fruit juices (not from concentrate).

Nectars (30–99% juice).

Vegetable juices.

14

Report structure The chapters of this report are structured as follows:

Introduction – market definition and scope of the report.

Growth opportunities in fruit and vegetable juices – a review of market value by region,

country and category with market forecasts to 2014 (using 2009 as the base year) including an

evaluation of growth potential.

Innovation and NPD – a review of innovation by category, region and type of innovation. This

chapter also identifies flavor trends and analyzes usage of key product tags, which are the unique

selling points detailed on product packaging.

Key trends – an overview of emerging trends within the fruit and vegetable juices market.

Conclusions – summary of key trends and future opportunities within the fruit and vegetable

juices market.

15

Chapter 2 Market drivers and resistors

Summary The growing consumer focus on preventive healthcare has increased demand for superfruits

such as açaí, goji, cranberry and pomegranate. This is driven by the inherent health benefits of

superfruits allowing manufacturers to position juices as functional beverages with specific health

benefits.

The rising disposable personal income of average consumers and corresponding emergence of

middle class households have been the most important drivers of demand for premium juices.

Growing consumer awareness about sustainable cultivation and processing methods has also

increased demand for fairtrade juices and 100% pure organic juices.

The healthcare authorities in EU countries promote the importance of a balanced diet through

awareness campaigns such as ‘5–a–day’ meal campaigns encouraging consumers to eat five

portions of fruit and vegetables on a daily basis.

16

Introduction There are two key themes driving innovation in juices; premiumization and health. These themes are being

driven by a number of subthemes, highlighted in Figure 1. Another factor both driving and resisting

innovation in juices is regulation. This is also discussed in this chapter.

Figure 1: Consumer and regulatory drivers and resistors

Higher quality

packaging

More exotic flavors

New fruit combinations

Fairtrade

Organic Superfruits

Healthier drinks for

kids

Higher fruit content

Removal of artificial

sweeteners

Fortified juices

PremiumizationHigher disposable income

Increased travel

HealthDemand for juices with health benefits

Concern over effect of artificial sweeteners

Higher quality

packaging

More exotic flavors

New fruit combinations

Fairtrade

Organic Superfruits

Healthier drinks for

kids

Higher fruit content

Removal of artificial

sweeteners

Fortified juices

PremiumizationHigher disposable income

Increased travel





Source: Business Insights BUSINESS INSIGHTS

17

Consumer drivers The two key consumer drivers for the fruit and vegetable juice market discussed in this section are:

Consumer focus on preventive healthcare;

Premiumization and a higher disposable income.

Health

The consumer focus on preventive healthcare is driving growth in the juices market, which is primarily

attributed to the following two factors:

Increased use of superfruits to fortify juices;

Adverse health effects of added sweeteners.

Increased use of superfruits

The growing consumer focus on preventive healthcare has increased demand for superfruits such as açaí,

goji, cranberry and pomegranate. The health benefits of superfruits allow manufacturers to position juices as

functional beverages with specific health benefits. A number of superfruits are known to have a high oxygen

radical absorbance capacity (ORAC), a measure of antioxidant content in food and drinks. The 100% pure

juice content of some superfruits such as pomegranate has a mean ORAC that is almost three times as high

as the juices of raw oranges or white grapes. A growing consumer focus on preventive healthcare for anti-

aging, immunity and heart health has driven demand for superfruits such as acerola, noni and pomegranate

that have high antioxidant contents and claim to have health benefits to counteract some of the symptoms of

the aforementioned conditions. The introduction of juices of newly recognized superfruits such as baobab

that are also approved by regulatory authorities in the US and Europe will give juice manufacturers the ability

to make functional claims (albeit until Article 13 Health Claim legislation comes into place) on the ingredients

and position the products as functional drinks.

Fruite Entreprises S.A. launched two Jus (Juice) drinks on the market in France in April 2010, under the

Fruite Superfruits brand name. These are: Myrtille (Blueberry) and Cranberry. It is clear from the packaging

that both products are using superfruits to make antioxidant health claims.

18

Figure 2: Fruite Entreprises S.A.

Source: Product Launch Analytics BUSINESS INSIGHTS

Removal of artificial sweeteners

Rising consumer concerns about adverse health effects such as obesity and diabetes by consuming high

levels of carbonates and other soft drinks sweetened with high fructose corn syrup has increased demand for

low calorie beverages with alternative sweeteners. Consumers are also increasingly demanding natural

beverages, due to concern over the long term effect of artificial flavors. The demand for naturally sweetened

beverages has been a key area of innovation in the entire soft drinks market with a number of manufacturers

partnering with natural sweetener manufacturers to create new products.

Much of the recent impetus for new product launches has come from The Coca-Cola Company and

PepsiCo, who have tied in with reb-A suppliers Cargill and PureCircle, respectively. The Coca-Cola

Company has launched a number of products in the US, including many flavor variants of its Vitamin Water

range and Sprite Green. PepsiCo has also launched a number of products, mainly through its Tropicana and

SoBe brands.

PepsiCo’s Trop 50 is marketed with the slogan “Orange juice goodness with 50% less calories and sugar”

and labeling states “no artificial sweeteners.” The product comes in three variants: Pulp Free, Some Pulp

19

and Pulp Free Calcium and Vitamin D. In 2008, The Coca-Cola Company launched a reb-A sweetened

product in a 50 calorie version of Odwalla juice drink in mojito and pomegranate strawberry flavors.

Figure 3: Trop 50 from PepsiCo and Odwalla Juice Drinks


Premiumization

Rise in disposable income

The rising disposable personal income (DPI) of average consumers and corresponding emergence of middle

class households have been the most important drivers of demand for premium food and drinks. According

to the Bureau of Economic Analysis in the US, DPI and personal consumer expenditure is increasing,

although at a lower pace. In April 2010, the DPI of consumers in the US increased 0.5% over the preceding

month, with personal consumption expenditure increasing by less than 0.1% during the same period.

Although the rate of growth in demand for luxury and gourmet beverages is adversely affected by the

recessionary pressures, consumers are still demanding products that are ‘fresh’, ‘100% natural’ and organic,

qualities often found in premium food and drinks. In the long term the premiumization of juices, specifically

100% pure juices will primarily be driven by the developing countries in Asia-Pacific such as China and India

while higher purchasing power of middle class consumers in developed markets such as Europe and North

America will continue to play an important role.

20

Figure 4: Middle class population by region (m), 2009–30

525 664338

181 137

1,740

703

333 251 222

3,228

680

322 313 341

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Asia Pacific Europe NorthAmerica

LatinAmerica

Middle Eastand Africa

Mid

dle

clas

s po

pula

tion

(m)

2009 2020 2030

525 664338

181 137

1,740

703

333 251 222

3,228

680

322 313 341

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Asia Pacific Europe NorthAmerica

LatinAmerica

Middle Eastand Africa

Mid

dle

clas

s po

pula

tion

(m)

2009 2020 2030

Source: Organization for Economic Co-operation and Development BUSINESS INSIGHTS

Increased travel and demand for exotic flavors

A rise in the consumer experimentation with novel tastes and flavors in food and beverages from distant

regions such as Brazil and China has also led to an increase in new product launches in the 100% pure fruit

juice category. The growing consumer demand for 100% pure juices of superfruits such as goji (largely

cultivated in China) and açaí (from Brazil) is primarily driven by their combined features of exotic tastes,

freshness and functional health benefits. Growing consumer awareness about sustainable cultivation and

processing methods has also increased demand for fairtrade juices and 100% pure organic juices.

21

Organic, natural and juice bars

The growth of juice bars selling freshly prepared juices are also instrumental in driving premiumization trend

in the juices market as they provide customized assortment of fruits and vegetable juices to the consumers.

The growing number of dedicated juice bars in North America and Europe has made fresh juices more

accessible to the consumers. Revive operates a global chain of juice bars through its franchisees under

brands such as LoveJuice and Barefruit where it serves 100% natural and freshly squeezed juices (not from

concentrate). These juice bars also serve organic and herbal juices in biodegradable packs for the

consumers concerned with environment. The flourishing juice bar trade is not conducive to the growth of

packaged juice manufacturers, as these retail outlets largely market their products based on freshness and

consumer visibility credentials. However, manufacturers of packaged juices may capitalize on the growth in

the juice bars industry by using them as alternative distribution channels for their products.

Figure 5: Revive Juice Bar

Source: Company information BUSINESS INSIGHTS

22

Regulation The healthcare authorities in EU countries promote the importance of a balanced diet as a preventive

healthcare measure among consumers. The regulatory initiatives such as 5–a–day meal campaigns by the

healthcare authorities in the developed markets such as the UK are encouraging consumers to eat five

portions of fruit and vegetables on a daily basis. According to the National Health Service (NHS) in the UK,

one 150ml glass of unsweetened 100% fruit or vegetable juice counts as one portion of the 5-a-day fruit and

vegetable recommendation. The regulatory promotions have helped juice manufacturers in legally claiming

their products to have equivalence to one portion of the recommended fruit and vegetable intake.

Figure 6: The 5–a–day meal campaign by the National Health Service in the UK

Source: National Health Service BUSINESS INSIGHTS

Health awareness campaigns such as Change4Life in the UK that focuses on developing healthy eating

habits among children and adults has also benefited the market for 100% pure fruit juices. The campaign is

supported by the Food Standards Agency, NHS and School Food Trust and is helpful to healthy food and

23

beverages manufacturers. The NHS has also been highlighting the fact that juices of certain fruits such as

beetroot contains nitrate, a chemical that helps regulate high blood pressure (a cause of heart disease and

stroke) and also boosts stamina. Further research (with regulatory backing) linking the consumption of such

juices with positive health effects may result in increased new product development (NPD) in these

beverages.

Figure 7: NHS promoting effectiveness of beetroot juice in blood pressure reduction

Source: National Health Service BUSINESS INSIGHTS

In addition to health benefits and proper nutrition, the safety of food and beverages consumed by children

has also been an area of concern for regulatory authorities in the US. The regulatory focus has been on the

removal of additives such as artificial colorings and preservatives such as sodium benzoate from beverages

that tend to increase hyperactivity among kids. The 100% pure fruit juices are free from these additives and

therefore considered safer to be consumed by children. Regulations in the US also encourage the

consumption of 100% pure fruit and vegetable juices among school going children and teenagers. Senate

Bill 965 in California aims to improve the quality of beverages sold in the state's schools. The bill states that

no fewer than 50% of all beverages sold in schools shall be fruit-based drinks containing at least 50% fruit

juice and without added sweeteners. The regulation also mandates that vegetable-based drinks served in

schools need to contain no less than 50% vegetable juice and have no added sugar.

24

Compliance with Article 13 health claims regulations in the EU has been a major challenge for NPD across

the food and drinks market in Europe. Juices are largely marketed based on health benefit claims and novel

functional ingredients are used to enhance their nutritional value, subject to critical assessment by the

European Food Safety Authority. In addition to Article 13 regulations, juice manufacturers are also required

to comply with Article 14 health claim regulations if their products are targeted at the kids' consumer

segment, which also inhibits the growth of new product launches in EU. However, most fruit and vegetable

juices have scientifically proven nutrient and antioxidant contents and NPD in juices is therefore not as badly

affected by these regulations as it is in functional beverages. Aside from health claim regulations that restrict

NPD in juices, the consumer healthcare authorities in the UK promote the consumption of whole fruits and

vegetables over juices, primarily due to their high fiber content (which is lost during the extraction of juice

from fruits and vegetables). The direct exposure of teeth to the sugars in fruit juices has also been an area of

concern for the healthcare authorities. According to the (UK’s) NHS, sugar released from fruit when it is

juiced or blended may cause damage to teeth when consumed in a way that does not happen with whole

fruits, as the sugars in these are contained within the structure of the fruit and do not directly affect teeth.

25

Chapter 3 Growth opportunities in fruit and vegetable juices

Summary The global market for juices was valued at $79bn in 2009. This market is forecast to grow at a

CAGR of 3.4% during 2009–14 to reach a value of $93bn in 2014. In 2009, 52bn liters of juices

were sold globally, with sales volumes forecast to grow at a CAGR of 3.8% during 2009–14 to

reach 62bn liters in 2014.

Europe continues to be the largest market for juices, valued at $38bn, accounting for a 47.7%

share of the global market in 2009. During 2009–14, juices will record their highest growth rates

in Europe, registering a CAGR of 5.2% to reach a value of $48bn in 2014.

The juice market in the US was worth $26bn in 2009. This region will register lowest CAGR of

1.0% among all geographic regions during 2009–14. The juices market in North America faces

stiff competition from functional drinks and smoothies, the fastest growing non-alcoholic

beverages categories in the region.

The top 10 countries together accounted for a 74.6% share of the global market value for juices

in 2009. The US was the largest market for juices, $21bn in 2009, followed by the UK and

Germany, $8bn and $7bn, respectively.

Fruit drink (0–29% juice) is the largest juice category with a share of 27.2%, accounting for $21bn

in sales in 2009. However, the 100% fruit juice (not from concentrate) category will outperform

not only the global industry, but also all the other categories with a CAGR of 8.0% through 2009–

14.

26

Introduction This chapter analyzes dynamics in the juices market in terms of value and volume growth between 2009 and

2014. It assesses growth forecasts for juices markets in Europe, the Americas, Asia Pacific and the Middle

East and Africa (MEA). Additionally, the chapter includes category analysis and growth forecasts for juice

categories in various geographic regions. The chapter also evaluates the emerging markets for juices.

Overview of the global market for juices The global market for juices was valued at $79bn in 2009. It is forecast to grow at a CAGR of 3.4% during

2009–14 to reach a value of $93bn in 2014. The growth in juices market will primarily be driven by:

Regulatory initiatives – there have been increased efforts by governments and regulatory

authorities to raise consumer awareness about the potential health benefits of 100% fruit and

vegetable juices, especially in European markets such as the UK, through promotional

campaigns such as 5-a-day and 'Eat well, be well';

Natural wellness in juices – rising consumer preferences for natural drinks are increasing

demand for juices, and the addition of superfruits such as açai, goji and pomegranate with high

antioxidant contents by juice manufacturers will further increase consumers' inclinations to buy

these drinks, which will help sustain market growth through 2009–14;

Preventive healthcare – a rise in consumer focus on preventive healthcare to control the risk of

obesity and other maladies related to cardiovascular diseases will encourage juice manufacturers

to enhance the wellbeing credentials of their products using plant extracts, vitamins, probiotics

and omega-3 ingredients;

Kids – the kids consumer segment for fruit juices is forecast to register significant growth due to

an increase in parental health concerns related to the food and drinks consumed by their

children;

27

Tropical and exotic fruits – a rise in consumer's willingness to trade-up for premium juices with

tropical and exotic fruit flavors will enhance the value of the overall juices market.

Table 1: Value of global juices market ($bn), 2009–14

2009 2010 2011 2012 2013 2014 CAGR 2009–14 Market value 78.9 81.8 84.8 87.5 90.3 93.2 Growth rate 3.6% 3.7% 3.2% 3.2% 3.2% 3.4%Year end December 31.


Figure 8: Value of global juices market ($bn), 2009–14

70

75

80

85

90

95

2009 2010 2011 2012 2013 2014

Mar

ket v

alue

($bn

), 20

09–1

4

3.0%

3.2%

3.4%

3.6%

3.8%

4.0%

Gro

wth

rate

(%)

Market value Growth rate

70

75

80

85

90

95

2009 2010 2011 2012 2013 2014

Mar

ket v

alue

($bn

), 20

09–1

4

3.0%

3.2%

3.4%

3.6%

3.8%

4.0%

Gro

wth

rate

(%)

Market value Growth rate Source: Business Insights BUSINESS INSIGHTS

28

Annual growth rates for juices market (both in value and volume terms) will slow down during 2009–14 due

to increased competition from functional drinks, bottled water and smoothies, as explained below.

Competition from functional drinks and bottled water – the juices market is facing significant

competition from energy drinks and nutraceuticals as more consumers are likely to use these

drinks for instant health and wellness benefits. Sports and energy drinks manufacturers are

increasingly using superfruit flavors in their new products launches, which will also inhibit growth

for the juices market. Additionally, new product development (NPD) in fruit-flavored bottled waters

claimed to deliver essential nutrients and functional benefits will also challenge the growth of the

fruit juices market;

Competition from smoothies – increased demand for fruit-based smoothies as meal

replacement alternatives, their suitability for consumption at any time and ease of storage will

also dent growth for the 100% pure fruit juices market, primarily in the US.

In 2009, 52bn liters of juices were sold globally, with sales volumes forecast to grow at a CAGR of 3.8%

during 2009–14 to reach 62bn liters in 2014. The 100% fruit juice (not from concentrate) category, which

accounts for 10bn liters of juice volumes in 2009, will drive growth for the overall juices market by registering

a CAGR of 8.5% to reach 14bn liters in 2014. This volume growth will primarily be attributed to increased

demand for 100% pure fruit juices in Europe and the Americas, where health-conscious consumers are likely

to increase their intake of these drinks.

Table 2: Volume of global juices market (bn liters), 2009–14

2009 2010 2011 2012 2013 2014 CAGR 2009–14 Market volume (bn liters) 51.5 53.6 55.7 57.8 60.1 62.2 Growth rate 4.0% 4.0% 3.8% 3.8% 3.5% 3.8%Year end December 31.


29

Figure 9: Volume of global juices market (bn liters), 2009–14

45

50

55

60

65

2009 2010 2011 2012 2013 2014

Mar

ket v

olum

e (b

n lit

ers)

, 200

9–14

3.4%

3.5%

3.6%

3.7%

3.8%

3.9%

4.0%

Gro

wth

rate

(%)

Market volume Growth rate Source: Business Insights BUSINESS INSIGHTS

Comparing juices with other soft drinks Juices accounted for almost 16.0% of the global soft drinks market in 2009, which was valued at $494bn.

Although carbonates will continue to be the largest soft drinks category by market value during 2009–14, the

juices market is forecast to grow at a CAGR that is 2.6 times more than the growth rate for carbonates

market (forecasted to grow at a CAGR of 1.3% during 2009–14). The natural, safety and purity features of

fruit and vegetable juices will continue to be key selling propositions for the juice manufacturers. However,

the growth in the juices market will lag behind its key competing beverage markets such as bottled water,

RTD tea and coffee, and functional drinks. Bottled water is a low-calorie drink, which makes such beverages

more suitable for weight-conscious consumers than most fruit juices, as these are full of naturally occurring

sugars. Furthermore, other beverages such as RTD green tea have high antioxidant contents and therefore

compete with superfruit juices as wellness drinks with potential anti-aging properties.

30

Table 3: Comparison of juices with other soft drinks categories, 2009–14

Category Sales value in 2009

($bn) Sales value CAGR 2009–14

Sales volume in 2009 (bn liters)

Carbonates 212.9 1.3% 214.8Bottled water 92.6 4.6% 153.2Juices 78.9 3.4% 51.5Functional drinks 46.7 5.8% 14.3RTD tea and coffee 43.0 4.3% 22.7Concentrates 15.2 2.2% 5.4Smoothies 5.3 7.2% 1.0 Total 494.5 3.1% 462.8Year end December 31.


Figure 10: Comparison of juices volume consumption with other soft drinks categories, 2009–14

Carbonates

Bottled water

Juices

Functional drinks

RTD tea & coffee

Concentrates

Smoothies

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0 50 100 150 200 250Market value ($bn)

Juic

es m

arke

t val

ue C

AG

R 2

009–

14 (%

)

*Size of the bubble indicates juice volume consumption in 2009.

Carbonates

Bottled water

Juices

Functional drinks

RTD tea & coffee

Concentrates

Smoothies

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0 50 100 150 200 250Market value ($bn)

Juic

es m

arke

t val

ue C

AG

R 2

009–

14 (%

)

*Size of the bubble indicates juice volume consumption in 2009. Source: Business Insights BUSINESS INSIGHTS

31

Juices market value by geography Europe is the largest market for juices by value, at sales of $38bn in 2009, representing a 47.7% share of the

global market. The juices market in Europe is forecast to grow at a CAGR of 5.2% to reach a value of $48bn

in 2014. The promotion of healthy lifestyles and balanced diets through campaigns such as 5-a-day in the

UK will drive demand for juices in Europe. Furthermore, the endorsement of the daily consumption of 100%

fruit juices and vegetable juices by regulatory authorities such as the Food Standards Agency will fuel the

growth of this soft drinks category.

Juices market in the Americas was worth $26bn in 2009 and forecast to grow at a CAGR of 1.0% during

2009–14. A significantly lower growth rate for the juices market in Americas will primarily be attributed to

rising competition from functional drinks and smoothies, the fastest growing non-alcoholic beverages in the

region. However, a lower penetration for juices in Latin American markets such as Brazil and Mexico coupled

with rising purchasing power of consumers will help boost sales of both mainstream and upscale juices in

these countries.

Table 4: Juices market value by geography ($bn), 2009–14

Region 2009 2010 2011 2012 2013 2014 CAGR 2009–14 Europe 37.6 39.8 42.0 44.1 46.2 48.4 5.2%Americas 25.6 25.8 26.1 26.4 26.7 26.9 1.0%Asia Pacific 13.5 13.9 14.3 14.6 15.0 15.4 2.7%MEA* 2.2 2.3 2.3 2.4 2.4 2.5 2.6%Total 78.9 81.8 84.8 87.5 90.3 93.2 3.4%Year end December 31. *MEA – Middle East and Africa.


32

Figure 11: Juices market value by geography (%), 2009–14

2.8%

17.1%

32.4%

47.7%

2.7%

16.5%

28.9%

51.9%

0% 10% 20% 30% 40% 50% 60%

MEA

Asia-Pacific

Americas

Europe

Market share (%)

20142009

2.8%

17.1%

32.4%

47.7%

2.7%

16.5%

28.9%

51.9%

0% 10% 20% 30% 40% 50% 60%

MEA

Asia-Pacific

Americas

Europe

Market share (%)

20142009


Top 10 countries by juices market value

The top 10 countries together accounted for a 74.6% share of the global market value for juices in 2009. The

US was the largest market for juices, valued at $21bn in 2009, followed by the UK and Germany, which were

valued at $8bn and $7bn, respectively. Although the size of the juices market in the US was 2.7 times that of

the UK in 2009, its growth rate of 0.6% through 2009–14 will significantly lag behind the UK (forecast to grow

at a CAGR of 8.9% during 2009–14). The Russian market will also outperform global industry growth rates

with a CAGR of 8.5% during 2009–14, almost 2.5 times the forecast growth rate for the global juices market

during the same period. The entry of international players such as The Coca-Cola Company and PepsiCo

has increased the availability of new flavors and exposure of Russian consumers' to new brands. Improved

macroeconomic factors have increased consumer purchasing power in Russia, which in turn has fuelled

demand for consumer packaged goods. Coca-Cola completed the purchase of Nidan, the fourth largest juice

manufacturing company in Russia in September 2010. The acquisition is part of the company's strategic plan

to expand its presence in the fast growing emerging markets through strategic acquisitions. However, since

33

per capita consumption of juices in Russia is much lower than in other developed European markets such as

the UK and Germany, juice manufacturers are working to penetrate the Russian market for juices by

launching new products. In 2008, PepsiCo and Pepsi Bottling Group together bought a 75.5% share of JSC

Lebedyanksy, a juice producer in Russia, for RUB33bn ($1.4bn). In contrast, the juices market in Japan is

expected to register a decline during 2009–14, with a negative CAGR of 1.4%, primarily due to a shift in

consumer preferences towards sugar-free soft drinks and mineral water and away from juices.

Table 5: Top 10 countries by juices market value ($bn), 2009–14

Country 2009 2010 2011 2012 2013 2014 CAGR

2009–14 US 21.4 21.5 21.6 21.8 21.9 22.0 0.6%UK 7.8 8.7 9.6 10.4 11.2 12.0 8.9%Germany 7.1 7.2 7.4 7.5 7.6 7.7 1.6%Japan 5.7 5.7 5.6 5.5 5.4 5.4 -1.4%Russia 4.6 5.0 5.5 6.0 6.4 6.9 8.5%China 3.1 3.4 3.7 3.9 4.1 4.4 6.8%France 3.1 3.2 3.5 3.6 3.8 4.0 5.3%Spain 2.6 2.7 2.7 2.8 2.8 2.9 2.3%Italy 1.9 2.0 2.1 2.2 2.3 2.4 5.5%Poland 1.6 1.7 1.8 1.9 2.0 2.1 5.9%Total 58.9 61.1 63.4 65.5 67.6 69.8 3.5%Year end December 31.


34

Figure 12: Top 10 countries by juices market value ($bn), 2009–14

0.6%

8.9%

1.6%

-1.4%

8.5%

6.8%

5.3%

2.3%

5.5%5.9%

0

5

10

15

20

25

US

UK

Ger

man

y

Japa

n

Rus

sia

Chi

na

Fran

ce

Spa

in

Italy

Pol

and

Mar

ket v

alue

($bn

)

-2%

0%

2%

4%

6%

8%

10%

Pro

ject

ed C

AG

R 2

009–

14 (%

)

Market value in 2009 CAGR 2009–14 Source: Business Insights BUSINESS INSIGHTS

Juices market value by category Fruit drinks is the largest juice category with a market value of $21bn and accounting for a share of 27.2% in

2009. However, the market for 100% fruit juice (not from concentrate) will outperform not only the global juice

market but also all of the other categories of juices with a CAGR of 8.0% to reach the highest market value of

$27bn in 2014 (29.0% share in 2014). Consumer preferences for 'all natural' drinks (specifically in Europe)

will be the key growth driver for the 100% fruit juice (not from concentrate) market. Moreover, innovation in

natural colors, flavors and sweeteners such as stevia will enhance the scope of NPD in natural juices.

35

Table 6: Juices market value by category ($bn), 2009–14

Category 2009 2010 2011 2012 2013 2014 CAGR

09–14 Fruit drinks (0–29% juice) 21.5 21.9 22.3 22.6 23 23.4 1.8%100% fruit juice (concentrate) 19.9 20 20.2 20.3 20.5 20.7 0.8%100% fruit juice (not concentrate) 18.4 20.1 22 23.6 25.3 27 8.0%Nectar (30–99% juice) 13.7 14.1 14.6 15 15.5 16 3.1%Vegetable juice 5.5 5.6 5.7 5.8 6 6.1 2.2%Total 78.9 81.8 84.8 87.5 90.3 93.2 3.4%Year end December 31.


Figure 13: Juices market value by category (%), 2009–14

27.2% 25.1%

25.2% 22.2%

23.3% 29.0%

17.3% 17.1%

6.9% 6.5%

0%

20%

40%

60%

80%

100%

2009 2014

Mar

ket s

hare

(%)

Fruit drink (0–29% juice) 100% fruit juice (from concentrate)100% fruit juice (not from concentrate)

Nectar (30%–99% juice)Vegetable juice

Year end December 31.

27.2% 25.1%

25.2% 22.2%

23.3% 29.0%

17.3% 17.1%

6.9% 6.5%

0%

20%

40%

60%

80%

100%

2009 2014

Mar

ket s

hare

(%)

Fruit drink (0–29% juice) 100% fruit juice (from concentrate)100% fruit juice (not from concentrate)

Nectar (30%–99% juice)Vegetable juice

Year end December 31. Source: Business Insights BUSINESS INSIGHTS

36

Performance of juice categories by geography

Figure 14 highlights the categories of juices with highest forecast growth rates in Europe, the Americas and

Asia Pacific during 2009–14. The 100% fruit juice (not from concentrate) will be the fastest growing category

in all geographic regions. Although the 100% fruit juices (not from concentrate) category in Americas will

register a CAGR of 3.8% during 2009–14, the nectar (30–99% juice) in Asia Pacific will outperform other

categories of juices in this market with a growth rate of 4.8%

Figure 14: Performance of juice categories by geography (%), 2009–14

1.0%1.1%

2.2%

3.7%

3.8%

3.8%

4.8%6.8%

10.3%5.2%

2.7%1.0%

0% 2% 4% 6% 8% 10% 12%

Nectar (30%-99% juice)

Fruit drink (0-29% juice)

Vegetable juice

Nectar (30-99% juice)

100% fruit juice (not from concentrate)

Total Asia-Pacific

Projected CAGR 2009–14 (%)

Total Americas

Total Europe



Fruit drink (0–29% juice)


Asia-Pacific EuropeAmericas

1.0%1.1%

2.2%

3.7%

3.8%

3.8%

4.8%6.8%

10.3%5.2%

2.7%1.0%

0% 2% 4% 6% 8% 10% 12%

Nectar (30%-99% juice)


Vegetable juice

Nectar (30-99% juice)


Total Asia-Pacific

Projected CAGR 2009–14 (%)

Total Americas

Total Europe



Fruit drink (0–29% juice)


Asia-Pacific EuropeAmericas


Europe

The largest and fastest growing category of juices in Europe is 100% fruit juice (not from concentrate), which

was valued at $11bn in 2009. This market will grow to a CAGR of 10.3% during 2009–14 to reach $18bn by

2014, which is a much higher growth rate than other fast-growing categories such as vegetable juice and fruit

drinks that are forecast to grow at CAGR of 3.8% and 3.7%, respectively, in Europe.

37

Table 7: Juices market by category in Europe ($bn), 2009–14

Category 2009 2010 2011 2012 2013 2014 CAGR

09–14100% fruit juice (not concentrate) 10.8 12.2 13.6 14.9 16.2 17.6 10.3%100% fruit juice (concentrate) 10.5 10.7 10.8 11.0 11.1 11.3 1.4%Nectar (30–99% juice) 8.4 8.7 9.0 9.4 9.7 10.0 3.7%Fruit drinks (0–29% juice) 6.6 6.9 7.1 7.4 7.6 7.9 3.7%Vegetable juice 1.3 1.4 1.4 1.5 1.5 1.6 3.8%Total 37.6 39.8 42.0 44.1 46.2 48.4 5.2%Year end December 31.


100% fruit juice (not from concentrate) in Europe

Table 8, below, highlights the 10 largest markets for 100% fruit juice (not from concentrate) in Europe. The

emerging markets of Eastern Europe such as Russia and Poland may register a significant CAGR for the

100% fruit juice (not from concentrate) category during 2009–14, but considerable growth will be driven from

larger Western European markets such as the UK and France, valued at $6bn and $2bn, respectively, in

2009. The growth of the 100% fruit juice (not from concentrate) category in the European region will primarily

be driven by three key consumer trends: health, convenience and enjoyment. Additionally, 100% fruit juices

(not from concentrate) are largely offered in the premium segment and are positioned by price as everyday

luxury beverages.

38

Table 8: Top 10 European markets for 100% fruit juice (not from concentrate) ($bn), 2009–14

Country 2009 2010 2011 2012 2013 2014 CAGR 09–14 UK 5,593 6,441 7,335 8,153 8,918 9,749 11.8%France 1,595 1,806 2,035 2,220 2,422 2,629 10.5%Germany 1,100 1,182 1,260 1,330 1,403 1,479 6.1%Russia 422 484 551 624 698 767 12.7%Spain 452 488 525 556 585 618 6.5%Italy 241 267 294 323 353 381 9.6%Turkey 214 232 251 272 294 314 8.0%Poland 201 219 238 257 278 297 8.1%Switzerland 206 223 241 257 273 290 7.1%Sweden 106 114 123 132 142 151 7.4%Year end December 31.


39

Figure 15: Select European markets for 100% fruit juice (not from concentrate) forecast to grow at fastest CAGR (%), 2009–14

14.7%

12.7%12.2% 11.8% 11.2% 10.7%10.5% 10.3% 10.1% 9.6% 9.0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Est

onia

Rus

sia

Rom

ania UK

Lith

uani

a

Net

herla

nds

Fran

ce

Tota

l Eur

ope

Bel

gium Ita

ly

Bul

garia

Mar

ket v

alue

CA

GR

200

9–14

(%)

Emerging Central and Eastern European markets

Mature Western European markets

14.7%

12.7%12.2% 11.8% 11.2% 10.7%10.5% 10.3% 10.1% 9.6% 9.0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Est

onia

Rus

sia

Rom

ania UK

Lith

uani

a

Net

herla

nds

Fran

ce

Tota

l Eur

ope

Bel

gium Ita

ly

Bul

garia

Mar

ket v

alue

CA

GR

200

9–14

(%)

Emerging Central and Eastern European markets

Mature Western European markets


Vegetable juice in Europe

An increasing consumer focus on meeting the recommended nutrition levels and fulfilling nutrient deficits in

daily diets is driving demand for vegetable juices in Europe. The top 10 European markets for vegetable

juices and their forecast growth rates during 2009–14 are highlighted in Table 9 below. Spain is the largest,

market valued at $541m accounting for 40.7% share of the European market for vegetable juices in 2009.

The Russian market for vegetable juices that was worth $230m in 2009 will be the fastest growing European

market forecast to grow at a CAGR of 8.9% to reach $352m in 2014.

40

Table 9: Top 10 European markets for vegetable juices ($m), 2009–14

Country 2009 2010 2011 2012 2013 2014 CAGR 2009–14 Spain 541 553 562 571 578 587 1.6%Russia 230 253 277 302 328 352 8.9%Netherlands 104 111 119 127 135 142 6.5%Germany 106 108 109 110 111 112 1.0%Poland 90 92 96 99 104 107 3.6%Ukraine 40 42 44 47 49 51 5.0%Hungary 39 40 41 42 43 45 2.8%UK 20 20 20 21 21 22 1.9%Turkey 19 19 19 20 20 20 1.9%France 18 18 18 18 18 18 -0.2%Year end December 31st


Fruit drinks (0–29% juice) in Europe

Table 10, below, provides the top 10 fruit drinks markets in Europe. Russia is the largest market for fruit

drinks in Europe accounting for $1bn in sales value in 2009. The fruit drinks market in Russia will grow at the

fastest CAGR of 8.7% during 2009–14. Poland will also outpace the other European market for fruit drinks,

with a CAGR of 6.3% through 2009–14. An increase in demand for super-premium fruit drinks in Poland has

also attracted international players such as MonaVie, a nutritional beverage company that is launching new

healthy fruit drinks in the country. The Eastern European countries will continue to lead growth for the fruit

drinks category while the overall demand for fruit drinks in mature Western European market such as France

will remain stagnant, largely owing to an increase in the consumer demand for 100% pure fruit juices.

41

Table 10: Top 10 fruit drinks (0–29% juice) markets in Europe ($bn), 2009–14

Country 2009 2010 2011 2012 2013 2014 CAGR 09–14 Russia 1,353 1,495 1,630 1,773 1,912 2,052 8.7%Spain 920 927 935 941 945 951 0.7%Germany 875 879 882 880 881 883 0.2%UK 473 489 506 522 539 555 3.3%France 408 410 412 405 403 402 -0.3%Poland 367 390 415 442 471 497 6.3%Turkey 327 332 336 341 346 351 1.4%Czech Republic 240 234 230 225 221 216 -2.0%Netherlands 217 223 230 237 245 252 3.1%Romania 194 210 227 244 262 279 7.5%


The Americas

Fruit drinks is the largest category in the Americas with a market value of $9bn in 2009, accounting for a 34%

share of the overall fruit juice sales in the region. Although fruit drinks will continue to be the largest juices

market in the Americas, 100% fruit juice will outpace fruit drinks in sales value with a CAGR of 3.8% through

2009–14. The overall demand for fruit and vegetable juices in the largest American market, the US, will

remain sluggish due to a significant competition from energy and nutraceutical drinks.

42

Table 11: Juices market value, by category, in the Americas ($bn), 2009–14

Category 2009 2010 2011 2012 2013 2014 CAGR

09–14 Fruit drinks (0–29% juice) 8.7 8.7 8.7 8.7 8.6 8.6 -0.1%100% fruit juice (not concentrate) 5.9 6.1 6.4 6.6 6.8 7.1 3.8%100% fruit juice (concentrate) 4.9 4.9 4.9 4.8 4.8 4.8 -0.5%Nectar (30–99% juice) 3.1 3.1 3.2 3.2 3.2 3.3 1.0%Vegetable juice 3.0 3.0 3.1 3.1 3.1 3.2 1.1%Total 25.6 25.8 26.1 26.4 26.7 26.9 1.0%Year end December 31.


South and Central American countries (especially Brazil and Mexico) will be the key growth markets for all

categories of juices in the Americas region over 2009–14. The 100% fruit juice (not from concentrate)

category in South and Central America will register a CAGR of 5.7% compared to a CAGR of 3.6% in North

America. Rising consumer purchasing power in South and Central America will continue to drive demand for

all juices categories, which is in contrast to North American markets.

43

Figure 16: Comparison of juices categories in North America and South and Central America based on forecast CAGR (%), 2009–14

-0.7% -0.6%

0.9%

-1.6%

3.6%

2.8%3.5%

4.3% 4.5%

5.7%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

100% fruitjuice (from

concentrate)

Fruit drink Vegetablejuice

Nectar 100% fruitjuice (not fromconcentrate)

Proj

ecte

d C

AG

R 2

009-

14 (%

)

North America South and Central America

-0.7% -0.6%

0.9%

-1.6%

3.6%

2.8%3.5%

4.3% 4.5%

5.7%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

100% fruitjuice (from

concentrate)

Fruit drink Vegetablejuice

Nectar 100% fruitjuice (not fromconcentrate)

Proj

ecte

d C

AG

R 2

009-

14 (%

)

North America South and Central America


Asia Pacific

Table 12, below, highlight the forecast growth performances of juices categories in the Asia Pacific region.

Asia Pacific is not as large a market for juices as Europe but holds significant growth potential due to rising

income levels in emerging economies such as China and India. Similarly to Europe, the 100% fruit juice (not

from concentrate) with a forecast CAGR of 6.8% will be the fastest growing juice category in Asia Pacific

during 2009–14. However, fruit drinks and 100% fruit juice (from concentrate) will remain the two largest

juice categories in Asia Pacific through 2009–14, despite growing at a lower CAGR than the 100% fruit juice

(not from concentrate) category.

44

Table 12: Juices market by category in Asia Pacific ($bn), 2009–14

Category 2009 2010 2011 2012 2013 2014 CAGR

09–14 Fruit drinks (0–29% juice) 5.5 5.6 5.7 5.8 6.0 6.1 2.2%100% fruit juice (concentrate) 4.0 4.0 4.0 4.0 4.1 4.1 0.6%100% fruit juice (not concentrate) 1.5 1.7 1.8 1.9 2.0 2.1 6.8%Nectar (30–99% juice) 1.5 1.6 1.7 1.8 1.9 1.9 4.8%Vegetable juice 1.0 1.0 1.1 1.1 1.1 1.2 3.0%Total 13.5 13.9 14.3 14.6 15.0 15.4 2.7%Year end December 31st


The market for juices in Asia Pacific can be classified into three regions: Japan, China and rest of Asia

Pacific. The juices market in Japan (valued at $6bn) is largely mature, with overall demand forecast to

decline through 2014 due to a rise in the aging population, which has increased demand for functional

beverages. However, the market for 100% fruit juices (not from concentrate) in Japan will grow at a CAGR of

3.9% during 2009–14 as juice marketers launch new products containing pure juices of superfruits such as

açaí and goji as functional drinks with potential anti-aging benefits. In contrast to Japan, the Chinese market,

valued at $3bn in 2009, will register a significant increase in demand for all juices categories during 2009–14.

100% fruit juice (not from concentrate) in China is forecast to grow at the highest CAGR of 16.3% through

2009–14.

45

Figure 17: Comparison of forecast growth in juices categories in China, Japan and rest of Asia Pacific

16.3

6.3

3.9

8.1

2.4

-2.5

7.2

3.3

-1.6

6.95.5

-0.7

5.1 4.7

-2.0

-5%

0%

5%

10%

15%

20%

China Rest of Asia-Pacific Japan

Sal

es v

alue

CA

GR

200

9–14

(%)

100% fruit juice (not from concentrate)100% fruit juice (from concentrate)Vegetable juiceNectar (30%–99% juice)Fruit drink (0–29% juice)

16.3

6.3

3.9

8.1

2.4

-2.5

7.2

3.3

-1.6

6.95.5

-0.7

5.1 4.7

-2.0

-5%

0%

5%

10%

15%

20%

China Rest of Asia-Pacific Japan

Sal

es v

alue

CA

GR

200

9–14

(%)

100% fruit juice (not from concentrate)100% fruit juice (from concentrate)Vegetable juiceNectar (30%–99% juice)Fruit drink (0–29% juice)


Emerging markets for juices The emerging countries of South and Central America, Eastern Europe, Asia Pacific and MEA will be the key

growth markets for juices during 2009–14. Although the juice markets in these countries are very small in

comparison to mature markets such as the US, the UK and Japan, juice manufacturers may have significant

opportunities to capture a larger share in these markets. The Eastern and Central European market for juices

will primarily be driven by Poland and Romania, while Mexico and Brazil will be the fastest growing markets

in South and Central America. In Asia Pacific, densely populated markets in Asia Pacific such as China,

India and Thailand are largely underpenetrated and early investments will help juice manufacturers gain a

larger share in these markets.

46

Table 13: Key emerging markets for juices by geographic regions ($m), 2009–14

Region/country Market value in 2009 ($m) Forecast CAGR 2009–14 Eastern and Central Europe Poland 1,591 5.9%Romania 355 7.4%Bulgaria 157 4.4%Croatia 115 3.5%Lithuania 91 7.5%Estonia 82 11.1%Latvia 70 6.9%South and Central America Mexico 1,271 4.0%Brazil 556 5.3%Venezuela 518 3.7%Chile 145 6.6%Peru 47 7.1%Asia Pacific China 3,137 6.8%India 496 10.0%Malaysia 362 5.0%Thailand 166 8.1%Vietnam 71 9.2%MEA UAE 308 5.6%Morocco 210 3.7%Year end December 31st


47

Figure 18: Key emerging markets for juices ($m), 2009–14

Romania

Estonia

MexicoVenezuela

India

Thailand

Vietnam

Morocco

Poland

Bulgaria

Croatia

LithuaniaLatvia

BrazilChile

Peru

Malaysia

UAE

0%

2%

4%

6%

8%

10%

12%

0 250 500 750 1,000 1,250 1,500 1,750

Market value in 2009 ($m)

Pro

ject

ed C

AG

R 2

009–

14 (%

)

3,200

ChinaRomania

Estonia

MexicoVenezuela

India

Thailand

Vietnam

Morocco

Poland

Bulgaria

Croatia

LithuaniaLatvia

BrazilChile

Peru

Malaysia

UAE

0%

2%

4%

6%

8%

10%

12%

0 250 500 750 1,000 1,250 1,500 1,750

Market value in 2009 ($m)

Pro

ject

ed C

AG

R 2

009–

14 (%

)

3,200

China


48

Chapter 4 NPD in juices

Summary Among all new product launches across soft drinks categories, juices accounted for a 30.9%

share in 2010, an increase of 7.8 percentage points over 2007. Additionally, juices accounted for

11.0 percentage points higher share of NPD than that for functional drinks in 2010.

During 2007–10, only 2.6% of all new juices launched were innovative. In 2010, 63.6% of all

innovations in juices were in formulation. Health and wellbeing continued to be a key growth

driver for innovation in juice formulation.

Fruit drinks continue to dominate all other juice categories with a share of 46.1% in NPD in 2010,

an increase of 5.8 percentage points over 2007. The share of nectars (30–99% juice) in NPD

increased by 4.2 percentage points over 2007 to reach 17.0% in 2010.

Europe remained the leading region for NPD in juices during 2007–10, while the share of Asia

Pacific declined. The Americas region continues to register a decreasing share of NPD in juices,

while MEA doubled its contribution to NPD from 2007 to reach 5.6% in 2010.

In 2010, 'no preservatives' accounted for the highest share of 11.3% among all claims with an

increase of 3.7 percentage points since 2007, replacing 'high vitamins' as the most used claim.

The 'high vitamins' accounted for a 9.3% share of all claims used in new product launches in

2010, a decline of 1.7 percentage points from 2007.

Apple and orange continued to be the leading flavors for NPD during 2007–10, accounting for

respective shares of 9.8% and 8.6% in 2010. Apple replaced orange as the leading flavor used in

juices in 2010, while the usage of fruits such as peach, grape and raspberry declined during

2007–10.

49

Introduction This chapter examines growth in the new juices launched between 2007 and 2010 and analyzes the patterns

of NPD in different categories and geographic regions. The chapter will also evaluate the leading product

positioning, packaging types and flavors being used by juice manufacturers to highlight their product

innovations strategies in this market.

Innovation type Among all new juices launched during 2007–10, only 2.6% were innovative. In 2010, 63.6% of all innovations

in juices were in formulation. Health and wellbeing continued to be a key growth driver for innovation in juice

formulation. However, the share of formulation declined significantly from 88.5% in 2007 to 63.6% in 2010,

as the focus of manufacturers is gradually shifting towards packaging and merchandising their products for

special occasions. The share of packaging benefit and merchandising innovation increased by 10.5 and 14.4

percentage points, respectively, during 2007–10. Since the majority of juice drinks are not considered to be

as sophisticated as functional drinks, juice manufacturers are using more occasion-specific packaging and

merchandising formats and targeting specific consumer groups to differentiate their products from the rest of

the soft drinks. Additionally, in order to promote regular intake of fruit and vegetable juices, more products

are being launched in single-serving multipack pack formats suitable for lunchboxes.

Table 14: Share of juice launches by innovation type (%), 2007–10

Innovation type 2007 2010 Growth Formulation 88.5% 63.6% ▼ Positioning 23.1% 18.2% ▼ Packaging benefit 7.7% 18.2% ▲ Merchandising 3.8% 18.2% ▲ Year end May 31, 2010.


50

Figure 19: Share of juice launches by innovation type (%), 2007–10

23.1%

7.7%

3.8%

88.5%

18.2%

18.2%

18.2%

63.6%

0% 20% 40% 60% 80% 100%

Positioning

Packaging Benefit

Merchandising

Formulation

Share of juices launches by innovation type (%), 2006–09

2010

2007

Year end May 31, 2010.

23.1%

7.7%

3.8%

88.5%

18.2%

18.2%

18.2%

63.6%

0% 20% 40% 60% 80% 100%

Positioning

Packaging Benefit

Merchandising

Formulation

Share of juices launches by innovation type (%), 2006–09

2010

2007

Year end May 31, 2010. Source: Product Launch Analytics BUSINESS INSIGHTS

Comparison of NPD in juices with other soft drinks Table 15 compares the performance of juices with other soft drinks categories in terms of new product

launches during 2007–10. Among all new product launches across soft drinks categories, juices accounted

for a 30.9% share in 2010, an increase of 7.8 percentage points over 2007. Additionally, juices outperformed

functional drinks in NPD in 2010 by recording an 11.0 percentage point higher share than functional drinks.

The share of juices in NPD in soft drinks has also been much greater than RTD tea and coffee and bottled

water, which accounted for merely 10.8% and 9.6% of NPD in soft drinks in 2010.

51

The key factors enabling a superior NPD performance in the juices market over other soft drinks markets are

listed below.

Health concerns including obesity and diabetes which are associated with the consumption of

carbonated drinks containing high fructose corn syrup (HFCS), has increased consumer demand

for healthier alternatives such as fruits and vegetable juice, energy drinks etc.

Proven health benefits of consuming orange and apple juices and other superfruits such as açai,

pomegranate and goji have helped the juice market surpass functional drinks as the leading soft

drinks category in terms of new product launches.

Fruit and vegetable juices are largely considered suitable for consumption among consumers of

all age groups due to their intrinsic health and safety credentials, thereby making it easier to

position these products for the mass markets.

Table 15: Share of soft drinks categories in NPD (%), 2007–10

Soft drinks category 2007 2008 2009 2010 Growth Juices 23.1% 23.1% 26.3% 30.9% ▲ Functional drinks 26.7% 25.9% 23.5% 19.9% ▼ Concentrates 13.3% 13.1% 12.9% 14.7% ▲ Carbonates 10.4% 10.8% 11.4% 11.8% ▲ RTD tea and coffee 12.8% 14.3% 13.3% 10.8% ▼ Bottled water 12.6% 11.0% 10.5% 9.6% ▼ Smoothies 1.2% 1.8% 2.1% 2.4% ▲ Year end May 31, 2010.


52

Figure 20: NPD performance of soft drinks categories (%), 2010

CarbonatesBottled water

Juices

Functional drinks

Concentrates

Smoothies

RTD tea & coffee

0%

5%

10%

15%

20%

25%

30%

35%

0 50 100 150 200 250Market value ($bn)

Shar

e of

NP

D in

sof

t drin

ks (%

), 20

10

Year end May 31, 2010.


Juices

Functional drinks

Concentrates

Smoothies

RTD tea & coffee

0%

5%

10%

15%

20%

25%

30%

35%

0 50 100 150 200 250Market value ($bn)

Shar

e of

NP

D in

sof

t drin

ks (%

), 20

10


Juices

Functional drinks

Concentrates

Smoothies

RTD tea & coffee

0%

5%

10%

15%

20%

25%

30%

35%

0 50 100 150 200 250Market value ($bn)

Shar

e of

NP

D in

sof

t drin

ks (%

), 20

10


53

Category analysis Fruit drinks (0–29% juice) continue to dominate the juice category with a share of 46.1% in NPD in 2010, an

increase of 5.8 percentage points over 2007. The share of nectars (30–99% juice) in NPD has also

increased by 4.2 percentage points over 2007 to reach 17.0% in 2010. Consumers are seeking healthy

alternatives to carbonates with high HFCS content that have contributed significantly towards new product

launches in the area of hybrid drinks withfeatures of carbonated drinks and fruit juices. Fruit drinks and

nectar are also being used by the soft drinks manufacturers to develop hybrid drinks with functional benefits.

However, the share of 100% fruit juice (not from concentrate) in NPD has declined by 5 percentage points

which is in contrast to a significant growth in demand for 100% fruit juices categories globally. Limitations in

preserving, storing and adding new ingredients (due to the risk of spoiling the original taste) have restricted

the scope of NPD in 100% pure fruit juices.

Figure 21: New product launches in juices by categories (%), 2007–10

40.3% 41.0% 41.6% 46.1%

12.8% 13.6% 15.5%17.0%

16.4% 18.0% 14.8%15.0%

15.2% 13.4% 13.0%10.2%

9.0% 8.2% 9.1% 4.7%6.4% 5.9% 6.0% 7.0%

0%

20%

40%

60%

80%

100%

2007 2008 2009 2010

Juic

e ca

tego

ry s

hare

in N

PD (%

), 20

07–1

0

Fruit Drinks (0-29% Juice) Nectars100% fruit juice (from concentrate) 100% fruit juice (not from concentrate)Others* Vegetable Juice

Year end May 31, 2010.*Include hybrid drinks with combined characteristics of juices and other soft drinks categories.

40.3% 41.0% 41.6% 46.1%

12.8% 13.6% 15.5%17.0%

16.4% 18.0% 14.8%15.0%

15.2% 13.4% 13.0%10.2%

9.0% 8.2% 9.1% 4.7%6.4% 5.9% 6.0% 7.0%

0%

20%

40%

60%

80%

100%

2007 2008 2009 2010

Juic

e ca

tego

ry s

hare

in N

PD (%

), 20

07–1

0

Fruit Drinks (0-29% Juice) Nectars100% fruit juice (from concentrate) 100% fruit juice (not from concentrate)Others* Vegetable Juice

Year end May 31, 2010.*Include hybrid drinks with combined characteristics of juices and other soft drinks categories.


54

Fruit drinks (0–29% juice)

Diluted fruit juices sweetened with natural or artificial sugars are known as fruit drinks. The fruit drinks

category accounted for a 46.1% share of all new juices launched in 2010, an increase of 5.8 percentage

points since 2007. Manufacturers are increasingly adding superfruits appeal to consumers due to both their

exotic flavors and inherent health benefits. For example, the superfruit lingonberry (also known as cowberry)

contains high levels of pectin and natural preservatives such as benzoic and citric acids. Eckes Granini, a

German fruit beverages company, used lingonberry in its new fruit drinks launched under the brand name

Joker Vital Protect in France in 2008. This wellness drink is primarily targeted at the young adults

undertaking preventive healthcare measures by consuming natural drinks.

Figure 22: Joker Vital Protect lingonberry


The new fruit drinks launched during 2007–10 also contained tropical fruits such as bergamot orange for

imparting exotic flavors to the product. Koninklijke de Ruijter, a Dutch producer of fruit syrups and RTD

beverages, launched its new range of fruit drinks containing bergamot orange under the brand name Lessini

Light in the Netherlands in 2009. The bergamot orange contains bergamot oil, a natural fragrance used in

cosmetics that imparts a distinctive aroma to this drink.

55

Figure 23: Lessini Light fruit drink


Juice manufacturers are increasingly using nutritious ingredients such as whole grains and oats to position

their beverages as wholesome snacking options for the consumers. Juice manufacturers are also using

nutrient-rich cereals with unusual ingredients such as purple corn that also drive a healthier positioning of

their products. Purple corn is a Peruvian crop with high phytonutrients (plant nutrients) such as phenolics and

anthocyanins, which are natural bioactive compounds known to impart good health by promoting blood

circulation and reducing cholesterol levels in the body. In 2008, Gloria launched its new range of pineapple,

apple and quince juices with chicha morada (purple corn extract) in Peru. In addition to purple corn extract,

these juices are also fortified with vitamin C and herbs typically used in food products such as cinnamon and

cloves. Cinnamon is helpful in reducing nervous tension, improving complexion and memory and enhancing

immunity to common colds, while cloves have natural antibacterial, antiviral, antifungal and antiseptic

properties.

56

Figure 24: Gloria chicha morada (purple corn extract) and fruit juice


Nectars (30–99% juice)

Nectars are prepared by adding sugar and water to fruit purees, pulps, juices, or concentrates. Healthy

image of nectars has fuelled consumer demand and hence investment in innovations in this category by juice

manufacturers. Europe leads in new product launches in nectars, accounting for a 55.6% share of all NPD in

this category in 2010. A rise in consumer inclinations towards experimenting with new tastes and flavors has

also encouraged NPD and innovation in this category. Manufacturers are increasingly developing unusual

blends of fruit nectars and natural flavors extracted from plants/trees such as ginkgo biloba. Ginkgo biloba is

a Chinese herb known to enhance memory and concentration, and contain flavonoids, which aid in

maintaining healthy blood vessels and support the absorption of vitamin C. EVGA, a Greek manufacturer of

dairy products, launched its Power Genius brand of nectar containing ginkgo biloba in Greece in 2008.

Besides imparting a healthy image through the fortification of nectars with herbs, vitamins and minerals, juice

manufacturers are also enhancing the sensory appeal of their products through the addition of aromatic

ingredients such as rose hips. The Dimes Life brand of mixed fruit nectar with rose hip extracts was launched

in Turkey in 2009. Rose hips contain significant amounts of vitamins C, E, and K along with essential

57

minerals such as calcium and iron. Juice manufacturers also increasingly use rose hips for their potential

health benefits such as cleaning the urinary system, their remedial properties for lung diseases and so on.

Figure 25: EVGA Power Genius fruit juice and Dimes Life mixed fruit nectar


100% fruit juice (from concentrate)

100% fruit juice (from concentrate) accounted for a 15% share of NPD in juices in 2010. New product

launches in this category have primarily been led by rising consumer preferences for beverages with

functional benefits and superior tastes. The manufacturers of 100% fruit juice (from concentrate) are focused

on positioning their products on a par with functional beverages by adding essential nutrients and herbs to

these drinks. In 2008, NBI Juiceworks (NBI), a Florida-based juice manufacturer, expanded its line of

Drenchers brand of juices through the addition of protein, vitamins and amino acids to help enhance strength

by providing energy to the muscles. The product is fortified with Bodyguard, a proprietary formulation of NBI

containing more than 15 types of essential nutrients, electrolytes and herbs that are natural sources of

energy. Additionally, NBI presents these drinks in daily dosing packaging formats that are convenient for

consumers with busier lifestyles.

58

Figure 26: Drenchers Fit ‘N Lean juice beverages



100% fruit juices (not from concentrate) are directly packaged in cartons or bottles without the addition of any

sugar, preservatives or flavors. This category accounted for a 10.2% share of NPD in juices in 2010, a

decline of five percentage points from 2007 that can primarily be attributed to a much higher increase in new

product launches among the fruit drinks and nectars categories. 100% fruit juices (not from concentrate)

benefit from healthcare initiatives such as the 5-a-day campaign as they can provide part of the daily

recommended fruit intake. Certain juice manufacturers are adding fruit pieces to their products to position

these drinks at a par with whole fruits in terms of nutritional value. Fruit2day, a fruit drink containing real fruit

bits, was launched by Hero/WhiteWave, a joint venture between juice manufacturer Hero (based in

Switzerland) and food maker WhiteWave Foods (based in the US), in 2009. The beverage is primarily

targeted at adults with an on-the-go lifestyle that want more fruit in their regular diets.

59

Figure 27: Fruit2day juice


Fortifying 100% fruit juice (not from concentrate) with fibrous ingredients such as Barliv, a soluble barley

betafiber developed by Cargill that supports heart and digestive health, is also helping juice manufacturers

augment the wellness credentials of their products. Wm. Bolthouse Farms, a farming company in the US,

launched the Heart Healthy brand of not-from-concentrate juice containing Barliv in 2009. The product is a

blend of apple, pear and merlot juices and each single serving contains 0.75gm of Barliv.

Figure 28: Bolthouse Farms' Heart Healthy apple pear and merlot juice blend


60

Vegetable juice

Vegetable juice accounted for a 7% share of all NPD in juices in 2010 with Asia Pacific being the most active

region for NPD in this category registering a share of 42.1% of all new product launches in 2010. Drinking

vegetable juice helps consumers reach the recommended intake of five fruits and vegetables per day as it

addresses some of the key barriers to cooked vegetable consumption such as convenience, portability and

taste. Some vegetable juices manufacturers are positioning their products as organic drinks to align their

portfolio with the rising ethical concerns of consumers. They are also adding food ingredients such as

sprouts to enhance the nutritional content of their products. Pasteur Dairy launched a range of new

vegetable juices with organic sprouts in South Korea. Organic sprouts are a rich source of chlorophyll, a

green pigment in plants and green vegetables with wound-healing, anti-inflammatory and antioxidant

properties. These beverages contain juices and pastes of 19 vegetables including organic carrots and

tomatoes and the fortification of organic sprouts are said to significantly enhance the health benefits of these

juices.

Figure 29: Pasteur organic sprouts with vegetables juice


61

Regional analysis Table 16 highlights the share of NPD in juices by geography during 2007–10. Europe remained the leading

region for NPD in juices, while the share of Asia Pacific declined over the period. The share of the Americas

in NPD in juices also declined during 2007–10 while Middle East and Africa (MEA) doubled its contribution

towards new product launches to reach 5.6% share in 2010. NPD in juices in the emerging markets of MEA

are likely to register further growth, primarily owing to the entrance of international players into the region.

Table 16: Share of juice launches by region (%), 2007–10

Region 2007 2008 2009 2010 Growth Europe 37.3% 36.0% 35.6% 46.1% ▲ Asia Pacific 33.1% 35.1% 37.4% 26.5% ▼ The Americas 24.8% 24.6% 21.9% 21.7% ▼ MEA* 2.8% 3.4% 5.1% 5.6% ▲ Multi-region** 2.0% 0.9% 0.1% 0.1% ▼ *MEA – Middle East and Africa **Multi-region includes new product launched in two or more regions. Year end May 31, 2010.


62

Figure 30: Share of juice launches by region (%), 2007–10

37.3%33.1%

24.8%

2.8% 2.0%

46.1%

26.5%

21.7%

5.6%

0.1%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Europe Asia-Pacific Americas Middle Eastand Africa

Multi-region

Shar

e of

juic

es la

unch

ed (%

) 2007201037.3%

33.1%

24.8%

2.8% 2.0%

46.1%

26.5%

21.7%

5.6%

0.1%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Europe Asia-Pacific Americas Middle Eastand Africa

Multi-region

Shar

e of

juic

es la

unch

ed (%

) 20072010


Europe

Throughout 2007–10, Europe continued to be the most active region for NPD in juices. The region accounted

for a 46.1% share of all new launches in 2010, an 8.8 percentage point increase over 2007. Among all

categories of juices, fruit drinks accounted for the largest share, 38.3% of NPD in juices in 2010. In Western

European markets for juices such as the UK and Germany, regulator initiatives such as 5-a-day and

Change4Life for promoting healthy diets are a key growth driver for all juice categories. Juice manufacturers

in emerging Eastern European markets such as Russia are launching new fruit drinks with an upscale

positioning to capitalize on the growing consumer demand for premium beverages.

63

Table 17: Share of NPD by category in Europe (%), 2007–10

Category 2007 2008 2009 2010 Growth Fruit drinks (0–29% juice) 36.4% 41.3% 36.6% 38.3% ▲ Nectars (30–99% juice) 19.9% 17.4% 21.3% 22.4% ▲ 100% fruit juice (from concentrate) 10.1% 8.9% 12.2% 12.2% ▲ 100% fruit juice (not from concentrate) 17.1% 15.0% 13.9% 12.1% ▼ Others* 11.7% 12.6% 9.3% 11.2% ▼ Vegetable juice 4.7% 4.7% 6.7% 3.8% ▼ *Includes other categories of juices not covered under main segments. Year end May 31, 2010.


Table 18, below, highlights the top 10 tags used in new products launches in Europe during 2007–10. The

top 10 tags are indicative of three key trends in the region: natural, health and private label. 'No

preservatives' was the most used tag, accounting for a 13.4% share of all tags used in new product launches

in the European juices market in 2010, an increase of 4.5 percentage points over 2007. 'Private label' has

also registered a significant 7.8 percentage point increase in share to reach 10.6% in 2010. This increase is

primarily due to a growing consumer focus on deriving value proposition from private labels due to the

adverse impact of the economic downturn in the region, which has shifted consumer preferences away from

branded products. Additionally, a significant increase in demand for organic products has led to a 4.5

percentage point increase in the share of products launched with 'organic' tag, mainly driven by Western

European markets.

64

Table 18: Top 10 tags on new juices launched in Europe (%), 2007–10

Claim/tag 2007 2008 2009 2010 Growth No preservatives 8.9% 9.9% 10.5% 13.4% ▲ Private label 2.8% 3.2% 11.0% 10.6% ▲ No artificial colors 5.3% 5.6% 5.1% 8.6% ▲ High vitamins 12.6% 13.5% 12.7% 7.9% ▼ Organic 3.3% 3.9% 7.1% 7.8% ▲ Natural 4.9% 6.3% 5.7% 5.5% ▲ No artificial flavors 2.6% 4.0% 3.0% 5.4% ▲ Pure 6.9% 8.5% 7.1% 4.7% ▼ Kids 4.7% 3.3% 2.3% 4.5% ▼ Low sugar 5.9% 5.7% 6.9% 3.2% ▼ Year end May 31, 2010.


Juice manufacturers in Europe are primarily focused on enhancing the nutritional value of their beverages.

Promotional campaigns by healthcare authorities such as Change4Life in the UK are largely used as

marketing platforms by juice manufacturers to highlight the health benefits of their beverages and raise

consumer acceptance for their products. Waitrose, a food and drinks retailer in the UK, introduced a new fruit

drink containing a blend of banana puree with pineapple, apple and orange juice and coconut milk in 2008.

The product is presented in 250ml single serving bottles and the variety of fruits in it helps consumer get the

recommended five portions of fruit a day.

65

Figure 31: Waitrose pineapple, banana and coconut smoothie


Rising parental concerns about the health of their children has raised demand for juices that help to increase

the regular consumption of fruits and vegetables among kids in Europe. Manufacturers have launched a

number of new products in daily dosing packaging formats to target the kids' segment in Europe. Unilever

Hellas, a manufacturer of food and personal care products, launched the Knorr Vie Kidz brand of fruit and

vegetable juice in Greece in 2009. The 100% natural drink is presented in 100ml bottles containing a blend

of carrot, pumpkin and apple, among other fruits and vegetables. Each bottle is equivalent to 200g of fruit

and vegetables, delivering 50% of the daily recommended amount of vitamin C, and helps mothers

struggling with the problem of not getting their kids to eat sufficient fruit and vegetables.

Figure 32: Knorr Vie Kidz juice: pumpkin and peach


66

Proactive measures taken by the baby boomer population and also younger consumers to prevent aging are

also driving NPD in functional juices. The juice manufacturers are launching new products containing aloe

vera (an herb often used in skincare) among other ingredients largely used in cosmetics for tapping the

markets for 'beauty from within' products. A case in point is the launch of JU fruit juice with aloe vera by the

Daniels Group, a manufacturer of chilled, fresh and natural foods in the UK in 2009. The product is primarily

targeted at the appearance-conscious consumer segment and presented in three different varieties that are

known to promote shining hair, strong nails and glowing skin.

Figure 33: JU fruit juices


Asia Pacific

Asia Pacific accounted for 26.5% share of all NPD in juices in 2010, a decline of 6.6 percentage points from

2007. Fruit drinks remain the largest category of juices in terms of NPD in Asia Pacific, accounting for 55.2%

of all new product launches in 2010. Throughout 2007–10, all other categories of juices accounted for

relatively much smaller shares in NPD when compared to fruit drinks with the 100% juice (from concentrate)

category accounting for 15.9% share in 2010.

67

Table 19: Share of NPD by category in Asia Pacific (%), 2007–10

Category 2007 2008 2009 2010 Total Fruit drinks (0-29% juice) 49.6% 47.0% 47.9% 55.2% ▲ 100% fruit juice (from concentrate) 14.3% 21.6% 14.4% 15.9% ▲ Nectars (30–99% juice) 5.0% 7.8% 10.2% 10.9% ▲ Vegetable juice 16.1% 15.1% 13.0% 7.6% ▼ 100% fruit juice (not from concentrate) 12.9% 6.8% 10.0% 5.6% ▼ Others* 2.1% 1.6% 4.4% 4.8% ▲ *Includes other categories of juices not covered under main segments. Year end May 31, 2010.


'No preservatives' and 'high vitamins' were the two most widely used claims for the new juices launched in

Asia Pacific during 2007–10. The share of 'no preservatives' claims increased 5.5 percentage points to reach

15.1% in 2010, while that for 'high vitamins' remained at around 11.0% in 2010. Juice manufacturers in Asia

Pacific are largely focusing on developing natural products that are free from additives, leading to an

increase in the usage of 'no artificial color' and 'no artificial flavor' claims in NPD. Additionally, the share of

the 'vegetarian' tag increased from 1.4% in 2007 to 8.0% in 2010, primarily due to the significant prevalence

of a large vegetarian population in emerging markets such as India.

68

Table 20: Top 10 tags on new juices launched in Asia Pacific (%), 2007–10

Claim/tag 2007 2008 2009 2010 Growth No preservatives 9.6% 8.0% 16.6% 15.1% ▲ High vitamins 11.6% 13.6% 11.8% 11.1% ▼ No artificial colors 6.6% 8.2% 10.6% 10.4% ▲ Vegetarian 1.4% 0.6% 4.0% 8.0% ▲ No artificial flavors 4.3% 4.5% 5.5% 6.8% ▲ Recyclable 0.5% 0.2% 0.2% 4.5% ▲ Pure 8.0% 11.6% 6.4% 4.0% ▼ No sugar 3.4% 4.5% 8.4% 3.8% ▲ Natural 4.3% 3.0% 2.7% 3.5% ▼ High-fiber 3.0% 3.0% 2.0% 3.1% ▲ Year end May 31, 2010.


The two key markets for juices in Asia Pacific, China and Japan, respectively accounted for 7.6% and 6.1%

of all NPD in juices in 2010. Beverage manufacturers in China are experimenting with different product

flavors to draw consumer attention and introducing new products with unusual combinations of fruit and

vegetable juices that also enhance the nutritional content of their products. The Bright Dairy Company in

China launched its new 100% fruit juices in 2009 in two variants: a blend of cucumber and kiwi, and a blend

of mango and pumpkin. Cucumber juice is said to help regulate acidity, while kiwi fruit contains high vitamins,

flavonoids and minerals that make it a healthier beverage.

69

Figure 34: Bright Dairy 100% fruit juice with blends of cucumber and kiwi juices


Many juice manufacturers in China are adding natural herbs and key ingredients used in other beverages

such as tea in their new product formulations to gain market share from other rival categories. In 2009, the

Kunming Ruilong Foods Company launched Luye Yuanjiang Aloe with rock candy in China. The rock candy

in this RTD vegetable juice is a confectionery sweetener largely used in the preparation of tea in China. The

manufacturer is focused on creating a mass market positioning for this aloe-based wellness drink through the

addition of widely used ingredients.

70

Figure 35: Luye Yuanjiang Aloe with rock candy


The Americas

The Americas accounted for 21.7% share of all NPD in fruits and vegetable juices in 2010, a decline of 3.1

percentage points over 2007. The fruit drinks category accounted for the highest share (47.4%) of all NPD in

juices in the Americas in 2010, a significant increase of 11.1 percentage points over 2007. The 100% fruit

juice (from concentrate) registered a share of 19.5% of all new product launches in 2010, a significant

decline of 11.5 percentage points from 2007.

Table 21: Share of NPD by category in the Americas (%), 2007–10

2007 2008 2009 2010 Growth Fruit drinks (0–29% juice) 33.3% 30.8% 39.0% 47.4% ▲ 100% fruit juice (from concentrate) 30.0% 28.1% 17.8% 19.5% ▼ Nectars (30–99% juice) 11.0% 15.8% 16.4% 14.9% ▲ 100% fruit juice (not from concentrate) 15.2% 18.8% 15.4% 12.1% ▼ Vegetable juice 7.6% 3.8% 6.8% 4.3% ▼ Others* 2.9% 2.7% 4.5% 1.9% ▼ *Include other categories of juices such as fruit flavored hybrid drinks not covered under main segments. Year end May 31, 2010.


71

A significant share of juices in soft drinks market of the US is increasingly being taken over by functional

beverages such as energy drinks and nutraceuticals. Juice manufacturers are launching more functional

beverages incorporating superfruits rich in antioxidants in their new product offerings to meet the growing

consumer aspirations to maintain good health and enhance quality of life. Embodi 'all-natural' fruit juice blend

was launched in the US in 2008. This product contains red wine grape extract in combination with superfruits

such as blueberries and pomegranate, significantly enhancing its anti-aging properties.

Figure 36: Embodi 'all-natural' fruit juice blend


The growing demand for weight management drinks has encouraged juice manufacturers to fortify products

with active ingredients that suppress the appetite and regulate the body's metabolic activity. Certain juice

manufacturers are using functional ingredients such as L-carnitine, which aids the transportation of fatty

acids to mitochondria for the release of energy. This ingredient is largely used in energy drinks and weight

management beverages and is also being emulated in fruit and vegetable juices to gain market share from

other soft drinks categories. In 2009, US-based agricultural co-operative organization The Tree Top

launched a wellness juice under the brand name Tree Top Trim with L-carnitine. This beverage boosts the

metabolism and helps burn fat, while its high chromium contents promote healthy metabolic activity.

72

Figure 37: Tree Top Trim fruit beverage


Growing consumer preferences for beverages produced from organic fruits and vegetables in the US is

encouraging juice manufacturers to develop more organic juices. In 2008, Tizane Beverages in the US

launched its new 100% organic beverage containing extracts of hibiscus flower, jasmine and lemongrass.

This product is certified by the Organic Farming Association of Vermont and contains blue agave nectar, a

natural sweetener. The juice is packaged in single-serving, resealable clear glass bottles for daily-dosing

purposes.

Figure 38: Tizane 100% organic beverage


73

Packaging analysis

Packaging overview

Bottles remained the most commonly used pack type for new juices accounting for a 40.9% share of NPD in

juices in 2010. The share of aseptic packaging format for NPD in juices significantly declined by 10.9

percentage points between 2007 and 2010, which is primarily attributed to the increased focus by juice

manufacturers on positioning these drinks as premium products, for which glass or plastic bottles are

considered more suitable.

Table 22: Top 10 package types used in new juices launches (%), 2007–10

Package types 2007 2008 2009 2010 Growth Bottle 35.9% 37.4% 35.9% 40.9% ▲ Carton 20.9% 21.9% 24.6% 21.1% ▲ Resealable 12.5% 10.7% 9.5% 13.7% ▲ Drink box 0.6% 1.3% 1.6% 6.0% ▲ Can 4.7% 5.3% 5.9% 4.6% ▼ Aseptic 14.3% 13.0% 11.1% 3.4% ▼ Sleeve 0.9% 1.1% 1.6% 1.9% ▲ Stand up pouch 0.8% 0.4% 0.9% 1.2% ▲ Box 1.4% 1.5% 1.4% 1.1% ▼ Shrink wrap 0.6% 0.8% 1.4% 0.5% ▼ Pouch 1.0% 0.8% 1.3% 0.4% ▼ Year end May 31, 2010.


Throughout 2007–10, plastic remained the most preferred material for packaging new juices, accounting for

a share of 41.2% in 2010. However, plastic as well as other packaging materials such as glass and metal

registered a decline between 2007 and 2010, primarily due to a shift in consumer preferences for

biodegradable paperboard/cardboard packaging material.

74

Table 23: Performance of materials used for packaging juices (%), 2007–10

Packaging material 2007 2008 2009 2010 Growth Plastic 41.6% 40.3% 40.4% 41.2% ▼ Paperboard/cardboard 18.3% 21.0% 28.9% 30.9% ▲ Glass 19.2% 17.4% 13.5% 16.6% ▼ Other materials* 15.5% 17.8% 14.7% 9.9% ▼ Metal 5.4% 3.5% 2.5% 1.3% ▼ *Other materials include laminate, paper and foil, among others. Year end May 31, 2010.


Bottles

Throughout 2007–10, usage of bottles for juices saw a five percentage point increase in share in new

product launches, primarily at the expense of aseptic packaging formats. Glass bottles usually provide a

premium look to juices and align well with the purity and organic credentials of the product. A case in point is

the launch of 100% organic juice in refillable glass bottles by Wild Bunch and Company, a manufacturer of

vegetable juices in Singapore in 2007. This gourmet juice, primarily aimed at affluent professionals, is

presented in ergonomically designed 250ml glass bottles with a neck that fits well into the fist of the barman

or consumer as he or she shakes the bottle before pouring the drink.

75

Figure 39: Wild Bunch 100% organic juice


Some consumers consider fruit and vegetable juices to taste better when chilled, and freezing these

beverages helps to improve their shelf lives. DyDo Drinco, a Japanese manufacturer of vending machines,

and Ito En launched their new fruit drinks in polyethylene terephthalate (PET) bottles specially designed to

be frozen in Japan in 2008. In addition, images of crushed ice on the labels of these bottles help the

manufacturers position them as cold dessert drinks for summer.

Figure 40: Ito En's Reito Bottle Kachiwari lemon and DyDo's Toketsu Sharishari Bottle Reito melon and strawberry


76

The added functionality of bottles is also accompanied by sophisticated shapes designed to draw the

attention of specific consumer segments such as kids. In 2010, the soft drinks company Xymbiot launched

Zimbi Aerodynamic Nutrition Super Juice in rocket-shaped bottles for kids in the US. These bottles are

designed in such a way that children can play with them, and its shape allows the user to easily gain a firm

grip to prevent the bottle slipping out of a child's hand.

Figure 41: Xymbiot's Zimbi Aerodynamic Nutrition Super Juice


Carton

The share of cartons in overall packaging for juices was 21.1% in 2010, a minor increase of 0.2 percentage

points over 2007. Growing demand for beverages packaged in cartons (made from paperboard/cardboard) is

primarily driven by increased consumer preferences for greener (sustainable) packaging. The cardboard

cartons are considered ethical for their biodegradability and manufacturers positioning their products as

100% natural or organic can easily correlate this packing type with the sustainability claims of their products.

In 2009, Eager Drinks launched its line of 'not-from-concentrate' juices in the UK. These 100% natural juices

are presented in one liter cartons that can be stored at an ambient temperature and are considered a

greener and more affordable alternative to chilled juices.

77

Figure 42: Eager Drinks' grapefruit, apple and pineapple juice


Resealable

The share of the resealable packaging type in new juices launched has recorded a negligible increase of 1.2

percentage points to reach 13.7% in 2010. Resealable packaging provides greater flexibility to consumers in

terms of ease of consumption. Juice manufacturers are using resealable pouches for packaging and

promoting their new products as being suitable for kids' lunchboxes and convenient for on-the-go

consumption. Michel and Augustin, a soft drinks manufacturer in France, launched Fruits Entiers Mixés

(whole blended fruit) in 165ml pouches with resealable screw caps in 2008. In the UK, Vimto Soft Drinks

Company launched its mixed fruit drink in a 250ml resealable pouch format in 2009.

78

Figure 43: Michel & Augustin's Fruits Entiers Mixés and Vimto's mixed fruit drink in resealable pouches


Changing positioning in juices The top 20 tags on new products launched during 2007–10 highlighted in Table 24 below clearly indicate

juice manufacturers' responses to the growing demand for 'all natural' products by introducing juices with

claims such as 'no preservatives', 'no artificial colors' and 'natural'. In 2010, 'no preservatives' took the

highest share of 11.3% among all other claims, an increase of 3.7 percentage points since 2007, replacing

'high vitamins' as the most used claim. The 'high vitamins' claim accounted for a 9.3% share of all claims

used in new product launches in 2010, a decline of 1.7 percentage points from 2007. Among the top 20

claims used in new juices launched during 2007–10, the share of 'private label' has registered a maximum

increase of 3.8 percentage points over 2007 to reach 6.5% in 2010. An increase in retailers' focus on

promoting beverages under their own brands and providing juices of similar quality to branded products at

competitive prices, especially in European markets such as the UK, led to an increase in the usage of

'private label' claims.

79

Table 24: Top 20 tags on new juice launches (% of products with tag), 2007–10

Tags/claims 2007 2008 2009 2010 Growth No preservatives 7.6% 7.7% 10.2% 11.3% ▲ High vitamins 11.0% 11.4% 11.3% 9.3% ▼ No artificial colors 4.5% 5.5% 5.9% 7.1% ▲ Natural 7.6% 6.5% 6.7% 7.0% ▼ Private label 2.7% 2.3% 5.1% 6.5% ▲ Organic 3.5% 3.7% 4.1% 5.0% ▲ No artificial flavors 2.7% 4.1% 3.6% 4.7% ▲ Pure 7.0% 7.1% 5.9% 4.7% ▼ Low sugar 5.4% 6.4% 6.1% 3.2% ▼ Kids 3.3% 2.3% 1.9% 3.2% ▼ High fruit 3.3% 3.7% 2.6% 3.1% ▼ High antioxidants 2.8% 2.8% 3.2% 2.3% ▼ Single serving 4.0% 3.2% 2.8% 2.3% ▼ Low calorie 1.9% 2.7% 2.3% 2.3% ▲ Recyclable 2.9% 0.9% 1.0% 2.0% ▼ Fresh 2.4% 1.8% 1.9% 1.8% ▼ Vegetarian 0.5% 0.3% 1.1% 1.8% ▲ No artificial sweeteners 1.1% 1.5% 1.4% 1.7% ▲ Real 1.3% 0.9% 1.0% 1.4% ▲ No sugar 2.6% 2.1% 2.9% 1.3% ▼ Year end May 31, 2010.


80

Juice manufacturers are increasingly using 'organic', 'low calorie' and 'vegetarian' claims, which are targeted

at specific consumer groups and are more indulgent than typical 'free from' claims. The increase in the usage

of these claims is also attributed to growing consumer preferences for organic and traceable food and drinks

(with an increased focus on the provenance of whole fruit and vegetables). Apart for mass market positioning

through 'free from' and 'all natural' claims, some juice manufacturers are focused on niche markets including

specific consumer groups, such as expectant mothers. In 2009, Glow Beverages in the US launched Glow

Mama RTD natural kiwi and grape juice, positioned as a healthy drink and aimed at pregnant women.

Kiwifruit contains high levels of essential pre- and post-natal nutrients such as folic acid (folate) that may

reduce the risk of birth defects of the brain or spinal cord and are essential for cell development in pregnant

women.

Figure 44: Glow Mama RTD natural kiwi juice


Flavor trends

This section examines the share of the top 20 flavors used in new juice introductions between 2007 and

2010. Apple and orange remained the leading flavors for NPD during 2007–10, accounting for 9.8% and

8.6%, respectively in 2010. Apple replaced orange to become the leading flavor used in juices in 2010, while

fruits such as peach, grape and raspberry, among others, registered a decline during 2007–10. Among

vegetables, carrots remained the most preferred flavor for NPD through 2007–10. Additionally, juice

manufacturers are largely using a blend of fruit flavors to cater to the taste preferences of a larger consumer

base during 2007–10.

81

Table 25: Top 20 flavors used for NPD in juices (%), 2007–10

2007 2008 2009 2010 Growth Apple 8.4% 8.3% 8.8% 9.8% ▲ Orange 8.6% 8.4% 9.5% 8.6% – Mango 3.8% 4.1% 4.5% 4.0% ▲ Peach 3.9% 3.8% 3.8% 3.8% ▼ Pineapple 3.6% 3.8% 3.6% 3.8% ▲ Strawberry 2.7% 2.5% 2.5% 3.0% ▲ Grape 3.5% 3.7% 3.7% 3.0% ▼ Lemon 2.3% 2.4% 2.3% 2.8% ▲ Pomegranate 1.8% 2.2% 2.1% 2.4% ▲ Pear 1.7% 1.9% 2.0% 2.3% ▲ Blueberry 1.4% 0.9% 1.6% 2.1% ▲ Raspberry 1.9% 1.5% 1.4% 1.8% ▼ Carrot 2.1% 1.8% 1.8% 1.8% ▼ Banana 2.1% 2.2% 1.9% 1.7% ▼ Cranberry 1.6% 1.6% 1.4% 1.7% ▲ Blackcurrant 1.1% 1.3% 0.8% 1.5% ▲ Guava 1.2% 1.2% 1.1% 1.4% ▲ Grapefruit 1.2% 1.3% 1.4% 1.3% ▲ Cherry 1.1% 1.1% 1.3% 1.2% ▲ Passion fruit 1.2% 1.7% 1.5% 1.2% – Year end May 31, 2010.


Superfruits such as cranberry, pomegranate and blueberry are increasingly being used by juice

manufacturers for new product launches in the market, as more consumers are becoming aware of the

potential health benefits of these fruits. Cranberry juice helps in the prevention and treatment of urinary tract

infections and, despite its uniquely tart taste, easily blends with other fruit juices and has a vibrant color that

helps enhance the shelf appeal of beverages. In 2010, Ocean Spray, a co-operative producing cranberry and

grapefruit juice drinks in the US, launched its new range of 100% fruit juices containing a blend of cranberry,

strawberry and banana flavors.

82

Figure 45: Ocean Spray 100% fruit juice with cranberry


83

Chapter 5 Key trends and product examples

Summary Health and wellness continues to be a leading trend in the global fruit and vegetable juices

market. This trend is primarily being driven by the increasing prevalence of obesity, diabetes and

cardiovascular disease and the rising consumer focus on preventive healthcare.

A significant rise in consumer demand for natural drinks has benefited the juices market due to

the intrinsic natural credentials of these beverages. The purity, freshness and natural sweetness

of 100% pure fruit juice drinks are key selling propositions for manufacturers targeting health-

conscious consumers.

The global market for functional beverages is forecast to grow at a CAGR of 5.8% during 2009–

14, which is almost double the growth forecast for the overall soft drinks market. Juice

manufacturers are also adding healthy ingredients such as omega-3, probiotics and calcium to

their beverages in order to capitalize on the growing demand for functional drinks.

By emulating features of other functional soft drinks in juices, manufacturers are producing

blends of beverages typically seen in other product categories such as RTD tea, to provide

variety in flavor and enhance the health benefits of juices.

A significant increase in demand for 100% juice (not from concentrate) is primarily being driven

by a rise in consumers' desires for more indulgent, luxurious and healthy natural products.

Juice manufacturers are launching new products in innovative packaging to meet the growing

consumer preferences for juices with a longer shelf life and on-the-go juices.

84

Introduction This chapter discusses the key trends primarily responsible for innovations and new product development

(NPD) in fruit and vegetable juices market. The key trends assessed in this chapter are listed below:

Health and wellness;

Indulgence;

Ethical.

The impact of private label manufacturers on the juices market is also discussed in this chapter.

Figure 46: Key trends in fruit and vegetable juices

Nutritional concerns

Demand for premium food and

drinks

Health and wellness

Ethical

Indulgence

Superfruit juices

High fiber juices

Functional juices

Organic juices

Green packaging

Fair-trade juices

100% pure juices

Tropical juices

High fruit content

Nutritional concerns

Demand for premium food and

drinks

Health and wellness

Ethical

Indulgence

Superfruit juicesSuperfruit juices

High fiber juicesHigh fiber juices

Functional juicesFunctional juices

Organic juicesOrganic juices

Green packagingGreen packaging

Fair-trade juicesFair-trade juices

100% pure juices100% pure juices

Tropical juicesTropical juices

High fruit contentHigh fruit content


85

Health and wellness Health and wellness continues to be a leading trend in the global fruit and vegetable juices market. This

trend is primarily driven by the increasing prevalence of obesity, diabetes and cardiovascular disease and

the rise in consumer focus on preventive healthcare. The preventive healthcare measures being taken by

consumers to delay the process of aging or reduce the risk of chronic diseases have encouraged juice

manufacturers to add functional ingredients such as omega-3 and probiotics to their products. The key health

and wellness sub-trends discussed in this section are as follows:

Superfruit juices – using superfruits with a high antioxidant content to enhance the potential

heart health benefits and anti-aging properties of juices.

High-fiber juices – to match the health credentials of whole fruits and vegetables.

Functional juices – adding functional ingredients used in other soft drinks categories to deliver

specific health benefits.

Superfruit juices

Superfruits are fruits with a high level of antioxidants, found in the red, blue and purple pigments of fruits,

which explains why they often have a vibrant color. Antioxidants are considered to be beneficial to brain, joint

and cardiovascular activity. Berries, grapes, cherries and pomegranates all fall into the superfruit category. In

2009, superfruits such as pomegranates, blueberries, raspberries and cranberries were listed among the top

20 fruits used by juice manufacturers for NPD. Superfruit juices launched in the US are mostly backed by

scientifically proven health claims, which help position them as healthy drinks. Gloji All Natural Juice,

introduced in the US in 2008, is marketed as ‘the juice that makes you glow’, (whether these claims can be

made in Europe will be seen as a result of the Article 13 Health Claim Legislation). The drink is made from

goji berries and is claimed to provide refreshment and energy to the body due to its high antioxidant content.

It is offered in two varieties: Mix and Gold. The Gold variety is made using the microfiltration of juice, which

removes pulp, seeds and skin. The Mix variety contains a blend of vine-ripened goji berries and hand-picked

pomegranates, making it an antioxidant-rich beverage. Another example of a beverage containing a mix of

superfruits is Lakewood's pomegranate and goji organic 100% fruit juice blend. The beverage contains

86

antioxidant phytochemicals that promote longevity as well as polysaccharides and amino acids that help

maintain a healthy immune system. In order to further enhance antioxidant properties, the manufacturer has

also added superfruits such as blueberry and acerola cherry to this juice blend.

Figure 47: Gloji all-natural juice and Lakewood pomegranate with goji organic 100% fruit juice blend


High-fiber juices

A significant rise in consumer demand for natural beverages has specifically benefited the juices market as

the purity, freshness and natural sweetness of 100% pure fruit juice drinks are the key selling propositions for

manufacturers looking to attract health-conscious consumers. However, when juices are extracted from

whole fruits, natural fibers helpful in maintaining a healthy digestive system are frequently lost. Juice

manufacturers are therefore launching high-fiber juices to match the nutritional contents of whole fruits and

vegetables. The Campbell Soup Company in the US has launched V8 100% vegetable juice with a high fiber

content. The company claims that an eight ounce glass of the juice is equivalent to two servings (one cup) of

vegetables and that 5g of fiber makes up 20% of the daily recommended fiber intake. The beverage primarily

contains tomato juice (from concentrate) and a blend of reconstituted juices of carrots, celery, beets, parsley,

lettuce, watercress and spinach. The high fiber content in this juice helps maintain a healthy digestive system

while sodium and potassium is regulated at levels that facilitate blood pressure management.

87

Figure 48: V8 100% vegetable juice (high-fiber)


Functional juices

The global market for functional beverages is forecast to grow at a CAGR of 5.8% during 2009–14, which is

almost double the growth forecast for the overall soft drinks market. The connection between health and diet

has promoted the culture of taking preventive healthcare measures. This has also led to self-medication, as

people are aware of functional ingredients and the specific health benefits associated with them. Consumers’

focus on deriving specific health benefits from regular intake (daily dosing) of functional beverages has also

increased NPD in juices through addition of active ingredients such as Omega-3. Major juice manufacturer

The Coca-Cola Company launched its Minute Maid Omega-3 beverage prepared from 100% mango, orange

and passion fruit juice in Canada in 2008. This refrigerated drink contains encapsulated and refined fish oils

and gelatin, which provide up to 0.1g of omega-3 per single serving of this 355ml bottle.

88

Figure 49: Minute Maid Omega-3 beverage, made from 100% mango orange and passion fruit juice


Using prebiotics and probiotics that are known to enhance digestive health and the immune system has also

been created through the mass marketing of dairy nutraceuticals. Juice manufacturers are also incorporating

these ingredients into their beverages and targeting consumers looking for an alternative to dairy products,

because of lactose intolerance or different taste preferences. Skanemejerier, a Sweden-based local producer

and marketer of healthy foods, launched the Bravo Friscus brand of apple, acerola, cranberry and orange

juice blends fortified with two probiotics: Lactobacillus plantarum HEAL-9 and Lactobacillus paracasei. These

two probiotics are strains of bacterium that help maintain healthy digestive juices, improve immune systems

and fight harmful bacteria in the digestive system.

89

Figure 50: Bravo Friscus apple and cranberry juice


In addition to omega-3 and probiotics, manufacturers are also using botanical extracts and herbs as

functional ingredients in juices, which give the product a natural positioning as well as providing health

benefits. Firefly Tonics, a UK-based supplier of natural drinks, has launched new fruit drinks with herbs and

botanical extracts in India. The company uses a variety of herbs such as angelica, burdock, cardamom,

cinnamon and echinacea in its beverages. Most of these herbs are known to support the natural healing

process and enhance the body's immunity to infection. The product is presented in four varieties: Chill Out,

Wake Up, Sharpen Up and Recharge, each targeting specific mental and physical wellbeing areas, in a

similar fashion to energy or anti-energy drinks.

90

Figure 51: Firefly fruit drink with botanical extracts


Calcium fortification in juices

Kids require a significant amount of calcium for bone formation, while elderly consumers require it to avoid or

minimize problems arising from arthritis and osteoporosis. Manufacturers are thereby developing juices with

calcium as a functional ingredient. A case in point was the launch of high-calcium juice by Woongjin Food

Company in South Korea in 2010. This product is available in three varieties: orange, aloe and grape juice

concentrates, each fortified with calcium lactate, among other ingredients, with the company claiming that

100ml of one of these juices contains 105g of calcium.

Figure 52: Woongjin high-calcium orange, aloe and grape juices


91

Emulating features of other functional soft drinks in juices

Soft drinks manufacturers are producing blends of beverages belonging to two or more different product

categories to provide variety in taste and enhance the wellness features of juices. New product launches in

juices are largely accompanied with green tea flavors to enhance their antioxidant content. Linea Nivnice, a

Czech-Republic-based manufacturer of fruit drinks, launched its new range of products containing blends of

green tea with peach and lime juice under the Hello brand in Slovakia in 2008. These multivitamin fruit juices

have a high amount of vitamins C, E, B1, B6, B12, niacin and folic acid. In addition to green-tea-based fruit

juices, fruit wine is popular in Asia Pacific countries. Asahi Breweries launched its new strawberry-flavor fruit

wine in Taiwan in 2010. According to the package literature, the alcohol content of this fortified wine drink is

4%, and it contains 10% fruit juice. The antioxidant content of wine makes it a healthy drink for adults.

Figure 53: Hello fruit drink and Asahi's strawberry fruit wine


92

Indulgence A significant increase in demand for 100% juice (not from concentrate) is primarily being driven by a rise in

demand for more indulgent, luxurious and healthy natural products. A large number of products within the

100% juice (not from concentrate) category are therefore targeted at health-conscious consumers in higher

income segments willing to pay premium prices for the freshness and high nutritional contents of juices. YJ

Youth Juice, containing an unusual blend of seven different superfruit berries and vegetables, was launched

as an upscale beverage in Canada and the US in 2009. This premium juice contains black elderberries,

blackcurrants, red raspberries and boysenberries, among other superfruits, and is packaged in a sleek dark-

colored glass bottle to protect ingredients from oxidation and subsequent degeneration in flavor. Interestingly

the packaging of these juices is very similar to the packaging used for wine. This product can potentially

target the lucrative market of consumers who for some reason or another are not drinking alcohol and want a

non-alcoholic alternative that has some of the benefits of an alcoholic beverage e.g. premium packaging.

Figure 54: YJ Youth Juice


Apart from growing demand for superfruits, the consumers are increasingly demanding juices of tropical

fruits such as mango, banana and coconut, largely cultivated in the regions near equator. Consumers,

especially in Europe prefer to drink these fruit juices for their exotic tastes and associated health benefits.

Tropical fruits are increasingly blended with apple or orange, providing a premium positioning to otherwise

mainstream juices. Trader Joe's, a specialty retail grocer in the US, launched a new blend of apple, mango

93

and mangosteen fruit juices in 2009. Mangosteen is the fruit of a tropical evergreen tree and is known to

have anti-inflammatory properties; its addition to apple and mango juices that already have a significantly

high nutrient content significantly enhances the exotic taste of this beverage.

Figure 55: Trader Joe's apple, mango and mangosteen juice blend


Juice manufacturers sometimes highlight the provenance of the ingredients used in their products to boost

consumer interest. A case in point was the launch of Super Premium Sensora Florida orange juice by

Sunnyland, a manufacturer and distributor of branded and private-label beverages, in Belgium in 2008. This

100% pure juice is reportedly squeezed from specially selected oranges picked at peak maturity and bottled

within five hours without the use of added sugar.

Figure 56: Super Premium Sensora 100% pure squeezed Florida orange juice


94

A large amount of NPD in juices is also targeted at the kids' consumer segment, primarily due to rising

parental concerns about their children's health. New juices containing barley, malt, oats, corn and brown rice,

among others, are being introduced by juice manufacturers to enhance the natural fiber content of juices and

help manufacturers position products as whole-meal drinks for kids. In 2010, a new healthy drink for kids with

organic brown rice as an ingredient was launched by Froose Brands in the US. This high-fiber drink was

presented in three varieties: Cheerful Cherry, Perfect Pear and Playful Peach, and packaged in drink boxes

for consumption by kids during lunchtime.

Figure 57: Froose kids' drink


95

Packaging Juice manufacturers are launching new products in innovative packaging to meet the consumer preferences

for keeping juices fresh for a longer time. The growing demand for juices packaged in resealable packaging

formats, especially for off-premise consumption, has encouraged major soft drinks manufacturers such as

PepsiCo to introduce new juices in resealable plastic jugs to ease the process of pouring drinks. In 2008,

PepsiCo launched its new Tropicana Pure Premium brand of 100% pure and natural orange juice in easy-to-

pour resealable pitchers in the US. The pitcher has a molded grip handle that makes it easier to pour the

juice into the glass and a resealable snap cap on the bottle to protect its freshness. Although this packaging

design may adversely affect the upscale appeal of Tropicana Pure Premium juices, as they appear more

mainstream in this pack, such packaging designs are apparently more suitable for consumers seeking

convenience of consumption at home.

Figure 58: Tropicana Pure Premium 100% pure and natural orange juice in an easy-to-pour pitcher


Ethical A significant rise in consumer alertness about contents in the food and beverages, along with growing

awareness about the impact of their consumption behavior on the environment and local economies, has

increased demand for products manufactured using ethical farming, processing and packaging techniques.

96

The three key ethical factors influencing the global juices market discussed in this section are: organic juices

and provenance, green packaging and fair trade juices.

Organic juices and provenance

Organic juices are free from artificial colors and flavors and known for their freshness, as these products are

largely manufactured from fruits and vegetables sourced from local organic farms. The process of cultivating

fruits and vegetables at organic farms does not involve the usage of pesticides, due to which raw materials

sourced from such farms are seen as being safer. The 'organic' tag on new product launches in juices

accounted for a 5.0% share of NPD in 2010, an increase of 1.5 percentage points over 2007. Consumers

increasingly desire to protect the welfare of domestic farmers and support their country's agricultural

economy, and this has created demand for organic juices produced at local sites. Certain juice

manufacturers promote organic credentials on their product packaging and also use traditional packaging

styles for highlighting the purity and freshness of their products Pian d'le Rose, a producer of jams, sauces

and juices from organic fruits and vegetables, launched I Sapori dell'Oasi di Galbusera Bianca Cuore di Bue

fruit nectar in Italy in 2008. These organic juices and nectars contain plum, fennel oil, water and cane sugar

and are packaged in old-fashioned glass bottles.

Figure 59: I Sapori dell'Oasi di Galbusera Bianca Cuore di Bue fruit nectar


97

Some juice manufactures have also added coconut water in their product portfolio and positioning it as

healthy beverage among consumers. Organic coconut water helps consumers working out at the gym, as

they deliver natural energy boosters when consumed. Green Coco, a distributor of coconut-based

beverages, introduced Dr. Antonio Martins Coco pure organic coconut water in 2008 in Western European

markets, including France, Germany, Italy, Spain and the UK. This naturally isotonic and low-calorie drink is

drawn from organic coconuts and does not contain any preservatives or colors. Other varieties of this

beverage contain banana, pineapple and acerola, along with coconut water, which enhances the overall

calcium, magnesium and potassium contents of this drink.

Figure 60: Dr. Antonio Martins Coco pure organic coconut water with banana, pineapple and acerola


Certain organic juice manufacturers are also using the natural health positioning of their drinks to target the

kids' consumer segment. RDA Organic Squeeezy, launched in the UK in 2008, is positioned as a chilled

organic fruit juice designed specifically for children. The drink is presented in a pouch format with a patented

closure valve that makes it spill-proof. Children may squeeze and squish the pack to drink the product, which

makes it fun, while the packaging is also lightweight, minimizing waste and thus allowing the product to carry

a positive ethical message.

98

Figure 61: RDA Organic Squeeezy fruit drink for kids


Green packaging

Increasing consumer, manufacturer, retailer and regulatory focus on controlling packaging waste and the use

of eco-friendly packaging materials to reduce carbon footprints is driving innovations in juice packaging. In a

bid to reduce the impact of packaging on the environment, the EU has enacted laws. The 1992 Directive

94/62/EC was brought in to harmonize national measures with the intent of preventing or reducing the impact

of packaging and packaging waste on the environment. The directive also sought to establish an internal

market for recycling programs. In order to reduce their packaging recycling burden, juice manufacturers

primarily use biodegradable aseptic cartons (tetra pack) for their beverages. In 2009, aseptic cartons were

used in new fruit juice introductions by F&N Foods in Malaysia and Sumol + Compal in Portugal. The natural

credentials of these drinks are significantly enhanced when they are sold in sustainable packaging materials.

99

Figure 62: F&N Fruit Tree Fresh mixed fruit juice and Compal Light pineapple juice with spearmint, in aseptic cartons


Juice manufacturers are increasingly using 100% recycled plastic or PET bottles to reduce packaging waste

and enhance their environmental credibility. In 2009, Naked Juice launched its mainstream beverages such

as Pomegranate Blueberry, Blue Machine, Green Machine, Chai Spiced Cider and Mighty Mango in 32-

ounce PET bottles called reNEWabottle that are made of 100% recycled plastic. The company aims to

reduce its annual consumption of virgin plastic by £8.1m and its oil use by 57,000 barrels by using these

bottles for its entire line of beverages.

100

Figure 63: Naked Juice in 100% recycled PET bottles


Fairtrade juices

'Fairtrade' refers to an initiative designed to alleviate poverty and ensure sustainable development by

creating opportunities for economically disadvantaged or marginalized producers and workers. The Fairtrade

Foundation in the UK authorizes the use of its FAIRTRADE mark on the packaging of food and drinks

produced from fruits and vegetables sourced through fair trade methods. Juice manufacturers in the UK such

as Gerber Juice Company and Calypso Soft Drinks are capitalizing on increased consumer awareness by

launching new products with the FAIRTRADE mark, indicating their support of the fair trade movement. In

2008, Calypso Soft Drinks introduced its new fair trade pure apple juice, marketed under the Calypso

Fairtrade brand name in the UK.

101

Figure 64: Calypso Fairtrade Pure Tropical Juice with FAIRTRADE mark on packaging


Private label The share of private label juices in the total number of juices launched during 2007–10 increased by 3.8

percentage points, which can primarily be attributed to the price-competitiveness and value propositions

delivered by these products. Food chains and juice bars sell 100% pure juices (not from concentrate), freshly

prepared from fruits and vegetables procured from local farms. Food and drinks retailers are leveraging their

customer loyalty and association with domestic farmers or agricultural product suppliers to gain higher profit

margins by selling their own private label juices. Additionally, the flavors of private label juices are becoming

more sophisticated, with consumers demanding new premium offerings from local retailers.

In the US in September 2010 Wal-Mart launched a new range of private label juices to compete with the

branded juices on sale in store. The range is a premium private label range and is 100% juice and has exotic

flavors such as açai.

102

Figure 65: Wal-Mart 100% Acai Mixed Berry juice


103

Chapter 6 Conclusions

Key trends for the future This chapter outlines conclusions based on the findings in this report and presents six key trends that will

shape fruit and vegetable juices market over the next five to 10 years.

1 – Fortified juices

Consumers are still demanding soft drinks that help to provide them with health benefits and this has

encouraged manufacturers to fortify their products with vitamins, minerals, whey proteins, calcium and

natural fibers to make their products as nutritious as whole fruits and vegetables. The fortification of juices

with vitamins C and A replenishes these unstable nutrients in juices, as they are generally lost during the

manufacturing process. Juice manufacturers are also targeting the kids' consumer segment with fiber-

fortified beverages to be consumed at lunchtime. High-fiber ingredients such as Barliv betafiber and wheat,

rice and oats enhance the meal replacement potential of juices and are likely to form a large part of future

NPD in this category. The functional juices market is likely to see a further increase in the fortification of

juices with healthy ingredients such as omega-3 for heart health.

2 – 100% pure fruit juices

As 100% fruit juices can typically claim to be both natural and pure, this will continue to drive growth for this

juice category, particularly in Western European markets such as the UK and Germany. The market for

100% pure fruit juices will especially flourish in the EU, as consumers in the region have become more

observant of the impact of their consumption habits on their overall health and wellness. Initiatives by

regulatory authorities such as the 5-a-day campaign in the UK, which encourages consumers to increase

their daily intake of fruits and vegetables either whole or in juice form, will also benefit the 100% fruit juice

category.

104

Figure 66: Key future trends in fruit and vegetable juices market

Now In 5–10 years

Nutrients and fiber fortified juices

Juices are largely fortified with vitamin C and A as they are lost at the time of production. Manufacturers are adding more calcium to juices to make them healthier for kids and consumers in their old age .

Manufacturers will experiment with complex ingredients such as BarlivBeta fiber to enhance the nutrition quotient of juices and position them as meal replacement and ‘good for you ‘products.

100% pure fruit juices

Initiatives from regulatory bodies such as ‘five-a-day’ campaign in the UK to promote regular intake of fruits and vegetables is driving demand for 100.0% pure fruit juices.

100% (not from concentrate) fruit juices to be positioned as healthy beverages with a significant demand continue to arise from major Western European markets such as the UK.

Premiumization

Fruit drinks containing superfruit flavorswill continue to command a premium positioning as more consumers are resorting to these juices for both their exotic tastes and perceived health benefits.

Juice manufacturers will continue to maximize superfruits content in fruit juices to enhance the antioxidant level in a bid to compete with upscale nutraceutical drinks.

Sustainable consumption

Rising environmental concerns of consumers has increased usage of biodegradable aseptic cartons and recyclable PET bottles for packaging juices to reduce carbon footprint.

An increase in consumer demand for organic juices and traceability of ingredients will promote consumption of private labels beverages.

Adding ingredients used in other beverage markets

Juice manufacturers are adopting unusual combinations of fruits and vegetables for enhancing nutritional value of their products.

Manufactures to add active ingredients used for NPD in other beverage categories such as probiotics and prebiotics from dairy and ginseng and withania somnifera from functional drinks to further enhance the wellness features of juices.

Emerging markets

Manufacturers are focused to capitalize on the lower juice market penetration in countries with rising income levels such as China and Russia.

Emerging markets to register a rise in demand for premium juices (including 100.0% fruit juices) due to growing consumer preferences for purer and healthier beverages.

Now In 5–10 years





juices to be positioned as healthy beverages with a significant demand continue to arise from major Western European markets such as the UK.

Premiumization









Emerging markets



Now In 5–10 years




100% pure fruit juices


100% (not from concentrate) fruit juices to be positioned as healthy beverages with a significant demand continue to arise from major Western European markets such as the UK.

Premiumization









Emerging markets



Now In 5–10 years





juices to be positioned as healthy beverages with a significant demand continue to arise from major Western European markets such as the UK.

Premiumization









Emerging markets




105

3 – Premiumization

Fruit drinks containing superfruit flavors will continue to command a premium positioning as more consumers

are likely to drink these juices for their exotic tastes and perceived health benefits. The high antioxidant

content in superfruits such as acai, goji and pomegranate will continue to drive demand for superfruit juices,

as they help reduce the risk of chronic illnesses such as cancer and cardiovascular disease. Highlighting

specific functional health benefits such as 'good for skin' and 'anti-aging' will position these juices on a par

with nutraceutical beverages such as beauty drinks, most of which are marketed as upscale beverages.

Moreover, incorporating more fruit berries with exotic flavors such as cranberry, blueberry and blackberry

into common juices such as orange, apple and mango will help manufacturers keep consumers interested in

these drinks.

4 – Sustainable consumption

Consumers are likely to become more skeptical about the provenance of the ingredients in their food and

beverages due to the rising number of reported contamination cases. This will increase consumers'

preferences for organic juices and drinks manufactured from fruits and vegetables that come from

trustworthy sources. People are also increasingly becoming aware about the impact of their consumption

behavior on the environment and are likely to demand more fruit and vegetable juices produced by organic

farming methods to ensure that their products have good ethical credentials. The demand for the private-

label organic juices offered by local and national retail stores such as Tesco, Sainsbury and Carrefour will

increase due to in-store promotions and the improved positioning of these products on shop shelves.

Alongside organic juices, manufacturers will continue to focus on sustainable packaging, using aseptic

cartons for mainstream products and glass packaging for premium beverages, which will add further value to

the green credentials of these beverages.

5 – Adding ingredients used in other beverage markets

Juice manufacturers are already using unusual combinations of different fruits and vegetables to enhance

the nutritional profiles of their drinks and are likely to incorporate healthy ingredients from other beverage

industries such as dairy products and functional drinks. The addition of probiotics and prebiotics, ingredients

largely used for new product development (NPD) in the dairy market, will help juice manufacturers to better

106

position their products as being good for digestive health and the immune system. Furthermore, the juice

market is likely to register an increase in NPD using natural herbs such as ginseng and Withania somnifera,

which are largely used in functional beverages as active ingredients.

6 – Emerging markets

The emerging markets of Eastern Europe, Asia Pacific and Latin America will see a significant increase in

the demand for juices. Rising investments by major soft drinks companies such as The Coca Cola Company

and PepsiCo in new juice production facilities in Russia, China and Brazil will result in further growth of the

juice industry in these regions. In Russia and Poland, rising consumer purchasing power is likely to increase

the demand for premium juices, while in China a significant increase in demand for fruit drinks will drive

growth for the overall juices market. Latin and South American countries such as Brazil, Mexico and Chile

with rich sources of citrus and tropical fruits but low market penetration may also attract further investments

from juice manufacturers, thereby leading to developments in the juices market in these nations.

Documents

Innovations in Fruit and Vegetable Juices