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Health concerns driving mega burst in fruit juice market
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Wednesday, 18 March, 2015, 08 : 00 AM [IST]
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Ramesh kumar sharma
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fiogf49gjkf0d In India, as a part of diet, milk and milk products are consumed by more than 80 per cent people, coffee and soft drinks by less than 60 per cent, bottled water by less than 40 per cent and fruit juices by less than 20 per cent (India Analysis; Sustainability outlook).
Therefore there exists tremendous possibility of development of juice industry in India because the ever-growing fitness or wellness trend demands the inclusion of fruit juice products in people’s diet. Although Indian farmers are found to be reluctant to grow fruits due to their perishable nature, the better distribution system with cold chain storage and transportation conceptualised by MoFPI (ministry of food processing industries) can make fruit juice industry well flourish in near future. It is worth mentioning that fruit- based beverage industry, in India, has grown fast at CAGR of 25-30 per cent over the previous decade.
Worth Rs 1,100 crore
According to Gurbinder Kumar and Reetesh Shukla, associate directors, food services and agriculture, the packaged juice market is valued at Rs 1,100 crore (US$200 million) and is projected to grow at a CAGR of around 15 per cent over the next three years. Kumar and Shukla clarify that Frooti, Jumpin, Maaza and so on, which possess maximum of 30 per cent fruit content are called fruit drinks, the highest selling category with 60 per cent market share. The pure fruit juices (100 per cent composed of fruit content) claim to have 30 per cent market share while nectar drinks with fruit content 25-90 per cent account for only about 10 per cent of market share.
Healthier option
“The rising number of health-conscious consumers is giving a boost to fruit juices,” Kumar and Shukla averred, “It has been observed that consumers are shifting from fruit drinks to fruit juices as they consider the latter a healthier breakfast or snack option.”
Leading brands
With the brands Real and Real Active, Dabur stands first in the Indian packaged juices market accounting for around 55 per cent market share, while PepsiCo is the next player sharing around 30 per cent. Parle, Fresh Gold, Godrej and so on cover the remaining 15 per cent of packaged juices market share in country. Frooti, Appy, Maaza, Minute Maid, Slice, Fresh Gold and Del Monte are the popular Indian fruit juices drinks brands - available in Tetra Paks, tins and PET bottles - gradually making a place in human diet in both the restaurant and household menus. However fruit processing, as part and parcel of value-added food processing trend-set, is likely to accelerate with effect from 2015 on account of government’s policy to save perishable foods.
Objective action
MoFPI has come up with clear objective action to triple the size of processed food sector by increasing the level of processing of perishables from 6% to 20%, value addition from 20% to 35% and share in global food trade from 1.5% to 3.0%. Harsimrat Kaur Badal, Union minister for food processing industries, points out, “Food processing is the fastest growing industry, more than agriculture and services sector. And the fact that only 3 or 4% fruits and vegetables are processed shows the huge potential. In India food wastage takes place much more during harvest and transportation while in western countries it is more on the plats. Therefore to reduce the wastage we need to have food map, which tells us exactly which part of country what is being grown and where it is in surplus, and infrastructure for safe storage and transportation of food articles with proper cold chain logistics.’ Needless to say, with government’s perishables saving policy a momentum in fruit business leading to a bloom in fruit juice marketing is reasonably expected.
The Analysis
Along with the favourable perishables saving policy - resulting into healthier marketing linkages, more adequate farm and marketing infrastructure including packaging, better consistency in quality of produce, more employment of adequate human resource and better availability of cold chain logistics storage and transportation for food articles - the scenario of challenges and opportunities in fruit juices sector lucidly emerges as the outcome of consideration of following factors -
(A) Consumer Preferences
(B) Health-Hygiene
(C)Economy or Cost
(D)Value-Addition
Consumer Preferences
In the context of fruit juice product, there are two types of Indian consumers: first the convenience seekers and second the freshness (of juice) lovers. The convenience seekers mostly belong to metros and Tier I cities where packaged juices are preferred on account of immediate availability and comfortable usage. Meanwhile, freshness lovers, who believe that freshly pressed juice consumption is good for health, normally belong to Tier II and Tier III cities and villages. However the benefits of perishables saving policy would be enjoyed by both the packaged fruit industry and the fresh juice industry, but former is likely to flourish more with the factor of gradually increasing urbanisation and changing lifestyles or eating habits due to busy time schedule of people. The convenience food segment has created a space in Tier II and Tier III cities also due to increasing number of convenience seekers with increasing urbanisation. But challenges exist for both the packaged fruit juices and the freshly pressed juices, because both the factors - convenience search and freshness love - are dominant in society. Still the aseptic packaging factor, despite high price, makes the packaged 100% juice product popular among convenience seeking consumers.
Health-Hygiene
It is the health awareness factor which truly enables fruit juice product to traverse the growth trajectory. With the increasing consumption trend set for fruit drink, carbonated soft drinks are now facing difficulties in expanding in Indian market; it is due to consumers’ health-consciousness. Nowadays Indians are also aware of health hazards of preservatives often present in packaged food articles including fruit juices. The Food Safety and Standards Regulations, 2011, do not permit phosphoric acid for acidifying and benzoic acid for preserving the fruit- based beverages. But it allows synthetic colours and flavours as well as sulphur dioxide to preserve the fruit juice and drink products (Appendix A, Table 8). Therefore health-conscious consumers would like to consume either the fresh pressed fruit juices or the packaged juice articles with a claim for not containing synthetic additives (colours, flavours, preservatives etc.). However it is a common belief that openly marketed fresh juice product gets microbial contaminated while aseptic packaged juice is free from bacteria. Needless to say consumers can prefer hygienically packaged fruit juice article provided it claims for not containing synthetic additives. But freshly pressed fruit juice can well exhibit its worth in market above the other packaged juices containing synthetic additives.
Economy or Cost
The fresh juices product is cheaper in comparison to packaged juices, because it is free from packaging material, aseptic processing and intensive labour cost. It is also considered healthier as per common belief of people. Therefore the economy or cost factor favours it not only in Tier II and Tier III cities but also in metros and Tier I cities. Every consumer is economy seeker and gets attracted to cheaper and healthier provision if he or she does not feel necessity of costly and aseptic option. It seems difficult to make consumers aware of positive attributes or merits of packaged juices over locally available fresh juices if he or she wants to immediately consume it. Packaged 100% fruit juice emerges as a healthy and convenient option for those consumers who have a busy schedule and want to consume fruit juice anytime and anywhere or to keep it for longer time or are habitual of a particular fruit taste. But fresh juice is the cost leader and no doubt offers the best seasonal provision for immediate consumption. Meawhile, non-stop production of juices with constancy of taste, all the time, is a big issue for packaged fruit juice industry which demands transportation, logistics and quality assurance, cost control.
Value Addition
Perhaps ‘no preservatives and artificial flavours’ is the best value addition to packaged fruit juice which may attract both the convenience seekers and the freshness lovers who have a busy schedule and want to consume it anytime, anywhere or to keep it for longer time or are habitual of a particular fruit taste. Such a value addition seems possible with dried fruit juice (particularly spray dried) extracts. Tropicana launched such a fruit powder available in single-serve sachets which can be converted into full tumbler juice just by adding water.
‘Fibre-enriched and no sugar’ juices offer another type of health-oriented value addition which is also quite possible with spray dried fruit juice extracts. For the 100% liquid juices, aseptic retort packaging technique is quite essential. In order to protect good (for human health) bacteria and kill only bad bacteria high pressure processing is employed.
Diverse tastes as mixed fruit or single fruit juices, dry fruit powders, no sugar juices etc. are now creating space for themselves in not only restaurants or social gatherings but also in household menus indicating the Indian consumers’ inclination for value-added fruit juices.
Conclusion
Fruit processing, as a part and parcel of value added trend-set, is likely to accelerate w.e.f. 2015 on account of Indians government’s policy to save perishable foods. A SWOT analysis of the Indian fruit juices market with consideration of consumer preference, health-hygiene, economy or cost and value-addition aspects reveals the fact that unorganized fresh fruit juice industry has the strong points of being a cheap and healthy option and weak points of inconvenience and low shelf life. On the other hand among the packaged fruit-based beverages, maximum 30% juice containing drinks are currently most popular. But packaged 100% fruit juices can gradually replace the fruit drinks in market on account of both the convenience and the health-hygiene aspects.
(The author is Bikaner based food consultant)
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