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Growth in fruit based beverage industry in India
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Saturday, 27 March, 2021, 13 : 00 PM [IST]
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Mohammad Shareef
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The fruit based beverage industry is an interesting segment with a high level of ongoing product innovations. As manufacturers attempt to jump onto the health and wellness bandwagon, they are also expected to constantly innovate with a range of different tastes and functionalities set to capture the palate of increasing pool of health conscious drinkers.
Large-scale trends, such as low or no calorie drinks are driving changes in the beverage industry due to the focus on widespread obesity. Low- and no-sugar beverages are becoming increasingly popular with the health conscious consumers.
Consumption of fruit drinks and beverages is increasing worldwide due to several factors and nowadays, they are very popular all around the world. Traditionally, extended shelf life and stability of fruit drinks/beverages has been achieved by thermal processing. Usually, fruit beverages would not need any preservative if properly thermally processed and packaged.
Worldwide fruit juice and drink consumption exceeded 80 billion liters in 2015, representing 10 per cent of overall soft drink volume. The market is forecast to rise by an annual 5 per cent over the next 5 years to 105 billion liters in 2020. Key areas of product development include functional offerings, new processing methods and ingredient emphasis on both flavor and function. The health trend is one of the key drivers for the many changes in the global fruit/juice market.
The 100 per cent fruit juice category not-from concentrate which dominates the value share of the global fruit/vegetable juice market is still largely dependent on leading flavors with apple being the second most preferred flavour after orange and mixed fruit juices in many countries.
India’s packaged juice market has charted a high growth trajectory, thanks to its easy availability, anytime-anywhere consumption, and convenience. Within the beverages market, the fruit-based beverages category is one of the fastest growing categories, and has grown at a CAGR of over 30 per cent over the past decade. At present, the Indian packaged juices market is valued at Rs 1,100 crore (USD 200 million) and is projected to grow at a CAGR of 15 per cent over the next three years.
Growth Drivers
There are several reasons behind the growth of the Indian packaged juices category:
Changing consumer lifestyles: Change in eating habits, wider global exposure, and growing time-poverty have provided a fillip to the convenience food segment. Again, consumer preferences are shifting towards healthier lifestyles. As a result, the packaged juices market has charted a high growth trajectory, thanks to its easy availability, anytime-anywhere consumption, and convenience. Juices are often seen to be quick, yet nutritional, fillers.
Increased health awareness: The rising awareness about heart- and weight-related health issues, especially among teenagers and young adults, has propelled the consumption of packaged fruit drinks. There is also a greater preference for these ‘healthier’ beverages than carbonated soft drinks.
Hygiene matters: Juices are healthy only when prepared hygienically. Packaged juices from trusted national and international brands have usually been prepared and certified to be in accordance with health and safety regulations. They thus underpin the confidence of consumers in considering them to be a healthy and convenient option, as compared to the fresh juices available at local joints and street stalls.
Growing category of informed buyers: There is a growing category of informed buyers who are able to distinguish between fruit-based beverages and fruit juices. These consumers are health conscious, highly aware, and have higher disposable income. They have, therefore, led the demand for 100 per cent fruit juices in the past couple of years.
Booming modern retail: The dynamics of growth in the fruit-based beverage space are attributed to modern retail and alluring shelf displays which drive impulse purchases.
Habitual purchase: The trend of consumers evolving from fruit drinks in bottles to sweetened juices to 100 per cent packaged juices has been observed largely in the past couple of years. Consumers are buying in greater quantities, for household consumption, and buying fruit juices is becoming more of a habitual purchase than a need-based purchase.
Opportunities
The packaged juice market throws up many opportunities.
Shift towards 100 percent juices from sweetened juices: This offers a wide opportunity to existing and upcoming juices manufacturing companies to spruce up their existing business and plan as needed for business or capacity expansion.
Healthy proposition: It has been observed that consumers are making healthy choices in their beverage consumption, therefore, fibre-enriched juices and sugar-free juices are more in demand. Some new juice variants claim to have no added sugar; this can be positioned as a health attribute, example- Dry Fruit Apple Juice by Balan Natural Foods.
Unique offering: Consumers are seeking unique fruit flavours apart from the usual mango, orange, or lime-based fruit juices. Companies intoned to identify some of the unique fruit juices that can be offered – ‘Dry Fruit Apple Juice' for instance, which is much sought-after due to the nutritive benefits provided by the combination of dates, figs, raisins, almonds, and apple concentrate.
Wider option: Companies need to offer wider varieties and options for the consumer to choose from, ranging from ‘mixed’ fruit juices to pure, single fruit juices to dry fruit juices. Thanks to higher incomes, consumers are willing to experiment with variety and pay a premium for such value-added products.
Product extension: There has been some recent product extension, example- Tropicana launched Tropicana Fruit Powder with no preservatives or artificial flavours, which will be available in single-serve sachets and can be made into a full glass of juice simply by adding water.
It is appropriate to say that the packaged juices market in India is still evolving. As there are many national and international brands on the verge of succeeding and expanding further into the field, new entrants can also cash in on this opportunity by positioning/promoting packaged and bottled fruit juices as part of the consumer’s daily diet. Simultaneously, it is critical to ensure affordability for consumers, while maintaining the hygienic aspects and quality of products throughout the year.
(The author is a Food Technologist)
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