Juice market of India is getting more juicy with the entry of new players and changing lifestyle of consumers: Bonafide Research


India’s packaged juice market has charted a high growth trajectory, thanks to its easy availability, anytime-anywhere consumption, and convenience. Shift in consumer preference towards non-carbonated fruit beverages, raising concern over obesity and other health issues, a change in lifestyle, affordability and availability of packaged juices are some of the reasons behind the rise of the packaged fruit juice market.

According to the recently published report of Bonafide Research, "India Juice Market Outlook, 2021" the size of juice market is expected to grow at a CAGR of more than 17% during 2016-2021. The market for fruit juices is growing at a steady rate in India over the last five years. This is largely due to increasing importance of leading a healthy life. Whether it's Dabur or ITC, each player is moving towards healthier options. Rise in disposable incomes and entry of many new brands are also some of the factors driving the juice market in India.

ITC EXPANDING ITS PORTFOLIO

Diversified conglomerate ITC Limited is looking to capture more than 15% of India’s juice market through its brand B Natural by focusing on regional flavours and offering premium versions of juices in the market. ITC, that acquired B Natural in 2014 from South Indian firm Balan Natural Food, is looking to launch at least two variants including Bel (Wood Apple) and Falsa (Grewia asiatica berry). B Natural has branded itself as a 100% fruit juice brand that can be part of a healthy diet and also offers regional flavours in addition to common juices such as orange and mixed fruit. The marketing plank is similar to what other rapidly growing niche brands such as Raw Pressery and Paper Boat have been offering to their largely urban consumers. ITC has been positioning B Natural at a premium to the largest competitors in India’s juice market, PepsiCo (Tropicana) and Dabur (Real). The company has added around 60,000 retailers in its distribution network for B Natural.

PLAYERS GOING BEYOND THE CARBONATED DRINKS

India's carbonated drinks industry is dominated by Pepsi and Coca-Cola. But these companies too are being forced to relook at their product mix. While Coca-Cola is exploring the launch of coconut water and flavoured milk, a case in point would be 7UP with 30% less sugar which was introduced in Gujarat earlier this year. Another example is 7UP Nimbooz Masala Soda, a carbonated beverage with 5% lemon juice, introduced in 2013. There is pressure on the topline of cola companies as the consumption of juice is significantly increasing when the consumer is on the go. Earlier this year, PepsiCo has launched a new sub-category Tropicana Essentials, of which the first variant is ‘Fruits & Veggies’ catering to the millennial. Tropicana aims to continue driving local sourcing with juices like Mosambi, Guava and Pomegranate with its Delights range.

While companies are doing their bit to grab market share away from colas, fizzy drinks still remain popular. Parle Agro too has launched a fizzy version of Frooti, the first brand extension for the mango drink in the last 32 years. One of the major reasons for this is that a majority of the juice market is urbanized. Dabur India has different products positioned for different segments like Real Fruit Juice for mothers and children; Real Activ Juice for adults; for the 40+ age group it launched Amla and Jamun juice under its Real Wellnezz range; and for teens, who love the fun of fizz but are also conscious about their health, it launched Real Volo last year.

Fruit juice companies are trying to rope in popular Indian sport personalities and movie stars as brand ambassadors for their products as a part of a proven marketing strategy. Over the last five years, the country has also seen juice bars and juice cafes opening in India. Cold pressed juices too are slowly finding favour amongst consumers - while Keventers has expanded into Mumbai recently, Juice Up launched it's first kiosk in Noida in the year 2016.

POTENTIAL IN PACKAGED JUICE MARKET

India, the world's second-largest producer of fruits and vegetables, throws away fresh produce worth millions of dollars every year because of the country's lack of adequate cold storage facilities and refrigerated transport. Hence, Prime Minister Narendra Modi suggested that multinational cola giants should help augment fruit sales for Indian farmers by adding fresh fruit juices to their fizzy drinks. Packaged juices are slowly becoming a staple part of family breakfast, and even a must at social dos. The packaged fruit juices market can be divided into three sub-categories: fruit drinks, juices and nectar drinks. Fruit drinks, which have a maximum amount of fruit content, are the highest-selling category, with the highest share of the market. Frooti, Jumpin, Maaza, and so on are the most popular products in this category. The most preferred pack size is the individual (small) pack which is convenient, and easy to carry and consume. These are in great demand as out-of-home consumption is on the rise. Tetrapaks are most popular among manufacturers as well as consumers. Some companies are also offering their products in tins (e.g., Del Monte) and PET bottles (e.g., Maaza); however, they are more expensive than Tetrapaks, which add to production costs, and as a result, affect the market price.

JUICE BECOMING A SUBSTITUTE TO FOOD

Fruit juices have created a space for themselves in regular household menus, as a part of a family’s breakfast, social gatherings, and evening snacks. As a result, consumers are picking up multiple family packs at one go, which is an emerging consumption trend. Emerging trends like increased preference on wellness, the desire to spend extra on health and maintaining healthy lifestyle, especially in the middle-class and strengthening Indian economy, which offers more disposable income to the masses are major catalysts that drive strong growth of the non-alcoholic beverages market in India. Indians are adopting Western style of living and eating habits. At the same time, fruit is an inherent property which can cure a lot of disease and improve the immune system of human body. So, that’s where the idea comes from - perhaps, juice has become a substitute to food today. The rising number of health-conscious consumers is giving a boost to fruit juices; it has been observed that consumers are shifting from fruit-based drinks to fruit juices as they consider the latter a healthier breakfast/ snack option.

MAJOR COMPANIES

Major companies operating in the juice market of India are Dabur India Limited, PepsiCo India Holdings Private Limited, Parle Agro Private Limited, Coca-Cola India Private Limited, ITC Limited, FieldFresh Foods Private Limited, Manpasand Beverage Limited and Godrej Consumer Products Limited.

Juice market of India is getting more juicy with the entry of new players and changing lifestyle of consumers: Bonafide Research

India’s packaged juice market has charted a high growth trajectory, thanks to its easy availability, anytime-anywhere consumption, and convenience. Shift in consumer preference towards non-carbonated fruit beverages, raising concern over obesity and other health issues, a change in lifestyle, affordability and availability of packaged juices are some of the reasons behind the rise of the packaged fruit juice market. According to the recently published report of Bonafide Research, "India Juice Market Outlook, 2021" the size of juice market is expected to grow at a CAGR of more than 17% during 2016-2021. The market for fruit juices is growing at a steady rate in India over the last five years. This is largely due to increasing importance of leading a healthy life. Whether it's Dabur or ITC, each player is moving towards healthier options. Rise in disposable incomes and entry of many new brands are also some of the factors driving the juice market in India. ITC EXPANDING ITS PORTFOLIO Diversified conglomerate ITC Limited is looking to capture more than 15% of India’s juice market through its brand B Natural by focusing on regional flavours and offering premium versions of juices in the market. ITC, that acquired B Natural in 2014 from South Indian firm Balan Natural Food, is looking to launch at least two variants including Bel (Wood Apple) and Falsa (Grewia asiatica berry). B Natural has branded itself as a 100% fruit juice brand that can be part of a healthy diet and also offers regional flavours in addition to common juices such as orange and mixed fruit. The marketing plank is similar to what other rapidly growing niche brands such as Raw Pressery and Paper Boat have been offering to their largely urban consumers. ITC has been positioning B Natural at a premium to the largest competitors in India’s juice market, PepsiCo (Tropicana) and Dabur (Real). The company has added around 60,000 retailers in its distribution network for B Natural. PLAYERS GOING BEYOND THE CARBONATED DRINKS India's carbonated drinks industry is dominated by Pepsi and Coca-Cola. But these companies too are being forced to relook at their product mix. While Coca-Cola is exploring the launch of coconut water and flavoured milk, a case in point would be 7UP with 30% less sugar which was introduced in Gujarat earlier this year. Another example is 7UP Nimbooz Masala Soda, a carbonated beverage with 5% lemon juice, introduced in 2013. There is pressure on the topline of cola companies as the consumption of juice is significantly increasing when the consumer is on the go. Earlier this year, PepsiCo has launched a new sub-category Tropicana Essentials, of which the first variant is ‘Fruits & Veggies’ catering to the millennial. Tropicana aims to continue driving local sourcing with juices like Mosambi, Guava and Pomegranate with its Delights range. While companies are doing their bit to grab market share away from colas, fizzy drinks still remain popular. Parle Agro too has launched a fizzy version of Frooti, the first brand extension for the mango drink in the last 32 years. One of the major reasons for this is that a majority of the juice market is urbanized. Dabur India has different products positioned for different segments like Real Fruit Juice for mothers and children; Real Activ Juice for adults; for the 40+ age group it launched Amla and Jamun juice under its Real Wellnezz range; and for teens, who love the fun of fizz but are also conscious about their health, it launched Real Volo last year. Fruit juice companies are trying to rope in popular Indian sport personalities and movie stars as brand ambassadors for their products as a part of a proven marketing strategy. Over the last five years, the country has also seen juice bars and juice cafes opening in India. Cold pressed juices too are slowly finding favour amongst consumers - while Keventers has expanded into Mumbai recently, Juice Up launched it's first kiosk in Noida in the year 2016. POTENTIAL IN PACKAGED JUICE MARKET India, the world's second-largest producer of fruits and vegetables, throws away fresh produce worth millions of dollars every year because of the country's lack of adequate cold storage facilities and refrigerated transport. Hence, Prime Minister Narendra Modi suggested that multinational cola giants should help augment fruit sales for Indian farmers by adding fresh fruit juices to their fizzy drinks. Packaged juices are slowly becoming a staple part of family breakfast, and even a must at social dos. The packaged fruit juices market can be divided into three sub-categories: fruit drinks, juices and nectar drinks. Fruit drinks, which have a maximum amount of fruit content, are the highest-selling category, with the highest share of the market. Frooti, Jumpin, Maaza, and so on are the most popular products in this category. The most preferred pack size is the individual (small) pack which is convenient, and easy to carry and consume. These are in great demand as out-of-home consumption is on the rise. Tetrapaks are most popular among manufacturers as well as consumers. Some companies are also offering their products in tins (e.g., Del Monte) and PET bottles (e.g., Maaza); however, they are more expensive than Tetrapaks, which add to production costs, and as a result, affect the market price. JUICE BECOMING A SUBSTITUTE TO FOOD Fruit juices have created a space for themselves in regular household menus, as a part of a family’s breakfast, social gatherings, and evening snacks. As a result, consumers are picking up multiple family packs at one go, which is an emerging consumption trend. Emerging trends like increased preference on wellness, the desire to spend extra on health and maintaining healthy lifestyle, especially in the middle-class and strengthening Indian economy, which offers more disposable income to the masses are major catalysts that drive strong growth of the non-alcoholic beverages market in India. Indians are adopting Western style of living and eating habits. At the same time, fruit is an inherent property which can cure a lot of disease and improve the immune system of human body. So, that’s where the idea comes from - perhaps, juice has become a substitute to food today. The rising number of health-conscious consumers is giving a boost to fruit juices; it has been observed that consumers are shifting from fruit-based drinks to fruit juices as they consider the latter a healthier breakfast/ snack option. MAJOR COMPANIES Major companies operating in the juice market of India are Dabur India Limited, PepsiCo India Holdings Private Limited, Parle Agro Private Limited, Coca-Cola India Private Limited, ITC Limited, FieldFresh Foods Private Limited, Manpasand Beverage Limited and Godrej Consumer Products Limited.



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