Thirsty Thoughts
Fruit Juice
Annual Market Quantification
April 2011
Setting the scene
This market consists of an array of large and small players. Many dairies supplement their
income by producing fruit juice, as the filling machines used to fill bottles for dairy blends
or milk products are similar to that of machines used to fill bottles with fruit juice. The fruit
juice market consists of ambient and chilled categories, within which exist the pure, nectar
and fruit drinks categories.
Many traditional flavours have remained popular with consumers, such as the orange,
grape, apple and granadilla juice. Some new flavours becoming synonymous with the
industry include berry variants, pomegranate and herbs such as lemon grass and mint.
The fruit juice market is perceived as a healthier alternative to other non-alcoholic
beverages due to the natural aspect, as well as the vitamins and nutritional value available
to the consumer through this beverage.
Packaging within this market ranges from glass to sachets, as almost all forms of beverage
packaging types are used here due to the diversity of the market. Popular packaging
materials include cartons, glass, plastic and sachet packaging.
South Africa’s RTD fruit juice market strength is assisted and sustained through the good
agricultural background of the fruit growing industry which has made the market an asset
in agricultural circles and bolstered the fruit crop contribution to the local economy.
2
2010 Category
Shares
Fruit Drinks
14.5%
Nectar
39.8%
Pure Fruit
Juice
45.7%
3
Annual Growth
Rates
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%
2000
2005
2010
4
Fruit juices make
steady recovery
• In 2010 the RTD (ready to drink) fruit juice recovered from volume losses seen over
the economic downturn. The market is expected to reach 2007 levels by the end of
2011 as consumers free up more disposable income for luxury items like fruit juice.
• Regional distribution of RTD juice remained fairly constant from the pattern seen in
2009, with Gauteng and the northern provinces continuing to dominate. Channel
distribution on the other hand changed significantly with a notable skew towards retail
and wholesale as the smart shopping trend continues to gain popularity.
• Although off-consumption continues to be popular in Europe, on-consumption has
experienced stronger growth. The imminent introduction of juice bars is expected to
change the channel distribution landscape in this region as manufacturers tap in on
the stronger growth potential in on-consumption.
• Pure fruit juices remained the most popular juice type, with nectars and fruit drinks
distant second and third choices, respectively. Fruit drinks lost significant share to
pure fruit juices while nectars maintained fairly similar share levels.
5
Fruit juices make
steady recovery (cont.)
• The long vs. short life split was almost 50/50 as long life juice continues to gain
popularity due to changes in consumer shopping habits. The trend towards smart
shopping where consumers stock up on groceries during one monthly shopping trip is
believed to have contributed to gains seen in long life fruit juices, as consumers
increasingly prefer to buy the shelf stable versions.
• In terms of juice flavour, orange, the traditional favourite continues to stand firm.
Blended flavours, featuring two or more flavours as well as exotic flavours are also
gaining ground, as are superfruit and herb combinations.
• In future, growth in the RTD juice market is expected to continue to be driven by the
health trend, which will continue to be the main positioning statement across all juice
types. Widespread introduction of the following is expected to rejuvenate growth in
this industry:
• Increased manufacture of premium 100% fruit juices and smoothies made from
natural, organic fruit
• Super fruit and exotic fruit flavours
• Addition of probiotics, phytosterols and fibre
• Vitamin fortification
• Unsweetened juices
6
Thirsty
Thoughts
Fruit Juice
For more information,
contact:
Jan Wegelin
Research Manager
Tel: (011) 615 7000
Mobile: 082 938 0744
www.bmi.co.za