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Juice industry: insights about its present and future
Alimentos SAS • Jan 05, 2022
Today, the juice industry produces some of the most popular beverages in the world. Here we will explore the current state of the industry. You will also learn about the prospects for its future. Let's see more about it!
The juice industry 101
According to the Codex Alimentarius, fruit juice is "unfermented but fermentable juice”. This product is intended for direct consumption and is obtained by mechanical processing of sound, ripe fruit. In addition, these fruits are preserved exclusively by physical means (Food and Agriculture Organization of the United Nations, n.d.).
There are many different juice designations in the global scene today. Each market has its requirements for companies to name and promote their products as juice or juice-related goods. Some common ones include (Food and Agriculture Organization of the United Nations, n.d.):
- Pure juice 100 %, which means the product is all juice.
- Juice from concentrate.
- Juice blend, which means it is a mixture of pure juices.
- Nectar, which means it combines 25 to 50 % juice with sugar, water, and acid.
- Juice drink, beverage, or cocktail, which means it has 10 to 20 % juice.
Overall, the juice industry is segmented into fruit juices, vegetable juices, and blends (Grand View Research, 2018). Today, the entire sector is recovering from the effects of the pandemic. Experts say it will exhibit a healthy growth rate in the coming years (OG Analysis, 2021). For example, Imarc (n.d.) expects the world’s fruit juice market to grow in the next five years. In fact, Tetra Pak (2020) estimates it will have a 1 to 2 % global Compound Annual Growth Rate (CAGR) toward 2023.
In this context, companies are working to enhance their market share with strategies involving (OG Analysis, 2021. TGM Markets, 2021):
- Business expansion.
- Operational efficiency.
- Product innovation.
- Diverse portfolios.
- Attractive packaging.
- Digital marketing.
Market drivers for the juice industry
The beverage industry is constantly diversifying its offer. Nowadays, there are just as many options in traditional products, like a nectar drink, as in more niche ones, like fruited beer. Moreover, its innovation efforts continuously drive consumers into wondering things like the differences between sparkling water vs seltzer, or what is cream soda.
So, what are the main factors behind the direction of the industry? We will tell you.
Health-driven consumers’ preferences
Increasing health concerns among consumers have boosted the fruit and vegetable juice segment, making it one of the fastest-growing segments in the beverages industry. Juices attract people who are interested in nutritional products over high-sugar options like sodas, for example (Grand View Research, 2018).
The juice industry has taken a page from this turn toward low-sugar and sugar-free drinks. Some leading practices to achieve products that cater to the trend are (Arndt, 2020. Tetra Pak, 2020. Allied Market Research, 2021):
- Creating blends of fruits and vegetables, as the latter have lower sugar levels.
- Decreasing sugar content by mixing fruit juice with coconut water.
- Using fruit puree as a natural sweetener and flavor enhancer.
Actually, fruit puree is a prominent ingredient in this industry. It carries flavor and nutrients from fresh produce but is notably more efficiently handled than whole fruit (Dohler, n.d.). It can be stored longer with more ease. Additionally, it allows manufacturers to forego the first two stages of production (Fruit Processing Line, n.d.):
- Raw materials selection and prepping.
- Juice extraction according to the fruit’s structure and the final product’s quality requirements.
Elsewhere in the sector, other brands are concentrating on value-added beverages. With options such as antioxidant drinks thriving, businesses are creating nutritional, convenient, juice-based products (Arndt, 2019. Nettle, 2020. Tetra Pak, 2020):
- Snack drinks with proteins, cereals, or seeds.
- Highly nutritious drinks using super fruits.
- Functional drinks with probiotics, herbs, or even CBD.
Sustainability
Both climate change and customers’ concerns have highlighted sustainability as a main driver for the food industry. For example, research finds that 53% of American consumers favor environmentally friendly products (Nettle, 2020).
As a result, the juice industry is working on different sustainability fronts (Nicasio, n.d. Nettle, 2020. Tetra Pak, 2020):
- Optimizing water use during production.
- Appropriately treating wastewater.
- Curbing manufacturing, bottling, and transportation carbon footprint.
- Developing packaging that is recyclable, made from sustainably sourced materials, or even edible.
As seen, the
juice industry is poised to maintain healthy in the near future. Its players are using innovation to cater to the main factors with the power to steer its performance.
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