Abstract
The fruit juice and juice drinks market faces a number of challenges, evidenced by declining sales during 2002 to 2007. While the market remains under pressure from consumer attrition to other non-alcoholic beverages, it also faces challenges from within, such as increasing juice prices.
However, this market does present growth opportunities through targeting non-users as well as users. This report provides analysis of leading market issues and opportunities to stimulate growth.
Mintel provides insights that will help manufacturers:
- Develop unique positioning that competes with other non-alcoholic beverages
- Respond creatively to increasing pricing pressures from within
- Innovate product positioning to attract the increasingly health-forward consumer
- Recognize opportunities and communicate with under-targeted black consumers (one of the market' s key demographics)
- Harness Hispanic population growth through effective retail strategy and product innovation
- Allay parents' health concerns for driving growth through children
- Use "wonder" fruits to drive growth on the strength of health-focused positioning and innovative flavors
- Recognize and address reasons consumers do not drink fruit juice and juice drinks
- Create credibility for fruit juice by educating consumers
This report provides industry stake holders with the information they need to assess competition, recognize target consumers, and drive growth through recognizing growth driving trends in two market segments: fruit juice and juice drinks.
For the purposes of this report, the following definitions have been used:
100% pure or 100% juice: Fruit juice not diluted with water and added sweeteners
Juice drinks: Beverages, including juice cocktails and products bearing the suffix "-ade" (e.g., grapeade), containing less than 100% juice
Both fruit juice and juice drinks are sold in a number of formats:
- Aseptic (boxed)
- Shelf-stable (canned or bottled)
- Refrigerated
- Frozen
- Powered mixes (only juice drinks)
Not included in this report are fruit juice energy drinks such as Rockstar Juices, which contains 50 to 70% fruit juice, and fruit-flavored water.
This report contains US IRI InfoScan data.
Table of Contents
Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
- Market at a glance-staying weak
- Competitive context
- Fruit juice hurt from increasing prices; fruit drinks suffer from negative perception of "added" artificial ingredients
- Retail distribution-opportunity for supermarkets in single serve
- Supplier alliance and acquisition would grow sales through expansion in distribution
- Targeting the consumer
Market Size and Forecast
- Key points
- Future market growth is contingent upon overcoming competition from other RTD non-alcoholic beverages
- Fruit juice hurt by increasing prices; fruit drinks suffer from negative perception of "added" artificial ingredients
- Targeted product introduction and communication with key consumers is
essential for growth
- Figure 1: Total U.S. sales and forecast of fruit juice and juice drinks at current prices, 2002-12
- Figure 2: Total U.S. sales and forecast of fruit juice and juice drinks at inflation-adjusted prices, 2002-12
Competitive Context
- Key points
- Bottled water, energy drinks, and sports drinks threaten fruit juice and
juice drinks market share
- Figure 3: Sales of major RTD non-alcoholic beverages, 2003, 2005, and 2007
- Fruit juice/juice drinks provide essential vitamins/minerals-but so do other beverages
- Juice and juice drinks marketers have responded through innovation
- Antioxidant platform
- Fresh fruits better than fruit juice maxim contributes to declining sales
- Pricing pressure from within to continue; continued upward trend in pricing to impair future growth
- Acquisition and distribution alliance activity heats up-driving growth through expanded distribution for small but successful brands
Segment Performance
- Key points
- Fruit juice and juice drinks growth relies upon health-focused,
value-added innovation
- Figure 4: U.S. sales and forecast of fruit juice and juice drinks at current prices, by segment, 2002-12
- Figure 5: Total sales of fruit juice and juice drinks, segmented by type, 2005 and 2007
Segment Performance - Fruit Juice
- Key points
- Rising prices and heightening beverage competition may mitigate growth
- Positive outlook for innovative juice blends, portability innovation, and
health-oriented aseptic juice
- Figure 6: FDM sales of fruit juice by form, 2005 and 2007
- Consumer focus on healthful eating drives growth in organic, functional, and all natural juice niches
- Price-sensitivity creates functional opportunity; drives non-orange juice
sales
- Figure 7: FDM sales of fruit juice by flavor, 2005 and 2007
- Super-premium juice niche threatened by mass entrants; growth contingent
upon flavor innovation and new functional attributes
- Figure 8: U.S. sales and forecast of fruit juice, 2002-12
Segment Performance-Fruit Drinks
- Key points
- Presence of artificial ingredients and added sugar do not align with
current consumer trend; future growth depends on pro-health/functional
positioning
- Figure 9: FDM sales of juice drinks by form, 2005 and 2007
- Figure 10: FDM sales of juice drinks by flavor, 2005 and 2007
- Effective communication needed for target audience
- Figure 11: U.S. sales and forecast of fruit drinks, 2002-12
Retail Channels
- Key points
- Non-convenience channels can stimulate growth through increasing
single-serve selection
- Figure 12: Choice of retail channels to purchase fruit juice and drinks by immediate or at-home consumption, November 2007
- "Mass and other" declines as convenience stores de-emphasize fruit juice
in favor of energy drinks
- Figure 13: U.S. sales of fruit juice and juice drinks, by retail channel, 2005 and 2007
Retail Channels-Supermarkets
- Key points
- Private label price strategy and innovation has mixed implications for market growth
- Super-premium juices have growth potential at supermarkets
- Figure 14: U.S. sales of fruit juice and juice drinks at supermarkets, 2002-07
Retail Channels-Mass Merchandisers and Others
- Key points
- Proliferation in "superstore" format would help the market growth in mass channels
- Convenience store sales would benefit from expansion in distribution of
small but popular brands
- Figure 15: U.S. sales of fruit juice and juice drinks at mass merchandisers and other* channels, 2002-07
- Figure 16: U.S. sales of fruit juice and juice drinks at convenience stores, 2004-07
Retail Channels-Natural Stores
- Key points
- Consumer focus on consuming organic and all natural food/beverages would
ensure growth
- Figure 17: U.S. sales of edible fruit juice at naturalsupermarkets, 2004-07
Market Drivers
- Fruit juice and juice drinks fall out of health-savvy consumers' favor
- Figure 18: Attitudes regarding healthy eating, 2003-07
- Increasing incidence of obesity; consumers turn to non-caloric beverages
- Figure 19: Percentage of population who are overweight or obese, 20-74 years of age, 1988-2004
- Natural and organic claims draw consumers' attention
- Children and teens impact sales of fruit juice
- Rising incidence of obesity among children threatens fruit juice/juice
drinks
- Figure 20: Prevalence of obesity among children aged 6-19, 1988-2004
- Households with children impact consumption of fruit juice
- Figure 21: Incidence of purchasing fruit juice and juice drinks, by presence of children, November 2007
- Figure 22: Household frequency of drinking fruit juice and juice drinks, by presence of children, May 2006-June 2007
- Figure 23: Nestlé' s juicy juice-TV ad, 2006
- Figure 24: Households with children under age 18 present, 2001-07
- Figure 25: U.S. children and teen population and projections, 2003-13
- Population diversity to benefit market growth
- Figure 26: Incidence of purchasing fruit juice and juice drinks, by race/ethnicity, November 2007
- Figure 27: Household frequency of drinking fruit juice and juice drinks, by presence of children, May 2006-June 2007
- Figure 28: Population by race and Hispanic origin, 2003-13
Companies and Brands
- Key points
- PepsiCo innovates in response to declining Tropicana sales; expands Naked and Izze distribution
- Coca-Cola gains; Simply Orange brand continues to attract consumers
- Health-focused messages may continue to drive Ocean Spray while Nestlé benefits from rebranding
- Private labels create price competition for the national brands
- Figure 29: FDM* sales of leading fruit juice and juice drinks companies, 2006 and 2007
Brand Share-Fruit Juice
- Key points
- Orange juice brands could benefit from health-focused innovation amid consumer attrition due to price increase
- Create and communicate brand attributes that build trust and create value-added perception among consumers
- Super-premium brands to experience price competition
- Figure 30: FDM* brand sales of fruit juice in the U.S., 2006 and 2007
Brand Share-Fruit Drinks
- Key points
- Brands catering to adults' value-added outlook and kids' flavor needs would thrive
- Opportunity to attract price-sensitive orange juice consumers
- Brands catering to Hispanic and black consumers would experience growth
- Figure 31: FDM brand sales of juice drinks in the U.S., 2006 and 2007
Brand Qualities
- Tropicana aligns with health-forward market trend to overcome decline in core orange juice brand
- Minute Maid; innovation key to the growth
Innovation and Innovators
- New product trends
- Figure 32: Trends in the new product introduction in the market, 2002-07
- Innovation and innovators
- Tropicana and Minute Maid keep consumers interested in orange juice through functional offerings
- Minute Maid introduces Minute Maid Breakfast Blends- the low-price solution for breakfast juice drinkers
- Trend towards fruit and vegetable juice fusion
Advertising and Promotion
- Overview
- Figure 33: Leading beverage manufacturer' s measured media and unmeasured spending on advertising, 2005-06
- Getting specific with health promoting juice/juice drinks attributes in marketing communication
- "Antioxidant " continues to be the marketing buzz word in fruit juice
- All natural
- Major advertising spots
- Coca-Cola
- Minute Maid
- Figure 34: Coca-Cola' s Minute Maid Enhanced Orange Juice, TV ad, 2007
- Simply Orange
- Figure 35: Coca-Cola' s Simply Orange orange juice TV ad, 2007
- Kraft
- Figure 36: Kraft' s Capri Sun Fruit Waves TV ad, 2007
- Nestlé
- Nestlé Juicy Juice
- Figure 37: Nestlé' s Juicy Juice Harvest Surprise-TV ad, 2007
- Ocean Spray
- Figure 38: Ocean Spray cranberry juice-two TV ad, 2007
- Sunny D
- Figure 39: television ad Sunny D, 2007
- Welch' s
- Figure 40: Welch' s television ad, 2007
Usage
- Trends in household fruit juice/juice drinks consumption
- Figure 41: Household juice/juice drinks consumption, 2003-07
- Who purchases fruit juice and juice drinks?
- Figure 42: Incidence of purchasing fruit juice and juice drinks, by key demographics, May 2006-June 2007
- Who drinks fruit juice and juice drinks in household
- Figure 43: who drinks fruit juice and drinks in a household, November 2007
- When do adults drink fruit juice and juice drinks?
- Figure 44: Occasions adults drink fruit juice and juice drinks, November 2007
- Frequency of use
- Trends in frequency of consumption
- Figure 45: Household frequency of drinking different types of juices, 2003-07
- Figure 46: Household frequency of drinking different types of juices, by key demographics, May 2006-June 2007
- Brands of orange juice used
- Figure 47: Brands of orange juice used, by age, May 2006-June 2007
- Attitudes and Motivations
- Attitudes towards fruit juice/juice drinks
- Figure 48: Attitude towards fruit juice and juice drinks, by age, November 2007
- Incidence of drinking more or less fruit juice/drinks compared to a year
ago
- Figure 49: Incidence of drinking more or less fruit juice and juice drinks compared to a year ago, by age, November 2007
- Reasons for drinking less fruit juice/juice drinks today, compared to last
year
- Figure 50: reasons for drinking less fruit juice and drinks today than last year, November 2007
- Reasons for drinking more fruit juice/juice drinks today, compared to last
year
- Figure 51: reasons for drinking more fruit juice and drinks today than last year, by gender, October 2007
- Reasons consumers do not drink juice/juice drinks
- Figure 52: Reasons for not drinking juice/juice drinks, November 2007
- Desirable attributes in fruit juice and juice drinks
- Figure 53: Desirable attributes in fruit juice (100%), pre-prepared juice drinks, and powdered drinks, November 2007
Appendix: Studies on Fruit Juice
- Studies linking negative influence of drinking fruit juice for children
- Studies linking fruit juice with positive health benefits
Appendix: Other Useful Consumer Tables
- Household usage of fruit juice and drinks
- Figure 54: Incidence of household consumption of fruit juice and drinks, by key demographics, May 2006-June 2007
- Who drinks fruit juice and drinks in a household
- Figure 55: Who drinks 100% fruit juice in a household, November 2007
- Figure 56: Who drinks 100% fruit juice in a household, November 2007
- Figure 57: Who drinks 100% fruit juice in a household, by presence of children in household, November 2007
- Figure 58: Who drinks pre-prepared juice drinks in a household, by age, November 2007
- Figure 59: Who drinks pre-prepared juice drinks in a household, November 2007
- Figure 60: who drinks pre-prepared juice drinks in a household, by presence of children in household, November 2007
- Figure 61: Who drinks powdered juice drinks in a household, November 2007
- Figure 62: Who drinks powdered juice drinks in a household, November 2007
- Figure 63: Who drinks powdered juice drinks in a household, by presence of children in household, November 2007
- When do adults drink fruit juice and juice drinks?
- Figure 64: Occasions adults drink 100% fruit juice, by age, November 2007
- Figure 65: Occasions adults drink 100% fruit juice, by race/ethnicity, November 2007
- Figure 66: Occasions adults drink 100% fruit juice, by race/ethnicity, November 2007
- Figure 67: Occasions adults drink powdered juice drinks, by age, November 2007
- Figure 68: Occasions adults drink powdered juice drinks, by race/ethnicity, November 2007
- Figure 69: Occasions adults drink powdered juice drinks, by race/ethnicity, November 2007
- Figure 70: Occasions adults drink pre-prepared juice drinks, by age, November 2007
- Figure 71: Occasions adults drink pre-prepared juice drinks, by race/ethnicity, November 2007
- Figure 72: Occasions adults drink pre-prepared juice drinks, by race/ethnicity, November 2007
- Attitudes towards fruit juice/juice drinks
- Figure 73: Attitude towards fruit juice and juice drinks, by race/ethnicity, November 2007
- Figure 74: Attitude towards fruit juice and juice drinks, by race/ethnicity, November 2007
- Incidence of drinking more or less fruit juice/drinks compared to a year
ago
- Figure 75: Incidence of drinking more or less fruit juice and juice drinks compared to a year ago, by age, November 2007
- Desirable attributes in fruit juice and juice drinks
- Figure 76: Desirable attributes in 100% fruit juice, by age, November 2007
- Figure 77: Desirable attributes in 100% fruit juice, by presence of children in household, November 2007
- Figure 78: Desirable attributes in pre-prepared juice drinks, by age, November 2007
- Figure 79: Desirable attributes in pre-prepared juice drinks, by race/ethnicity, November 2007
- Figure 80: Desirable attributes in powdered juice drinks, by age, November 2007
- Figure 81: Desirable attributes in powdered juice drinks, by race/ethnicity, November 2007
- Figure 82: Desirable attributes in powdered juice drinks, by presence of children in the hosuehold, November 2007
- Choice of retail channels by immediate and at-home consumption purchase
- Figure 83: Choice of retail channels to purchase fruit juice and drinks by immediate or at-home consumption, by age, November 2007
- Figure 84: Choice of retail channels to purchase fruit juice and drinks by immediate or at-home consumption, by age, November 2007
- Figure 85: Choice of retail channels to purchase fruit juice and drinks by immediate or at-home consumption, by age, November 2007
