The report, focused exclusively on 100% juice, also shows that brands in both developed and emerging markets are finding creative ways to capitalise on these attributes, introducing innovative new products that are capturing the imagination of consumers and helping drive growth.
Tetra Pak president and CEO, Dennis Jönsson, says: “It is good to see that brands globally are turning the challenges presented by changing lifestyles and the sugar debate into opportunities. They are driving growth in the 100% juice category with new products that capture the imagination of consumers, stretching beyond traditional fruit juices such as orange and apple, to a range of inventive vegetable blends, and new fruit flavours, creating endless possibilities for new recipes. As ever, the key to success is innovation, offering the right product at the right time to meet the modern consumers’ needs, and, just as importantly, capturing their attention and making a connection with them.”
Insights from the report show that 100% juice remains a significant part of the average consumer diet, with more than 40% of people drinking it every day. Furthermore, consumers say that they are willing to pay a premium for juices that they associate with healthy choices.
A useful guide for exploring current penetration and scope for future growth is per capita consumption. Even allowing for the drop in total volumes, in 2015, US consumers drank more than 6,7bn litres of 100% juice, just under a third of the worldwide total. Per capita, that amounted to 20,9 litres per person per year. By contrast, China’s per capita consumption is just 0,4 litres per person per year, suggesting that despite its double-digit growth, the industry is still only scratching the surface of the opportunity.
The fastest growing markets in per capita terms between 2010 and 2015 can be found in Africa, the Middle East and Latin America. While many of these started from a low base, some are emerging as key markets, driving sales and innovation. Brazil is one we’ve already mentioned; Mexico, South Africa and Saudi Arabia are others.
NFC gained share from reconstituted, up from 25,6% in 2009 to 28,9% in 2015, while global average prices per litre for reconstituted juice declined by 0,3% CAGR 2009-2015, and NFC prices grew at 1% CAGR 2009-2015.
Volumes of NFC sales are also increasing in many countries, including those where overall juice consumption has dropped. In Germany, for example, NFC 100% juice sales grew by 4,1% between 2012 and 2015, and are projected to grow a further 3,8% by 2018, while overall volumes decline. The trend is even more marked in Canada and South Africa.
Three emerging market trends
Six key insights
The Tetra Pak 100% Juice Index report is based on market insights through the company’s partnership with customers around the globe, as well as recent research findings from 7,000 consumers in seven countries.
More information on 100% juice and the full report can be found at Tetrapak.com.