Consumers are warming to some new juice categories, writes Australian Beverages Council CEO Geoff Parker.
Australia’s fruit and vegetable juice industry continues to undergo structural changes as private label competition and ongoing challenges from other beverages restrict industry growth.
Innovative packaging, and premium, niche products – particularly chilled juice – offer processors greater margins during a period of soft revenue performance.
Since 2008, chilled juice has been increasing in market value at the expense of ambient juice, growing in value by more than $140 million, while ambient juice has lost approximately $170 million over the same period.
While the overall value of the juice market has been declining since 2011, forecasts indicate value losses will slow and value should peak this year due to consumers opting for more premium chilled products.
Beyond 2018, the expectation is that growth will remain constrained across the category with the greatest promise of better margins and sales in premium lines.
Some of the premium lines introduced by members of Fruit Juice Australia include combinations of fruit and vegetable juices, greater density juices which have been pressed or crushed, and unique juice blends, many of which include coconut water.
Some producers have also branched out into other categories, such as non-dairy yoghurt and sparkling juices or flavoured waters.
A recent market research report of Australian fruit juice suggested millennials and families with young children are key targets for premium juice products.
The report found millennials perceive juice consumption as an indulgence, while families with young children generally value high quality ingredients as a key factor in the decision-making process.
Of little surprise, the research also indicated that high income respondents are one of the main markets for premium juice, highlighting the premium quality ingredients as a factor influencing their purchasing habits.
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