China & Brazil Biggest Growing Markets For 100 Percent Juice

Friday, October 21st, 2016 | 647 Views

Consuming 545 million litres of 100 percent juice in 2015, China is now the world’s eighth biggest market, according to Tetra Pak. Demand for the beverage in China is expected to rise at a compound annual growth rate (CAGR) of 7.7 percent to 2018.

Brazil is expected to eclipse China’s growth and join the global top ten markets in 2018. With growth rates of more than 12 percent a year, the Latin American market has showed the biggest growth in the last three years. This was due to the growing middle class trading up from home-squeezed to packaged juice.

“The same factors are driving growth in other hotspots, such as India, Indonesia and Malaysia, identified by Mintel as the fastest growing markets in terms of total volumes. The combination of such growth and slowing decline in established markets is forecasted to stabilise 100 percent juice, returning it to growth going forward – albeit marginal at 0.1 percent,” said Dennis Jönsson, president and chief executive officer of Tetra Pak.

The US remained the world’s largest market, with 6.74 billion litres consumed in 2015. This was just under a third of the worldwide total consumption. Per capita, that amounted to 20.9 litres per person per year, the fourth highest globally after Canada (30.1 litres), Norway (25.4 litres) and Germany (21.7 litres). However, the market has been declining by 2.6 percent over the last three years.

On the other hand, China’s per capita consumption is only 0.4 litres per person per year. This suggests that despite the country’s strong growth rates, the market is yet to develop its full potential.

A gulf in pricing has also been observed in some markets. In the US, the premium segment starts at US$7 per litre, more than double the price of the value segment, which is less than US$3. Despite this, in the US as in Europe, growth for premium products is still high, demonstrating the willingness of consumers to pay for products that meet their needs.

“Particularly strong performers are the new breed of “cold pressed” juices and smoothies with strong health and wellness claims and often organic and artisanal credentials, typically targeted at affluent Millennials,” Mr Jönsson added.

With 6.9 billion litres sold in 2015 and a 46 percent share of the 100 percent juice market, orange remains the flavour most preferred by consumers, followed by apple juice at 17 percent. Both are declining slightly, as the health-conscious mixed vegetable flavour has risen to become the fourth most popular flavour.

Coconut water, however, has seen huge growth from a niche beverage to a fashionable mainstream product in just a few years, and growth for coconut water seems set to continue at a rapid pace.