Is the Juice Market Feeling the Squeeze?

The price of dwelling disaster and the aftermath of the pandemic have created situations that brought about vitality and transportation prices to soar, quickly rising foods and drinks costs, and a consequent lower in actual incomes – all of which have taken a toll on the juice market.

Whereas inflation has buoyed the worth of the class, Mintel estimates that the UK juice market’s charge of quantity gross sales has fallen by 3% in 2023. Furthermore, issues over planetary and private well being have continued to hamper the juice business. As a discretionary class, the juice market stays weak to the continued earnings squeeze as shoppers are more likely to hold buying and selling down or reduce on spending.

Nonetheless, you’d be happy to know that there are alternatives for manufacturers to stimulate innovation if they will show worth to financially pressured shoppers and interact with shoppers’ issues about sustainability and private well being.

We’ve handpicked the newest client calls for, rising juice traits and improvements that will probably be essential in holding shoppers captivated and justifying larger value factors.

The hovering costs of fruit and greens as a consequence of excessive climate situations such because the UK summer time heatwave of 2022, droughts in Brazil and hurricanes within the US have brought about a noticeable hike within the common value per litre of juice. Unsurprisingly, 72% of UK shoppers have taken measures to attempt to get monetary savings on fruit juice, juice and smoothies to assist counteract the mounting value of manufacturing. Over a 3rd of shoppers are selecting to commerce right down to cheaper choices, which helps personal labels acquire quantity share within the juice market. To stay aggressive and enhance their worth notion, key gamers are providing promotions and introducing bigger, higher value-for-money codecs of their merchandise. Whereas this helps, manufacturers can do extra to diversify their choices to counter downtrading and attraction to savvy shoppers.

4 out of ten UK shoppers agree that they discover it acceptable for fruit juice and smoothie manufacturers so as to add water to their merchandise. This presents a cheap method to lower cost factors, in addition to deal with issues over sugar content material. Main the best way, Waterbomb’s new vary What a Juice Gentle advertises on the bottle’s packaging that the beverage has half the sugar of their common juice, elevated water content material and has solely 150 energy per bottle. To handle the notion of worth for cash, manufacturers can place the addition of water as a method to increase hydration. To additional enhance attraction, the extra water might be mineral water or embody electrolytes. Innovating on this space would assist juice drinks promote a stronger function in hydrating or post-exercise consuming events, in addition to saving shoppers cash.

Sugar’s function within the rising prevalence of weight problems and different well being points is a key issue inflicting shoppers to kind new style preferences within the juice business. In a current Mintel report A Yr of Innovation in Juice, over a 3rd of French adults specific curiosity in juice and smoothies with much less candy flavours, and over half of UK juice and smoothie drinkers attempt to restrict their consumption to at least one small glass a day as a consequence of sugar consumption. At first look, this sugar-related juice pattern seems to stifle the expansion of the juice market, nevertheless it additionally presents a chance for manufacturers to innovate in better-for-you recipes to assist ease shoppers’ health-related issues.

A concentrate on low-sugar and non-sweet flavours additionally opens up alternatives for manufacturers to broaden their function inside night-time consuming events. A 3rd of adults agree that fruit juice, juice drinks and smoothies with subtle flavours, corresponding to botanical or spices, are a greater various to alcohol than these with commonplace flavours. By creating fascinating and revolutionary flavours that attraction to each health-conscious and indulgent shoppers, manufacturers can faucet into the rising pattern for alcohol moderation and supply a singular various to conventional alcoholic drinks.

Alongside no added sugar claims, immunity claims dominated new practical launches within the juice market from 2020 to 2023 after immunity was thrust firmly to the forefront of individuals’s minds throughout COVID-19. Main the best way, Sainsbury’s added Flourish Orange, Carrot, Passionfruit and Ginger Immune Smoothie to its health-focused Flourish vary. They highlight on the entrance of the bottle that their smoothie is fortified with nutritional vitamins B, C and D to help the immunity proposition.

Within the US, health-conscious juice traits are additionally on the rise. Mintel’s US Juice and Juice Drinks Report reveals that 40% of US juice and smoothie drinkers are consuming extra juice in comparison with a yr in the past as a manner of accelerating their vitamin consumption. Shoppers’ heightened curiosity in more healthy diets and their stronger intention to include extra nutrient-dense drinks into their each day lives presents vital alternatives for manufacturers to capitalise on.

Sustainability isn’t only a pattern anymore. We’ve all been hit with the tough actuality of utmost climate, in addition to excessive vitality and meals costs. As shoppers change into extra acutely aware of how their actions have an effect on the surroundings, they are going to count on corporations to offer them with climate-friendly merchandise.

As worries round local weather change and sustainability develop, 4 out of ten UK juice drinkers are involved concerning the meals miles related to juices that use tropical substances. As soon as the price of dwelling disaster abates and shoppers can afford to prioritise sustainability once more, Mintel anticipates that their worries are solely more likely to worsen. Celebrating fruit grown regionally can deal with issues over meals miles. Manufacturers within the juice market can innovate by experimenting with recipes that incorporate native substances. By highlighting the hyperlink between low meals miles and sustainability, manufacturers can increase their moral credentials and win the eye of eco-conscious shoppers. To boost the attract of native, manufacturers might utilise this narrative to help British farmers which might not solely present a compelling human angle however would additionally elicit belief and affirm high quality associations.

Moreover worrying about meals miles, Mintel’s analysis reveals that a 3rd of US shoppers are involved about juice manufacturers that don’t use sustainable packaging. As a rising variety of shoppers recognise the significance of eco-friendly packaging, manufacturers are anticipated to make these packaging choices commonplace. Over the past 5 years, new launches that includes environmentally pleasant claims have sharply elevated within the UK juice market. Whereas constructive, the saturation of such label claims signifies that they don’t provide a lot by way of standing out from the group. Nonetheless, some manufacturers have gotten artistic in pushing the inexperienced agenda corresponding to Don Simon who repackaged their juices to spotlight the model’s triple zero goal: to have zero waste, zero polluting emissions and nil water consumption. This initiative demonstrates how big-thinking concepts and transparency can assist construct trusted relationships with shoppers, which may end up in elevated utilization and spending on a product.

It’s important for juice manufacturers to grasp how current world conflicts and local weather change have affected shoppers’ well being and their wallets. Transferring ahead, juice manufacturers might want to work more durable to show the worth of their merchandise to financially pressured shoppers, cater to the rise in demand for pure and wholesome choices, and take extra accountability for sustainability.

Is your online business responding to the evolving attitudes and preferences of juice drinkers? With Mintel’s main impartial market and client analysis, you possibly can focus your methods to align with the newest traits and developments within the UK juice market. Discover our Juice Market Analysis, or fill out the shape under to enroll to Highlight, Mintel’s free publication for unique insights.