Our fruit and vegetable juice market research answer questions such as: What is the market size

e of fruit and vegetable juice? What are the major brands in fruit and vegetable juice? What are the flavour trends in fruit juice and vegetable juice? What is the market share of smoothies in the 100% juice sector? Have there been any new product launches in the last year? What is the key on-trade distribution for fruit juice and vegetable juice?

Indian food processing industry $ 65.6 Billion Expected to touch US$ 66.3 billion by 2018, registering a growth of 18 per cent. The beverage industry in India constitutes of around USD 230 million Indias beverage market is largely unorganized, with nearly 75% of the demand serviced by companies in the unorganized sector. According to another report by researcher Business Monitor International, the Indian market of non-alcoholic beverage market comprising carbonated drinks, juices, bottled water, ready-to-drink tea and coffee, and sports drinks is expected to touch $5.18 billion by 2015. the Indian non-alcoholic beverages market was estimated at around Rs 5,000 crore, which is growing at 15% year on year. The market for functional drinks is estimated at close to Rs700 crore. The organised water category is estimated at close to Rs3,000 crore According to market researcher Nielsen, Indias branded packaged juice market is estimated at Rs 1,000 crore and growing annually at 15-20 per cent.

Indian Food Market $ 380 Billion [Yr. 2012]

Food Processing Industry

$121 Billion [2012] to $194 Billion [ 2015] Growth 10%; Exports : 12%

Segments in Food Processing Industry

Dairy Fruits & Vegetables
Dairy : Whole milk powder, skimmed milk powder, condensed milk, ice cream, butter and ghee, cheese Fruits & Vegetables : Beverages, juices, concentrates, pulps, slices, frozen and dehydrated products, potato wafers, chips, etc. Grains & Cereals : Flour, bakeries, starch glucose, corn flakes, malted foods, vermicelli, beer and malt extracts, grain based alcohol Fisheries : Frozen and canned products mainly in fresh form Meat & Poultry : Frozen and packed mainly in fresh form, egg powder Consumer Foods : Snack foods, namkeens, biscuits, ready to eat food, alcoholic and non alcoholic beverages

Grains & Cereals Food Processing Industry Fisheries Meat & Poultry Consumer Foods

This includes packaged foods, aerated soft drinks, packaged drinking water and alcoholic beverages Packaged foods segments comprises bakery products, ready-to-eat snacks, chips, namkins and other processed foods / snack foods.

Packaged Food Industry

$15 Billion [2012] to $30 Billion [2015] Urban : 78 %

Indian Beverages
Alcoholic Non-alcoholic
Tea, Coffee etc. Carbonated soft drinks Bottled fruit based beverages Other Beverages Very Little in Organised Sector

Non Alcoholic Beverages Market Rs. 19000 Cr.

Non Alcoholic Beverages

Carbonated Soft Drinks; Rs. 6000 Cr.; Growth 10-12%

Non Carbonated Beverages; Rs. 5000 Cr; 35-40 %

Hot Beverages

Packaged Water; Rs. 4200 Cr.; Growth : 14.5%

Fruit Drinks

Tea; Rs. 8500 Cr.; Growth : 1-2 %

Bottled Water Rs. 2300 Cr.

Nectar

Water Pouches Rs. 1200 Cr.

Fruit Juices

Bulk Water 700 Cr.

Functional Drinks

Energy Drinks; Rs. 700 Cr.; Growth : 25%

Non Alcoholic Beverages Rs. 6000 Cr.

Carbonated Drinks Rs. 1800 Cr.

Non Carbonated Drinks Rs. 1200 Cr.

Hot Beverages Rs. 3000 Cr.

Growth : 10 12 %

Growth : 35 40 %

Growth : 1.2 %

Aerated Functional Drinks [sports drinks, energy drinks and aerated juices] Rs. 600 Cr.

The rising number of health-conscious consumers is giving a boost to fruit juices; it has been observed that consumers are shifting from fruitbased drinks to fruit juices as they consider the latter a healthier breakfast/snack option.

Indian FNB Industry $40.3 Billion

Packaged juices market $ 200 million ; Growth : 15%

Fruit Drinks : 30% fruit content; 60% share of market

Fruit Juices : 100% fruit content; 30% share of the market

Nectars : 25-90% fruit content; 10% share of market

Packaged Juices Market

Market Shares
16%

30%

54%

Dabur Pepsi

Others

Packaging
As per studies, the most preferred pack size is the individual (small) pack which is convenient, and easy to carry and consume.
These are in great demand as out-of-home consumption is on the rise. Consequently, there is a growing consumer base, and also intense competition. Tetrapaks are most popular among manufacturers as well as consumers. Some companies are also offering their products in tins (e.g. Del Monte) and PET bottles (e.g. Mazza); however, they are more expensive than Tetrapaks, which adds to production costs, and, as a result, affects the market price.

Fruit juices have created a space for themselves in regular household menus, as a part of a familys breakfast, social gatherings, and evening snacks. As a result, consumers are picking up multiple family packs at one go, which is an emerging consumption trend.

Growth Drivers Indian Packaged Juices

Changing consumer lifestyles : Given the change in eating habits, the wider global exposure, and the growing time-poverty, has provided a fillip to the convenience food segment. Again, consumer preferences are shifting towards healthier lifestyles. As a result, the packaged juices market has charted a high growth trajectory thanks to its easy availability, anytime-anywhere consumption, and convenience. Juices are often seen to be quick, yet nutritional, fillers. Increased Health Awareness : The rising awareness about heart- and weightrelated health issues, especially among teenagers and young adults, has propelled the consumption of packaged fruit drinks. There is also a greater preference for these healthier beverages than carbonated soft drinks. Hygiene matters : Juices are healthy only when prepared hygienically. Packaged juices from trusted national and international brands have usually been prepared and certified to be in accordance with health and safety regulations. They thus underpin the confidence of consumers in considering them to be a healthy and convenient option, as compared to the fresh juices available at local joints and street stalls. Growing category of informed buyers : There is a growing category of informed buyers who are able to distinguish between fruit-based beverages and fruit juices.

These consumers are health conscious, highly aware, and have higher disposable income. They have, therefore, led the demand for 100% fruit juices in the past couple of years. Rising Disposable Incomes : In the past few years, there has been a sharp change in the number of nuclear families, in tandem with a surge in the number of working couples, which has led to higher disposable incomes. This has aided the affordability of packaged fruit juices, which are fast replacing fresh, homemade juices and becoming a compulsory item on breakfast tables. Booming modern retail : The dynamics of growth in the fruit-based beverage space are attributed to modern retail and alluring shelf displays which drive impulse purchases. Habitual purchase : The trend of consumers evolving from fruit drinks in bottles to sweetened juices to 100% packaged juices has been observed largely in the past couple of years. Consumers are buying in greater quantities, for household consumption, and buying fruit juices is becoming more of a habitual purchase than a need-based purchase. Introduction to new flavors : To kindle consumers interest in the category and also to cater to diverse and changing tastes, fruit juices providers are introducing

Key Challenges
Among all challenges, it is difficult to control the cost of production at the price points of juices, primarily because of rising food inflation. The continuous, year-long supply of raw materials, and the non-stop production of juices for the full season, is another production-linked issue which needs to be managed carefully. Also of vital importance is controlling transportation and logistics costs. Packaged Juices are gradually cementing their place in the urban household in the metros and Tier I cities; however, replicating the same success in Tier II and Tier III cities is still a struggle as residents in these regions still prefer fresh juices over packaged ones as they are comparatively cheaper and also in sync with the traditional belief that juices are best consumed freshly pressed. Challenging and changing consumers perspective on value for money, to grab a regular spot in the common household basket necessitates an aggressive stance towards improving consumers awareness on the positive attributes of packaged juices and their merits over locally available options.

Opportunities
Shift towards 100% juices from sweetened juices: This offers a wide opportunity to existing and upcoming juices manufacturing companies to spruce up their existing business and plan as needed for business or capacity expansion. Healthy proposition: it has been observed that consumers are making healthy choices in their beverage consumption; therefore, fiber-enriched juices and no sugar juices are more in demand. Some new juice variants claim to have no added sugar; this can be positioned as a health attribute, e.g. Dry Fruit Apple Juice by Balan Natural Foods Unique offering: Consumers are seeking unique fruit flavors apart from the usual mango, orange, or lime-based fruit juices. Companies intoned to identify some of the unique fruit juices that can be offered - Dry Fruit Apple Juice for instance, which is much sought after due to the nutritive benefits provided by the combination of dates, figs, raisins, almonds, and apple concentrate. Wider Options: Companies need to offer wider varieties and options for the consumer to choose from, ranging from mixed fruit juices to pure, single fruit juices to dry fruit juices. Thanks to higher incomes, consumers are willing to experiment with variety and pay a premium for such value-added products.

Product extension: There has been some recent product extension, e.g. Tropicana launched Tropicana Fruit Powder with no preservatives or artificial flavors, which will be available in single-serve sachets and can be made into a full glass of juice simply by adding water. It is appropriate to say that the packaged juices market in India is still evolving. As there are many national and international brands on the verge of succeeding and expanding further into the field, new entrants can also cash in on this opportunity by positioning/promoting packaged and bottled fruit juices as part of the consumers daily diet. Simultaneously, it is critical to ensure affordability for consumers, while maintaining the hygienic aspects and quality of products throughout the year.

The size of the non-alcoholic beverages market in India is likely to reach the Rs 11,000 crore-mark by 2015, industry body Assocham said on Wednesday. Growing at a CAGR of about 20%, the non-alcoholic beverages sector is currently worth about Rs 6,000 crore, according to a study on Opportunities in the Indian Non-Alcoholic Beverages Market by the Associated Chambers of Commerce and Industry of India (Assocham). Domestic consumption of non-alcoholic beverage currently stands at about 17,500 crore litres and is likely to cross the 35,000 crore litres mark by 2015, said Assocham secretary general D S Rawat while releasing the findings of the study. The non-alcoholic beverages industry includes carbonated beverages, sparkling beverages, still beverages like distilled water, fruit juices, fruit-based drinks, energy and sports drinks, sodas, hot beverages like tea and coffee and other drinks that have no alcohol content. Carbonated or aerated drinks account for about 30% of the total non-alcoholic beverages market in the country. The size of the segment is currently estimated at about Rs 1,800 crore, while the value of the fruit drink segment is estimated at about Rs 1,200 crore and the energy drinks market is worth about Rs 600 crore.

Coming to the non alcoholic beverages section, we can say, traditionally, the Indian life style has a predilection for fresh fruits and vegetables or those processed at home. There is a sea change. People, are now increasingly going in for fresh fruit vending from kiosk fountains which produce instant juices from fresh fruits in the presence of the consumer. Fast expanding middle class population that is currently around 340 Million, increased urbanization and rising disposable income are some of the major reasons contributing to this change. Besides this, growing health consciousness among Indias young population has brought about a revolution in the Indian non-alcoholic drinks market. Among the fruit juices beverages are Pepsis Tropicana, nectars (Daburs Real) and fruit drinks (Frooti and Slice).All these are real, reconstituted from fruit pulps or concentrates. The leading fruit juice brands include Real, Onjus, Tropicana, Frooti, and Jumpin. The branded fruit juices segment is growing at around 11 per cent annually. Similarly the bottled water market is growing at a rapid rate of around 20 per cent a year. Multinationals, Coca-cola, Pepsi, Nestle, Parle Export, Parle Agro and others are trying to grab a significant share of the market. The leading bottled water brands include Bisleri, Kinley, Aquafina, Himalaya, Hello, Perrier, Golden Eagle ,Penguin mineral water etc .to name a few.

Indian Beverages : Alcoholic Non-alcoholic

Tea, Coffee etc. Carbonated soft drinks Bottled fruit based beverages Other Beverages Very Little in Organised Sector

These days people are turning more health conscious. Because of this the non-carbonated beverage segment has become one of the fastest growing and most exciting businesses at the moment. Manufacturers are offering the consumers better tasting, more healthful alternatives. Newer products that have efficacious amounts of nutritional ingredients are being developed by the manufacturers. While all segments of the beverage market are evolving, the growth seems to be directed more towards healthy, light and low-calorie drinks. Another key trend in beverage industry is the increasing preference for healthy products. Consumers have become increasingly aware of health and fitness-related issues. Additionally, due to greater disposable incomes, particularly in urban areas, consumers are seeking healthier beverages even if they are relatively more expensive. This trend is so far restricted to urban consumers whilst for the rural consumer; manufacturers continue to focus on offering economy pack sizes. A number of young Indians indulge in outdoor sports and exercise regularly, which has increased the demand for Satiety-inducing beverages such as dairy-based drinks. Since the year 2007, the country has seen numerous product launches in the field of nutraceuticals/ functional foods and beverages that cater to distinct consumer brackets and ages. Indian health drinks market is still in its infancy due to the lack of awareness among the population. In value terms, the health food drink market is around Rs 1, 400 crore and in volume terms around 65,000 tons per annum.

 At present, the Indian packaged juices market is valued at Rs 1100 crore (US$ 177.78 million) and is projected to grow at a compound annual growth rate (CAGR) of 15 per cent over the next three years. Dabur India Ltd is the established leader, accounting for 54 per cent market share through its Real fruit juice brand, followed by PepsiCo India with a 2530 per cent market share through its Tropicana juice brand.

 Expecting fast growth in value-added dairy products such as milk, foreign entities have started looking at India as a dairy product market. Packaged milk segment in India is projected to grow from US$ 7.76 billion to US$ 32.9 billion by 2030, registering an annual growth of 8 per cent. The hot beverages market in India is also surprisingly concentrated with the top 10 companies accounting for 65 per cent of the market.

Why people drink beverages ? Quench the thirst Health benefits of water Medicinal benefits of beverages

Health Benefits of Drinking Water Lose Weight Regulates Body Temperature Natural Remedy for Headache Look Younger with Healthier Skin Better Productivity at Work Better Exercise & Relieves Fatigue Helps in Digestion & Constipation Less Cramps & Sprains Good Mood Reduces Risk of Cancer, CVD, Respiratory Infection, Arthritis Helps Distribute Nutrients to Tissues Detoxifies & Reduces Risk of Kidney Stones