Is the Juice Market Feeling the Squeeze?

The price of residing disaster and the aftermath of the pandemic have created circumstances that prompted power 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 fee of quantity gross sales has fallen by 3% in 2023. Furthermore, considerations over planetary and private well being have continued to hamper the juice trade. As a discretionary class, the juice market stays weak to the continued revenue squeeze as customers are more likely to preserve buying and selling down or in the reduction of on spending.

Nevertheless, you’d be happy to know that there are alternatives for manufacturers to stimulate innovation if they’ll show worth to financially pressured customers and interact with customers’ considerations about sustainability and private well being.

We’ve handpicked the most recent shopper calls for, rising juice developments and improvements that shall be crucial in protecting customers captivated and justifying larger worth factors.

The hovering costs of fruit and greens because of excessive climate circumstances such because the UK summer time heatwave of 2022, droughts in Brazil and hurricanes within the US have prompted a noticeable hike within the common worth per litre of juice. Unsurprisingly, 72% of UK customers have taken measures to attempt to lower your expenses on fruit juice, juice and smoothies to assist counteract the mounting price of manufacturing. Over a 3rd of customers 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 customers.

4 out of ten UK customers agree that they discover it acceptable for fruit juice and smoothie manufacturers so as to add water to their merchandise. This presents an economical approach to lower cost factors, in addition to tackle considerations over sugar content material. Main the way in which, Waterbomb’s new vary What a Juice Mild 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 deal with the notion of worth for cash, manufacturers can place the addition of water as a approach to enhance hydration. To additional improve attraction, the extra water could possibly be mineral water or embrace electrolytes. Innovating on this space would assist juice drinks promote a stronger position in hydrating or post-exercise ingesting events, in addition to saving customers cash.

Sugar’s position within the rising prevalence of weight problems and different well being points is a key issue inflicting customers to type new style preferences within the juice trade. In a latest Mintel report A Yr of Innovation in Juice, over a 3rd of French adults categorical 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 1 small glass a day because of sugar consumption. At first look, this sugar-related juice development seems to stifle the expansion of the juice market, but it surely additionally presents a possibility for manufacturers to innovate in better-for-you recipes to assist ease customers’ health-related considerations.

A concentrate on low-sugar and non-sweet flavours additionally opens up alternatives for manufacturers to broaden their position inside night-time ingesting events. A 3rd of adults agree that fruit juice, juice drinks and smoothies with subtle flavours, akin to botanical or spices, are a greater various to alcohol than these with customary flavours. By creating attention-grabbing and progressive flavours that attraction to each health-conscious and indulgent customers, manufacturers can faucet into the rising development for alcohol moderation and supply a novel various to conventional alcoholic drinks.

Alongside no added sugar claims, immunity claims dominated new purposeful 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 way in which, 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 assist the immunity proposition.

Within the US, health-conscious juice developments are additionally on the rise. Mintel’s US Juice and Juice Drinks Report reveals that 40% of US juice and smoothie drinkers are ingesting extra juice in comparison with a yr in the past as a means 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 development anymore. We’ve all been hit with the cruel actuality of maximum climate, in addition to excessive power and meals costs. As customers turn out to be extra aware of how their actions have an effect on the atmosphere, they are going to count on firms 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 elements. As soon as the price of residing disaster abates and customers can afford to prioritise sustainability once more, Mintel anticipates that their worries are solely more likely to worsen. Celebrating fruit grown regionally can tackle considerations over meals miles. Manufacturers within the juice market can innovate by experimenting with recipes that incorporate native elements. By highlighting the hyperlink between low meals miles and sustainability, manufacturers can enhance their moral credentials and win the eye of eco-conscious customers. To reinforce the attract of native, manufacturers might utilise this narrative to assist 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} third of US customers are involved about juice manufacturers that don’t use sustainable packaging. As a rising variety of customers recognise the significance of eco-friendly packaging, manufacturers are anticipated to make these packaging choices customary. 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 implies that they don’t supply a lot by way of standing out from the group. Nevertheless, some manufacturers have gotten inventive in pushing the inexperienced agenda akin to Don Simon who repackaged their juices to focus on the model’s triple zero goal: to have zero waste, zero polluting emissions and 0 water consumption. This initiative demonstrates how big-thinking concepts and transparency can assist construct trusted relationships with customers, which can lead to elevated utilization and spending on a product.

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

Is what you are promoting responding to the evolving attitudes and preferences of juice drinkers? With Mintel’s main unbiased market and shopper analysis, you may focus your methods to align with the most recent developments 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 e-newsletter for unique insights.