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Fruit Juices and Health Drinks Market Report 2007
Key Note Publications Ltd, March 2007, Pages: 98
This Market Report covers the fruit juices and health drinks market, which comprises fruit juice, health drinks and fruit drinks. Despite the relative maturity and the high household penetration level of the sector, the total fruit juices and health drinks market has grown strongly over the past 5 years, in terms of both value and volume. In 2006, the total market was worth an estimated £2.77bn at retail selling prices (rsp), having grown by 30.7% since 2002.
In 2006, fruit juices, health drinks and fruit drinks accounted for 40.6% of the total soft drinks market in terms of volume sales. The sector has gained market share over the past 5 years, as consumers switch away from alternative soft drinks and towards the products covered by this report. Fruit juices and health drinks have benefited from their healthy image, particularly in comparison with other, less healthy, drinks, such as carbonates.
Large multinational companies, led by Coca-Cola Enterprises UK Ltd and Britvic Soft Drinks Ltd, dominate the fruit juices, health drinks and fruit drinks market. Other major players include Pepsico, Princes Soft Drinks Ltd, Cott Beverages Ltd and Gerber Juice Company Ltd. The remainder of the market is fairly fragmented, with many niche players, such as Red Bull, which are dominant in particular sectors. In addition, GlaxoSmithKline PLC, one of the world's leading drugs companies, also owns the iconic Lucozade and Ribena brands.
Marketing and advertising play a key role in the sector, which is characterised by a multitude of brands and sectors, and often little difference in terms of the ingredients that go into the drinks. Thus manufacturers invest heavily in advertising and promotion to differentiate their brands and appeal to consumers in terms of lifestyle aspirations and/or health factors.
Data from BMRB International Ltd's Target Group Index (TGI) survey reveals that, in 2006, more than half the population were users of fruit and vegetable juice, with women more likely to drink it than men.
Prospects for the market appear excellent. Fruit juices and fruit drinks have a healthy image and are convenient to use, so they should continue to benefit from the two major trends influencing food and drinks markets, not just in the UK, but around the world: the demand for healthy and convenient products. They should, therefore, continue to win consumers away from carbonates, their chief rival in the soft drinks market, as well as other beverages such as tea and coffee that require some preparation. Energy drinks should also continue to experience strong growth, although they are more vulnerable than the other sectors due to concerns about their healthy attributes, with adverse reports continuing to emerge about one of the main brands in the sector, Red Bull.
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