|
|
 |
|
Viewing report
|
|
|
|
Fruit Juices and Health Drinks Market Report 2002
Key Note Publications Ltd, Jan 2002
Retail sales of fruit juices, fruit drinks and health drinks were valued at £1.88bn in 2001, having grown by 4.2% since the previous year. Household penetration is high and consumers are increasingly prosperous and able to indulge in non-essential but affordable pleasures. In times of economic downturn, they may choose cheaper lines but are unlikely to stop buying soft drinks altogether. In fact, non-alcoholic drinks are one of the most important grocery categories in the UK. Adults today have grown up with strong brands of soft drinks and continue to drink them as they get older, whereby they become introduced to their own families. The range of products is vast and the industry generates at least 50 new brands per year, as well as various brand extensions that all require considerable investment. Brand awareness and loyalty is strong with such names as, for example, Robinsons and Tropicana. However, consumers are also willing to try new products.
Consumer demand for convenience is a driving force and the industry has introduced different types and sizes of packaging to suit modern lifestyles - such as for drinking 'on the go' and to reflect the increase in the number of single households. The quest for convenience also explains the growth of ready-to-drink variants at the expense of more traditional cordials. Another driving force is health. Pure fruit juice including organic or low-sugar variants, as well as drinks containing added vitamins and minerals, are all seeing increased demand as consumers turn away from sugary drinks with additives. Sunny Delight, which was initially so successful, has been lambasted in the media for its content. This has brought some disrepute into the fruit drink sector, but is benefiting fruit juices ( e.g. Tropicana has continued to increase sales with successful innovations, such as its new Tropics flavours and its addition of calcium and vitamins).
Although there are strong brands in fruit juices and juice drinks, own label is also prominent. The introduction of supermarket economy lines has done little for value sales and has, arguably, damaged consumer perceptions through commodification. Even in branded lines, discounting is a feature with large price promotions such as 'buy one, get one free'. With prices under such pressure, increasing sales value relies on persuading consumers to opt for premium products, such as fruit smoothies. The energy and sports drinks subsector is a continuing growth area, although the introduction of many new variants is likely to put a similar competitive constraint on prices. One of the principal threats to the soft drinks market is the growing popularity of bottled water, particularly of still and functional water, as health-conscious consumers turn away from processed products and embrace the hydrating and detoxifying benefits of water.
Key Note anticipates annual growth of around 3% in the immediate future but, of course, the most important and unknown quantity is the weather. A cool and wet summer does not necessarily deflate demand but a long, hot one certainly stimulates it. This is particularly important to the impulse market, from which other outlets stand to win back some market share from the grocery multiples that currently dominate distribution of soft drinks.
Customers who bought this item also bought
Nicholas Hall's Global Vitamins, Minerals & Supplements Review 2011
Weight Control Products - Global Strategic Business Report
The World Vitamin-D Ingredient Market
Nutraceuticals Market Assessment 2008
Nutraceuticals in China and Japan: Emerging Opportunities and their Crossover Potential for Western Markets
Vitamins and Minerals in the United States 2009
Skin Lighteners - Global Strategic Business Report
The Natural Products Marketplace in the United States 2007
Chinese Markets for Vitamins & Supplements
Heart Disease in the United States 2010
|
|
|
|
