Fruit Juice and Juice Drinks - UK - November 2010

About this report

The fruit juice and juice drinks market is valued at £3.1 billion in 2009 and, while both volumes and values have grown in recent years, the category has been hit by consumers trading down and a reduction in investment in both advertising and innovation. The juice drinks sub-sector has outperformed fruit juice, as many consumers have traded down from the latter to the former, seeking both better value and a healthier product due to its lower fruit and therefore sugar content.

* Three quarters of consumers drink fruit juice or juice drinks, but despite this impressive penetration, the category has been losing out during the recession as consumers have narrowed their drinks repertoire.
* Fruit juice brands should look to develop a broader offering of juice drinks to take advantage of the fastest growing segment in the market and increase consumption among the fruit juice drinkers, who still represent the majority of the market.
* Premiumisation, particularly through natural and superfood claims, provides a way for fruit juice brands to tap into the juice drink market and limit the number of consumers that trade down.
* Juice and juice drinks brands need to target promotions on the superior taste of their products to tap into the 61% of consumers across the age spectrum that agree that fruit juice and juice drinks taste good compared to other soft drinks.
* The category continues to be dogged by negative perceptions of price, despite widespread discounting during the recession, with two in five consumers believing that fruit juices are expensive for what they are. With fruit prices set to rise in 2011, juice manufacturers need to be clear (in their communication) about their what it is about their product that is worth paying more for.
* This is particularly important for the big juice brands as only 39% of consumers think that juice brands are worth paying more for, although larger households and those with children are more likely to agree, suggesting that brands need to do more to engage with both younger and older adults, with the younger group the ones who have increased their consumption in the last year.

Table of contents

Issues in the Market
Key themes
Definition
Abbreviations
Market in Brief
Fruit juice and juice drink market showing signs of stability
Juice drinks win as consumers seek out greater value
Innovation suffers from slowdown
Big brands looking to topple own-label’s dominance
Both off- and on-trade channels see growth
Promotional expenditure remains sluggish
Consumer usage and attitudes towards fruit juice and juice drinks
Internal Market Environment
Key points
Rising raw material costs – a major issue for the market
A healthy diet is important but only at the right price
Figure 1: Agreement with lifestyle statements on diet/health, 2006-10
Heavy users in decline
Figure 2: Frequency of drinking ready-to-drink fruit and vegetable juices and smoothies^, 2006-10
Alternatives to juice, while more popular, are also suffering from a fall in consumption
Interest in premium persists within the market
Children remain an important market
Figure 3: Drink fruit juice, smoothies or fruit drinks in small cartons or small bottles – 7-14s, 2005-09
Breakfast is an important time for consumption
Figure 4: Frequency of eating breakfast at home, March 2010
Government initiatives offer long-term opportunities for the juice market
Figure 5: Where drink fruit juice, smoothies or fruit drinks most – 7-14s, 2005-09
Broader Market Environment
Key points
Popularity of juice with young adults presents opportunities
Figure 6: Trends in the age structure of the UK population, 2005-15
AB market remains key for the juice sector
Figure 7: Forecast adult population trends, by socio-economic group, 2005-15
Competitive Context
Key points
Fruit juice and juice drinks face tough competition
Figure 8: Types of non-alcoholic drinks drunk, 2006-10
Fruit juices are the key product in the RTD market
Figure 9: Types of RTD juices drink most often, 2008-10
Performance for fruit juice appears more positive amongst children
Figure 10: Types of non-alcoholic drinks drunk – 7-14s, 2005-09
Strengths and Weaknesses in the Market
Strengths
Weaknesses
Market Size and Forecast
Key points
Juice market shows signs of slowdown in face of recession
Figure 18: UK on- and off-trade sales of fruit juices and juice drinks, by volume and value, 2005-15
Juice drinks perform well as consumers trade down
Figure 19: UK on- and off-trade sales of fruit juice and juice drinks, by type, by volume and value, 2005-10
Future for the fruit juice and juice drinks market
Figure 20: Sales and forecast of the UK fruit juice and juice drinks market, by value, 2005-15
Forecast methodology
Market Segmentation – Pure Fruit Juice
Key points
Total market for fruit juice
Figure 21: UK sales of pure fruit juice, by value, 2005-15
Downtrading by consumers hits off-trade sales
Figure 22: UK off-trade sales of pure fruit juice, by volume and value, 2005-10
On-trade sales sluggish with competitive pricing an issues
Figure 23: UK on-trade sales of pure fruit juice, by volume and value, 2005-10
Ambient vs. chilled – NFCs charge ahead
Figure 24: UK off-trade sales of pure juice, by value, by sector, 2005-10
Orange remains the most popular flavour yet with increased competition
Figure 25: UK off-trade sales of pure juice, by flavour, by volume, 2005-10
Market Segmentation – Juice Drinks
Key points
Total market for juice drinks
Figure 26: UK sales of juice drinks, by value, 2005-15
Off-trade – sales remain buoyant despite economic slowdown
Figure 27: UK off-trade sales of juice drinks, by value, 2005-10
On-trade – mixed fortunes with pubs suffering from falling sales
Figure 28: UK on-trade sales of juice drinks, by value, 2005-10
Adults prove an increasingly important sector for manufacturers
Figure 29: UK off-trade sales of juice drinks, by target age group, by value, 2005-10
Health concerns raise interest in juice content
Figure 30: UK off-trade sales of juice drinks, by juice content, by value, 2005-10
Orange remains a popular flavour with consumers
Figure 31: UK off-trade sales of juice drinks, by flavour, by volume, 2005-10
Market Share
Key points
Fruit juices – Tropicana strengthens share as recession bites
Figure 32: Off-trade sales shares of pure juices, by manufacturer, by brand, 2005-10
Juice drinks – expansion in market value leads to heightened competition
Figure 33: Off-trade sales shares of juice drinks, by manufacturer, by brand, 2005-10
Companies and Products
PepsiCo
Coca-Cola Enterprise
Britvic
GlaxoSmithKline (GSK)
Brand Communication and Promotion
Key points
Advertising expenditure feeling the pinch
Figure 47: Main monitored media advertising spend on fruit juices and juice drinks*, 2005/06-2009/10
Coca-Cola dominates market in terms of support
Figure 48: Main monitored media advertising spend on fruit juices and fruit juice drinks, by advertiser*, 2007/08-2009/10
Oasis receives most support overall between 2007 and 2009
Figure 49: Main monitored media advertising spend on fruit juices and fruit juice drinks, by brand, January 2007-December 2009
Support focused on key brands
Capri-Sun and J2O receive recent support
Retailers weigh in with promotional activity
Channels to Market
Key points
Pubs and clubs see share of sales slip back
Figure 50: Value sales of fruit juice and juice drinks, by outlet channel, 2005-10
Workplace catering and leisure prove attractive channels
Supermarkets help drive forward off-trade sales
Consumer Usage of Fruit Juice and Juice Drinks
Key points
Figure 51: Penetration of non-alcoholic drinks in the past year, July 2010
Fruit juice and juice drinks in context
Category profiling – juice vs water
Health priorities
The impact of negative health claims
Juice drinks have limited adult appeal
Something for the purists
Range and repertoire
Figure 52: Repertoire of penetration of non-alcoholic drinks in the past year, July 2010
Minimalists
Figure 53: Penetration of non-alcoholic drinks in the past year, by repertoire of penetration of non-alcoholic drinks in the past year, July 2010
Moderate repertoires benefit other categories
More variety
The big drinkers
Figure 54: Who people buy fruit juice for most often, by repertoire of penetration of non-alcoholic drinks in the past year, July 2010
Figure 55: Factors influencing fruit juice/smoothie brand choice, by repertoire of penetration of non-alcoholic drinks in the past year, July 2010
Frequency of Consumption and Factors Influencing Choice
Key points
Figure 56: Fruit juice consumption, July 2010
Age-old commitment
Selfish pleasures vs family finance
Ever steady
Factors influencing choice of fruit juice and juice drinks
Figure 57: Factors influencing fruit juice/smoothie brand choice, July 2010
Having their fruit – and eating it
Back in the real world
Ethics a lower priority
Being clear on the matter
Appendix – Internal Market Environment
Figure 60: Types of fruit juice, smoothies or fruit drinks drunk most often – 7-14s, 2008 and 2009
Figure 61: Where drink fruit juice, smoothies or fruit drinks most – 7-14s, 2005-09
Appendix – Consumer Usage of Fruit Juice and Juice Drinks
Figure 64: Most popular penetration of non-alcoholic drinks in the past year, by demographics, July 2010
Figure 65: Next most popular penetration of non-alcoholic drinks in the past year, by demographics, July 2010
Figure 66: Other penetration of non-alcoholic drinks in the past year, by demographics, July 2010
Figure 67: Repertoire of penetration of non-alcoholic drinks in the past year, by demographics, July 2010
Appendix – Frequency of Consumption and Factors Influencing Choice
Figure 68: Fruit juice consumption, by demographics, July 2010
Figure 69: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 70: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 71: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 72: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 73: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 74: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 75: Fruit juice consumption, by who people buy fruit juice for most often, July 2010
Figure 76: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 77: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 78: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 79: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 80: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 81: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 82: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 83: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 84: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 85: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 86: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 87: Fruit juice consumption, by statements on fruit juices, July 2010
Figure 88: Most popular factors influencing fruit juice/smoothie brand choice, by demographics, July 2010
Figure 89: Next most popular factors influencing fruit juice/smoothie brand choice, by demographics, July 2010

Tweet

Related research categories

By sector: Juice (in Soft drinks), General drinks

By market: United Kingdom (in Europe)