Comment

Juice on the slide in North America as consumers shift towards healthy and functional hydration - comment

Most popular

Interview - Zico Coconut Water founder

Interview - William Grant senior category director

Why there's something for everyone post-COVID

Interview - Rima Sawaya, Kahlua brand manager

Aged spirits in 2021 - just-drinks predicts

MORE

The North American juice market is expected to decline in value from US$14.8bn in 2019 to $12.5bn by 2023, according to GlobalData, with the downward trend expected to continue along pre-COVID lines.

The Coca-Cola Co withdrew the Odwalla juice brand earlier this year

The Coca-Cola Co withdrew the Odwalla juice brand earlier this year

At the same time, the value of healthier sectors in hydration, such as enhanced water, are predicted to grow rapidly, with an estimated compound annual growth rate (CAGR) of 9.4% between 2019 and 2023.

A recent report from GlobalData, 'Failure Case Study: Odwalla', examines The Coca-Cola Co's decision earlier this year to discontinue the Odwalla premium juice brand as part of the group's ongoing strategy to retire some of its underperforming brands. According to Coca-Cola, the withdrawal of Odwalla ultimately was driven by the prioritisation of regional brands with more scalable opportunities, such as Topo Chico.

The move reflects the current challenge for juice brands, which are competing against the rising popularity of functional drinks.

"The juice sector in North America has been consistently declining, shown by its -2.1% CAGR between 2014 and 2019," said GlobalData consumer analyst Ramsey Baghdadi. "Despite Odwalla's long-term existence in the non-alcoholic beverage market (over 40 years), the brand was competing in a saturated and declining sector.

"Only top brands such as Coca-Cola's Simply have managed to increase in value within the juice sector, due to well-executed packaging and engaging marketing; something Odwalla failed to take leadership in."

Changing consumer attitudes in North America have led to declining juice consumption across the continent. Before COVID-19, consumers were already showing concerns about their diet and health. Indeed, in 2019, 43% of North American consumers claimed they were actively trying to reduce their consumption of sugar, while 59% reported that they proactively seek products that improve their health.

These figures illustrate further Odwalla's challenge to effectively compete in a crowded market and measure up to consumer demands.

Throughout the coronavirus pandemic, brand familiarity has become a vital aspect for successful performance, no less so in the juice sector. In week seven of GlobalData's COVID-19 recovery tracker survey (2-6 September), 49% of consumers in the US 'somewhat or strongly agreed' that they will buy products only from their favourite brands. In this case, Odwalla would have found it a challenge to compete with brands that have an international presence, high familiarity, and brand trust, such as Powerade.

Baghdadi adds: "An important aspect to recognise from Odwalla was its late decision to introduce a healthier formulation and failure to ensure trust through an authentic packaging strategy.

"In the long-term, juice brands will more likely experience successful share-building on continents such as Asia and Africa, where the category is predicted to grow in value."

What will the post-COVID-19 consumer look like? - consumer trends


Expert Analysis

Juice (Soft drinks) Market in the United States of America - Outlook to 2023: Market Size, Growth and Forecast Analytics

Juice (Soft drinks) Market in the United States of America - Outlook to 2023: Market Size, Growth and Forecast Analytics

Juice (Soft drinks) Market in the United States of America - Outlook to 2023: Market Size, Growth and Forecast Analytics is a broad level market review of Juice Market in the United States of America.

VIEW REPORT

Related Content

Quintessential Brands RTD launch taps into post-COVID shift to convenience, hygiene - analysis - FREE TO READ

Quintessential Brands RTD launch taps into post-COVID shift to convenience, hygiene - analysis - FRE...

COVID-19 prompts consumers to look more locally for their drinks choices - research - FREE TO ACCESS

COVID-19 prompts consumers to look more locally for their drinks choices - research - FREE TO ACCESS...

Brewers should offload value assets as worst-case COVID scenario fails to materialise - comment

Brewers should offload value assets as worst-case COVID scenario fails to materialise - comment...

What were the most-mentioned drinks terms on Twitter in Q3 2019? - analysis

What were the most-mentioned drinks terms on Twitter in Q3 2019? - analysis...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?