Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
-
- Market at a glance—staying weak
- Competitive context
- Fruit juice hurt from increasing prices; fruit drinks suffer from negative perception of “added” artificial ingredients
- Retail distribution—opportunity for supermarkets in single serve
- Supplier alliance and acquisition would grow sales through expansion in distribution
- Targeting the consumer
Insights and Opportunities
-
- What does health-focused positioning mean for consumers and market growth?
- “Carbs” make you fat; educate consumers to differentiate between good and bad carbs
- All natural and organic positioning—provide a “health seal” through exclusion of artificial and toxic ingredients
- Linking research on health-prompting benefits to product marketing; create blends with “wonder fruits”
- Create value-added perception/innovation to compete effectively with “other” non-alcoholic beverages
- Making consumers “happier”
- Innovative flavors/varieties equate to increasing consumer happiness
- Packaging; innovate to create functional benefits
- Build trust beyond general health benefits
- Price is important; Create brand loyalty as lower-price imitations are inevitable
Fast Forward Trends
-
- Trend: Science, Salvation and Enchantment
- Healthy?
- What kind of healthy?
- Faith in Exploration
- Trend: Learning through play
- Study of Happiness
- Choice and Play
- Breaking away from health
Market Size and Forecast
-
- Key points
- Future market growth is contingent upon overcoming competition from other RTD non-alcoholic beverages
- Fruit juice hurt by increasing prices; fruit drinks suffer from negative perception of “added” artificial ingredients
- Targeted product introduction and communication with key consumers is essential for growth
-
- Figure 1: Total U.S. sales and forecast of fruit juice and juice drinks at current prices, 2002-12
- Figure 2: Total U.S. sales and forecast of fruit juice and juice drinks at inflation-adjusted prices, 2002-12
Competitive Context
-
- Key points
- Bottled water, energy drinks, and sports drinks threaten fruit juice and juice drinks market share
-
- Figure 3: Sales of major RTD non-alcoholic beverages, 2003, 2005, and 2007
- Fruit juice/juice drinks provide essential vitamins/minerals—but so do other beverages
- Juice and juice drinks marketers have responded through innovation
- Antioxidant platform
- Fresh fruits better than fruit juice maxim contributes to declining sales
- Pricing pressure from within to continue; continued upward trend in pricing to impair future growth
- Acquisition and distribution alliance activity heats up—driving growth through expanded distribution for small but successful brands
Segment Performance
-
- Key points
- Fruit juice and juice drinks growth relies upon health-focused, value-added innovation
-
- Figure 4: U.S. sales and forecast of fruit juice and juice drinks at current prices, by segment, 2002-12
- Figure 5: Total sales of fruit juice and juice drinks, segmented by type, 2005 and 2007
Segment Performance – Fruit Juice
-
- Key points
- Rising prices and heightening beverage competition may mitigate growth
- Positive outlook for innovative juice blends, portability innovation, and health-oriented aseptic juice
-
- Figure 6: FDM sales of fruit juice by form, 2005 and 2007
- Consumer focus on healthful eating drives growth in organic, functional, and all natural juice niches
- Price-sensitivity creates functional opportunity; drives non-orange juice sales
-
- Figure 7: FDM sales of fruit juice by flavor, 2005 and 2007
- Super-premium juice niche threatened by mass entrants; growth contingent upon flavor innovation and new functional attributes
-
- Figure 8: U.S. sales and forecast of fruit juice, 2002-12
Segment Performance—Fruit Drinks
-
- Key points
- Presence of artificial ingredients and added sugar do not align with current consumer trend; future growth depends on pro-health/functional positioning
-
- Figure 9: FDM sales of juice drinks by form, 2005 and 2007
-
- Figure 10: FDM sales of juice drinks by flavor, 2005 and 2007
- Effective communication needed for target audience
-
- Figure 11: U.S. sales and forecast of fruit drinks, 2002-12
Retail Channels
-
- Key points
- Non-convenience channels can stimulate growth through increasing single-serve selection
-
- Figure 12: Choice of retail channels to purchase fruit juice and drinks by immediate or at-home consumption, November 2007
- “Mass and other” declines as convenience stores de-emphasize fruit juice in favor of energy drinks
-
- Figure 13: U.S. sales of fruit juice and juice drinks, by retail channel, 2005 and 2007
Retail Channels—Supermarkets
-
- Key points
- Private label price strategy and innovation has mixed implications for market growth
- Super-premium juices have growth potential at supermarkets
-
- Figure 14: U.S. sales of fruit juice and juice drinks at supermarkets, 2002-07
Retail Channels—Mass Merchandisers and Others
-
- Key points
- Proliferation in “superstore” format would help the market growth in mass channels
- Convenience store sales would benefit from expansion in distribution of small but popular brands
-
- Figure 15: U.S. sales of fruit juice and juice drinks at mass merchandisers and other* channels, 2002-07
- Figure 16: U.S. sales of fruit juice and juice drinks at convenience stores, 2004-07
Retail Channels—Natural Stores
-
- Key points
- Consumer focus on consuming organic and all natural food/beverages would ensure growth
-
- Figure 17: U.S. sales of edible fruit juice at naturalsupermarkets, 2004-07
Market Drivers
-
- Fruit juice and juice drinks fall out of health-savvy consumers’ favor
-
- Figure 18: Attitudes regarding healthy eating, 2003-07
- Increasing incidence of obesity; consumers turn to non-caloric beverages
-
- Figure 19: Percentage of population who are overweight or obese, 20-74 years of age, 1988-2004
- Natural and organic claims draw consumers’ attention
- Children and teens impact sales of fruit juice
- Rising incidence of obesity among children threatens fruit juice/juice drinks
-
- Figure 20: Prevalence of obesity among children aged 6-19, 1988-2004
- Households with children impact consumption of fruit juice
-
- Figure 21: Incidence of purchasing fruit juice and juice drinks, by presence of children, November 2007
-
- Figure 22: Household frequency of drinking fruit juice and juice drinks, by presence of children, May 2006-June 2007
-
- Figure 23: Nestlé’s juicy juice—TV ad, 2006
-
- Figure 24: Households with children under age 18 present, 2001-07
-
- Figure 25: U.S. children and teen population and projections, 2003-13
- Population diversity to benefit market growth
-
- Figure 26: Incidence of purchasing fruit juice and juice drinks, by race/ethnicity, November 2007
-
- Figure 27: Household frequency of drinking fruit juice and juice drinks, by presence of children, May 2006-June 2007
-
- Figure 28: Population by race and Hispanic origin, 2003-13
Companies and Brands
-
- Key points
- PepsiCo innovates in response to declining Tropicana sales; expands Naked and Izze distribution
- Coca-Cola gains; Simply Orange brand continues to attract consumers
- Health-focused messages may continue to drive Ocean Spray while Nestlé benefits from rebranding
- Private labels create price competition for the national brands
-
- Figure 29: FDM* sales of leading fruit juice and juice drinks companies, 2006 and 2007
Brand Share—Fruit Juice
-
- Key points
- Orange juice brands could benefit from health-focused innovation amid consumer attrition due to price increase
- Create and communicate brand attributes that build trust and create value-added perception among consumers
- Super-premium brands to experience price competition
-
- Figure 30: FDM* brand sales of fruit juice in the U.S., 2006 and 2007
Brand Share—Fruit Drinks
-
- Key points
- Brands catering to adults’ value-added outlook and kids’ flavor needs would thrive
- Opportunity to attract price-sensitive orange juice consumers
- Brands catering to Hispanic and black consumers would experience growth
-
- Figure 31: FDM brand sales of juice drinks in the U.S., 2006 and 2007
Brand Qualities
-
- Tropicana aligns with health-forward market trend to overcome decline in core orange juice brand
- Minute Maid; innovation key to the growth
Innovation and Innovators
-
- New product trends
-
- Figure 32: Trends in the new product introduction in the market, 2002-07
- Innovation and innovators
- Tropicana and Minute Maid keep consumers interested in orange juice through functional offerings
- Minute Maid introduces Minute Maid Breakfast Blends— the low-price solution for breakfast juice drinkers
- Trend towards fruit and vegetable juice fusion
Advertising and Promotion
-
- Overview
-
- Figure 33: Leading beverage manufacturer’s measured media and unmeasured spending on advertising, 2005-06
- Getting specific with health promoting juice/juice drinks attributes in marketing communication
- “Antioxidant ” continues to be the marketing buzz word in fruit juice
- All natural
- Major advertising spots
- Coca-Cola
- Minute Maid
-
- Figure 34: Coca-Cola’s Minute Maid Enhanced Orange Juice, TV ad, 2007
- Simply Orange
-
- Figure 35: Coca-Cola’s Simply Orange orange juice TV ad, 2007
- Kraft
-
- Figure 36: Kraft’s Capri Sun Fruit Waves TV ad, 2007
- Nestlé
- Nestlé Juicy Juice
-
- Figure 37: Nestlé’s Juicy Juice Harvest Surprise—TV ad, 2007
- Ocean Spray
-
- Figure 38: Ocean Spray cranberry juice—two TV ad, 2007
- Sunny D
-
- Figure 39: television ad Sunny D, 2007
- Welch’s
-
- Figure 40: Welch’s television ad, 2007
Usage
-
- Trends in household fruit juice/juice drinks consumption
-
- Figure 41: Household juice/juice drinks consumption, 2003-07
- Who purchases fruit juice and juice drinks?
-
- Figure 42: Incidence of purchasing fruit juice and juice drinks, by key demographics, May 2006-June 2007
- Who drinks fruit juice and juice drinks in household
-
- Figure 43: who drinks fruit juice and drinks in a household, November 2007
- When do adults drink fruit juice and juice drinks?
-
- Figure 44: Occasions adults drink fruit juice and juice drinks, November 2007
- Frequency of use
- Trends in frequency of consumption
-
- Figure 45: Household frequency of drinking different types of juices, 2003-07
-
- Figure 46: Household frequency of drinking different types of juices, by key demographics, May 2006-June 2007
- Brands of orange juice used
-
- Figure 47: Brands of orange juice used, by age, May 2006-June 2007
Attitudes and Motivations
-
- Attitudes towards fruit juice/juice drinks
-
- Figure 48: Attitude towards fruit juice and juice drinks, by age, November 2007
- Incidence of drinking more or less fruit juice/drinks compared to a year ago
-
- Figure 49: Incidence of drinking more or less fruit juice and juice drinks compared to a year ago, by age, November 2007
- Reasons for drinking less fruit juice/juice drinks today, compared to last year
-
- Figure 50: reasons for drinking less fruit juice and drinks today than last year, November 2007
- Reasons for drinking more fruit juice/juice drinks today, compared to last year
-
- Figure 51: reasons for drinking more fruit juice and drinks today than last year, by gender, October 2007
- Reasons consumers do not drink juice/juice drinks
-
- Figure 52: Reasons for not drinking juice/juice drinks, November 2007
- Desirable attributes in fruit juice and juice drinks
-
- Figure 53: Desirable attributes in fruit juice (100%), pre-prepared juice drinks, and powdered drinks, November 2007
Appendix: Studies on Fruit Juice
-
- Studies linking negative influence of drinking fruit juice for children
- Studies linking fruit juice with positive health benefits
Appendix: Other Useful Consumer Tables
-
- Household usage of fruit juice and drinks
-
- Figure 54: Incidence of household consumption of fruit juice and drinks, by key demographics, May 2006-June 2007
- Who drinks fruit juice and drinks in a household
-
- Figure 55: Who drinks 100% fruit juice in a household, November 2007
-
- Figure 56: Who drinks 100% fruit juice in a household, November 2007
-
- Figure 57: Who drinks 100% fruit juice in a household, by presence of children in household, November 2007
-
- Figure 58: Who drinks pre-prepared juice drinks in a household, by age, November 2007
-
- Figure 59: Who drinks pre-prepared juice drinks in a household, November 2007
-
- Figure 60: who drinks pre-prepared juice drinks in a household, by presence of children in household, November 2007
-
- Figure 61: Who drinks powdered juice drinks in a household, November 2007
-
- Figure 62: Who drinks powdered juice drinks in a household, November 2007
-
- Figure 63: Who drinks powdered juice drinks in a household, by presence of children in household, November 2007
- When do adults drink fruit juice and juice drinks?
-
- Figure 64: Occasions adults drink 100% fruit juice, by age, November 2007
-
- Figure 65: Occasions adults drink 100% fruit juice, by race/ethnicity, November 2007
-
- Figure 66: Occasions adults drink 100% fruit juice, by race/ethnicity, November 2007
-
- Figure 67: Occasions adults drink powdered juice drinks, by age, November 2007
-
- Figure 68: Occasions adults drink powdered juice drinks, by race/ethnicity, November 2007
-
- Figure 69: Occasions adults drink powdered juice drinks, by race/ethnicity, November 2007
-
- Figure 70: Occasions adults drink pre-prepared juice drinks, by age, November 2007
-
- Figure 71: Occasions adults drink pre-prepared juice drinks, by race/ethnicity, November 2007
-
- Figure 72: Occasions adults drink pre-prepared juice drinks, by race/ethnicity, November 2007
- Attitudes towards fruit juice/juice drinks
-
- Figure 73: Attitude towards fruit juice and juice drinks, by race/ethnicity, November 2007
-
- Figure 74: Attitude towards fruit juice and juice drinks, by race/ethnicity, November 2007
- Incidence of drinking more or less fruit juice/drinks compared to a year ago
-
- Figure 75: Incidence of drinking more or less fruit juice and juice drinks compared to a year ago, by age, November 2007
- Desirable attributes in fruit juice and juice drinks
-
- Figure 76: Desirable attributes in 100% fruit juice, by age, November 2007
-
- Figure 77: Desirable attributes in 100% fruit juice, by presence of children in household, November 2007
-
- Figure 78: Desirable attributes in pre-prepared juice drinks, by age, November 2007
-
- Figure 79: Desirable attributes in pre-prepared juice drinks, by race/ethnicity, November 2007
-
- Figure 80: Desirable attributes in powdered juice drinks, by age, November 2007
-
- Figure 81: Desirable attributes in powdered juice drinks, by race/ethnicity, November 2007
-
- Figure 82: Desirable attributes in powdered juice drinks, by presence of children in the hosuehold, November 2007
- Choice of retail channels by immediate and at-home consumption purchase
-
- Figure 83: Choice of retail channels to purchase fruit juice and drinks by immediate or at-home consumption, by age, November 2007
-
- Figure 84: Choice of retail channels to purchase fruit juice and drinks by immediate or at-home consumption, by age, November 2007
-
- Figure 85: Choice of retail channels to purchase fruit juice and drinks by immediate or at-home consumption, by age, November 2007
Appendix: Trade Associations
Back to top