Juice and squash will reach $ 54.6 bn in 2021, driven by immunity-boosting claims, says GlobalData
Historically the juice and squash category’s growth were hampered by sugar taxes and a negative health image, however, this trend is set to reverse in the coming years. The industry has a forecast growth of 4 % …
Historically the juice and squash category’s growth were hampered by sugar taxes and a negative health image, however, this trend is set to reverse in the coming years. The industry has a forecast growth of 4 % from $ 52.4 bn in 2020 to $ 54.6bn in 2021*, bolstered by health concerns which are seeing consumers prioritise ‘immunity-boosting’ claims over ‘sugar free’, according to GlobalData, a leading data and analytics company.
GlobalData’s survey found that almost two thirds (61 %) of consumers globally spend a mid to high amount on juice**.
Elisabet Gonzalez, Innovation Team Leader at GlobalData, comments: “Due to the pandemic consumers are more worried about their health and this could be the reason behind the juice category’s success at maintaining its appeal during this tough period. Boosting the immune system has become a top priority for shoppers, hence, functional juice drinks and healthy beverages that offer nutrition-rich ingredients are likely to stand out on the shelves and keep strong positioning.”
GlobalData identifies that health & wellness is a popular trend and a key theme in the juice industry. Some examples of innovative product launches include a Morinaga Sunkist super grape juice in Japan, which is said to contain ‘juice-derived polyphenols. Polyphenols are believed to improve the treatment of weight management difficulties, digestion issues, cardiovascular diseases, and diabetes. In the US, Softresco launched a charcoal fruit drink shot, which offers a fruit drink with added vegetable charcoal. The infusion of activated charcoal may resonate with the 35 % of US consumers that think charcoal will have a positive impact on their health***.
Gonzalez continues: “While out-of-home juice consumption has taken a dip due to lockdown restrictions, at-home consumption and expenditure seems to be steady for the category as it is expected to post a compound annual growth rate (CAGR) of 2.6 % over 2021-2025 to reach $ 60.4bn*. Juice drinks might be seen by consumers as the perfect beverage to help them fight the virus, as it can provide the ideal dose of vitamins and nutrients needed to boost the immune system in an easy and convenient format for both children and adults.
“The COVID-19 pandemic could help some brands to strengthen their positioning and to reinvent themselves as a must-have product, rather than a beverage bought only for specific occasions. The health benefits of fruit juices and their many functional positioning possibilities, aligns well with today’s consumers’ needs, hence, there is a huge opportunity for the category to grow in the long-term and maintain its momentum in a post-pandemic era.”
*Data from GlobalData’s Global Market Data: Channel Insights Cube
**Data taken from GlobalData’s 2021 Q1 Consumer Survey.
***Data taken from GlobalData’s 2019 Q3 global consumer survey