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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

GlobalData’s Q4-2018 Quarterly Beverage Forecast reported a remarkable 6 % volume increase in consumption for UK Squash and Syrups in 2018*, the first time the category has seen growth since 2011.

Roisin Vulcheva, UK & Ireland Research Manager for Consumer at GlobalData, says, “This was an impressive result, particularly as Squash and Syrups have experienced several years of consecutive decline. The strong performance was driven by an array of factors including good weather, growth in adult soft drinks and new product development. Throughout 2018, there was a raft of premium launches helping Squash and Syrups to stage a turnaround and inject value growth back into the category.”

Throughout the year, growth was positive across all quarters, however summer was the key period of trading for the category, with the UK recording one of the hottest summers on record which helped to boost consumption.

Britvic was also instrumental in driving growth throughout the year. It invested heavily in Squash and Syrups, expanding its offering to appeal to a more mature demographic, in what is typically a category largely geared towards children. Britvic launched several new products targeted towards the adult segment under its Robinsons brand in 2018.

Interestingly, still ready-to-drink drinks, which include brands such as Capri Sun and Robinsons Fruit Shoot that also cater to the children’s demographic, declined by 10 % in volume terms for the year*, largely impacted by concerns around sugar and artificial sweeteners.

Vulcheva concludes, “Clearly the introduction of new flavours, packaging and more premium propositions helped to drive growth in the category which was further boosted by a hot summer. Looking ahead to 2019, the Squash and Syrups category is one to watch as it ticks the box in relation to several current key trends in the UK soft drinks market. More innovation is expected from branded players throughout 2019, with private label brands expected to emulate the efforts of branded players.”

*UK Quarterly Beverage Forecast Q4-18