Our fruit and vegetable juice market research

answer questions such as:

What is the market size of fruit and vegetable juice?
What are the major brands in fruit and vegetable
juice?
What are the flavour trends in fruit juice and
vegetable juice?
What is the market share of smoothies in the 100%
juice sector? Have there been any new product
launches in the last year?
What is the key on-trade distribution for fruit juice
and vegetable juice?

 The beverage industry in India constitutes of around USD 230 million

Indias beverage market is largely unorganized, with nearly 75% of
the demand serviced by companies in the unorganized sector.
According to report by Business Monitor International, the Indian
market of non-alcoholic beverage market comprising carbonated
drinks, juices, bottled water, ready-to-drink tea and coffee, and
sports drinks is expected to touch $5.18 billion by 2015.
The Indiannon-alcoholic beveragesmarket was estimated at around
Rs 5,000 crore, which is growing at 15% year on year.
The market for functional drinks is estimated at close to Rs700 crore.
The organised water category is estimated at close to Rs3,000 crore
According to market researcher Nielsen, Indias branded packaged
juice market is estimated at Rs 1,000 crore and growing annually at
15-20 per cent.

Indian Food Market

$ 380 Billion [Yr. 2012]

Food Processing Industry

$121 Billion [2012] to $194 Billion [ 2015]
Growth 10%; Exports : 12%

Segments in Food Processing

Industry
Dairy
Fruits &
Vegetables
Food
Processing
Industry

Grains &
Cereals
Fisheries
Meat & Poultry
Consumer
Foods

Dairy : Whole milk powder, skimmed milk

powder, condensed milk, ice cream, butter
and ghee, cheese
Fruits & Vegetables : Beverages, juices,
concentrates, pulps, slices, frozen and
dehydrated products, potato wafers, chips,
etc.
Grains & Cereals : Flour, bakeries, starch
glucose, corn flakes, malted foods, vermicelli,
beer and malt extracts, grain based alcohol
Fisheries : Frozen and canned products
mainly in fresh form
Meat & Poultry : Frozen and packed mainly
in fresh form, egg powder
Consumer Foods : Snack foods, namkeens,
biscuits, ready to eat food, alcoholic and non
alcoholic beverages
This includes packaged foods, aerated soft drinks,
packaged drinking water and alcoholic beverages
Packaged foods segments comprises bakery
products, ready-to-eat snacks, chips, namkins and
other processed foods / snack foods.

Packaged Food Industry

$15 Billion [2012] to $30 Billion [2015]
Urban : 78 %

Indian Beverages
Alcoholic
Non-alcoholic
Tea, Coffee etc.
Carbonated soft drinks
Bottled fruit based beverages
Other Beverages
Very Little in Organised Sector

Non Alcoholic Beverages Market

Rs. 19000 Cr.

The rising number of healthconscious consumers is giving

a boost to fruit juices; it has
been observed that consumers
are shifting from fruit-based
drinks to fruit juices as they
consider the latter a healthier
breakfast/snack option.

Packaged Juices Market

Market Shares

16%

30%

54%

Dabur
Pepsi
Others

Packaging
As per studies, the most preferred pack size is the individual
(small) pack which is convenient, and easy to carry and consume.
These are in great demand as out-of-home consumption is on the rise.
Consequently, there is a growing consumer base, and also intense
competition.
Tetrapaks are most popular among manufacturers as well as consumers.
Some companies are also offering their products in tins (e.g. Del Monte)
and PET bottles (e.g. Mazza); however, they are more expensive than
Tetrapaks, which adds to production costs, and, as a result, affects the
market price.

Fruit juices have created a space for themselves in regular

household menus, as a part of a familys breakfast, social
gatherings, and evening snacks. As a result, consumers are
picking up multiple family packs at one go, which is an emerging
consumption trend.

Growth Drivers
Indian Packaged Juices

Changing consumer lifestyles : Given the change in eating

habits, the wider global exposure, and the growing time-poverty,
has provided a fillip to the convenience food segment. Again,
consumer preferences are shifting towards healthier lifestyles. As
a result, the packaged juices market has charted a high growth
trajectory thanks to its easy availability, anytime-anywhere
consumption, and convenience. Juices are often seen to be quick,
yet nutritional, fillers.
Increased Health Awareness : The rising awareness about
heart- and weight-related health issues, especially among
teenagers and young adults, has propelled the consumption of
packaged fruit drinks. There is also a greater preference for these
healthier beverages than carbonated soft drinks.
Hygiene matters : Juices are healthy only when prepared
hygienically. Packaged juices from trusted national and
international brands have usually been prepared and certified to
be in accordance with health and safety regulations. They thus
underpin the confidence of consumers in considering them to be a

These consumers are health conscious, highly aware, and have

higher disposable income. They have, therefore, led the demand
for 100% fruit juices in the past couple of years.
Rising Disposable Incomes : In the past few years, there has
been a sharp change in the number of nuclear families, in tandem
with a surge in the number of working couples, which has led to
higher disposable incomes. This has aided the affordability of
packaged fruit juices, which are fast replacing fresh, homemade
juices and becoming a compulsory item on breakfast tables.
Booming modern retail : The dynamics of growth in the fruitbased beverage space are attributed to modern retail and alluring
shelf displays which drive impulse purchases.
Habitual purchase : The trend of consumers evolving from fruit
drinks in bottles to sweetened juices to 100% packaged juices has
been observed largely in the past couple of years. Consumers are
buying in greater quantities, for household consumption, and
buying fruit juices is becoming more of a habitual purchase than a
need-based purchase.
Introduction to new flavors : To kindle consumers interest in

Key Challenges
Among all challenges, it is difficult to control the cost of production at
the price points of juices, primarily because of rising food inflation. The
continuous, year-long supply of raw materials, and the non-stop
production of juices for the full season, is another production-linked
issue which needs to be managed carefully. Also of vital importance is
controlling transportation and logistics costs.
Packaged Juices are gradually cementing their place in the urban
household in the metros and Tier I cities; however, replicating the same
success in Tier II and Tier III cities is still a struggle as residents in these
regions still prefer fresh juices over packaged ones as they are
comparatively cheaper and also in sync with the traditional belief that
juices are best consumed freshly pressed. Challenging and changing
consumers perspective on value for money, to grab a regular spot in
the common household basket necessitates an aggressive stance
towards improving consumers awareness on the positive attributes of
packaged juices and their merits over locally available options.

Opportunities

Shift towards 100% juices from sweetened juices: This offers a

wide opportunity to existing and upcoming juices manufacturing
companies to spruce up their existing business and plan as
needed for business or capacity expansion.
Healthy proposition: it has been observed that consumers are
making healthy choices in their beverage consumption; therefore,
fiber-enriched juices and no sugar juices are more in demand.
Some new juice variants claim to have no added sugar; this can
be positioned as a health attribute, e.g. Dry Fruit Apple Juice by
Balan Natural Foods Unique offering: Consumers are seeking
unique fruit flavors apart from the usual mango, orange, or limebased fruit juices. Companies intoned to identify some of the
unique fruit juices that can be offered
- Dry Fruit Apple Juice for instance, which is much sought after
due to the nutritive benefits provided by the combination of
dates, figs, raisins, almonds, and apple concentrate.
Wider Options: Companies need to offer wider varieties and
options for the consumer to choose from, ranging from mixed
fruit juices to pure, single fruit juices to dry fruit juices. Thanks to

Product extension: There has been some recent product extension,

e.g. Tropicana launched Tropicana Fruit Powder with no
preservatives or artificial flavors, which will be available in singleserve sachets and can be made into a full glass of juice simply by
adding water.
It is appropriate to say that the packaged juices market in India is still
evolving. As there are many national and international brands on the
verge of succeeding and expanding further into the field, new
entrants can also cash in on this opportunity by
positioning/promoting packaged and bottled fruit juices as part of the
consumers daily diet. Simultaneously, it is critical to ensure
affordability for consumers, while maintaining the hygienic aspects
and quality of products throughout the year.

 The size of the non-alcoholic beverages market in India is likely to reach the Rs
11,000 crore-mark by 2015, industry body Assocham said on Wednesday.
Growing at a CAGR of about 20%, the non-alcoholic beverages sector is currently
worth about Rs 6,000 crore, according to a study on Opportunities in the Indian
Non-Alcoholic Beverages Market by the Associated Chambers of Commerce and
Industry of India (Assocham).
Domestic consumption of non-alcoholic beverage currently stands at about
17,500 crore litres and is likely to cross the 35,000 crore litres mark by 2015,
said Assocham secretary general D S Rawat while releasing the findings of the
study.
The non-alcoholic beverages industry includes carbonated beverages, sparkling
beverages, still beverages like distilled water, fruit juices, fruit-based drinks,
energy and sports drinks, sodas, hot beverages like tea and coffee and other
drinks that have no alcohol content.
Carbonated or aerated drinks account for about 30% of the total non-alcoholic
beverages market in the country. The size of the segment is currently estimated
at about Rs 1,800 crore, while the value of the fruit drink segment is estimated at
about Rs 1,200 crore and the energy drinks market is worth about Rs 600 crore.

 Coming to the non alcoholic beverages section, we can say, traditionally,

the Indian life style has a predilection for fresh fruits and vegetables or
those processed at home. There is a sea change. People, are now
increasingly going in for fresh fruit vending from kiosk fountains which
produce instant juices from fresh fruits in the presence of the consumer.
Fast expanding middle class population that is currently around 340 Million,
increased urbanization and rising disposable income are some of the major
reasons contributing to this change. Besides this, growing health
consciousness among Indias young population has brought about a
revolution in the Indian non-alcoholic drinks market. Among the fruit juices
beverages are Pepsis Tropicana, nectars (Daburs Real) and fruit drinks
(Frooti and Slice).All these are real, reconstituted from fruit pulps or
concentrates. The leading fruit juice brands include Real, Onjus, Tropicana,
Frooti, and Jumpin. The branded fruit juices segment is growing at around
11 per cent annually. Similarly the bottled water market is growing at a
rapid rate of around 20 per cent a year. Multinationals, Coca-cola, Pepsi,
Nestle, Parle Export, Parle Agro and others are trying to grab a significant
share of the market. The leading bottled water brands include Bisleri,
Kinley, Aquafina, Himalaya, Hello, Perrier, Golden Eagle ,Penguin mineral
water etc .to name a few.

Indian Beverages :
Alcoholic
Non-alcoholic

Tea, Coffee etc.

Carbonated soft drinks
Bottled fruit based beverages
Other Beverages
Very Little in Organised Sector

These days people are turning more health conscious. Because of this the
non-carbonated beverage segment has become one of the fastest growing
and most exciting businesses at the moment.
Manufacturers are offering the consumers better tasting, more healthful
alternatives.
Newer products that have efficacious amounts of nutritional ingredients are
being developed by the manufacturers. While all segments of the beverage
market are evolving, the growth seems to be directed more towards
healthy, light and low-calorie drinks.
Another key trend in beverage industry is the increasing preference for
healthy products. Consumers have become increasingly aware of health
and fitness-related issues. Additionally, due to greater disposable incomes,
particularly in urban areas, consumers are seeking healthier beverages
even if they are relatively more expensive. This trend is so far restricted to
urban consumers whilst for the rural consumer; manufacturers continue to
focus on offering economy pack sizes.
A number of young Indians indulge in outdoor sports and exercise
regularly, which has increased the demand for Satiety-inducing beverages
such as dairy-based drinks. Since the year 2007, the country has seen
numerous product launches in the field of nutraceuticals/ functional foods

 At present, the Indian packaged juices

market is valued at Rs 1100 crore (US$
177.78 million) and is projected to grow at a
compound annual growth rate (CAGR) of 15
per cent over the next three years.
Dabur India Ltd is the established leader,
accounting for 54 per cent market share
through its Real fruit juice brand, followed by
PepsiCo India with a 2530 per cent market
share through its Tropicana juice brand.

 Expecting fast growth in value-added dairy

products such as milk, foreign entities have
started looking at India as a dairy product
market. Packaged milk segment in India is
projected to grow from US$ 7.76 billion to
US$ 32.9 billion by 2030, registering an
annual growth of 8 per cent. The hot
beverages market in India is also surprisingly
concentrated with the top 10 companies
accounting for 65 per cent of the market.

Why people drink beverages ?

Quench the thirst
Health benefits of water
Medicinal benefits of beverages

Health Benefits of Drinking Water

Lose Weight
Regulates Body Temperature

Natural Remedy for Headache
Look Younger with Healthier Skin
Better Productivity at Work
Better Exercise & Relieves Fatigue
Helps in Digestion & Constipation
Less Cramps & Sprains
Good Mood
Reduces Risk of Cancer, CVD, Respiratory Infection, Arthritis
Helps Distribute Nutrients to Tissues
Detoxifies & Reduces Risk of Kidney Stones