Demand for convenience and healthier options will drive industry growth
London, United Kingdom (PRWEB) October 14, 2012
Before the financial crisis, operators in the Fruit Juice Production industry were growing well. Demand for fruit juices was underpinned by rising disposable incomes, increasing health consciousness and consumers' desire for convenience and premium products. Demand for smoothies in particular soared on the back of these trends. According to IBISWorld industry analyst Steven Connell, “since 2008, however, fruit juice has been among the worst performing beverage classes, with recessionary conditions leading consumers to trade down or across to carbonated soft drinks and more economical still beverages”. Sales will remain under pressure in 2012-13 as the bleak economic outlook leads consumers to continue to trade down to cheaper fruit drinks and still beverages. The industry is forecast to record revenue growth of 1.5% over 2012-13. IBISWorld estimates that industry revenue will contract by 2.9% per annum over the five years through 2012-13, to total £506.5 million.
Conditions in the industry are expected to improve over the five years through 2017-18, buoyed by a recovering economy, ongoing marketing initiatives, product innovation and demand for healthy, convenient beverages. Connell adds, “revenue growth will remain positive throughout the five-year period, with rising health awareness and consumers' demand for natural and premium products increasing sales of higher value fruit juices and smoothies”. Growth will, however, remain short of that achieved prior to the financial crisis.
The Fruit Juice Production industry has a high level of market share concentration, with the largest three players - PepsiCo, Gerber Juice and Innocent - accounting for nearly 75% of revenue.
For more information on the Fruit Juice Production industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Companies in this industry produce fruit and vegetable juice and smoothies.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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