Juices and smoothies shot into the mainstream as healthy alternatives to fast food
Melbourne, Australia (PRWEB) January 17, 2013
The Juice and Smoothie Bars industry has performed well over the past decade, driven by the emphatic embrace of the health and wellbeing movement in Australia. According to IBISWorld Industry analyst Naren Sivasailam, ‘industry operators enjoyed dramatic growth in demand for their products as increased awareness of unhealthy eating and its relation to obesity and heart disease encouraged healthier consumption choices’. The industry's dominant player, Boost Juice, entered the market in 2000 and has since made fruit and smoothie bars a staple of shopping malls, high streets and densely populated urban centres around the country. Juices and smoothies were shot into the mainstream, with many consumers looking to them as viable and healthy alternatives to fast foods or as meal replacements. This led to a proliferation of entrants, both in the franchise and single-location business models, thus saturating the market in line with a stabilisation of demand. In the five years leading up to 2012-13, industry revenue is estimated to increase by an annualised 4.5% to total $328 million. This includes a forecast increase in revenue of 4.5% in 2012-13.
The future of the Juice and Smoothie Bars industry is expected to be promising, with a firm interest in healthy living continuing to drive demand. The return of consumer sentiment to pre-global financial crisis levels over the next five years is also expected to bode well for discretionary purchases such as juices and smoothies, particularly as retailers look to high margin products to boost their bottom lines. These are expected to come in the form of functional ingredients that target specific ailments or have specific functions such as protein and immune boosts or multi-vitamin additions. ‘The role of franchising as the dominant model is also expected to continue into the future as Boost Juice's success underpins future entrants' strategies’, says Sivasailam. Established players will also look to international markets as the domestic market reaches saturation and per capita consumption begins to taper off.
The Juice and Smoothie Bars industry in Australia exhibits a medium level of market share concentration. The industry's only major player is Boost Juice Bars. The majority of industry participants are small independent juicers with few employees and a single owner. Larger size industry players include juice and smoothie franchise chains Kick Juice and Feeling Fruity. These chains remain relatively small in scale compared with Boost Juice Bars, and prefer to stay clustered in one specific geographic region, such as Feeling Fruity being predominantly Victoria based. This is due to the difficulties of expanding from a managerial perspective and a cost perspective, with competition increasing and profitability falling.
For more information, visit IBISWorld’s Juice and Smoothie Bars report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry sells smoothies and freshly made juices. A smoothie is a blended, sometimes sweetened, beverage primarily made from fresh fruit or vegetables combined with ice. They may contain chocolate, honey, syrup, milk, yoghurt or ice cream. This industry only includes establishments whose primary operations include the production of juice and smoothies.
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