Although companies will downsize stores to cut costs, they will also expand abroad.
New York, NY (PRWEB) May 20, 2014
The Juice and Smoothie Bars industry has grown steadily over the past five years as operators have adapted to rapidly changing consumer preferences. In recent years, the perceived high sugar content of some smoothies and juices has forced the industry to adapt its offering. For this reason, cold press juice, which is made by hydraulically chopping and crushing produce such as spinach, kale and ginger without using heat, thereby yielding highly nutritious juice, has risen to prominence. According to IBISWorld Industry Analyst Andy Brennan, “Industry revenue is expected to increase 2.3% per year to $2.2 billion on average over the five years to 2014.” The industry is anticipated to grow 3.8% in 2014, helped by the popularity of cold pressed juice.
The Juice and Smoothie Bars industry has been invigorated over the past five years by the cold press juice craze. Just five years ago, cold pressed juice was a niche trend, popular only with health fanatics. However, cold pressed juice has hit the mainstream and given rise to hundreds of new juice bars, typically selling juice at higher price points. However, the long shelf life of cold pressed juice has exposed the industry to greater competition, as it allows competing retailers without juicing machines, such as coffee shops, supermarkets and gyms, to sell fresh, healthy juice. This was emphasized in 2011 when Starbucks purchased Evolution Fresh, a cold pressed juice producer, to expand its in-store juice offerings. In early 2014, Jamba Juice, the industry's largest player, announced it will roll out customizable whole-food blending to 300 of its 800 locations by the end of the year.
The industry will continue to evolve over the next five years, in line with consumer preferences. Due to increasing competition and less certainty about future consumer tastes, the industry is expected to become more nimble, with juice bars subletting space from existing retailers. Already, Jamba Juice is focusing on smaller locations with more flexible store fit outs, meaning it is subject to lower overheads. “The cold pressed juice craze is expected to continue for at least the short term, as consumers continue to demand menus low in sugar and high in nutrients,” says Brennan. The average industry profit margin is expected to expand slightly, though it will remain low due to fierce competition and rising input prices. Overall, industry revenue is projected to increase over the next five years.
For more information, visit IBISWorld’s Juice and Smoothie Bars in the US industry report page.
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IBISWorld industry Report Key Topics
The Juice and Smoothie Bars industry consists of establishments that primarily sell smoothies and fresh-made juices. A smoothie is a blended, sometimes sweetened beverage primarily made from fresh fruit or vegetables combined with ice, frozen fruit or other frozen ingredients. Some juice and smoothie bars offer add-ins, like soy milk, whey powder, green tea and herbal or nutritional supplements. Revenue from other beverage and food sales is also included.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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