Page 16 - Food & Drink Business August 2018

BY ASSOCIATION
Energising
Australia’s juice market
Consumers are warming to some new juice categories, writes Australian Beverages Council CEO Geoff Parker.
AUSTRALIA’S fruit and vegetable juice industry continues to undergo structural changes as private label competition and ongoing challenges from other beverages restrict industry growth. Innovative packaging, and premium, niche products
– particularly chilled juice – offer processors greater margins during a period of soft revenue performance.
Since 2008, chilled juice has been increasing in market value at the expense of ambient juice, growing in value by more than $140 million, while ambient juice has lost approximately $170 million over the same period. While the overall value of the juice market has been declining since 2011, forecasts indicate value losses will slow and value should peak this year due to consumers opting for more premium chilled products.
Beyond 2018, the expectation is that growth will remain constrained across the category with the greatest promise of better margins and sales in premium lines.
Some of the premium lines introduced by members of Fruit Juice Australia include combinations of fruit and vegetable juices, greater density juices which have been pressed or crushed, and unique juice blends, many
of which include coconut water. Some producers have also branched out into other categories, such as non- dairy yoghurt and sparkling juices or flavoured waters.
A recent market research report of Australian fruit juice suggested millennials and families with young children are key targets for premium juice products. The report found millennials perceive juice consumption as an indulgence, while families with young children generally value high quality ingredients as a key factor in the decision-making
emphasise the micro-nutritional benefits of juice, I was pleased to read that one of the most common reasons for people drinking juice is because
they want something healthy or nutritional.
As other studies have corroborated, it’s not just the nutritional benefits that sway consumers. Innovative packaging, particularly transparent packaging, plays a decisive role in consumers picking
up a particular juice. Plastic bottles, followed by cartons, are the most popular
16 | Food&Drink business | August 2018 | www.foodanddrinkbusiness.com.au
“ No added sugar continues to be the most important product characteristic when purchasing juice.”
process. Of little surprise, the research also indicated that high income respondents are one of the main markets for premium juice, highlighting the premium quality ingredients
as a factor influencing their purchasing habits.
Moreover, the research found that consumers prefer Australian-made juice due to its perceived safety, while juice with no added sugar continues to be the most important product characteristic when purchasing juice. Supporting our work to
packaging types with one and two litre bottles most frequently purchased.
As many in the trade know, reputation is everything. The research found brand trust is another major element impacting sales, particularly among males. Increasingly, private label brands feature strongly in the competitive juice industry, but premium juice brands continue to influence shopper decisions.
Underscoring the fierce competition in the category,