Nectar Drinks account to a share of 10% of the market
The practice of consuming real fruit juices exist in India since long. The country is known for its fresh fruit cultivations and the different sorts of fruits that are popular all around the globe. However, most of these fresh fruits get exported in large volumes bringing in enhanced foreign income. Therefore, the artificial drinks which are also known as carbonated drinks took over the beverage market for some duration. These beverages are majorly based on the cola favor and some even have their synthetic fruit variants, to attract the consumers. Recent years have seen an introduction of packed fruit juices which are originally manufactured by extracting juices from naturally cropped fruits and packaged using the most hygienic methods.
At present, the Indian packed juice industry is valued at about $220 million (1100 crore) and it is projected to grow at an impressive CAGR of 15-20% for the period of following three years. The industry has grown at a rate of 30% CAGR for the period of last 10 years, thus being the fastest growing division in the beverage sector. The fruit juice industry of India is segmented into three categories, the first being fruit drinks, second- fruit juices and the last is the nectar drinks segment. Of all these, nectar drinks which are 25-90% fruit composite, is still to increase its consumption as it has managed only 10% of the total market. This is too less when compared to its performance in the western nations, where it generally rules the sector in most regions.
Fruit drinks are beverages which contain a maximum of 30% fruits and rest preservatives. This segment leads the industry as it is the largest selling in the region. They hold a major 60% market share and are thus way ahead when compared to their competitors. Frooti, Mazaa and Jumpin are three leading brands which rule this particular segment. Mirinda and Fanta are other brands in the same category having a notable presence. Fruit juices which are actual fruit based containing 100% concentrated juice are a fast growing segment which has a constantly widening market in the country. With a total share of 30% and growing further; this category is expected to rule the Indian beverage drinks industry in a span of few years. However, the industry is facing a stiff contest from the Chinese fruits and vegetables juice drink sector as it wins over on the manufacturing capacity.
Off late, it is witnessed that there is a continuous shift by the regular beverage drinkers towards the fruit juice segment which is 100% natural. Though this segment is on an expensive side it is preferred for being completely organic with no side effects at all. Growing awareness about good health, rising disposable income and better availability of these drinks due to upgraded marketing techniques are spotted as the encouraging factors for the developing segment.
Leading Companies in the niche:
According to market research report; Dabur is the country’s leading packed fruit juice manufacturer, having a strong hold about 55% of the total competition. It has brilliantly performing brands in the names of Real Activ and Real Fruit Juices. Pepsi Co is second in command with its famous brand Tropicana which has a 30% share in the market. The nectar juice category has a new player in the brand name of Harvest juices which is making a successful inroad with its premium offering of different flavored nectars.
Other products in the sector come from makers like Parle Agro, Godrej and Fresh Gold along with a sizable list of unorganized players who have a single digit share in the market. Another giant producer of the country ITC-Indian Tobacco Company; the cigarette to foods multinational is all set to launch its self into the sector by acquiring a brand “B-Natural” from Balan Natural Foods Private Limited. This surely is worth a close watch according to the market experts as it is ought to set the competition upright.
Smaller towns of India are viewed as big opportunities by the multi-national brands as they are still untapped and carry huge growth potential. However, this thought is seeing the daylight already as consumers from the villages are going for these branded juices on quite a regular basis nowadays.
Hygienic production methods, increasing health awareness, improving lifestyle patterns, effective marketing techniques and availability of different flavored juices stand out as igniting factors for the sector’s well-being in India.