Juice in Western Europe

Delivery

This report comes in PPT.

Key Findings

Difficult operating environment for juice category endures

A variety of factors poses a significant challenge to juices. It is difficult for the category to escape its unhealthy perception due to an association with high sugar content, with many now seeking to reduce their sugar intake to live healthier lifestyles. Also, the category faces competition from other drinks such as flavoured water, as well as a challenge from the rise of breakfast on the go (impacting a key consumption time for juice) and from juicing stations.

Some innovation in the category that speaks to consumer trends

There are several examples of new products in Western Europe that tie in with consumer demands and that can be seen as an attempt to mitigate the long-term declines in the category. Recent launches have included more exotic flavours that focus on non-breakfast consumption occasions. Innovation has also seen the incorporation of functional ingredients (often in shot format, such as added vitamins) as well as those that use premium ingredients or that have sustainable or organic credentials.

Private label brands have a large role, amidst several major brands

Private label brands occupy a notable share in most markets, especially in larger countries such as Germany and the UK. In general, while companies such as Coca-Cola, Eckes-Granini and Tropicana do have a presence, country markets are generally quite diverse with many players present. Private label brands have seen a challenge in recent times to keep prices low, given the rising costs of production and the issue this poses to operating margins.

The juice category faces an uncertain future

The future for the juice category is not positive, with reductions expected for the majority of markets and across categories. It will be tough to fight the unhealthy perception of juice. The development of products using exotic flavours, with functional ingredients or offers in shot format can be deployed to tackle declines. Indeed, a gap for juice appears in their inclusion in at-home drinking experiences, however, it will be difficult to overcome the challenges.