Juice in Australia

2021 DEVELOPMENTS

Fresh hits to juice as purchases of larger pack sizes decrease the unit price and fewer lunch box drinks are required

Juice in Australia was already experiencing a gradual and prolonged decline prior to the COVID-19 pandemic, at least in volume terms, but this decline was exacerbated in 2021. In contrast to most other categories in soft drinks, this decline was not due to consumers attempting to avoid convenience channels.

Bega’s low prioritisation of its newly acquired juice brands offers opportunities for smaller, more innovative companies

Many of Australia’s most popular brands – Daily Juice, Mildura, Just Juice, The Juice Brothers and Berri – were, prior to 2021, owned by Lion Pty Ltd and therefore ultimately by Kirin Holdings Co Ltd. These brands were acquired by Australian company Bega Cheese Ltd in 2021, under the division Bega Dairy and Drinks.

Nudie plays a central role in driving value growth in juice

Although it is not yet the leading brand of juice in Australia – with both Golden Circle and Daily Juice still selling more – the success of Nudie is illustrative of the direction of the juice market in Australia. With the leading off-trade value share in not from concentrate 100% juice and third-placed in juice overall, Nudie plays a central role in driving value growth in the juice category.

PROSPECTS AND OPPORTUNITIES

Change to Health Star Rating set to have a negative impact on volume sales of juice

The juice market faced controversy in 2020 and 2021 due to the introduction of a new algorithm for the voluntary Health Star Rating system. This system, originally introduced in 2014, has been designed to advise consumers on the health impact of the food they consume.

Working and staying at home expected to have long-term channel and premiumisation impacts on juice volume sales

The uptake in working from home that was experienced during the pandemic is likely to become ingrained, with long-term impacts on Australians’ juice consumption habits. With in-office work less frequent, opportunities for on-the-go consumption will be less common.

Not from concentrate 100% juice to be responsible for extracting the greatest value from juice

Whilst volume sales of juice are expected to gradually decline over the forecast period, continuing the trajectory seen over the review period, the shift towards premium brands will continue to inflate unit prices, thereby stabilising value growth. As other opportunities to spend money have been put on hold during the pandemic, consumers have been able to afford permissible indulgences such as trading up their brand of juice.