Juice manufacturers are set to derive further benefit from the health and wellness trend over the forecast period. This development is supported by growing concerns over the health risks associated with high sugar consumption.
The forecast period is likely to see a gradual shift from the use of imported juice concentrates to local fruit juices. This move is being driven by growing government pressure on fruit juice manufacturers to support local fruit farmers.
NAFDAC has proposed an update of the 2005 Fruit Juice and Nectar Regulations. The proposal provides guidelines on manufacturing processes and labelling, in line with the agency’s requirements.
Juice drinks (up to 24% juice) emerged as the largest category in terms of retail volume sales by the end of the review period. This performance was driven by improved market penetration, with major companies like Coca-Cola Nigeria and CHI Ltd gaining visibility for their juice drinks across retail channels by strengthening their relationships with key partners.
The ban on imports of fruit juice in retail packs was implemented to boost local farming. However, this has led to manufacturers importing affordable fruit concentrates to which water and other ingredients are often added to make fruit juice.
The demand for juice has been boosted by a new wave of products. For example, Coca-Cola Nigeria has taken advantage of the ever-increasing thirst of consumers for new flavours by introducing three new flavours under 5 Alive: tropical, apple and pulpy orange.
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This industry report originates from Passport, our Soft Drinks market research database.