Juice in Tunisia

2020 IMPACT

Rising production costs and COVID-19 pressures result in steep unit price increases

Volume sales of juice registered static growth during 2020 as the adverse economic impact of the COVID-19 pandemic took its toll on demand. Rising unit prices made the healthiest types of juice much less affordable for much of the Tunisian population.

Economic pressures caused by COVID-19 compromise growth potential in juice

As mentioned above, recent years have seen strong unit price inflation in juice, resulting in these products becoming unaffordable for many consumers. However, this became more of an issue during 2020 as the COVID-19 pandemic put significant pressure on household incomes, resulting in juice becoming even less affordable.

Social distancing, home seclusion, shift to at-home consumption boost retail sales

The quarantine lockdown that was in effect across Tunisia from mid-March until the end of May supported the consumption of juice somewhat, with off-trade sales the main beneficiary of this trend. With many people spending more time at home, their juice consumption increased, especially as juice is often seen as a naturally healthy product that can help to improve one’s diet and boost immunity, a crucial consideration in light of the widespread fears of contagion that held sway among the population during the COVID-19 pandemic.

RECOVERY AND OPPORTUNITIES

A more positive outlook for juice as the category benefits from its healthy profile

The negative volume growth that was recorded in juice over the review period is expected to give way to a more positive performance over the forecast period as the healthy profile of juice is set to present growth opportunities. With the COVID-19 pandemic having sharpened focus of the Tunisian population on the importance of maintaining a healthy diet and the role that juice can play in supporting this, consumers are expected to be prepared to spend more money on a category of products that are perceived as beneficial for general health and in particular for boosting the immune system.

Juice drinks set to remain the dominant category of juice due to low prices

As mentioned above, in Tunisia 100% juice and nectars are often considered to be unaffordable products. Thus, the forecast period is expected to see juice drinks continue to dominate sales of juice as these products are considerably more affordable whilst still being perceived as relatively healthy among the population.

Innovation and new product launches unlikely to be seen during the forecast period

The post-COVID-19 competitive landscape in juice in Tunisia is unlikely to feature a wide variety of new products or regular new launches. Indeed, manufacturers are more likely to focus on retrenchment and catering to existing consumer demand trends as rising production costs and the price sensitivity of their consumer base are set to motivate them to take steps to maintain the lowest prices possible.