Naturally Healthy Beverages in Japan

PROSPECTS

Successful brands renewing in light of demand trends

Naturally healthy beverages saw current value growth of 2% in 2017. Growth was variable across categories, with NH superfruit juice, NH spring water and NH green tea amongst the categories to see significant declines in value during the year, while NH 100% juice and NH RTD tea featured amongst the most dynamic categories.

Interest in naturally caffeine-free products boosts mugicha

The roasted barley tea, mugicha’s growing popularity is encouraging manufacturers to focus on its development in the RTD format through products such as Suntory’s Green Dakara Yasashii Mugicha, which was revamped in 2017, contributing to the strong overall performance of the Green Dakara brand. Mugicha is naturally caffeine-free, thereby chiming with the growing interest in reducing caffeine intake, as well as being believed to offer health benefits such as improving circulation.

Further positive growth is predicted for naturally healthy products

Naturally healthy beverages is expected to see a 2% CAGR at constant 2017 prices over the forecast period, driven by NH RTD tea and NH 100% fruit juice. Innovation and brand repositioning focused on FOSHU and FFC certification will play a key role in the development of these categories over 2017-2022, as manufacturers take inspiration from the success of brands such as Kagome Tomato Juice.

COMPETITIVE LANDSCAPE

Ito En retains leading position in naturally healthy beverages

Ito En retained the lead in naturally healthy beverages in 2017. The company holds a 21% value share thanks to a portfolio containing a number of strong brands across several product categories, including the overall market-leader, Oi Ocha, which holds top spot in both NH green tea and NH RTD green tea.

Kagome developed naturally healthy juice products

With sales rising by 10%, Kagome was the fastest-growing player in naturally healthy beverages in 2017, thanks mainly to the rapid expansion of its eponymous tomato juice brand. Kagome has successfully renewed its tomato juice with an FFC certification focused on its capacity to treat high cholesterol, an issue that concerns many Japanese consumers.

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