Demand for naturally healthy beverages stabilised in 2021, following retail volume declines the previous year. The stable performance was driven by the largest category of NH fruit/vegetable juice, while other beverages continued to decline including NH bottled water.
Beverage manufacturers anticipated changes in the regulatory environment (including the taxation on sugary drinks) and shifted their focus towards realigning portfolios towards beverages that have a naturally healthy positioning. There have been downward pressures on sales of sugar-sweetened beverages which were previously volume drivers, with tax increases applied in 2019/2020 having a negative impact on demand.
The positioning of beverages as natural has become a key factor in overall marketing by brands in this category. Consumers are increasingly drawn towards sustainable options which have a clear provenance message, and rely on the health credentials of a brand.
Demand for naturally healthy beverages is expected to strengthen over the forecast period, gaining a rising share of consumers’ improving disposable incomes and basket spend. This will be primarily driven by NH 100% juice, which is steadily penetrating its already substantial share of the category; the pricing strategy of NH 100% juice, due to its overall size, will impact the overall declining average unit price of naturally healthy beverages, making the category more affordable to a wider audience.
E-commerce is expanding in the region with the proliferation of smartphone usage in the United Arab Emirates. Local consumers are therefore increasingly comparing product details online before making a purchasing decision.
Naturally healthy beverages is expected to see continued investment in product type, formats, and packaging to maintain consumers’ interest. The next frontier would be the increased adoption of other natural ingredients that offer a point of differentiation in line with the holistic purchasing patterns and ideals of local consumers.
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Naturally Healthy Beverages
This category includes products on the basis of naturally containing a substance that improves health and wellbeing beyond the product’s pure calorific value. These products are usually a healthier alternative within a certain sector/subsector. High fibre food (wholegrain/wholemeal/brown), soy products, sour milk drinks, nuts, seeds and trail mixes, honey, fruit and nut bars and olive oil are considered NH foods and 100% fruit/vegetable juice, superfruit juice, natural mineral water, spring water, RTD green tea etc. are considerd NH beverages. While many of these products are marketed on a health basis, this might not always be the case. Naturally healthy food and beverages that are additionally fortified fall into the 'fortified/functional' category. For product category definitions please refer to the definitions section (can be found under the "Help" section on Passport) for the respective system: Packaged Food, Hot Drinks, Soft Drinks.See All of Our Definitions
This report originates from Passport, our Naturally Healthy Beverages research and analysis database.
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