Naturally Healthy Beverages in the United Kingdom

PROSPECTS

NH beverages remains the leader within HW beverages

Within the broader HW beverages industry, NH beverages recorded the largest value sales in 2019, and its growth is set to continue throughout the forecast period, driven by consumers’ increased preference for NH bottled water and NH 100% juice over standard variants. As consumers continue to redirect their drinking habits towards products which are as pure and natural as possible, most categories within NH beverages are set to continue to grow.

Opportunity for carbonates to expand in naturally healthy formats

Traditionally, carbonates and NH beverages do not go hand in hand. Carbonates are often associated with a high sugar content, preservatives and carbon dioxide, which automatically convey a sense of “artificiality” to beverages, whilst naturally healthy formats often derive from fruit, water, botanical extracts and pure ingredients.

New regulations regarding health claims could boost growth for NH beverages

As beverages with health claims face continued scrutiny from the advertising authorities, with functional benefits prohibited from being highlighted on product packs, and specific wording removed from marketing content, manufacturers must focus their approach on educating consumers about the health benefits of their product ingredients, whilst complying with more stringent labelling regulations. This has led companies to invest in fruit flavours and botanical ingredients to convey a sense of “health” in their new product developments.

COMPETITIVE LANDSCAPE

Innocent Drinks consolidates its leading position in NH superfruit juice

Innocent Drinks maintained its lead in NH beverages and continued to register solid growth in value terms in 2019, due to its innovative range of juices and impressive distribution network across the country. Its brand is available in independent healthfood stores, grocery retailers and through e-commerce channels.

Ocean Spray Cranberries posts a stable performance in 2019

Ocean Spray Cranberries, with its leading Ocean Spray brand in cranberry flavour, maintained its leading position in NH superfruit nectars (25-99% juice) in 2019. The brand witnessed a few setbacks due to the increasingly competitive environment and lack of diversity in its portfolio in recent years.

Lipton Iced Tea Green Tea faces further competition

Within NH RTD green tea, Lipton Iced Tea Green Tea has struggled to gain ground, and faces an intense competitive threat from new players in the retail space. Cold-infused tea variants kombucha and flavoured bottled water continue to register promising growth, benefiting from consumers’ growing interest in natural refreshment, posing a direct threat to Lipton Iced Tea.

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