Fruit Drinks Market - Forecast(2023 - 2028)

Key Takeaways

• Geographically, the North America Fruit Drinks Market accounted for the highest revenue share in 2021. The growth is owing to high health awareness among consumers, better disposable incomes, full-fledge retail infrastructure, and a high prevalence of insidious health ailments like cancer.
• Enlarging demand for fortified beverages, rising mergers, and acquisitions, growing popularity among youngsters, rising disposable incomes, broadening geriatric population, bettering retail infrastructure in developing countries, and rapid urbanization are said to be preeminent drivers driving the growth of the Fruit Drinks Market. Soaring inflation rates and reduced production because of COVID-19 are said to reduce market growth.
• Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Fruit Drinks Market report.

Fruit Drinks Market Segment Analysis-By Packaging

The Fruit Drinks Market based on the packaging type can be further segmented into canned and fresh. The canned segment held the largest share in 2021. The growth is owing to eventful lifestyles of people. Canned drinks have a higher shelf life as the outer packaging averts the contact of packed material with oxygen and moisture. Also, packaging acts as an impenetrable shield and keeps environmental contamination away. Even though fresh juices are extremely healthy as compared to canned drinks but they don’t align well with the extreme lifestyles of consumers these days. On another hand, consuming fresh drinks from street vendors is not viable and safe from the pandemic’s point of view. Nevertheless, canned is estimated to be the fastest-growing segment with a CAGR of 6.9% over the forecast period 2022-2027. This growth is owing to rapid urbanization, modern lifestyles, aesthetically appealing packaging, and top-notch marketing strategies.

Fruit Drinks Market Segment Analysis-By Distribution Channel

The Fruit Drinks Market based on distribution channels can be further segmented into offline (supermarkets/hypermarkets, convenience stores, retail stores, and others) and online stores. The offline segment held the largest share in 2021. The growth is owing to the availability of versatile product options as compared to online e-commerce platforms. There is strong positioning of offline purchases in consumers' mind which cause them to make in-person purchases. On another hand, the widescale presence of modern retail outlets like hypermarkets and supermarkets has drawn the eyes of consumers because of their one-stop solution, prime locations, and alluring discounts. Moreover, the Online segment is estimated to be the fastest-growing with a CAGR of 6.4% over the forecast period 2022-2027. This growth is owing to rapid modernization and technological breakthroughs. Ascending smartphone users, a rapid push by telecom firms on network improvement, expanding tech-friendly population, and same-day delivery conveniences are the reason for market growth.

Fruit Drinks Market Segment Analysis-By Geography

The Fruit Drinks Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held the largest share with 35% of the overall market in 2021. The growth in this segment is owing to the factors such as high living standards, rising gym memberships, prevailing sports culture, and better disposable incomes because of affluent economies. The majority of the population in countries like the US and Canada lives in top-notch cities with world-class infrastructure where people have easy excess to better retail facilities. In addition to that, people living in big cities are potentially an easy target for marketers to influence due to the availability of better marketing channels. However, Asia-Pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to the mounting purchasing power of consumers. In addition to that, with the up-gradation of infrastructure in many developing countries like India, China, Indonesia, and Bangladesh the fitness and retail industry is booming. Likewise, improving quality of life, the enlarging geriatric population, and rising health consciousness are enlarging the demand for fruit drinks.

Fruit Drinks Market Drivers

Surging insidious illnesses, rising health consciousness among consumers, and expanding old-age population are anticipated to boost market demand

Quick urbanization has made it quite easy for fruit drink manufacturers to target their audience with top-notch and effective strategies. Around 56 percent of the world population is residing in metropolitan areas as of 2022, the number is anticipated to reach nearly 68 percent by the year 2050. On another hand, the growing prevalence of insidious illnesses like cancer has made consumers conscious of their health. World Health Organization reported that approximately 10 million people worldwide lost their lives because of cancer in 2020. The cases are heightening every year as the old-age population is spiking staggeringly and is likely to reach 2 billion before long. In addition to that, the rising number of gym memberships has its fair share in aiding the market. Many North American countries such as Mexico and US are home to a plethora of gyms that extend consumers’ easy access. For instance, a report claimed that there are around 43 to 45 million people in the US that have a gym membership. Likewise, proliferating infrastructure in developing countries like India and China is ensuring residents all-weather access to world-class gyms.

Growing GDP per capita incomes are expected to boost product demand

Rising exports, growing government spending, and broadening flows of foreign direct investments in major developing nations like India, China, and Indonesia are the prominent and primary reasons behind their unwavering economic growth. For instance, on 19 March 2022, the Japanese PM his visit to India announced an overwhelming investment worth $42 billion for the next 5 years in India. Nevertheless, the Government of India has announced plan Gati shakti under which the Indian government is planning to spend 100 lakh crores ($1.35 trillion) on infrastructure. On another hand, China is growing at a pace that defies description; as a result, the GDP per capita incomes of these nations are increasing. For instance, from $10,511 in 2020, China’s GDP per capita income soared and reached $12,551 in 2021; whereas, Indonesia’s GDP per capita witnessed a $580.41 jump and reached $4450 in 2021.

Fruit Drinks Market Challenges

Sky-rocketing inflation rates and hampered production activities are anticipated to hamper market growth

With a non-stop acceleration for 5 months, the inflation rate soared to 6.07 percent in February 2022; Pakistanis are reeling under the weight of a striking 13 percent inflation rate; moreover, with a staggering 17.5 percent inflation rate, Sri Lanka is on the verge of collapse. Not only low-income countries but developed nations like the U.S. shares the same pain. Inflation rates in the U.S. reached 7.5 percent in the 2nd month of 2022. As a result, consumers are turning aversive to making such purchases. In addition to that, drought resulting in heat waves, growing sea levels, deforestation, vanishing organic content, and hampered production activities are posing a severe threat to the steady growth of the aforementioned market.

Fruit Drinks Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Fruit Drinks top 10 companies include:

1. The Kraft Heinz Company
2. PepsiCo Inc
3. The Coca-Cola Company
4. Campbell Soup Company
5. Keurig Dr. Pepper Inc
6. Evergreen Juices Inc
7. Del Monte Foods
8. Ceres Fruit Juices
9. Lassonde Industries
10. Harvest Hill Beverage Company

Recent Developments

• On March 9, 2022, US-based iconic beverage giants PepsiCo and Coca-Cola announced the suspension of Russian operations following Russia’s unprovoked invasion of Ukraine. Furthermore, PepsiCo has ceased sales of some specific products only like 7UP and Pepsi-Cola (two prominent soda brands).
• On November 1, 2021, Georgia, United States-based one of the biggest beverage manufacturing companies in the world “The Coca-Cola Company” publicized the successful acquisition of Queens, New York-based Bodyarmor SuperDrink (a company known for its premium sports drinks). A payment of $5.6 billion has been paid by Coca-Cola in order to bring the acquisition to a close.
• On June 15, 2020, New York, United States-based leading food and beverage company “PepsiCo” publicized the successful acquisition of Nevada, United States-based drinks company “Rockstar.” PepsiCo made a total $3.86 billion payment in order to conclude the acquisition process. Furthermore, the step strengthens PepsiCo’s position in the energy drinks market.

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