JUICE IN INDIA - ANALYSIS

Country Report | May 2023

KEY DATA FINDINGS Market Sizes

Off-trade volume sales increase by 8% in 2022 to 2.7 billion litres Sales of Juice
Not from concentrate 100% juice is the best performing category in 2022, with off- Off-trade Volume - million litres - 2008-2027
trade volume sales rising by 35% to 16.6 million litres Yea r Off-tra de Volume - million litres % Y-O-Y Growth
2008 385.1 -
Coca-Cola India Pvt Ltd is the leading player in 2022, with an off-trade value share of
24% 2009 475.6 23.5
2010 590.9 24.3
Off-trade volume sales are set to grow at a CAGR of 9% over the forecast period to 2011 753.5 27.5
4.1 billion litres
2012 954.6 26.7
2013 1,148.9 20.3
2022 DEVELOPMENTS 2014 1,326.4 15.4
2015 1,483.0 11.8
Off-trade volume sales continue to rise on the back of new at-home 2016 1,602.0 8.0
consumption occasions and packaging innovation 2017 1,721.0 7.4

Consumers in urban areas continue to spend more time at home compared to pre- 2018 1,911.2 11.0
pandemic times. This has led to increased consumption of juices at home. Due to its 2019 2,118.2 10.8
nutritional benefits, 100% juice has become quite popular with meals. Moreover, some 2020 2,233.2 5.4
juices are also helpful in stimulating digestion and aiding weight loss. Juice is paired 2021 2,464.2 10.3
with food, especially during breakfast and lunch, by urban consumers in India. In 2022 2,668.4 8.3
addition, juices have become popular in cocktails and mocktails, especially for
2023 2,893.5 8.4
consumers looking to reduce their alcohol intake. As juices are available in a wide
2024 3,143.2 8.6
range of flavours, they are an ideal ingredient that enables diverse recipes with unique
tastes and profiles. 2025 3,419.0 8.8
2026 3,723.8 8.9
The multiserve 1-litre SKU pack has become popular among such consumers as it is seen 2027 4,061.9 9.1
as being cost-effective. There has therefore been innovation in packaging for this SKU
from Tetra Pak. In 2022, Coca-Cola India chose Tetra Pak’s Stelo Aseptic pack to launch
its new products under the Minute Maid brand. The packaging type is preferred
because it gives a superior grip and pouring experience, providing the necessary Sales Performance of Juice
differentiation for the brand. Previously, Tetra Pak used to provide packaging for % Y-O-Y Off-trade Volume Growth 2008-2027
single-serve packs to Coca-Cola India. However, due to the rising demand for
Yea r Off-tra de Volume - million litres % Y-O-Y Growth
multiservice packs, their partnership has now been extended to multiserve packs.
2008 385.1 -

Functionality continues to be at the core of new launches 2009 475.6 23.5

2010 590.9 24.3
In the last few years, rising demand for juices fortified with vitamins, minerals and 2011 753.5 27.5
herbs has been seen. According to Euromonitor International’s Product Claims and 2012 954.6 26.7
Positioning Data 2022, India's top five claims for juice included “good source of
2013 1,148.9 20.3
vitamins” and “immune system health”.
2014 1,326.4 15.4
In 2022, Coca-Cola launched two products under its Minute Maid brand – Honey Infused 2015 1,483.0 11.8
and Vita Punch. Both variants have their own set of functionalities. The Honey Infused 2016 1,602.0 8.0
variant focuses on providing energy, whereas Vita Punch targets consumers looking for 2017 1,721.0 7.4
daily vitamin C requirements. The products were initially launched in Punjab and
2018 1,911.2 11.0
eventually rolled out across North India.
2019 2,118.2 10.8
Similarly, in 2021, Dabur India revamped its juice portfolio under the Real brand and ran 2020 2,233.2 5.4
a campaign to highlight the vitamin C content in its products. The company also 2021 2,464.2 10.3
launched new flavours under the Real brand, including aloe kiwi and masala sugarcane 2022 2,668.4 8.3
juice. As part of its strategy of highlighting the healthy image of its products, the box
2023 2,893.5 8.4
packaging is now dominated by pictures of fruits.
2024 3,143.2 8.6

The ban on plastic straws impacts the potential of juice in India 2025 3,419.0 8.8
2026 3,723.8 8.9
In July 2022, the Indian government banned the manufacture, distribution, sale and use 2027 4,061.9 9.1
of single-use plastics. The rationale behind the ban was the harmful effects of single-
use plastic on the environment and ecosystem, including congestion in rivers and
drains. Juice companies, both global and domestic, requested the government to make
an exception for plastic straws in the ban on single-use plastic. However, the
government refused to exempt plastic straws, as they were seen as low-utility
products, and companies were given a year to prepare for the change. Instead, the
government recommended companies look for alternatives, including paper straws or
spout pouches. The major constraint for industry players was that it took them more
than a year to develop a supply chain for the alternatives. Eventually, the companies
fell in line, as the government stood firm and refused to postpone the ban. After the
ban was implemented, the lowest SKU sales were adversely impacted. The SKU in

© Euromonitor Interna onal 2023 Page 1 of 2

question is a 200ml brick carton with a plastic straw. This is also the most popular SKU,
particularly in rural areas, where consumers are highly price sensitive.
Sales of Juice by Category
Off-trade Volume - million litres - 2022

PROSPECTS AND OPPORTUNITIES Ca tegory Ca tegory Current Yea r % CAGR %CAGR

Va lue Growth {His toric} {Foreca s t}
100% Juice 37.8 14.7 11.9 14.9
Smaller pack sizes will gain traction over the forecast period Not from Concentrate 100% Juice 16.6 35.2 71.3 25.5
As temperatures soar, the adverse effects on perishables like fruits and vegetables Reconstituted 100% Juice 21.2 2.5 0.8 2.5
lead to inflationary pressures. In addition, rising transportation, packaging and labour Juice Drinks (up to 24% Juice) 2,061.4 7.4 8.1 7.8
costs further contribute to this inflationary trend. In response, juice companies, Nectars (25-99% Juice) 565.7 11.3 13.3 11.6
especially those offering juice drinks, are shifting their focus towards smaller pack sizes Coconut and Other Plant Waters 3.5 21.0 22.3 20.0
or single-serve options. These packs, priced between INR10 to INR20, will be available
in urban and rural markets, in answer to the prevailing high inflation rates.
Even for 100% juice, there will be a notable increase in consumption of smaller pack
sizes in the foreseeable future. The primary SKUs in question will be smaller bottles Competitive Landscape
and mini cans. The affordability factor plays a significant role for consumers, making it
essential for companies to introduce juices in smaller pack sizes across general trade,
modern trade and e-commerce platforms.
Company Shares of Juice
% Share (NBO) - Off-trade Volume - 2022
High inflation rates are expected moving into 2023, particularly in the first half of the Compa ny % Sha re
year. Historically, during periods of elevated inflation, there has been a surge in
Coca -Cola India Pvt Ltd 28.0
demand for smaller packs. Consequently, this trend will likely impact the overall
volume of juice sales. Pa rle Agro Pvt Ltd 19.1
Peps iCo India Holdings Pvt Ltd 17.7
Labelling specifications for sweeteners will help consumers differentiate Da bur India Ltd 8.7
between gimmicks and products that are actually healthy ITC Foods Ltd 0.8
Ra kya n Bevera ges Pvt Ltd 0.4
Starting in 2021, to utilise the certification provided by the Bureau of Indian Standards Tunip Agro Pvt Ltd 0.1
(BIS), companies that incorporate sugar or syrup into their products had to clearly Others 25.2
specify that they are sweetened fruit juices. If the product contains sugar as an
ingredient, the label must indicate "sugar added". Furthermore, if the quantity of sugar Brand Shares of Juice
exceeds 15g in a 1-litre pack, the label must state "sweetened fruit juice". These % Share (LBN) - Off-trade Volume - 2022
messages must be prominently displayed near the brand name to ensure transparency.
Bra nd % Sha re
Numerous companies promote their juices as immunity-boosting products. However, it Ma a za 25.7
is essential to note that high sugar content in these products can harm health. This Frooti 19.1
specification enables consumers to differentiate whether a product is genuinely
Slice 12.4
healthy or the company is merely exaggerating its health claims.
Réa l 8.7

100% juice is expected to be the fastest-growing category, but inflation Tropica na 5.3
Minute Ma id 2.2
will slow down its momentum
B Na tura l 0.8
While juice drinks currently dominate the overall juice category in India, there is a Ra w Pres s ery 0.4
growing acceptance of and demand for 100% juice, which is expected to record robust Onjus 0.1
growth over the forecast period. Consumers' belief that beverages with higher fruit
Others 25.2
content are healthier has favoured this category. Not from concentrate 100% juice has
gained significant popularity, particularly among urban consumers. Consumer
awareness regarding the distinction between juice from concentrate and not from
concentrate heightened when ITC Foods launched its B Natural brand with a "no
concentrate" campaign. The campaign urged its competitors, Dabur and PepsiCo, to
produce juice without using concentrates. The players in this category have adopted
technologies that prioritise health rather than being mere marketing gimmicks. For
example, Rakyan Beverages manufactures cold-pressed juices that are free from
chemicals. These juices are made using a hydraulic press, excluding spinning and blades
from the manufacturing process. Instead, high-pressure processing is employed to
preserve the fruit's nutrients. Urban consumers are driving the demand for not from
concentrate 100% juice as they become increasingly conscious of its health benefits.
However, the higher unit prices will be the biggest challenge for the category during
the period of high inflation.

© Euromonitor Interna onal 2023 Page 2 of 2