1 OVERVIEW
Fruit beverages are a high growth segment in Indian beverages industry. The segment has evolved with a consistent change in consumer preferences for fruit based drinks from tradition carbonated or aerated drinks. Fruit drinks are increasingly finding their space in Indian kitchens replacing their carbonated counterparts. We estimate that the sector has high potential to grow in the coming years and will surely solidify its place in the Indian households. The factors that have and will continue to lend a hand to its spiraling growth are changing consumer dynamics like rising incomes, growing health consciousness and urbanization.
1.1 The Global Scenario
Global fruit beverage market is also experiencing same kind of growth with renewed consumer taste for fruit based beverages. Although, industry estimates indicate that fruit juices are not anyway closer to be tagged as globally preferred drink, it has the potential to overcome its several counterparts.
A leading research firm estimates global fruit and vegetable juice market has all the triggers in place to cross 65 billion liters by 2015. The emerging categories like fortified and natural juices will drive the volumes ahead.
Source: NPCS Research, Industry Data
1.2 The Indian Scenario
Fruit based beverages fall under the umbrella of non-carbonated drinks category in non-alcoholic beverage sector. Fruit drinks market in India is fast evolving and emerging as the fastest growing sector in the non-alcoholic beverage segment. Indian non-alcoholic beverage segment has witnessed rapid success in last few years with non-carbonated section emerging as the strong pillar. There has been a strong shift of consumer preferences from carbonated drinks to the non-carbonates. Rising health awareness and rising lifestyle diseases have brought in the majority of push for the sector.
The chart below demonstrates the classification of non-alcoholic beverage segment in India.
Figure 2 Non-alcoholic Beverage Industry in India- Classification
Source: NPCS Research
1.2.1 Classification
Figure 3 Fruit Beverage Industry in India- Classification
Fruit Drinks: Have less than 20% of real fruit pulp
Nectars: Have between 20-90% of real fruit pulp
Fruit Juices: Have over 90% of real fruit pulp
1.2.2 Structure
Market for fruit beverages includes fruit juices and related products, such as nectars squashes, concentrates and fruit drinks. Of this, only 10% is accounted for by packaged products and the rest is sold loose.
Figure 4 Indian Fruit Beverage Industry- Structure
Source: NPCS Research