The Indian juice industry was pegged at US$3.5 billion in 2012 and is estimated to reach US$21.14 billion by 2018. The per capita consumption of fruit juice-based beverage is 45 litre in Germany, 42.5 litre in Switzerland and 39 litre in the US. In India, the per capita consumption is just 20 ml, which is negligible compared to other countries. Hence, there exists huge untapped potential in this segment. Shift in consumer preference towards non-carbonated fruit beverages, raising concern over obesity and other health issues, a change in lifestyle, affordability and availability of packaged juices are some of the reasons behind the rise of the packaged fruit juice market.
The packaged fruit juices market can be divided into three sub-categories: fruit drinks, juices, and nectar drinks. Fruit drinks, which have a maximum of 30 per cent fruit content, are the highest-selling category, with a 60 per cent share of the market.
The current market size for the fresh fruit juice business in India is around 3200 crore. The market is estimated to grow at the rate of 25%-30%, owing to factors like urbanization, increasing disposable income and entry of organized players into the market.
The pulp and fruit juice production volume amounted to 151.3 thousand metric tons in the country during fiscal year 2017, up from 143.8 thousand metric tons in fiscal year 2016.
Global Fruit Juice Market
Fruit juices have today become an essential part of human diet and are preferred by all the age groups as they are a good source of instant energy and vital nutrients. Fruit juices can be easily obtained by extracting the pulp of fruits and are generally consumed as a beverage or may be used for flavouring in foods. The global market for fruit juice and nectars was worth 44 Billion Litres in 2015 and is further expected to reach a volume of 50 Billion Litres by 2021.
Fruit juice market represents one of the fastest growing sectors and is currently evolving at a fast pace. The global fruit juice market is gaining impetus due to a number of factors. Rising dietary and health concerns among consumers is one the key factors giving a push to the global fruit juice market. Owing to the high nutritional content and refreshing attributes of fruit juices, there has been a major shift in consumer preferences from carbonated drinks to the non-carbonates and natural beverages like fruit juices. Several other factors like population growth, rising disposable incomes, product innovations, premiumisation and growing demand from emerging markets are also inducing the growth of the global market for fruit juices.