Recovery is finally on the horizon

European juice markets saw limited recovery in 2010-11 driven by stronger volume demand and a resurgent demand for fruit juices and nectars featuring the ‘fivea-Day’ recommendation. Coming out of the recession the Big 5 markets stabilised in volume terms, putting on encouraging value growth as a result of the growing demand for value-added 100% juices. France remains the most dynamic market for fruit juice and nectars, while Germany continues to struggle, witnessing a decline in consumption rate. Positive trends were also seen in medium and smaller European markets, such as the Netherlands and Portugal.

Juice: Volume, 2006-15 (m litres)

Source: Mintel GMN, GMN estimates

Eastern European juice markets, such as those of Poland and the Czech Republic, have suffered under the impact of the economic downturn and reduced consumer purchasing power. Russian volume growth has declined significantly in relation to the pre-2008 levels, although Russia continues to perform well in value terms. Turkey has registered the highest growth over the past five years, driven by lower per capita rate and a growing economy.

Per capita rate still low compared with other soft drinks

The EU-27 represents the biggest fruit juice market in the world, followed by North America and Asia/Pacific; although the latter is on course to disrupt this order as its per capita consumption growth is rapid. Germany is the largest juice market in the world after the US. It is followed by China, Russia, France, Japan, and the UK.

Consumption of fruit juice and nectars lags behind that of other soft drinks. The EU average of 23 litres per person, as well as 40 litres for Europe as a whole, is well behind per capita rates for beer (76 litres), carbonated soft drinks (78 litres) and bottled water (110 litres).

Economic downturn slows down development of chilled juices and smoothies

European juice markets are dominated by ambient juices, while chilled fruit juice and smoothies are still developing niche segments. France, the UK, Spain and Sweden have a more developed chilled juice sector. European markets have struggled recently with consumers trading down to cheaper alternatives; private labels have increased their share and forced brands into tough price competition. Smoothies have been the hardest hit juice category, being perceived as premium. 2010-11 saw increased demand for still juice drinks and dilutables as a cheaper option.

‘Five-a-day’ recommendation to drive future growth

Whereas there is strong interest for ‘five-a-day’ messages, and increasing health benefits offered by juice manufacturers, consumers’ disposable income is expected to be strained, and worries over job security will continue to slow down growth.

Part of MINTEL study: Fruit Juice and Juice Drinks - Еurope, November 2011