The summer fizz

As the mercury level increases, the Indian beverages industry has also geared up to meet the demand of the consumers. The market size of the fruit-based beverages segment is estimated to vary between Rs 1,300 crore to Rs 3,500 crore. The packaged 100 per cent fruit juice market is estimated to be around Rs 750 crore in size. Some of the leading players in this segment include Real, Tropicana, Minute Maid, Maaza, Del Monte, Nimbooz, LMN, etc.

New trend in fruit drinks

Apart from 100 per cent juice and fruit pulp juices, introduction of fruit-vegetable combos, all-vegetable juices and fibre rich fruit juices are some of the emerging trends in fruit based beverages category. In recent years, traditional Indian beverages like lime juice and coconut water have seen a foray into the packaged variants of the same from larger and regional brands. It is also interesting to note that while fresh lime accounts for 49 per cent of the unpackaged category, 75 per cent of the packaged fruits beverages are dominated by the mango flavour, which is perceived as a filling and indulgent beverage, as found in a study by Datamonitor.

As per the new trend, a fruit-vegetable juice range is also available in combos, such as orange-carrot, mixed fruit-beetroot-carrot, mixed fruit-cucumber-spinach, etc. They provide the goodness of fruit and vegetable with no added sugar, no added colour and no preservatives. So, how the shelf life of the product is maintained when there is no preservative in it? KK Chutani, Marketing Head, Dabur India Ltd explains, “Preserving food products without preservatives is possible due to our advanced processing and manufacturing technology. This technology is referred to as Aseptic Technology, which does not warrant the addition of any preservative or refrigeration for storage.” Dabur controls the market share of around 52-54 per cent of the total fruit juice market in India.

Consumers prefer fruit drinks over colas

The current trend in the market promotes fruit drinks and most consumers are opting for this as a healthier option. The fruit juice market has shown a tremendous growth in recent years, and has been outstripping the carbonated soft drink (CSD) segment, in terms of year on year growth, with fruit based beverages growing at a healthy 16 per cent in comparison to 6.2 per cent growth of CSD. According to Del Monte’s research, the most frequent consumption of fruit juices is seen in the 15 - 25 and 26-34 age groups, with most consumption taking place out of home.

Mohit Kampani, Chief- Merchandising & Operations, Spencer’s Retail says, “Carbonated drinks would continue to show healthy growth rates as the economy of India grows but fruit drinks would become a significant part of the monthly shopping basket and take up a bigger share of the beverage pie.”

Product innovation is key to sustain

As packaged fruit juice is still a low penetrated category in India, the entry of newer players would help grow the market. Focusing on the same, Dabur has introduced Réal Activ Fiber Plus range, a new variant of Réal fruit drinks. For Dabur, their Réal brand is the largest selling brand in packaged fruit drink category and Réal Mixed Fruit juice is the highest selling variant. Commenting about the new product innovation of Dabur, Chutani says, “There’s no beverage available in the market which has the goodness of dietary fibre. Hence understanding this gap in the market, we came up with Réal Activ Fiber Plus, a fruit beverage that is enriched with soluble dietary fibre.” Dabur, currently have 12 variants under the brand Réal.

Taste and innovation are the key motivators when it comes to consumer purchase habits. “It was a conscious decision to build the brand in India organically. Being one of the latest entrants in the food and beverage market in India, we realised that it was important to create the brand awareness first,” says Yogesh Bellani, Business Head, Del Monte Foods Business, FieldFresh Foods Pvt Ltd. In the retail space, Del Monte first created visibility for the brand and induced trials.  The company began by sampling their products in reputed QSRs, coffee chains and low cost airlines. The company also took route to ATL and BTL marketing.

Growing private label in fruit drinks

In the fruit based beverages category, consumer has a gamut of brands to choose from, but at a premium price point. This further leaded the way for introduction of private label brands. Private label brands are able to recruit more consumers due to the price point advantage and multiple offerings.  In case of modern trade, the share of fruit drinks in the beverage category would be around 25 per cent. “The primary objective in the private label space is not necessarily to take market share from established players but to expand the category by bringing in new users to the fold. This is being achieved by offering a great value proposition in terms of price and quality. Hence we expect significant expansion of the branded juice category in the coming years”, says Kampani.

Especially for new brands and flavours, trials are done through in-store sampling and good display. “We have introduced a variety of flavours besides Mango like Litchee, Apple, Guava and mixed fruit under the brand Tasty Treat and ready to serve beverage under brand Sach.  We are sampling this across all our stores so more and more consumers try the product and are hooked onto the taste and quality offering. This will, in the long term, help to build loyalty for the brand. We also plan to launch several other flavours and grow the range in the next season”, comments Devendra Chawla, Head, Private Brand, Future Group. Mostly for juices, there is supplementary display other than primary which help thrust volumes. At Big Bazzar, 60 per cent space is allotted for carbonated drinks and 40 per cent for juices in primary shelves. Explaining their marketing strategy, Kampani says, “We continue to maintain a judicious mix of product, pricing and placement strategies in order to stay competitive. In-store activation and promotions are an integral part of our marketing strategy. At the same time we leverage our knowledge of consumer purchase habit in our stores to create smart offers and product story.” At Spencer’s Retail, fruit based drinks constitute about 60 per cent of the available shelf space for beverage category.

Speaking on the food quality and safety, Chawla informs, “Sach juice and Tasty Treat is also packed by the same vendor partners who works with world’s most known brands selling in India, so quality is guaranteed. There are batch audits also carried out periodically to ensure there are no slips up on quality and consistency is maintained.”

Most of the branded fruit based beverages are packed in a 6-layered TetraPak with a double seal spill proof cap, which retains the freshness of the drink. This special technology used in the packaging keeps the drink fresher for a longer period of time with no added preservatives.

Consumption rate in rural India

Packaged fruit juices are still a very urban phenomenon and have less consumption in rural areas. Chutani says, “The category is still at a nascent stage in India and is more driven by the urban markets than the rural. Hence, the focus has been on urban markets for us too. But as we go forward we are adding on more and more number of smaller towns in our distribution network and to reach out to a larger consumer base.”

Products with special ingredients, in convenient pack sizes and smartly designed packaging, will continue to gain popularity. The metros have already seen rising demand, and penetration is growing in smaller cities as well. “After establishing ourself in metros, we further want to move to the rural market once we have the right SKUs for the market and the right pricing strategy as consumer demand is different there”, said Bellani.

What’s next!

The market dynamics are bound to change with intensified competition in the branded fruit drinks segment in India. Brands are focusing more on sampling activities on fruit-based beverages to hook younger and more health conscious consumers. Re-launching of products to deliver better value to consumers is another trend seen in the segment.