There has been a 7.5 per cent growth in the total chilled juice market as measured by the moving annual target (MAT) as at November 2017 compared to November last year, 2016. This has been driven by new consumers who love their orange juice, but who also want to try vegetable and fruit blends looking for health benefits and less sugar.
Savvy consumers want to buy juice – ambient or chilled – in family-friendly two litre bottles.
Despite a shortage of oranges, the growth in the total chilled juice market has been driven by the increased sales of non-orange skus such as fruit and vegetable blends and combinations of fruit blends.
Notable growth has been seen in vegetable, pineapple and watermelon alongside some more unique blends in the category that includes coconut water or coconut milk.
Aussies still love their orange juice
Orange remains the largest segment, at over 80% of the category, however it declined by 0.1% compared to this time last year. The value decline is reflective of the reduced promotional programs during the year to help manage supply.
Promotional activity was directed towards other flavours, which has helped to drive the growth of non-orange skus.
Vegetable and fruit blends have grown 30.4%, which reflects consumers’ interest in health and lower sugar products, which vegetable blends offer over straight fruit juice.
Two-litre bottles still dominates
The dominate pack in the market remains the two-litre bottle, the traditional family/at home pack format. There has been strong growth in the 300- 499ml packs, at 148% value growth vs YA. This trend is reflected in the store layouts, as more space is allocated to the smaller impulse packs.
New consumers drive big category increase
We have seen consumers continue to move between ambient and chilled juice, with 70% of growth coming from ambient buyers trialling chilled juice. First time chilled buyers contributed to 21% of the category growth.
The forecast for orange supply into the next year is expected to remain challenging, with competitive pressure both domestically and internationally. Current oranges that are being picked have good sugar/acid ratio and are delivering good juice. Pressure will continue to have local juicing fruit due to strong export pressures.