- The juice industry has struggled with lackluster sales in recent years, particularly as consumers increasingly avoid sugary beverages, but the 100% juice segment is showing progress toward a turnaround, according to the writeup of a new Tetra Pak report in Food Ingredients First.
- About 42% of consumers drink 100% juice daily, and health-conscious consumers say they would be willing to pay a higher price tag for premium juices they deem to be better for them.
- Millennials are the strongest drivers of 100% juice's sales boost, as they prefer the health benefits and convenience associated with the beverage, Tetra Pak found.
Tetra Pak listed vegetable nutrition, "all natural" and specialty 100% juice as three key points of disruption in the juice industry. Those innovations align with trends seen throughout the industry, such as the growth of organic produce and value-added produce, as consumers increasingly choose fresh, healthy and convenient foods over processed foods.
Juice is also particularly well-positioned to benefit from the "all natural" claim. It's a way for these flavor- and health-centric beverages to differentiate from other flavorful beverages, such as soda, sports drinks, energy drinks and flavored water. The term "natural" has been a point of contention for consumers and public health advocates versus manufacturers and the FDA, as it remains unregulated. But along with "100% juice," using the "all natural" claim for juices becomes less questioned than claims that have led to litigation for other companies.
Consumers' willingness to pay more for premium shouldn't come as a surprise at this point. From craft beer to artisanal cheese and chocolate, consumers have shown they'll accept a higher price tag for higher quality. In the juice industry, premium juices often stem from exotic or top-tier ingredients or from high-pressure processing, also known as cold-pressed juices.
Quality, simple ingredients and little processing are two key components of consumers' perception of premium products they'd be willing to pay more for, and juice manufacturers have adopted both to disrupt and revitalize the segment.