Diana Cowland, Health and Wellness Analyst, Euromonitor International09.15.12
Superfruits are associated with health, anti-aging and even healing properties due to their high antioxidant content. Berries, for example, which witnessed a rapid ascent into the superfruit arena, have been primarily propelled by their high content of protective phytochemicals, particularly anthocyanins and anthocyanidins. These pigments, which lend berries their red, blue and purple coloring, are deemed to possess supreme antioxidant powers.
While berries are among a wide variety of fruit considered to be superfruits, according to a recent Euromonitor International consumer survey, blueberry, pomegranate and aloe vera are consumer favorites worldwide. For many consumers, however, they are also considered to be expensive and a treat rather than an everyday purchase. In order for superfruit juice to see continued success the category should look to strategies undertaken by RTD tea manufacturers, who have appealed to a wider audience.
The RTD Format Has Proven Successful for Green Tea
Globally, green tea is strongly linked to health benefits, but due to its slightly bitter taste, sales outside of Asia Pacific are limited. However, companies launching green tea in an RTD format have seen success by offering a convenient, healthy product with a lower sugar content—all at a relatively low price point. In addition, many RTD beverages are using stevia as a sweetener as it promotes the naturalness of the product alongside its health benefits.
As a result, green tea in an RTD format has seen sales escalate from nearly $5 billion in 2006 to more than $8 billion in 2011, overtaking those of conventional green tea. Manufacturers of superfruit juice should therefore consider replicating the product development strategy used by RTD green tea manufacturers.
Superfruit Juice (up to 24% juice) Set to Overtake 100% Superfruit Juice By 2014
To some extent, we are already witnessing superfruit juice move up the value chain from 100% juice into juice drinks with up to 24% juice, such as mixed fruit juice, single serve bottles, carbonates and flavored waters. In 2011, naturally healthy superfruit had a current retail value of $5.7 billion, $2.8 billion of which came from 100% juice, while $2.4 billion came from juice drinks with up to 24% juice content.
To reduce the price of superfruit juice, and thus boost popularity, companies are introducing more superfruit juice drinks that contain a lower fruit content. This is expected to drive global volume sales in 2014, and push superfruit juice drink sales ahead of 100% superfruit juice. By 2016, sales are set to reach $8.3 billion, with $4.2 billion coming from juice drinks and just $3.4 billion coming from 100% juice.
Coconut water, packed full of electrolytes such as potassium, magnesium, calcium and phosphorus, is a perfect example of this transition. While it is still available in a 100% juice format, such as the brand ZICO from The Coca-Cola Co (TCCC), we have seen the introduction of coconut water mixed with other fruit juice from brands such as Dr Pepper Snapple Group Inc’s Vita Coco and even private label, the latter significantly bringing down the average unit price.
Big Players Looking to Cement Their Lead
Market share within superfruit juice remains competitive, with new players constantly entering the arena. In 2011, the brand Coconut Palm from Coconut Palm Group Co Ltd led the category with a value share of 9% (equivalent to retail sales of $541 million), followed by Ocean Spray Cranberries Ltd’s Ocean Spray, with a value share of 7% (equivalent to $422 million). PepsiCo Inc’s Kero-coco from Brazil recorded sales of $315 million in 2011, just beating POM Wonderful to third place.
Large players are looking to solidify their position as the leading superfruit companies. TCCC, for example, acquired a minority stake in coconut water company ZICO in 2009 and PepsiCo owns the coconut water Kero-coco as well as Tropicana, the seventh largest superfruit player.
Room for More Flavors
The superfruit category is by no means saturated and as the juice becomes more affordable we will undoubtedly see more fruit varieties such as açaí berry, baobab, mangosteen, goji berry and seabuckthorn enter, and flavor, more drinks.
While berries are among a wide variety of fruit considered to be superfruits, according to a recent Euromonitor International consumer survey, blueberry, pomegranate and aloe vera are consumer favorites worldwide. For many consumers, however, they are also considered to be expensive and a treat rather than an everyday purchase. In order for superfruit juice to see continued success the category should look to strategies undertaken by RTD tea manufacturers, who have appealed to a wider audience.
The RTD Format Has Proven Successful for Green Tea
Globally, green tea is strongly linked to health benefits, but due to its slightly bitter taste, sales outside of Asia Pacific are limited. However, companies launching green tea in an RTD format have seen success by offering a convenient, healthy product with a lower sugar content—all at a relatively low price point. In addition, many RTD beverages are using stevia as a sweetener as it promotes the naturalness of the product alongside its health benefits.
As a result, green tea in an RTD format has seen sales escalate from nearly $5 billion in 2006 to more than $8 billion in 2011, overtaking those of conventional green tea. Manufacturers of superfruit juice should therefore consider replicating the product development strategy used by RTD green tea manufacturers.
Superfruit Juice (up to 24% juice) Set to Overtake 100% Superfruit Juice By 2014
To some extent, we are already witnessing superfruit juice move up the value chain from 100% juice into juice drinks with up to 24% juice, such as mixed fruit juice, single serve bottles, carbonates and flavored waters. In 2011, naturally healthy superfruit had a current retail value of $5.7 billion, $2.8 billion of which came from 100% juice, while $2.4 billion came from juice drinks with up to 24% juice content.
To reduce the price of superfruit juice, and thus boost popularity, companies are introducing more superfruit juice drinks that contain a lower fruit content. This is expected to drive global volume sales in 2014, and push superfruit juice drink sales ahead of 100% superfruit juice. By 2016, sales are set to reach $8.3 billion, with $4.2 billion coming from juice drinks and just $3.4 billion coming from 100% juice.
Coconut water, packed full of electrolytes such as potassium, magnesium, calcium and phosphorus, is a perfect example of this transition. While it is still available in a 100% juice format, such as the brand ZICO from The Coca-Cola Co (TCCC), we have seen the introduction of coconut water mixed with other fruit juice from brands such as Dr Pepper Snapple Group Inc’s Vita Coco and even private label, the latter significantly bringing down the average unit price.
Big Players Looking to Cement Their Lead
Market share within superfruit juice remains competitive, with new players constantly entering the arena. In 2011, the brand Coconut Palm from Coconut Palm Group Co Ltd led the category with a value share of 9% (equivalent to retail sales of $541 million), followed by Ocean Spray Cranberries Ltd’s Ocean Spray, with a value share of 7% (equivalent to $422 million). PepsiCo Inc’s Kero-coco from Brazil recorded sales of $315 million in 2011, just beating POM Wonderful to third place.
Large players are looking to solidify their position as the leading superfruit companies. TCCC, for example, acquired a minority stake in coconut water company ZICO in 2009 and PepsiCo owns the coconut water Kero-coco as well as Tropicana, the seventh largest superfruit player.
Room for More Flavors
The superfruit category is by no means saturated and as the juice becomes more affordable we will undoubtedly see more fruit varieties such as açaí berry, baobab, mangosteen, goji berry and seabuckthorn enter, and flavor, more drinks.
