UK Fruit Juices & Health Drinks

UK Fruit Juices & Health Drinks

This Key Note Market Report covers the fruit juices and health drinks market, which comprises fruit juice, health drinks and fruit drinks. Despite the relative maturity and the high household penetration level of the sector, the total fruit juices and health drinks market has grown strongly over the past 5 years, in terms of both value and volume. In 2006, the total market was worth an estimated £2.77bn at retail selling prices (rsp), having grown by 30.7% since 2002.

In 2006, fruit juices, health drinks and fruit drinks accounted for 40.6% of the total soft drinks market in terms of volume sales. The sector has gained market share over the past 5 years, as consumers switch away from alternative soft drinks and towards the products covered by this report. Fruit juices and health drinks have benefited from their healthy image, particularly in comparison with other, less healthy, drinks, such as carbonates.

Large multinational companies, led by Coca-Cola Enterprises UK Ltd and Britvic Soft Drinks Ltd, dominate the fruit juices, health drinks and fruit drinks market. Other major players include Pepsico, Princes Soft Drinks Ltd, Cott Beverages Ltd and Gerber Juice Company Ltd. The remainder of the market is fairly fragmented, with many niche players, such as Red Bull, which are dominant in particular sectors. In addition, GlaxoSmithKline PLC, one of the world's leading drugs companies, also owns the iconic Lucozade and Ribena brands.

Marketing and advertising play a key role in the sector, which is characterised by a multitude of brands and sectors, and often little difference in terms of the ingredients that go into the drinks. Thus manufacturers invest heavily in advertising and promotion to differentiate their brands and appeal to consumers in terms of lifestyle aspirations and/or health factors.

Data from BMRB International Ltd's Target Group Index (TGI) survey reveals that, in 2006, more than half the population were users of fruit and vegetable juice, with women more likely to drink it than men.

Prospects for the market appear excellent. Fruit juices and fruit drinks have a healthy image and are convenient to use, so they should continue to benefit from the two major trends influencing food and drinks markets, not just in the UK, but around the world: the demand for healthy and convenient products. They should, therefore, continue to win consumers away from carbonates, their chief rival in the soft drinks market, as well as other beverages such as tea and coffee that require some preparation. Energy drinks should also continue to experience strong growth, although they are more vulnerable than the other sectors due to concerns about their healthy attributes, with adverse reports continuing to emerge about one of the main brands in the sector, Red Bull.

1. Market Definition
REPORT COVERAGE
MARKET SECTORS
Fruit Juice
Health Drinks
Fruit Drinks
MARKET TRENDS
Apple Threatens Orange Dominance of The Fruit Juice Sector
Health and Convenience Trends Drive The Market
ECONOMIC TRENDS
Population
Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 2001-2005
Gross Domestic Product
Table 2: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005
Inflation
Table 3: UK Rate of Inflation (%), 2001-2005
Unemployment
Table 4: Actual Number of Unemployed Persons in the UK (million), 2001-2005
Household Disposable Income
Table 5: UK Household Disposable Income Per Capita (£), 2001-2005
MARKET POSITION
The UK
Table 6: The Total UK Soft Drinks Market by Volume (million litres and %), 2002-2006
Overseas

2. Market Size
THE TOTAL MARKET
Table 7: The Total UK Fruit Juices and Health Drinks Market by Sector by Value (£m at rsp), 2002-2006
Figure 1: The Total UK Fruit Juices and Health Drinks Market by Sector by Value (£m at rsp), 2002-2006
Table 8: The Total UK Fruit Juices and Health Drinks Market by Sector by Volume (million litres), 2002-2006
Figure 2: The Total UK Fruit Juices and Health Drinks Market by Sector by Volume (million litres), 2002-2006
BY MARKET SECTOR
Fruit Juice
Table 9: The UK Fruit Juices Sector by Value (£m at rsp and %), 2002-2006
Health Drinks
Table 10: The UK Health Drinks Sector by Value (£m at rsp and %), 2002-2006
Fruit Drinks
Table 11: The UK Fruit Drinks Sector by Value (£m at rsp and %), 2002-2006
OVERSEAS TRADE
Imports

3. Industry Background
RECENT HISTORY
NUMBER OF COMPANIES
Table 12: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Fruit and Vegetable Juice, and Mineral Water and Soft Drinks by Turnover Sizeband, 2006
EMPLOYMENT
Table 13: Number of UK Local Units Engaged in the Manufacture of Fruit and Vegetable Juice, and Mineral Water and Soft Drinks by Employment Sizeband, 2006
REGIONAL VARIATIONS IN THE MARKETPLACE
DISTRIBUTION
Table 14: Distribution of Fruit Juice, Health Drinks and Fruit Drinks by Type of Outlet (%), 2006
Figure 3: Distribution of Fruit Juice, Health Drinks and Fruit Drinks by Type of Outlet (%), 2006
HOW ROBUST IS THE MARKET?
LEGISLATION
KEY TRADE ASSOCIATIONS
Association of the Industry of Juices and Nectars from Fruits and Vegetables of the European Union
British Soft Drinks Association

4. Competitor Analysis
THE MARKETPLACE
Market Leaders
Table 15: Leading UK Manufacturers of Fruit Juices, Health Drinks and Fruit Drinks by Turnover (£m), Latest Financial Year
MARKET LEADERS
Britvic Soft Drinks Ltd
Company Structure
Current and Future Developments
Financial Results
Coca-Cola Enterprises UK Ltd
Company Structure
Current and Future Developments
Financial Results
Cott Beverages Ltd
Company Structure
Current and Future Developments
Financial Results
Del Monte Fresh Produce (UK) Ltd
Company Structure
Current and Future Developments
Financial Results
Gerber Juice Company Ltd
Company Structure
Current and Future Developments
Financial Results
GlaxoSmithKline PLC
Company Structure
Current and Future Developments
Financial Results
Princes Soft Drinks Ltd
Company Structure
Current and Future Developments
Financial Results
Other Companies
AG Barr PLC
Calypso Soft Drinks Ltd
Merrydown PLC
Nichols PLC
Red Bull UK
Tovali Ltd
Tropicana United Kingdom Ltd
OUTSIDE SUPPLIERS
Raw Materials
Processing, Distribution and Packaging
MARKETING ACTIVITY
Main Media Advertising Expenditure
Cordials
Table 16: Main Media Advertising Expenditure on Cordials (£000), Years Ending September 2005 and 2006
Fruit Juices and Still Drinks
Table 17: Main Media Advertising Expenditure on Fruit Juices and Still Drinks (£000), Years Ending September 2005 and 2006
Other Activities
Sports Sponsorship
Character Licensing
Exhibitions/Trade Shows

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
CONSUMER PENETRATION
Users and Non-Users of Fruit and Vegetable Juice
Table 18: Users and Non-Users of Ready-To-Drink Fruit and Vegetable Juice by Sex, Age, Social Grade and Region (% of adults), 2006
Frequency of Consumption
Heavy Usage
Medium Usage
Light Usage
Table 19: Penetration of Ready-To-Drink Fruit and Vegetable Juice by Sex, Age, Social Grade and Region (% of adults), 2006
Energy Drinks
Table 20: Penetration of Energy Drinks by Sex, Age, Social Grade and Region (% of adults), 2006

7. Current Issues
Brand Activity
Coca-Cola Continues to Target Red Bull
Irn-Bru Enters The Energy Market
Sunny D Attempts Comeback
HEALTH ISSUES
Further Concerns About Red Bull
Cloudy Apple Juice Has The Healthy Edge
RETAILING DEVELOPMENTS
BBC Predicts Smoothie Bar Wars
COMMODITY MARKETS
Big Freeze in US Forces Up Fruit Prices

8. The Global Market
OVERVIEW
THE US

9. Forecasts
INTRODUCTION
ECONOmic Forecasts
Gross Domestic Product
Table 21: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2006-2010
Inflation
Table 22: Forecast UK Rate of Inflation (%), 2006-2010
Unemployment
Table 23: Forecast Actual Number of Unemployed Persons in the UK (million), 2006-2010
Forecasts 2007 to 2011
Table 24: The Forecast Total UK Fruit Juices and Health Drinks Market by Sector by Value (£m at rsp), 2007-2011
Market Growth
Figure 4: The Forecast Total UK Fruit Juices and Health Drinks Market by Sector by Value (£m at rsp), 2002-2011
FUTURE TRENDS
Demographics
Table 25: Forecast UK Resident Population by Sex (000), Mid-Years 2006-2010
Product Development
Competitor Forecasts

10. Company Profiles
Britvic Soft Drinks Ltd
Coca-cola Enterprises Ltd
Cott Beverages Ltd
Del Monte Fresh Produce (uk) Ltd
Gerber Juice Company Ltd
Glaxosmithkline Plc

11. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
Confidence Slips Slightly
Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006
Significantly More Adults Are Willing to Borrow
Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), November 2005-2006
SPENDING FROM SAVINGS
Little Change in Spending from Savings
Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006
Saving Grows in Relative Importance
Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), November 2005-2006

12. Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Bisnode Sources