---
title: "In the Fiercely Competitive Juice Market, How Does Leyuan Continue to Innovate and Stand Out?"
description: "China's beverage industry is growing rapidly, with the juice category experiencing high-speed growth. According to Nielsen's May 2023 FMCG market monthly insight report, juice sales in offline channels have grown rapidly for two consecutive years, with a growth rate of 16.2% from April to May 2023, maintaining the upward trend after the pandemic. However, the juice industry faces challenges such as increasing consumer demand for healthy products and intense market competition."
author: "青山依旧"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2023-08-02"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/q5w2lCYYrG0m0skBexn8Cg"
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# In the Fiercely Competitive Juice Market, How Does Leyuan Continue to Innovate and Stand Out?

> China's beverage industry is growing rapidly, with the juice category experiencing high-speed growth. According to Nielsen's May 2023 FMCG market monthly insight report, juice sales in offline channels have grown rapidly for two consecutive years, with a growth rate of 16.2% from April to May 2023, maintaining the upward trend after the pandemic. However, the juice industry faces challenges such as increasing consumer demand for healthy products and intense market competition.

Currently, China's beverage industry is developing rapidly, with the juice category growing at a high speed. According to Nielsen's May 2023 FMCG market monthly insight report, juice sales in offline channels have achieved rapid growth for two consecutive years, with a growth rate of 16.2% from April to May 2023, maintaining the upward trend after the pandemic.
However, the juice industry faces many challenges despite continuous growth. On one hand, consumers' demand for healthy diets is increasing, prompting juice manufacturers to provide more natural, organic, low-sugar, and low-calorie products. On the other hand, the juice industry also faces issues such as rising costs, intense market competition, and changing consumer tastes.
For juice brands, to stand out in the fierce market, they must find their own differentiated development path.
Recently, New Distribution interviewed Mr. Zheng Tongjian, Vice President of Leyuan Group and General Manager of the Marketing Center. We learned that Leyuan Group, with a 25-year brand development history, operates three major brands: **Leyuan Beverage, Zero Degree Fruit Workshop, and Fruit & Vegetable Secret**. It also has industry-leading ODM capabilities, having cooperated with well-known brands such as Yonghui and COSTA, forging an unusual path of differentiated development. What is the core advantage that keeps Leyuan Group competitive in the juice track?
**Finding Differentiation**
"Time is the greatest trust endorsement," said Mr. Zheng Tongjian. "Channels, brands, and users accumulate over time."
△ Mr. Zheng Tongjian, Vice President of Leyuan Group and General Manager of the Marketing Center
This year marks the 25th anniversary of Leyuan Group and the 10th anniversary of the Zero Degree Fruit Workshop brand. Time has witnessed Leyuan's development and brought the value of time. Over 25 years, Leyuan Group has developed three major categories in the juice field, subdivided into three brands: Leyuan Beverage, Zero Degree Fruit Workshop, and Fruit & Vegetable Secret.
**Leyuan Beverage is positioned as a healthy new trendy drink, Zero Degree Fruit Workshop as the leader in the NFC category, and Fruit & Vegetable Secret as a scientific and professional fruit and vegetable juice, completing a full-scenario, full-cycle layout for users' fruit drink needs.**
The homogenization of juice products is severe, even affecting the innovation and development of the entire industry. Leyuan, with strong industry sensitivity, insists on independent R&D, enabling it to seize opportunities and capture the blue ocean market.
The brand Leyuan Beverage, focusing on "healthy new trendy drinks," is a representative example. Relying on over 20 years of industry research experience and user big data, Leyuan Beverage deeply understands user needs, studies street drink product directions, and judges future product trends to meet users' desire for novelty and curiosity.
Thinking about fruit drinks with a "fast fashion mindset," Leyuan Beverage innovates and pursues fresher flavor combinations. Around different consumption scenarios, it has successively developed best-selling products such as Little Pink Lemon, Passion Fruit, Double Pomelo Juice, Little Green Lime, and Grapefruit Tea. Mature factory-brand products have attracted customers from related industry systems.
Image: Leyuan & Costa collaboration on Double Pomelo series coffee
Well-known coffee brand Costa's new drink "Double Pomelo Iced Coffee" uses fruit juice raw materials from Leyuan Beverage's Double Pomelo Juice. Moreover, every product launched under the factory brand Leyuan Beverage becomes a seasonal trend. Leyuan Little Green Lime was launched in September 2021 and sold nearly 4 million bottles in three months. According to Baidu marketing data, Leyuan Little Green Lime ranked in the top five on the beverage brand surge list. After its popularity, Leyuan launched Little Pink Lemon, a pink high-value internet-famous drink that is very eye-catching.
Image: Zero Degree Fruit Workshop 10th anniversary
In addition, another main brand under Leyuan, Zero Degree Fruit Workshop, is a standout among independently developed products. As the pioneer of NFC juice in China, the Zero Degree Fruit Workshop brand first opened consumers' awareness of NFC and sparked a domestic NFC trend. It is understood that as early as 2021, cumulative sales of Zero Degree Fruit Workshop 100% juice exceeded 2,000,000+ bottles. In May this year, Zero Degree Fruit Workshop gained attention again with its Early Orange Good series juice, taking the top two spots on the South China chilled ready-to-drink juice bestseller list in April 2023.
Image: Zero Degree Fruit Workshop - NFC Juice Player 0
Focusing on freshly squeezed NFC juice has helped Zero Degree Fruit Workshop find opportunities in the segmented track, expanding the brand's influence and reputation in this field. This is also the foundation and confidence for Leyuan Group's diversified development.
Mr. Zheng Tongjian stated that most juice brands today often rely solely on a core single product to maintain market leadership forever. But in reality, the era of one big product dominating the market is over. Products reflect brand competitiveness but cannot become the core competitiveness of an enterprise.
In today's integrated online and offline world, with refined and diversified consumer demands, and with brand prosperity and product abundance, to stand out, one must find differentiation.
With 25 years of deep cultivation in the field, Leyuan has accumulated strong supply chain strength and consumer insight capabilities in products. While continuously innovating its three major brand products, Leyuan has found a suitable differentiated development path, focusing more on providing ODM overall solutions for juice products to industry-related systems.
**Leyuan Group, driven by both factory-brand business and ODM business, brings new ideas for enterprise innovation and development.**
**Leyuan's Two Paths**
Over the years, Leyuan has not only successfully built three major brands—Zero Degree Fruit Workshop, Leyuan Beverage, and Fruit & Vegetable Secret—but also attracted enterprises wanting to cross over into the beverage track to cooperate with Leyuan.
Among them are well-known coffee brand COSTA and retail giant Yonghui. The latest co-created products include COSTA's Double Pomelo Iced Coffee and Yonghui's Camellia Tangerine Good.
Image: Chan Da Shi Camellia Tangerine Good (Leyuan cooperative brand)
The reason Leyuan Group, walking on two legs, can attract major brand cooperation is actually its grasp of two major trends in the beverage industry: **first, insight into new consumption scenarios and channels for juice drinks; second, seeing the future trend of private brand development.**
Most beverage brands have always focused on their mainstream products and channels, lacking the ability to break out of product category boundaries. But Leyuan, with its ability to observe market trends, has seen the huge prospects of juice-coffee development.
Currently, coffee has become a new category with large beverage volume, high repurchase, and a wide consumer base. At the same time, consumers prefer healthy and nutritious products, and juice-coffee has recently shown explosive growth, becoming an indispensable part of summer beverages.
To this end, Leyuan, which has global sourcing of high-quality fruit origins, based on high-quality raw materials and years of brand reputation, cooperated with popular coffee brand COSTA to launch juice-coffee—Double Pomelo Iced Coffee. COSTA chose to cooperate with Leyuan Group because of Leyuan's strong capabilities.
Image: Leyuan & Costa collaboration on Double Pomelo series coffee
Behind Leyuan Group is the stable supply chain support of 35 fruit juice raw material enterprises in 23 countries globally. The most important part of the juice supply chain is its ability to directly source global fruit raw materials. By exploring high-quality fruit resources from various origins and juicing techniques, it can ensure stable and consistent raw material quality.
Secondly, Leyuan also has two self-built production bases covering 117,800 square meters and 5 leading automatic filling production lines. While meeting customer production needs, it has also laid out a broad flexible production cooperation network across the country, capable of meeting small-scale, customized product production and matching personalized customer production needs.
Image: Leyuan factory image
In addition, Leyuan Group has an independent product R&D team and R&D laboratory, with a clear overall R&D chain, which can accelerate flavor launch speed, improve launch success rate, reduce overall trial-and-error costs, and enhance ODM core competitiveness.
In fact, beverage companies with ODM capabilities are not uncommon, but those that can achieve product innovation based on market insight, co-create products with customers, and spend effort polishing details are rare.
Another key for Leyuan is grasping the trend of future private brand development.
China's private brand development trend is obvious. In addition to some brands crossing over, hypermarkets, membership stores, snack discount stores, and even distributors have demands for launching private brands. Unlike the beverage track, which has entered a red ocean market, private brands are facing a situation of high demand, high thresholds, and few advantageous OEM factories.
Based on Leyuan's advantages, Yonghui chose to co-create products with it. After more than 60 rounds of product polishing, the new product Camellia Tangerine Good, customized for Yonghui, was officially born. This product has achieved good sales in Yonghui's stores nationwide. In fact, as early as 2019, the two sides had already started deep strategic cooperation through the introduction of the hit product Little Green Lime juice drink.
Currently, Leyuan Group has established strategic cooperation with more than 20 KA and CVS systems, including Hema, Yonghui, Metro, and Pangdonglai.
Leyuan combines factory-brand business with external cooperation, and through product co-creation and ODM production, ultimately achieves the goal of common development for the brand, partners, and the industry.
**The Ultimate Brand Differentiation—Empowering the Industry**
Mr. Zheng Tongjian told New Distribution, "Whether providing high-quality juice raw materials for COSTA or co-creating new products with Yonghui, it is essentially helping customers meet consumer needs by providing product and technical support. Because Leyuan deeply knows that only when everyone develops well together can Leyuan itself grow better."
**The beverage business is a long-term business.**
With the development of consumption segmentation and channel diversification, in the future, enterprises mainly focused on high-quality raw material supply and ODM manufacturing will be needed by more emerging beverage brands. Leyuan, with independent R&D capabilities, is empowering the industry by co-creating products with cooperative customers through its raw material procurement, advanced production lines, independent R&D team, and consumer insight capabilities.
And this will become Leyuan's unique core competitiveness.
Mr. Zheng Tongjian also stated, **"Helping the development of the juice industry will also become an important part of Leyuan Group's corporate social responsibility. Today, as Chinese consumers' demand for juice increases year by year, Leyuan will rely on its own advantages to help brands in need create their own products and provide technology and raw materials for brands with product innovation needs."**
Focusing on a good glass of juice for 25 years is Leyuan's persistence; letting more Chinese people drink better juice and using fruit and vegetable juice to help improve the national dietary structure is Leyuan's ultimate mission.
Based on this mission, Leyuan, while doing well in the present, looks to the future, amplifies its core advantages, and explores deeper and broader self-worth. It not only helps partners develop well but also empowers the industry, driving the entire juice industry forward.


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