Walking into major supermarkets and convenience stores, you are immediately surrounded by a variety of beverages—tea drinks, sodas, coffee, energy drinks... However, when you try to find a bottle of traditional juice, you notice their positions on the shelves seem somewhat lonely, and the quantity is pitifully small. In the ready-to-drink market, juice appears to be gradually marginalized.
The Absent 'Billion-Yuan Blockbuster'
Let's first look at a set of data: According to a report compiled and released by Huajing Industry Research Institute, the total scale of China's soft drink market in 2023 reached an astonishing 909.2 billion yuan. In this vast market, juice drinks only accounted for about 13.7% of the share. Although this proportion seems not small, a deeper dive reveals some phenomena. In the soft drink industry, sub-markets such as energy drinks and ready-to-drink tea have already seen multiple 'billion-yuan blockbusters.' For example, Red Bull has maintained sales of over 20 billion yuan for many years; Dongpeng Special Drink's revenue first exceeded 10 billion yuan in 2023; Nongfu Spring's Oriental Leaf also surpassed the 10 billion mark in the same year, becoming one of the largest categories in the ready-to-drink tea market; AD calcium milk, You Suan Ru, and Want Want milk have long become classic choices in consumers' minds. In contrast, the juice market seems somewhat lackluster.
What is more thought-provoking is that China's juice consumption is almost negligible globally. According to statistics, the per capita annual juice consumption in China is less than 1 kilogram, only 1/10 of the world average and 1/40 of the average in developed countries. North America and Europe account for about 60% of global consumption of 100% juice and pulp drinks. Why, in such a huge consumer market as China, has the juice industry failed to produce a 'billion-yuan blockbuster'? Why are Chinese people not enthusiastic about juice?
Why Are Chinese People Not Enthusiastic About Juice?
Recently, the hot topic of 'white people food' on social platforms reveals an interesting phenomenon: In foreign countries, many people are accustomed to supplementing vitamins by drinking juice, especially at breakfast, while Chinese people generally drink milk or soy milk. Why this difference? One reason is that long-term consumption of 'white people food' leads to insufficient nutrient intake, making juice an important source of vitamin supplementation; secondly, fresh fruit prices overseas are generally higher, with vegetables and fruits being more expensive than meat. When consumers cannot afford fresh fruit, juice becomes an economical choice. In contrast, China has vast territory and abundant resources, with rich fresh fruit resources. According to relevant data, China is one of the countries with the largest fruit production and consumption in the world. In 2019, China's fruit output reached 274 million tons, accounting for 31.4% of global production. Moreover, from 2013 to 2021, China's fruit consumption increased by 30.5211 million tons, with an average annual compound growth rate of about 5.62%. This means Chinese people's preference for fresh fruit far exceeds that for juice.
The consumption gap between the two reaches 10 times, while in the United States this figure is only 2.5 times, and in Japan 4.6 times. Meanwhile, in large cities, with rising fruit prices and an increase in single people, the cut fruit market has emerged and experienced explosive growth in the past two years. Opening food delivery apps, you can see a dazzling array of cut fruit products, which have quietly taken away part of the juice market.
Secondly, the health and wellness, sugar-reduction, and low-sugar trends that have risen in recent years have made 'sugar' a target of criticism. Imagine facing a fresh orange and a glass of orange juice—how would you choose? Most people's instinctive reaction is to choose the orange. Why? The reason is simple: most people believe fruit is healthier than juice. As consumers' health awareness gradually increases, their requirements for juice have also become higher. Traditional juices with higher sugar content are no longer favored. Even 100% pure juice suffers from the destruction of the fruit's structure during the juicing process, leading to losses in vitamins and dietary fiber. Moreover, a glass of juice usually requires several fruits to squeeze out, concentrating the natural sugars in the fruit into the juice. Additionally, traditional juice drinks often contain extra sugar and other artificial additives, giving consumers an impression that juice is 'unhealthy.'
Furthermore, from the perspective of corporate competition, data from various juice players shows that in 2021, Coca-Cola ranked first in China's juice beverage industry with a market share of 10.6%; followed by Huiyuan, Ting Hsin International Group, Uni-President, and China Foods, with market shares of 9.7%, 9.6%, 3.9%, and 3.7%, respectively. (Statistics based on parent companies.) The overall market concentration is not high, with the top few brands combined accounting for less than half of the market. The current Chinese juice market still presents a fragmented competitive landscape. The market may need more education and promotion efforts to increase consumer awareness and acceptance of juice products and cultivate consumer behavior habits.
Demand Exploration in Niche Scenarios
In an exchange with Mr. Zhao Bo, founder of New Distribution, he pointed out: 'China's juice market is not without opportunities; rather, traditional juice products have not well met the needs of the new generation of consumers.' In other words, the juice market faces challenges, but if companies can find gaps in the market and precisely tap into and meet consumers' potential needs, they can still thrive.
First, let's look at opportunities in some niche scenarios. High-end dining is dominated by freshly squeezed juice, making it difficult for traditional bottled juice to penetrate. Therefore, the fast-food channel can be seen as an unexplored blue ocean market. Take Songyou Juice as an example: in 2022, within less than a year of launch, its sales reached 350 million yuan, and in 2023, it exceeded 600 million yuan. Its founder, Mr. Song, stated that to date, the product has covered more quality and scale dining outlets in its home base of Zhejiang than any other FMCG brand. Songyou Juice's success lies in its deep understanding of consumer preferences and its refreshing and greasiness-relieving characteristics, firmly rooting it in the dining channel. Similarly, brands like Minute Maid and Beiyang Bing have also targeted the fast-food accompaniment scenario, focusing on creating juice products suitable as meal companions.
Another scenario worth noting is the wedding banquet scene. Here is a very interesting new consumer brand—Hope Water. In addition to combining taste, scenario, and function, Hope Water cleverly incorporates social attributes. Brand names like 'Wang Mei Hao' (Hope for Good Plums) and 'Wang Xing Fu' (Hope for Happiness) not only cater to the couple's good wishes for future life but also make the product stand out on specific occasions, successfully shaping the brand image and giving juice additional cultural value.
Secondly, new scenarios are emerging. Single and young groups, due to fast-paced lifestyles, often cannot guarantee their daily fruit intake, creating a demand for quick vitamin supplementation. For example, office workers may be busy with work and have no time to prepare healthy meals. At this point, a bottle of juice from the convenience store downstairs becomes an ideal choice for supplementing dietary fiber and vitamins. This group has become one of the main forces in juice consumption.
Additionally, the children's market can no longer be underestimated. A study titled 'Status of Major Food Intake among Children Aged 6-17 in China' published in the Chinese Journal of Public Health in May 2023 showed that over 70% of children have daily vegetable and fruit intake below 60% of the recommended dietary amount. Juice can conveniently supplement daily vitamins. As early as 2007, Huiyuan launched the 'Le Le Yuan' series targeting the children's market, which, in addition to traditional 100% juice, also introduced fruit and vegetable juices containing multiple vitamins and minerals. Later, a dedicated 'Children's Drink Business Department' was established. In May of last year, Jiangzhong Shiliao launched 'You Yan Guang Fruit and Vegetable Juice' targeting the children's eye care niche market, with a buy-and-gift strategy, selling well across the internet.
Product Upgrades
Moving Towards Diversification
In addition to common NFC juice, reconstituted & blended juice, and concentrated juice, the HPP (High Pressure Process) technology that has emerged in recent years must be mentioned. It is also regarded as the TOP ONE in juice processing technology. By using ultra-high pressure to kill bacteria and microorganisms in juice without high temperatures, it maximally preserves the original color, flavor, and nutritional components of the juice. Although this process has relatively low yield and higher costs due to the need for cold chain transportation, with consumption upgrades, it precisely meets consumers' demand for high-quality juice. For example, in 2020, Hema keenly captured this trend and launched its own brand of HPP fruit and vegetable juices. According to statistics, in the first month after launch, the repurchase rate reached 25%, and sales within 2023 increased by over 100% year-on-year, with red heart apple juice sales growing by 400% from November 2023 to April 2024. This shows that consumers are willing to pay for healthier, more natural products.
Meanwhile, many traditional brands have also started to follow suit. In May this year, Beiyang Bing launched its first HPP citrus juice, adding new vitality to the innovative and high-end path of Chinese juice. In addition to process innovation, clean formulas are also receiving much attention. Nowadays, many people carefully read ingredient lists when buying products and prefer 'clean' formulas without additives or preservatives. Looking at the juice product line, some brands have launched niche flavors such as bayberry juice, sea buckthorn juice, and lime juice, usually using natural ingredients without anything messy. These juices not only have unique tastes but also provide peace of mind when drinking. There are also various functional juice drinks on the market, such as juices rich in beta-carotene, prune juice, and tomato juice, which have effects like eye protection and aiding digestion. Additionally, there are creative combinations like apple + carrot, orange + ginger, which can attract consumers to try and meet their demand for healthy drinks. The quiet rise of these juice products indicates that the future of China's juice industry will be more diversified, healthier, and higher-end.
Final Thoughts
Jiang Nanchun, chairman of Focus Media, has repeatedly raised the complexity of consumer needs, emphasizing that China's consumer market is undergoing a transition from a 'price-performance ratio' market to 'appearance-performance ratio' and then to 'heart-performance ratio.' He believes that modern consumers not only pursue cost-effectiveness and product aesthetics but also value emotional value. As market competition intensifies and consumers become more mature, in the era of shrinking volume, juice still has a long way to go. Although the industry has stagnated, new opportunities always exist. According to data from Kantar Worldpanel and Bain & Company, juice sales grew by 20.8% in the first quarter of 2024, gradually recovering, with high-concentration juice growing faster. Whether by exploring new consumption scenarios and demographic opportunities, enhancing product competitiveness through process innovation, or meeting consumers' diversified demands of 'wanting it all,' the juice industry needs to continuously adapt to market changes, adjust its strategies, keep pace with the times, and move from the edge to the center of the stage.
References: China Research Institute of Industry “2023-2028 China Juice Beverage Industry Market Development Environment and Investment Trend Analysis Report”; Huajing Industry Research Institute “2024-2030 China Juice Beverage Industry Market Panoramic Analysis and Investment Prospect Outlook Report”; Forward Industry Research Institute “China Juice Industry Production and Sales Demand and Investment Risk Analysis Report”; Forward Industry Research Institute “2019 Global Fruit Production and Planting Area Top 10 Distribution”; Forward Economist “2023 China Juice Beverage Industry Market Status and Development Prospect Analysis”; “Nong Xiaofeng: 2023 China Fruit Industry Data Analysis Report”; “2023 Hema District Consumption Trend Report”