Skip to main content

Ready-to-drink fruit juice still standing strong

| Research tools

Recent findings released by BMi Research have revealed that ready-to-drink (RTD) fruit juice continued to grow in volume despite tough economic conditions. The category grew by 2,7% in volume in 2015.

The industry selling price grew at the same rate as the inflation rate. The long-life fruit-juice segment accounted for 54,8% of total volume distributed. The smaller pack size group (up to 750ml) continued to grow at a higher rate than the bigger pack size group (751ml and above).

The following factors were believed to have contributed to category growth:

  • New products and flavours that entered the market;
  • Notable increase in promotional and marketing activities;
  • Warmer temperatures in certain regions; and
  • Weaker rand exchange rates that promoted exports.

 

The following factors may have hampered category growth:

  • Increase in raw material pricing affecting product price;
  • Increase in fuel prices affecting product distribution;
  • Increase in electricity prices and load shedding, affecting production; and
  • Shortage of water in certain regions, affecting production.

 

The category is expected to remain under pressure in the short to medium term as the economic growth remains low and consumer spending will be limited. Gauteng and Western Cape regions accounted for more than half of the total volume distributed locally.

Top end retail remained the primary distributing channel of the product followed by the wholesale channel. These channels were characterised by promotional and marketing activities, attracting more customers to their store. Gauteng and Western Cape regions accounted for more than half of the total volume distributed locally.

Pin It

Related Articles

More Pick n Pay smart shoppers switching points...

Pick n Pay Smart Shopper customers are increasingly spending their points on airtime and data, a popular loyalty reward exclusive for retailer Pick n Pay.

Mr D versus Checkers Sixty60, Woolies Dash, Ube...

By: Staff Writer - MyBroadBand Mr D Groceries has partnered with Pick n Pay stores across South Africa to give shoppers access to more than 27,000 food products at in-store prices – including drinks, meat, snacks, fresh produce, and more.

These are South Africa’s most popular loyalty p...

By: Lynette Dicey - BusinessLive Loyalty programme usage in South Africa has grown from 67% in 2015 to 76% in 2023/2024 across both gender and income categories, says the most recent “South African Loyalty Landscape Whitepaper” by Truth &...

New Research Finds 84% of South Africans Demand...

NSF study shows a significant shift towards ethical consumerism is underway in South Africa, with a majority of consumers calling for clear animal wellness transparency and compliance. 

Take heed of these new retail trends that emerg...

By Karen Keylock | National Retail Services Manager at Nedbank Commercial Banking South African consumers are under financial strain and, consequently, the way they shop has changed. And with further economic uncertainty expected in the coming ye...