Executive Summary

The UK fruit juices and health drinks market forms part of the food and drinks industry, and was valued at £1.75bn in 1999. Sales have been on an upward trend for a number of years and, although not an essential purchase, these types of drinks are bought by the majority of the population. Juice and juice drinks had a penetration level of 75.8% in 2000. The positive health profile of fruit has aided product sales, while the recent boom in functional energy drinks targets a market for both refreshment and energy. Changing eating habits have led to increased levels of snacking. This in turn has increased the consumption of drinks which can be consumed `on the go', and has boosted sales of single serve products.

There are two main sectors in the market: fruit juices and juice drinks, and health drinks. The juice sector is dominated, in volume terms, by sales of long life juice. However, the fastest growing sectors have been chilled pure juice, particularly not from concentrate and juice drinks. The latter sector offers considerable scope for suppliers to target specific consumer demand for different flavours, sugar levels, concerns about additives, fortification and vitamin content, etc. Sales of health drinks are primarily of energy drinks of various types. The success of Red Bull in 1999/2000 has boosted sales of functional energy brands in particular.

The market has a number of strong brands including names such as Del Monte, Robinsons, Tropicana, Lucozade, Ribena, Sunny Delight and Shloer. Retailer own-labels especially dominate the long life juice sector, where they have driven sales through multipacks and low pricing. However, brand investment by suppliers is high with ongoing product and packaging redesigns, together with substantial marketing budgets, a feature for many. New product launches in 2000 included Fruit Shoot and Juice Up from Britvic Soft Drinks Ltd, Fruit Burst and Smoothies from Del Monte Foods (UK) Ltd, and Light Sunny Delight and bottles for immediate consumption from Tropicana United Kingdom Ltd.

Younger consumers are most important to the UK fruit juices and health drinks market. Households with children show an almost 80% penetration rate for fruit juices and juice drinks, compared to 74% for childless homes. A number of recent product launches, including Sunny Delight, specifically targeted children, while lunchbox sales have been another focus. The youth market and under 30s are particularly important to sales of energy drinks, and have driven the growth of functional drinks sales. Consumers remain receptive to new launches in this sector, and sales should remain relatively stable over the next four years. In 2004, the UK fruit juices and health drinks market is estimated to be worth £1.4bn.

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