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Nondairy beverages mainly painted on smiles this year. Ready-to-drink (RTD) coffee was the master of ceremonies at retail, shining in both the shelf-stable cappuccino/iced coffee and refrigerated coffee segments.
Consumers are shunning sugar, and there's no shortage of beverage innovation reflecting this reality. So it's no wonder that the U.S. retail juice segment has had a tough time of it in recent years.
The picture appears to be a little less than rosy for the refrigerated juices/drinks category. For the 52 weeks ending March 25, 2018, dollar sales in the category fell 1.1% to $6.6 billion, while unit sales declined by 2.1% to 2.2 billion, according to data from Chicago-based market research firm IRI.
As noted in the nondairy beverage article in our May issue, consumers are seeking functional and no-sugar-added options for beverages — and some juice segments are taking a hit in sales because of it. Sales are down in orange, apple and juice/drink smoothies segments, but ticking up in refrigerated lemonade, fruit drinks and vegetable juice blends.
Consumers are looking for beverages with no added sugar, and functional and clean ingredients. This has presented challenges for some juice manufacturers.
As consumers demand more better-for-you products, experts note that the juice and juice drinks category has been challenged in a unique way and struggled to maintain its share of the beverage market.
Juice beverages are a multibillion dollar industry, and according to a recent trend report from Fona International, millennials in particular are throwing back more juices as meals and snacks, and for health and hydration.
In the refrigerated juice category, orange juice takes a hit. There are a few bright segments, namely veggie juice cocktails, juice and drink smoothies, and lemonade.
The vegetable juice/cocktail segment’s dollar and unit sales rise above the rest, while cranberry and orange juice sales struggle. Meanwhile, blended juices are all the rage.
While lemonade and apple juice sales go sour, cranberry cocktail, vegetable juices and smoothies rise above the rest. Unit sales of that old standby, orange juice, are squeezed.