Highest decline in Juice companies recorded in India: Nielsen Data

India’s ready to drink, juice market has unfortunately reposrted its sharpest downhill performance in the mid quarter, with customers opting for lower cost drinks like soft drinks and milk based items.

The reasons for that have been said to be high prices, the late onset of summer in the northern consumer belt, and increased competition, by industry specialists from Pepsi-Co, Dabur and ITC which dominate these markets.

New data shows that the 100 percent juices category declined 3.1% in the April-June quarter, compared with 18% growth in the corresponding year-ago quarter by way of sales, according to Nielsen research data, sourced from industry.

“All players are now competing for the same but shrunk consumer wallet,” packaged foods and personal care maker Dabur’s chief executive Mohit Malhotra said. Dabur sells juices under the Real brand, and has bucked the trend, the data showed.

“The juice industry has been witnessing strong headwinds and increased competitive intensity from milk-based players,” Malhotra added.

Consumption has declined, caused by softening demand for essential- and impulse-food categories across all food and non-food categories, including juices, salty snacks, biscuits, and tea.

Consumer facing firms say growth forecasts are lower than earlier projections, as consumers are down-trading to lower-priced products despite health concerns. Diversified group ITC, which derives over 25% of its revenues from newer FMCGbusinesses, confirmed the decline in the juices and nectars category on the basis of Nielsen data.

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