Coco-Cola may have lion’s share in India Juice Market in near future due to its continuous product launches and innovation: Bonafide Research
Cola major Coca-Cola is planning to launch its vegetable juice in the Indian market after the success of its fruit juice like Minute maid in early 2017. The company’s focus will be on ‘fruit circular economy’– enabling farmers to increase their yield, source pulp, and launch fruit-based products. Every year, The Coca-Cola Company launches hundreds of new products to meet the ever-changing tastes of consumers around the world.
Coc-Cola is expanding its fruit-based beverage offerings- frozen fruit dessert by getting into dairy-based value-added products and also exporting those products to other countries that are developed in India. It is also planning to launch vegetable-based beverages like carrot juice with fruit beverages including based on regional fruits and would soon be launching them.
According to a published report of Bonafide Research “India Juice Market Outlook, 2021”, the juice market is growing at a CAGR around 17% in the last four years. National players- Dabur and Parle Agro are ruling the India juice market. Dabur, which is an FMCG company, is serving the beverage industry of India with its two most renowned brands Real and Real Active. Dabur majorly is a dominant player in the fruit juice and the nectar drinks segment. Parle Agro, which is also an FMCG major serves the juice industry with its brands Frooti, Appy, and Appy Fizz serving in the fruit drinks segment in India with a dominant share. Both these players collectively contribute to about a 45% share of the overall juice market in India. On the other hand, if the foreign players are taken into account, PepsiCo that hails from a beverage industry; entered the Indian market with its brand Tropicana and Slice; which caters to all three segments of the juice market. Whereas, Coca Cola also a part of the beverage industry, serves all the segments of the juice market with its popular brands Minute Maid and Maaza. In spite of being from a foreign ground and segmenting all the three variants of the juice market, PepsiCo and Coca Cola combined fall short of shares when compared to the Indian origin majors in the juice market. Dabur and Parle Agro have taken together to lead the Indian juice market and in the coming five years are expected to dominate in the same manner. PepsiCo and Coca-Cola are projected to acquire shares around 40% by 2021 in the Indian market followed by the lead of the formerly mentioned companies.
The stiff competition in the ever growing juice market in India has resulted in a high threat of new entrants in the market. Many regional players like Manpasand beverages, Hector Beverages, Shakti Ganga Group, and ITC Limited with its various brands in the different segments are making it big in the Indian juice market. Keeping in mind the price-sensitive nature of the Indian consumers the startups are innovating on the packaging strategy factor and also on the flavors that are best-loved by the Indian consumers.
Coco-Cola is now set to take further advantage of market opportunities in juice market in India. It will launch fruit juices based on regional preferences like it would launch mango juices based on mango varieties that are available and popular in a particular region so that local people can connect with it and have one. For these purposes, it has tied up with Jain Irrigation which operates fruit pulping plants in different regions. In addition to that, they have a tie-up with that company for oranges in Maharashtra. The company has started exporting Indian brands like the carbonated drink ThumsUp and masala soda RimZim to Bangladesh and later to Sri Lanka, Bhutan, and other markets. Thus there will not be a doubt that Coca-Cola will have a lion’s share in the near future in India Juice Market.