PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1410112
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1410112
The Indian fruit juice market is estimated to grow at a CAGR of 25.43% during the forecast period.
Fruit juice refers to the liquid extracted from fruits, typically by pressing or squeezing them. It is a popular beverage choice due to its refreshing taste and nutritional content. The growing fruit production and increasing health consciousness in the nation are major growth drivers of the Indian fruit juice market. Moreover, the rapid urbanization rate coupled with increasing disposable income and government initiatives is further expected to propel the Indian fruit juice market.
The diverse climate of India ensures all varieties of fruit production in the nation making it a suitable fruit juice market. For instance, according to the 2021 FAO report, India ranks first in banana (26.45%), mangoes (43.80%), and papayas (39.30%) production and thus contributes significantly to the expanding fruit juice market. According to the APEDA reports, India is ranked second globally in the production of fruits and vegetables. As per the National Horticulture Database, India produced 107.24 million metric tonnes of fruits in 2021-22.
More customers are looking for healthier beverage alternatives as health and well-being become increasingly important. Fruit juices are frequently thought of as organic and healthy since they include important vitamins, minerals, and antioxidants. Therefore, the Indian fruit juice market has surged as a result of the health-conscious trend. The health consciousness can be seen through the increased demand for organic products and fruit juices. For instance, organic food and beverage sales reached $69 million in 2019 and it is further expected to grow in the coming years according to US FDA.
India's population has seen a huge growth in disposable income, affecting consumer tastes. People are prepared to pay more for high-end, healthier beverages, particularly fruit juices since they have more money to spend. For instance, the Indian gross disposable income increased by 6.4% in 2019-20 and stood at Rs. 204.22 lakh crore according to the Ministry of Statistics and Program Implementation. Moreover, the rate of private final consumption expenditure to GDP stood at 61% in 2019-20 as per the same source. Therefore, the rising disposable income is contemplated to boost the Indian fruit juice market.
Lifestyle and eating habits have changed as a result of rapid urbanization. Urban customers frequently seek ready-to-drink choices because of their hectic schedules. Fruit juices offer a practical alternative for individuals looking for a fast and wholesome refreshment option. The IEA estimates that by 2040, India's urban population would increase by 270 million people. The urbanization rate is very high in India and the government programs are further increasing the urbanization rate. For example, the Indian central government finalized five urban development schemes in May 2022 to introduce reforms in urban development.
The expansion of organized retail chains and the growth of modern trade formats, such as supermarkets and hypermarkets, have made fruit juices more accessible to consumers. The increasing retail presence in the nation is thereby propelling the Indian fruit juice market. For instance, India has 4th largest retail market in the world and it is expected to reach $1.1 trillion by 2027 as per the National Investment Promotion and Facilitation Agency. Moreover, over 10% of India's GDP and over 8% of the labor force (35+ Million) are employed in the retail industry. It is projected to create 25 million new jobs by 2030.
The Indian government has launched several projects and programs to support the fruit juice sector. These programs seek to assist fruit producers, increase facilities for processing and packing, and strengthen the infrastructure of the whole supply chain, all of which have a favorable effect on the Indian fruit juice market expansion. The food processing industry has been on a strong development trajectory due to the measures like a planned infrastructure investment of around INR 100 lakh crore (about $1 Trn) and INR 25 lakh crore to strengthen the rural economy. Moreover, Prime Minister Modi's Atmanirbhar Bharat vision, the scheme of Formalization of Micro Food Processing Enterprises (FME) was launched in June 2020 to empower the unorganized micro-enterprises and formalize the food processing industry.
The Indian fruit juice market has experienced growth and development however some restraints or challenges can impact its expansion. For example, the Indian fruit juice market is plagued by counterfeit and adulterated products, including fruit juices. Counterfeit juices may contain lower fruit content, artificial flavors, or added sugars, misleading consumers about the quality and authenticity of the product. The presence of counterfeit products can undermine consumer trust and impact the market for genuine fruit juices.