Consumers are often on the hunt for products that taste good and make them feel good. The juice and juice drinks category is usually the provider of such products, with flavorful, better-for-you (BFY) options.

In Beverage Industry’s December 2024 issue, experts noted an increased demand within the juice drinks category due to consumers’ interest in healthy, good-tasting alternatives.

“Another trend dominating the juice market is an increased consumer preference for higher-quality ingredients and fewer preservatives or unnecessary additives,” said Mitch Madoff, head of retail partnerships at New York-based Keychain, in Beverage Industry’s December 2024 issue. “Especially with the influence of social media platforms like TikTok and Instagram, consumers are increasingly more aware of what they’re consuming and starting to step away from products that are high in processed ingredients.”

Adriana Chychula, consumer insights analyst at Mintel, Chicago, stated that innovation is vital to the juice and juice drinks category.

“The juice and juice drinks market (made up of 100% juice, juice drinks and smoothies) is expected to grow 0.4% in 2024 to total $23.77 billion,” she shared in Beverage Industry’s December 2024 issue. “Nostalgia keeps classics like Capri-Sun relevant, while flavor innovation keeps things fresh. All connect to the emotional value of enjoying something in the moment with your sense, which is ultimately the main undercurrent of juice and juice drinks.”

For the 52 weeks ending April 20, the refrigerated juice and juice drinks category recorded sales of nearly $8.7 billion, a 2.6% increase, in total U.S. multi-outlets, according to sales data from Chicago based Circana. However, volume was down as unit sales decreased 2.4% in that timeframe.

Shelf stable bottled juices were more challenged as sales were down 1.9%, totaling $9.3 billion, while volume was down 3.7%, according to Circana data.

A bright spot was canned juices, albeit from a smaller base. Sales increased 8.7%, totaling $1.8 billion, with volume up 5.9%, Circana data shows.

Aseptic juices also saw a positive performance with sales at nearly $2.5 billion, a 3% increase, and volume up 1.4%, according to Circana data.

Roger Dilworth, senior analyst at Beverage Marketing Corporation (BMC), Wintersville, Ohio, pointed to inflation as the main reason for volume declines within the market in the past year.

“In 2023, fruit drinks declined in volume by 2.9% while fruit juice volume plummeted by 8% — overall fruit beverage volume decrease was 5.6%,” he stated in Beverage Industry’s December 2024 issue. “While fruit beverages in general have had a subpar performance for most of the past 20 years, the relative weakness in 2023 is due mostly to inflation.”

Landing with consumers

As consumer trends influence which juices are performing better than others, experts highlighted which segments are doing well and others that are struggling.

“According to scanner data, the segments that have done well are shelf-stable cherry juice and refrigerated pomegranate juice, which may be attributable to their purported health benefits (joint pain relief and ‘antioxidant powerhouse,’ respectively,” BMC’s Dilworth stated in Beverage Industry’s December 2024 issue. “Also doing relatively well are refrigerated fruit drinks, which may be due to their affordability. On the flip side of affordability, refrigerated orange juice has suffered due to its high price point.

“Other refrigerated juices have struggled, too, probably because of the same reason,” he continued. “The so-called premium/super premium ‘smoothie’ segment has declined precipitously as well, as fewer consumers are inclined to pay high prices for a single-serve container.”

Despite the highs and lows, Keychain’s Madoff shared in Beverage Industry’s December 2024 issue how classic flavors and premium options helped drive growth within the juice and juice drinks market.

“From what we’re seeing on Keychain, classic flavor options continue to lead in this category, including fruit punch, orange juice and apple juice,” he said. “Instead of adding new flavor options, most brands are looking to broaden their offerings with premium or higher-quality options, which have seen an increase in both demand and performance.

“These trends makes sense, especially when it comes to kids’ juices: parents are going to choose the better-for-you option that likely has less sugar and cleaner ingredients,” Madoff continued. “This is also the case for adults, who are often more likely to choose the healthier alternative for themselves.”

Mintel’s Chychula, meanwhile, said that 100% juiced carried engagement with consumers, but the beverage’s price points lift them above in terms of market performance.

“Seventy-four percent of juice drink consumers have purchased 100% juice in the last three months compared to 47% who have purchased juice drinks: but 2024 estimates put the 100% juice segment at $9.79 billion compared to juice drinks’ $13.25 billion,” she explained in Beverage Industry’s December 2024 issue. “The smoothies segment has historically held less consumer attention (28% engagement in bottled smoothies) and consistently declining market performance to match (minus 11.5% to land at $729 million in 2024).”

Chychula considered how 100% juice’s simplicity cut through consumers’ decision-making process.

“There’s just less thinking involved — consumers don’t have to overanalyze the ingredients or wonder what else is in there,” she noted in Beverage Industry’s December 2024 issue. “They know what they’re getting and can get in and out of stores, which can be sensory nightmares. On the other hand, juice drinks are great at being an in-reach pick-me-up.

“Without much effort, you can make mundane errands less dull with a beverage that introduces you to new flavor combinations and maybe even global inspiration,” Chychula continued. “Smoothies don’t have quite the same appeal — they need to be consumed quickly and compete with homemade or made-to-order options that are fresher and contain just whole food-based ingredients.”

Taking on the trends

As juice and juice drinks association with nutritional benefits benefit the category, experts noted that sugar reduction trends have impacted the market in a huge way.

“When it comes to sugar, many juice brands face a common hurdle: consumers’ growing skepticism over added sugars in juice products,” Keychain’s Madoff said in Beverage Industry’s December 2024 issue. “This confusion has led consumers to question almost any juice product, leading some to even question 100% fruit juices that contain no added sugars.

“To tackle this and maintain customer loyalty, brands can differentiate themselves by emphasizing a lack of added sugars and focusing on the nutritional benefits of the natural sugars coming from fruits, like vitamins and antioxidants,” he continued.

Meanwhile, Mintel’s Chychula observed the conflict between consumers’ taste preferences and reduced sugar options.

“The dynamic between flavor and sugar is tricky,” Chychula said in Beverage Industry’s December 2024 issue. “I refer to this as ‘flavor FOMO,’ where consumers acknowledge that too much sugar is an issue, but that they would rather have less of their preferred full-strength product when it comes down to it.

“Reformulating to have less sugar runs the risk of altering the flavor, dulling the health halo (usually associated with simplicity or lack of zero-calorie sweeteners) or removing the 100% name designation that consumers’ value,” she continued. “That said, having options for those who either need to be stricter or just want to cut back is important.”

Chychula also shared in Beverage Industry’s December 2024 issue how consumers’ relationship with zero-calorie sweeteners that are nature-aligned sweeteners, brings about a sense of safety.

“Forty percent say they would pay more for naturally reduced sugar, and sweeteners that have approachable names are more likely to generate interest among those who haven’t tried them — even among baby boomers, who are often comfortable in their routines,” she explained. “The difference in consumer reception of monk fruit compared to allulose — both sourced from plants — is a great example of this.

“Allulose is almost a one-to-one replacement in terms of flavor and baking functionality and has little effect on blood sugar,” Chychula continued. “On the other hand, monk fruit is known to have a bit of an aftertaste and needs other ingredients if it is going to be used in baking or cooking. Not only does monk fruit have higher current engagement than allulose (16% vs. 11%), but more consumers who have not tried monk fruit are interested in it (21%) than those who have not tried allulose (14%).”

Meanwhile, BMC’s Dilworth explained how sugar reduction trends have produced a headwind to the market.

“There is the prospect of a ‘holy grail’ in terms of technology that would enable significant sugar reduction without a trade-off in flavor, but this has been on the cards for several years already with no tangible results,” he stated in Beverage Industry’s December 2024 issue. “In the meantime, there has been a bigger emphasis lately on low- and zero-sugar SKUs from marketers such as Minute Maid, Ocean Spray and Welch’s.

As far as fortification trends such as probiotics, protein and immune-support affecting the category, Dilworth anticipated that there were more products promising immune support during the COVID-19 pandemic era.

“While these have not panned out for the most part, there will continue to be introductions with zinc and vitamin fortification,” he said. “There does not seem to be a lot of activity in the digestive health arena, aside from GoodBelly, but that could conceivably change with the success of gut pops like Olipop and poppi.”

Keychain’s Madoff emphasized how increased consumer demand for beverages that have added probiotics, antioxidants, vitamins and minerals has impacted the juice market.

“The same thing is happening in the juice market, and today’s consumer is more likely to choose an option with added benefits,” he explained in Beverage Industry’s December 2024 issue. “We’re even seeing this trend when it comes to children’s juices. Most parents buy juice for their children to drink with breakfast or juice boxes or a packed school lunch. Parents are paying closer attention to what’s in their children’s food and drinks, with a particular focus on more probiotics and vitamins, and less sugar, salt and processing.”

Mintel’s Chychula pointed to consumers’ interest in various ingredients and their health attributes.

“I would say connecting ingredients to the wellness benefits is more common than fortification (except those that are already more established, like vitamin D in orange juice),” she shared in Beverage Industry’s December 2024 issue. “Coconut water is having a bit of a moment — beyond plain coconut water itself, it’s being added to beverages as a food-based source of electrolytes and even being used to reduce sugar without losing 100% name designations.”

Making predictions

As far as what the future holds for the category, experts expectations for the juice and juice drinks market suggest innovation will be vital to remain competitive.

“Juice brands will continue to find ways to bring in new consumers while making their existing customers happy with innovative flavors, products and ingredients,” Keychain’s Madoff said in Beverage Industry’s December 2024 issue. “Other drinks markets like alternative sodas are also seeing continued growth, which means juice brands need to find a way to not only compete with them, but also appeal to their audience.

“These better-for-you trends aren’t going anywhere, and consumers will continue to look for transparency in ingredients and production processes,” he continued. “This will push brands to focus on more accurately labeling their products and sharing more information about how they source their ingredients.”

Mintel’s Chychula, in Beverage Industry’s December 2024 issue, anticipated more juice blends that appeal to flavor exploration interests, even just the combination of familiar fruits in new ways.

“This is also a solution to varied production yields; oranges have had a rough year with drought and diseases, and this led to record-high prices that are likely to reappear,” she said.

Meanwhile, BMC’s Dilworth forecasted price points continuing to impact the market.

“With the [consumer price index] (CPI) coming down in 2024, fruit drink volume should be flat, or even up nominally, while juices — already at a high price level — are projected to be down in volume by more than 5%,” he explained.