Beverage Key Takeaways from January Retailer Trends (Asia & US)

The popularity of NFC Fruit Juices in China and South Korea

Of all the countries observed, South Korea and China have one of the weakest fruit juice markets in terms of the volume and variety of private label products, as retail stores give less priority to this food category. Yet, one notable trend is the high number and the active release of PB Not From Concentrate (NFC) fruit juices.

During January's visitation, 5 out of 7 new releases were found in South Korea, and 6 out of 8 PB fruit juices in China were to be made with NFC technology. A notably high percentage of PB NFC fruit juices are present, as South Korea and China have one of the lowest numbers of PB fruit juices compared to Europe.

Newly Released ABC NFC juice (Left) and Apple & Citrus NFC Juice (Right)

Source: Lotte Mart

In the post-COVID era, where consumers are warier of micro and macronutrients in the food they consume, more are seeking healthier food substitutes. More beverage companies and retail stores are interested in introducing NFC fruit juices to capture the growing health-conscious consumers. NFC technology excludes the concentration or the reduction process where water, food additives, and sugar are excluded. Hence, NFC juices are marketed as a healthier, more natural, and more nutrient-rich alternative to typical fruit juices.

According to iResearch, the higher-income, younger, health-conscious group in China aged 25-35 prefer NFC juice. The most sought-after juices are single-flavored oranges and grapes, and there is a recent interest in tropical fruit juices such as mango, coconut, and pineapple. Like most healthy alternatives, NFC juices are priced on the higher end.

Price Comparison of PB and Non-PB Fruit Juice in South Korea

Source: Tridge

Comparing the prices of PB and Non-PB fruit juices per 100g, the average retail price of NFC fruit juices is much higher than the typical fruit juices of national and private label brands. Even against organic juices, NFC fruit juices are pricier. While PB organic juices, fruit juices, and typical juices are lower than the national brand prices, the total average retail price of PB juices is higher than that of the national brand. This is because more PB premium high-end fruit juices are observed by Tridge, driving up the average prices.

Similarly, non-sugar and 0-calorie sodas are popular in the carbonated drink section. Generally priced lower than the average retail price of carbonated soft drinks, there has been heavy marketing of non-sugar carbonated beverages, especially in South Korea, where Zero Calorie stickers, banners, and zones are available for promotion and marketing purposes.

Lotte Mart & E-Mart Zero Calorie Zone

Source: Tridge

Average Retail Price of Carbonated Drinks vs. Average Retail Price of Non-Sugar

Source: Tridge

In most cases, PB products are priced lower than national brands. In Japan, however, the PB juices are priced higher than the national brands because the PB carbonated drinks found in Japan are closer to functional carbonated beverages as they have added vitamins, lactic acid bacteria, and fiber, driving up the average prices.

Similarly, PB carbonated drinks in the US are much higher, driven by the prices from Trader Joe’s with health-focused carbonated beverages with added probiotics and organic fruits. In addition, the bottles of fruit juice and carbonated drinks found in the US are much larger, ranging from around 1.89 Litres to 3.78 Litres.

The fruit juice and carbonated drinks market in Asia and the US are seeing companies tailoring their products toward the growing health-conscious group, especially in the PB section, where retail stores focus more on affordable, healthier beverage options rather than providing cheaper options.

For further information, please check out Retailer Trend Reports on Tridge website.