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Insights Into Citrus Market PRESENTATION INSIGHTS INTO CITRUS MARKET SEPTEMBER 2018 www.marketsandmarkets.com CORPORATE OVERVIEW HIGHLIGHTS • Founded in 2010 by a team of seasoned professionals with expertise in market intelligence • Market leader in niche syndicate reports with expertise across 12 industries • Over 1,500 people, with ~850 personnel focused on research and consulting • Comprehensive coverage through more than 4,000 studies • More than 5,000 clients globally working with MnM to identify opportunities to sustain and grow revenue MARKETSANDMARKETS COVERS THE FOLLOWING INDUSTRY VERTICALS: PHARMA & AUTOMOTIVE & AEROSPACE SEMICONDUCTOR & FOOD & BEVERAGE PACKAGING BIOTECHNOLOGY TRANSPORTATION & DEFENSE ELECTRONICS INFORMATION & CONSTRUCTION MEDICAL ENERGY & POWER COMMUNICATION HEALTHCARE CHEMICALS & MATERIALS & MINING DEVICES TECHNOLOGY SEPTEMBER : 2018 | www.marketsandmarkets.com 2 AGENDA 1 CITRUS BEVERAGE CONSUMPTION- IMPACT OF PRODUCTION ON CITRUS BEVERAGES INDUSTRY 4 2 DEVELOPMENT IN CONSUMER LANDSCAPE 7 3 MARKET SCENARIO ON FUNCTIONAL/CITRUS FLAVORED FUNCTIONAL BEVERAGES 10 4 TRENDS IN CITRUS FUNCTIONAL BEVERAGES INDUSTRY 19 5 FUNCTIONAL INGREDIENTS AND THEIR RELEVANCE ON HEALTH 21 6 FORTIFIED/FUNCTIONAL CITRUS BEVERAGE REGIONAL MARKET TRENDS 26 7 KEY TAKEAWAYS 29 8 EXPERT VALIDATION TAKEN FROM THE CITRUS INDUSTRY EXPERTS 32 www.marketsandmarkets.com SEPTEMBER : 2018 | www.marketsandmarkets.com 3 CITRUS BEVERAGE CONSUMPTION- IMPACT OF PRODUCTION ON CITRUS BEVERAGES INDUSTRY www.marketsandmarkets.com CITRUS BEVERAGE CONSUMPTION: IMPACT OF FALLING PRODUCTION ACCORDING TO WHO, GLOBALLY: Fall in the production of citrus has declined overall citrus juice market, across the globe, further higher prices is soaring the scenario. It is a challenge that will require thoughtful strategies to revert. Overall imports of orange juice from US is expected to reduce, hence reduced In China, production consumption in Europe experience a stagnant growth over the past five Strategic markets for EU-28 citrus exports continue years, however, to be China, Middle East and Canada. Imports market are also expected to be impacted with the expected to rise for reduced production in Europe the coming years Florida orange CHINA (2018-2020)s growers reported The third largest around 30% decline in consumer of citrus production from Europe & Eastern Mediterranean beverage 2012 to 2017 Germany and France are the Reduction in second largest markets for citrus consumption by 6% AMERICAS beverage, whereas UK is fifth The largest consumer of largest market citrus beverage Reduction in consumption by - approximately consumed 0.73% in 2015 According to Reduction in consumption USDA, EU orange Production production for by 11% MY 2018 is 5.0 Consumption percent lower than MY 2017 Expected Impacts SEPTEMBER : 2018 | www.marketsandmarkets.com 5 CITRUS BEVERAGE CONSUMPTION: GROWERS’ PROBLEMS AND IMPACT ON BEVERAGE INDUSTRY MAJOR GROWERS’ PROBLEMS IMPACT ON BEVERAGE INDUSTRY • Bad weather and freezing temperatures. • Less availability of oranges leads to decrease in the production of citrus juices as orange is the • Effects of citrus greening. largest category of all. • Ports slowdown in the countries such as US • Diseases have also led to a drop in orange production especially in the Asia Pacific • Declining in number of acres bearing oranges is countries especially in the US. • Ports slowdown reducing the shipment of citrus IMPACT crops to Asian countries and hence hampering production. • Loss of orange crops due to disease outbreak and continuously declining acres bearing PROBLEMS PROBLEMS orange is in turn decreasing the supply of citrus in beverage industry. SEPTEMBER : 2018 | www.marketsandmarkets.com 6 DEVELOPMENT IN CONSUMER LANDSCAPE www.marketsandmarkets.com DEVELOPMENT IN CONSUMER LANDSCAPE CURRENT SCENARIO TECHNOLOGICAL ADVANCEMENTS CONSUMER TRAITS FUTURE LANDSCAPE AUGMENTED REALITY AWARENESS LACK OF TIME GROWING CONVENIENCE INCREASED CONVENIENCE CLOUD COMPUTING GROWING USE OF SOCIAL MEDIA BIG DATA SOCIAL MEDIA DRIVEN CONSUMPTION CONNECTED ROBOTICS GROWING HEALTH AWARENESS INFORMED HEALTH-CENTRIC BUYING 3D INDUSTRY 4.0 INDUSTRY GROWING SMART PURCHASES SMART BUYING INTERNET OF THINGS HEALTHY LIFESTYLE CYBER SECURITY GROWING CUSTOMIZATION IN CUSTOMIZED PURCHASES DEMAND SEPTEMBER : 2018 | www.marketsandmarkets.com 8 DEVELOPMENT IN CONSUMER LANDSCAPE MACRO TRENDS OF THE NEAR FUTURE ▪ SHIFTING FROM ALCOHOL TO NUTRITIONAL DRINKS ▪ INCREASED NUTRITION RELATED HEALTH-CONCERNS ▪ INCREASED DEMAND FOR NATURAL PRODUCTS ▪ CONTINUOUS HEALTH-CENTRIC BUYING ▪ INCREASED NUMBER OF FITNESS CENTERS ▪ CUSTOMIZED PURCHASES ▪ GROWTH IN LIQUID FOOD INDUSTRY SEPTEMBER : 2018 | www.marketsandmarkets.com 9 MARKET SCENARIO ON FUNCTIONAL/CITRUS FLAVORED FUNCTIONAL BEVERAGES www.marketsandmarkets.com MARKET DEFINATION MARKET KEY DEFINITONS & SCOPE NON-ALCOHOLIC BEVERAGE MARKET FUNCTIONAL BEVERAGES MARKET CITRUS FUNCTIONAL/FORTIFIED Beverage forms that refers to the non- Functional Beverage is a drink typically intended to BEVERAGES intoxication drinks or soft drinks which convey a health benefit. Some include ingredients like Citrus functional/fortified beverage is a doesn’t have a bit of liquor by volume or herbs, vitamins, minerals, amino acids, or additional drink typically flavored with citrus intended yeast is not introduced to convert sugar into raw fruit or vegetables. to convey a health benefit. Some include alcohol during fermentation. FORTIFIED BEVERAGES ingredients like herbs, vitamins, minerals, Includes beverages such as aerated water, amino acids, or additional raw fruit or juices, squashes, syrups, etc. Fortified beverages are manufactured by adding vegetables. micronutrients such as essential trace elements and vitamins in order to improve the nutritional quality of the product Source: Research Journals, Related Publications, Expert Interviews, and MarketsandMarkets Analysis SEPTEMBER : 2018 | www.marketsandmarkets.com 11 HEALTH–CENTRIC DIET DRIVING THE FUNCTIONAL BEVERAGE MARKET 33% The demand for carbonated drinks is growing at a diminishing rate due to increase in price, changing Functional beverages, 29% consumer preferences as a result fastest growing segment, of changing social trends and rising projecting a CAGR of over awareness about the health-related issues 9% between 2018-2023 owing to higher adaption of functional drinks and 15% shakes in day to day diets 9% 6% 5% 4% 2% CARBONATED DRINKS BOTTLED WATER DAIRY DRINKS JUICES AND SMOOTHIES ENERGY & SPORTS DRINKS RTD COFFEE & TEA FUNCTIONAL BEVERAGES OTHERS ✓ Non-alcoholic beverage market growing to USD 2,060.75 billion in 2023 and expected to increase at a CAGR of 4.3% during the forecast period from 2018-2023. Source: Primary Interviews, Articles, Newsletters, and MarketsandMarkets Analysis SEPTEMBER : 2018 | www.marketsandmarkets.com 12 HEALTHY BEVERAGE MARKET GROWING WITH INCREASED CONSUMPTION AND HEALTH CONCERNS FUNCTIONAL BEVERAGES MARKET, 2017 ENERGY SPORTS NUTRACEUTICAL DAIRY-BASED ENHANCED JUICES CITRUS FUNCTIONAL OTHERS DRINKS DRINKS DRINKS BEVERAGES WATER BEVERAGES KEY INSIGHTS IN 2017 45.9% 33.8% 16.2% 1.0% 1.0% 0.8% 0.7% 0.6% ✓ Functional beverages market was valued at USD 82.43 billion in 2017 and is expected to expand at CAGR of 9.1% from 2018 to 2023. ✓Orange is currently the most commonly used flavours in the both powdered and liquid REGIONAL MARKET, 2017 functional beverages ✓Western Europe holds third position in NORTH LATIN ASIA- WESTERN EASTERN MIDDLE AUSTRALIA AMERICA AMERICA PACIFIC EUROPE EUROPE EAST & AFRICA the functional beverage market in terms of 39% 9% 30% 16% 3% 2% 1% consumption. ✓ Further, rising concern of obesity, diabetes and other health concerns among consumers will create more demand for function beverages in Asia Pacific region. ✓ Citrus functional beverage market was valued USD 577.0 million in 2017 and expected to reach USD 1,073.6 million, growing at a CAGR of 10.9% during the forecast period from 2018-2023. Source: Primary Interviews, Articles, Newsletters, and MarketsandMarkets Analysis SEPTEMBER : 2018 | www.marketsandmarkets.com 13 CITRUS FUNCTIONAL BEVERAGE- HISTORICAL VS FORECASTED HISTORICAL AND FORECASTED CITRUS FUNCTIONAL BEVERAGES MARKET- FACTORS FOR GROWTH USD MILLION STRONG INDUSTRY GROWTH WITH MORE THAN 10.0% COMPOUNDED ANNUALLY FROM 2011-2023 ✓Health Centric Diet focusing on protein, wellness, natural and free-from 1,073.6 ✓Increased demand for health ingredients 577.0 ✓Convenience and ease of use 520.8 312.4 ✓Higher content of minerals and vitamins attracts consumers globally. 2011 2016 2017 2023 Source: Primary Interviews, Articles, Newsletters, and MarketsandMarkets Analysis SEPTEMBER : 2018 | www.marketsandmarkets.com 14 RECENT LAUNCHES OF CITRUS FLAVORED FUNCTIONAL BEVERAGES: RISING BRANDS Launched by PepsiCo Launched by Glanbia Launched by Celsius in 2017. Recorded a sales Nutrition, in 2017 in Ireland, in 2015 volume of more than USD 2 Mn in nine months since its launch. Flyte Drinks has launched a Launched by True Citrus in 2011. new citrus lemon flavored More than 70% of cumulative energy drink in May 2018 growth was registered for this product since its launch Launched by TETLEY , between Launched by 2015-2017. Tetley Super Teas Launched by Runa, in 2013. Pervida, in 2017 Company earned an estimated sales exceeded a sale volume revenue of USD 10 Mn up by 66.7% of USD 11.4 Million in 2015 from 2015 Launched by Coca- Launched by Abbott Nutrition, in Cola European 2010 Partners, in 2017 Launched by Hansen & Co. Company recorded a retail Launched by PepsiCo
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