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Fruit Drink & Functional Beverage Production in the UK - Industry Market Research Report

United Kingdom fruit drink production market: £2.2 billion industry by 2019

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2014-02-11 12:41:01 - Fruit Drink & Functional Beverage Production in the UK - Industry Market Research Report - a new market research report on

The United Kingdom fruit drink production market and functional beverage production industry has grown well during the past five years. Although many consumers reduced their spending on beverages like bottled water during the recession, fruit drinks and functional beverages have bucked the trend. Fruit drinks and dilutables have benefited from consumers trading down from fruit juices and other more expensive beverages. Sports and energy drinks remained popular throughout the period. During the current year, industry revenue is expected to grow by 2.5%.

Sales should continue to benefit from the trend of consumers trading down from more expensive fruit juice and other beverages. Wet and cold weather is expected to weigh on demand for chilled products. Demand for low-sugar and no-sugar varieties



will be driven by health awareness. Producers are expected to continue releasing new flavours and product lines. In the five years through 2013-14, industry revenue is expected to increase at a compound annual rate of 2.5%, to reach £1.9 billion.

The industry is forecast to grow moderately over the five years through 2018-19, buoyed by persistent demand for healthy, convenient beverages. Demand for functional beverages will remain strong over the long term, underpinned by consumers´ stressful, on-the-go lifestyles.

Rising health awareness and consumer demand for natural and premium products is expected to drive product innovation in the industry and help producers boost their revenue and profitability. There are still significant opportunities for sustained growth in the industry. Producers will need to focus on marketing and innovation to emphasise the health and nutritional benefits of their products, and also improve their environmental credentials. Rising environmental awareness and opposition to bottles made of PET plastic are expected to bring changes to packaging over the next five years. Possible regulation of energy drinks is a looming threat for producers of functional beverages.

Industry revenue is forecast to grow at a compound annual rate of 2.2% over the next five years and reach £2.2 billion in 2018-19.

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