India’s vegetable juice market is expected to grow at a compound annual growth rate of 7.63% over the forecast period to reach a market size of US$3.222 billion in 2027, up from US$1.926 billion in 2020.
As far as the rate of adoption of vegetable juices is concerned, the nation, whose 30%-35% population is vegetarian, is expected to hold a potential for the growth of the vegetable juice market in India. The other determinative factors which are poised to drive the growth of the vegetable juice market in India are rapid urbanization which is projected to reach 416 million by 2050 [ Source: UN]. Moreover, with women entering the workforce, households now have the dual earning capability and more resources at their disposal to realize their aspirations of a healthier lifestyle. Besides, with the varied nature of the cuisine, the inclusion of naturally derived ingredients in everyday diets is the norm, albeit there has been an increasing acceptance of packaged food and beverage in recent times. The growing middle-class population is expected to sustain and drive the flow of imported goods pertaining to food and beverage, which are being increasingly made and commercially available at various specialty stores, hypermarkets, and supermarkets. Furthermore, the expanding eCommerce platforms, growing pools of millennials, and rapid smartphone adoption rates are collectively expected to augment the growth of the Indian vegetable market during the next few years. In addition, capitalizing on social media, which has emerged as a far-reaching marketing tool and facilitated by the Make-in-India initiative, there have been many startups who have ventured into the vegetable juice space with a variety of product development. By the same token, 253 designated food parks in different states have been notified to extend affordable credit from a special fund with NABARD (National Bank for Agriculture and Rural Development) by the Government of India. As of March 2019, a term loan of around USD 65.27 billion to 11 mega food park projects has already been sanctioned by NABARD [ Source: Government of India].
Besides, India’s food-and-grocery retail industry is expected to exceed sales of $800 billion by 2023, which suggests that it is going to facilitate the growth of the vegetable juice market in the country. Being the fastest-growing economy globally, the sector reportedly constitutes nearly 65 % of the total retail market in India. The dynamic nature of the sector is instrumental in wooing domestic and foreign firms looking forward to expanding their market share while enhancing consumers’ experience. The sector is mostly represented by the traditional locality stores as well as by modern grocery retailers along with eCommerce, which constitutes 10% of the sector, which is expected to expand rapidly during the next few years resulting from the evolving needs of the consumers [Source: USDA]. Moreover, the reliance on eCommerce platforms has been reinforced due to lockdown measures, which have anticipatedly aided juice producers in channelizing their investment of resources on a single sales channel and marketing their products. In this manner, reaching out to a wider audience has been facilitated, which in turn is expected to propel the growth of the Indian vegetable juice market.
COVID 19 impact
Restaurants, cafes, and hotels were completely shut down during the Covid-19 outbreak, resulting in financial losses. In-home consumption, on the other hand, has been reported as a result of increased access to refrigerators. Consumers started to panic buy and hoard juices during the initial impact of COVID-10 were observed. Since the products have a longer shelf life and stores were empty, there was a demand-supply crunch that negatively impacted the market. Due to health benefits, consumption was seen to rise post-covid.
Key developments
Segmentation