Fresh, Fit and Trendy: Global Growth in Juice Extractors

Consumers are becoming increasingly selective about what they eat and drink given the ease of access to an abundance of information about living well and staying healthy. As mentioned in another opinion piece on healthy eating, demand for consumer appliances, particularly food preparation appliances, is reflective of this consumer lifestyle trend. For instance, fresh juices such as detox juices have been portrayed as being diet remedies and important in preventing disease, with consumers looking to prepare such juices at home. Indeed, Euromonitor International’s consumer appliance statistics reveal that juice extractors will post the strongest growth over the forecast period of all food preparation appliances despite carrying a higher unit price than blenders, which can also extract juices, albeit with a bit more pulp.

The Way to be Hip and Fit

Euromonitor International’s global survey on Young Men’s Attitudes Towards Health, Fitness and Wellbeing reveals that respondents consider “eating fruit and vegetables” as the most important health attribute, ahead of exercising and drinking plenty of water. There is a common perception that consuming fruits and vegetables in juice format is an effective method as the body absorbs and digests nutrients more efficiently.

Consequently, there has been consistent parallel sales growth in juice extractors for home preparation as it is more economical making one’s own than purchasing from foodservice juice/smoothie bars such as Smoothie King. Looking at the economics, some consumers find it more reasonable to purchase an appliance than buying from juice bars. Buying 500ml of juice costs around US$5 while the average unit price of a juice extractor is US$85 in the US.

Juice Extractors and Juice/Smoothie Bars – Global Retail Volume Sales and Value Sales 2008-2017

Source: Euromonitor International

The US and China were the two biggest markets for juice extractors in 2013. In the US, the obesity rate, and child obesity in particular, has become such a massive social issue that there is a growing sense of urgency in the media and among government agencies for more preventative measures. Public health campaigns focusing on the dangers of obesity and educating consumers about healthier eating habits have been well-received. For the Chinese, the preparation and consumption of fruit juices is popular in urban areas where the concept of eating healthily, losing weight and keeping fit is all the rage. As many regional Chinese cuisines involve considerable amounts of fat and oil in their preparation, consumers are on the look-out for alternatives to compensate for these unhealthy elements. Besides drinking green tea, fresh juices are considered the preferred choice in terms of a healthy beverage.

In 2013, the Philips brand, with a 12% volume share, led the global juice extractors category, followed by the Chinese brand Joyoung. Behind these two came brands such as Moulinex, Hamilton Beach and Kenwood. While majority of the top 10 competitors gain shares in US and China strongly with market sizes, one interesting competitor is Hurom. Hurom is a Korean brand specialising in food preparation appliances. This brand emerged in the global market in 2010 and achieved a top 10 ranking within the space of a year. The brand accounts for more than 70% of juice extractor sales in South Korea. With the category’s size increasing in South Korea, Hurom is expected to expand into other countries.

Where the Future Lies

Being a comparatively new product, global demand for juice extractors is far from saturated. In 2013, the US and China together accounted for 40% of total volume sales, implying that there remains still immense untapped opportunity for manufacturers. Vietnam, Russia, Indonesia and Turkey, among others, have the strongest predicted volume CAGRs over 2013-2018. These countries are similar in a sense that awareness of a healthier lifestyle is an emerging trend, with juice extractors set to be at the centre of attention as consumers look to avoid lifestyle illnesses such as obesity and diabetes.

That said, while lucrative demand exists, manufacturers should anticipate possible obstacles, for example affordable prices versus unique features, as price-sensitivity remains a key factor in emerging markets.