Nectar drinks: The global position in the thriving beverage market

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  • Nectar drinks: The global position in the thriving beverage market

    There are many types of fruit juice with delicious flavor in any grocery store. But most of us don’t know exactly what we are drinking, how it is made or whereas it’s good for our health. 

    This article will give you a fundamental understanding of nectar drinks or nectar juice– a type of beverage made from fresh fruit that you may have seen in the supermarket or have a chance to taste but still don’t know of it well.

    What are nectar drinks?

    Nectar drink is thicker than regular fruit juice
    Nectar drink is thicker than regular fruit juice

    Nectar drink is made from fruit, but it does not include 100% pure fruit. Nectar is a type of non – carbonated soft drink produced by mudding the flesh of fruits and diluting fruit juice added with water, sweeteners, additives and preservatives. Nectar may contain more than 15% of fruit juice.

    Nectar is often made from fruit that is too hard to take the natural liquid by extracting or pressing the fruit. That could be apricots, peaches, and pears.

    So it’s easy to find that nectar drink is thicker than regular fruit juice and sometimes contains fruit peels and pulp.

    These fruits might include too much acidity or fruit pulp that cannot drink as pure fruit juice. Therefore, people have mixed diluted it and scrambled it with other ingredients to make it more favorable for drinking consumer needs.

    The benefit factors in nectar drink remain healthy as fresh fruit juice you use every day. With adding some artificial flavoring, the savor of nectar is more favorable and diverse to most juice-drinking lovers.

    The taste of nectar is more favorable and diverse
    The taste of nectar is more favorable and diverse

    According to market research, the fruit juice and nectar drink market is rapidly growing at a constant rate of 5.25% from 2019 to 2024 to reach the market value of USD 120.27 billion by the end of 2024. It’s said that the growing of fruit drink holds a considerable part in the beverage industry, and this is a good point for starting a beverage business.

    How are nectar drinks made?

    Basically, there are 6 steps to produce nectar drinks:

    Step 1: Raw material processing

    The first thing you need to do is choose the ripe fruit with no disease signals or crush and wash the fruits gently. Then leave the cores, cut off the damaged parts in the flesh fruit and only retain the good parts for manufacturing.

    During the process, the flesh fruit is soaked in a mixture of citric acid and ascorbic acid to protect the natural color of the fruit.

    Step 2: Heating and pulping

    After getting the peels and the cores out of the fruits, Heat the remaining fruits to 95℃ for a few minutes, and pulp them with a fruit pulper machine.

    The fruit needs to be wash gently
    The fruit needs to be wash gently

    Step 3: Mixing

    Combine the raw fruit flesh with some components like water, sweeteners, additives or preservatives.

    Step 4: Degassing

    The mixing may contain some air content; use a vacuum degasser to remove the air. By doing this, you can keep the mixer from oxidation and protect the quality.

    Step 5: Juice filling and sealing

    Keep the degassed nectar fruit in sterilized bottles or cans, and then seal the packages carefully.

    Step 6: Sterilization and cooling

    The final step is sterilization by keeping the nectar juice bottles at the temperature of 100℃ for 5-10 min. Then, cool it down by putting it at room temperature.

    What’s the difference between nectar drinks and other types of fruit juice drinks?

    Nectar drink: A “nectar” may be diluted (to a degree limited by regulations) with water and contain additives besides fruit juice, including natural and artificial sweeteners and preservatives. Nectar may have more than 15% of fruit juice.

    Fruit juice drink/fruit drink: Fruit Drink is a sweetened beverage of diluted fruit juice.

    Fruit puree (or mash): fruits that have been ground, blended or sieved to the consistency of a creamy paste or liquid.

    Juice concentrates: is fruit juice from which most of the water has been extracted.

    Fruit juice/100% fruit juice: In countries, the beverage industry differs nectars from drinks labeled as “juice.” Meanwhile, in the U.S and the U.K, the term “fruit juice” is restricted to beverages that are 100% pure juice. But in New Zealand, the usage is reserved, with “juice” denoting a sweetened fruit drink, whereas nectar refers to pure fruit.

    Where is nectar drink on the map of the beverage market?

    Market overview

    According to a recent report, The global fruit juice market reached a volume of 44.12 Billion Litres in 2020 and will reach $175 Billion by 2027. The market has been segregated into 100% fruit juice, nectars, juice drinks, concentrates, powdered juice, and others based on type.

    Meanwhile, the global nectar drink market is valued at US$6.189 billion in 2019 and is planned to maintain a considerable CAGR  (Compound annual growth rate) during 2020-2025.

    The global nectar market has been segmented based on type, application and geography.

    By type, the global nectar drink has been classified as orange, guava, mango, apricot, papaya and others.

    Based on application, the global nectar drink market has been segmented into 4 main applications:

    • supermarkets and hypermarkets
    • independent retailer
    • convenience stores
    • others

    By geography, the global nectar market is divided into five major regional markets:

    • North America (U.S, Canada, Mexico) is supposed to be the largest shareholder in the global nectar market. Rising awareness among consumers about health hazards related to carbonated drinks and soft drinks with added preservatives and added other additives contributes significantly to the nectar market’s growth in this region.

    Another element that is spurring the growth of the North American nectar market is the high popularity of veganism in the region.

    • Asia Pacific (APAC) (Japan, China, India, Australia and New Zealand) will witness a special compound annual growth rate during 2020 – 2025.
    • Europe also takes a substantial market share throughout 2020 – 2025. The growth of diseases like diabetes and obesity and high purchasing power increases nectar drinks sales in the region.
    • South America and The Middle East and Africa (MEA) nectar markets are also projected to experience a considerable CAGR on account of increasing demand for convenient food and beverage items and rising purchasing. The expansion of beverage manufacturing facilities in these regions will also escalate the demand for nectar drinks, which boosts the regional market growth.

    2. Current trends and opportunities

    Trend

    • Free artificial substances

    Many nectar manufacturers offer preservative- and sugar-free, organic and innovative product variants, playing a significant trend in the beverage market.

    Organic drink is more favorable by most people
    Organic drink is more favorable by most people
    • Plant-based 

    Plan-based is going to play a crucial part in beverage consumption in the next few years. The younger generation, in particular, tends to become vegetarians, vegans and flexitarians. While vegetarians and vegans only make up a small percentage of the population despite their high social media presence, the flexitarians movement has better chances of penetrating the mainstream. As a result, they will also continue to advance the organic drink market.

    • Clean, Clear & True: Fresh and pure

    The Clean, Clear & True trend focuses on “real” beverages that include fresh and pure and lightly processed products. Highly processed products are excluded from the actual food trend. So, nectar drink is an ideal choice for the upcoming beverage business.

    At the same time, processed beverages with natural components and the shortest possible ingredient lists. The following applies to everyone: Comprehensive transparency is the key to gaining and maintaining consumer confidence in products in the long run.

    Opportunities

    High awareness about the harmful effects of soft drinks on human health is the primary driver of the global nectar market. Consumers shift their preference from carbonated drinks (soft drinks and sodas) to healthier options such as fruit juices and nectar drinks. In turn, this is considered driving up the demand for nectar consumption.

    People prefer nectar drinks because of their beneficial ingredients
    People prefer nectar drinks because of their beneficial ingredients

    People are increasingly concentrated on their lifestyle patterns and dietary habits to maintain good health. Rising incomes and living standards and increasing urbanization in developing countries also influence the global nectar market.

    In recent years, the beverage industry suffered a bad reputation due to added artificial additive contents harmful to human health. Thus, the demand for nectar drinks increases, free from any preservative, propelling the global nectar market.

    There is a minimum obligation of fruit content for fruit nectars, which usually scale from 25 % to 50 %, relying on the type of fruit. Moreover, nectar drinks do not contain any harmful additives. Consumers are increasingly becoming aware of nectar products’ benefits over carbonated beverages and other kinds of drinks.

    3. Risks

    Risks related to the acquisition of natural materials

    Fresh fruit is key natural material to manufacture excellent nectar drinks. So, to keep the fruits safe and transform them to the factory is a long run. They require many expertise techniques and types of equipment to guarantee the fruits because quality management is an integral part of most manufacturing industries, including beverage processing.

    Fresh fruit is main material to manufacture excellent nectar drinks
    Fresh fruit is main material to manufacture excellent nectar drinks

    Besides, the growing demand for fresh fruits and vegetables by health-conscious consumers results in increased concern about food safety.

    If the fruit supplier has problems that can not provide fruits in time or provide low-quality fruit, all of these matters will significantly impact the producing chain. It’s hard to ensure the supplier will keep their promise 100% all the time. The manufacturer should have fresh products in store for urgent situations and have obligation terms for a standard quality product.

    Risks related to water supply

    Water is the main component in substantially all nectar products, and water resources in many parts of the world face unprecedented challenges from population pressures, pollution, poor management, and the impact of climate change. As demand for water resources increases worldwide, companies that depend on abundant water resources may increase production costs and capacity constraints, which could profoundly affect profitability and growth strategy over the long term.

    Risks related to weather conditions

    Weather conditions significantly influence the manufacturing of certain types of nectar products. Especially, climate change has become a grave concern for the fruit and nectar processing sector, as several years of extreme and unpredictable weather have led to falling harvest and field losses, resulting in decreased and irregular deliveries of material to the processing factories.

    Climate change and nature disaster lead to falling harvest and field losses
    Climate change and natural disaster lead to falling harvest and field losses

    Natural disasters such as storms, earthquakes, and tsunamis are unpredictable factors that impact directly on the production of nectar drinks. It makes fruit become scarce resources and the price of fruit-based products is on top, which reduces the demand for nectar products consumption. 

    Risks related to supply chains

    The supply chain is a complicated process with thousands of steps and procedures. Conducting the supply chain well is the most critical mission for each business which effectively manages good quality, lowers costs and improves profitability.

    There always have damage or disruption to nectar drink manufacturing process or distribution capabilities due to any of the following could impair our ability to make, manufacture, distribute, or sell our products:

    • climate change
    • adverse weather conditions
    • natural disasters
    • manufacturing problems
    • transportation issues
    • labor shortages
    • political instability
    • etc.

    Market players and Competitive landscape

    Here are some key players operating in the global nectars market:

    • Kerry Group Plc (Ireland)
    • Döhler Group (Germany)
    • SkyPeople Fruit Juice Inc. (China)
    • AGRANA Group (Austria), Kanegrade Ltd. (U.K.)
    • PepsiCo (U.S.)
    • Keurig Dr. Pepper Inc. (U.S.)
    • The Coco-Cola Company (U.S.)
    Döhler Group is one of the largest market players in the global nectar market
    Döhler Group is one of the largest market players in the global nectar market

    These companies hold an outstanding value in the market because of their excellent brand image and product lines. The most valuable players in the global nectar market have been covered by their competitive position and strategies.

    As demand consumer tastes and demographics drive demand for nectar drinks profitability of individual companies depends on their effective marketing. Large companies have the finance available for production and distribution. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices.

    Conclusion

    Now, you have had a deep insight into the nectar drink world (what it’s, how it’s made, its beneficial health, the global nectar market, …). With the new trend of organic product consumption and other related factors, nectar drink is going to become favorable for most people. Be aware of that, and Tan Do brings many choices of nectar drink with the best taste, top-high quality, safety for consuming and reasonable price.

    If this post looks valuable to you, check out our blog for more helpful information and exciting ideas regularly updated.

     

    Lilian Nguyen
    Hi! I'm Lilian Nguyen. I'm an expert in OEM, ODM, private label beverage industry with 8 years of experience. I believe that it is crucial for companies to focus on the benefits which the product provides to their target customer and what does it mean to the community. When i am not working, i run a blog on making healthy snacks & drinks and join in a hiking club. I'm an expert in the beverage industry invited by Tan Do Beverage to work. I'm in charge of publishing articles, research articles on the beverage industry or anything healthy to help readers have a better view of what they are looking to do, prepare to do or are doing related to the beverage industry. Email: lilian.nguyen@tdfood.com.vn

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