Industrial analysis
The
industry analysis shows that current consumption trends are favorable for the
domestic juice market, especially for producers of particularly first class
juices. Total domestic and per capita
juice consumption have increased each year since 1991. Retail juice sales have increased 9.7 percent
per year over the past five years. The
dramatic growth in retail juice sales can be attributed to the increasing
popularity of premium juices.
Market analysis
The
juice industry is highly fragmented and very competitive. A small premium juice can expect competition
from local, domestic, and international producers. However, most producers of
juices are somewhat insulated from competitors outside the region because the
majority of their sales are made out of the tasting room. Thus, the proposed juice producers direct
competitors will be other small juice producers. Recent increases in domestic
juice consumption have enabled juice producers to expand their volume and
product offerings. The growth of the premium
juice market has encouraged a number of producers to move up the quality ladder
into the premium juice market where there are larger profit margins and double
digit growth rates. A number of new
juice producers are also entering the market and the number of new juice
producers will continue to increase with current consumption trends.
by
peter felister
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