Future of Global Orange Juice Industry Market Demand – Factors that influence demand for OJ Citrus Research and Education Center April 7th, 2010
“European OJ Demand and Consumption” Christian Lohbauer CitrusBR President
PROGRAM European Market Overview
World x European consumption Brazilian Exports to Europe European preferences on orange juice Challenges
Strategic Actions in the European Market
Meeting consumer demands Divulging benefits of OJ consumption Marketing strategy Sustainability
Conclusion Perspectives and current challenges
European Market Overview
ORANGE JUICE C ONSUMPTION W ORLD D EMAND IN 2008/09
 Europe consumes 40% of all the orange juice produced in the world and also has a large share of imports of orange juice, about 60% of all imported juice.
ORANGE JUICE C ONSUMPTION W ORLD MAIN I MPORTERS IN 2008/09
Source: Canadean
C ONSUMPTION OF FRUIT JUICE IN EUROPE
Source: Canadean
C ONSUMPTION OF FRUIT JUICE IN EUROPE
C ONSUMPTION OF ORANGE JUICE IN USA T ENDENCIES ON USA C ONSUMPTION - C OMPARISON
Source: USDA, FDOC; Elaborated by Markestrat/USP (Center for Research and Projects in Marketing and Strategy) using slide kindly provided by Bob Behr.
 From 1999-2000 to 2007-2008, per capita consumption in the USA fell by 30%.
DESTINATION OF BRAZILIAN ORANGE JUICE D ESTINATION OF B RAZILIAN OJ
IN
2009
3% 2% 4% EU + Switzerland
20%
USA Japan China
71 %
Others
Source: Secex 2009
Europe accounts for more than 70% of Brazilian Orange Juice Exports.
BRAZILIAN ORANGE JUICE EXPORTS B RAZILIAN E XPORTS
TO
E UROPEAN U NION FROM 2000
TO
2009
* Brazil started exporting NFC juice in 2002. In order to standardize the data, exports of NFC have been converted to a Brix value equivalent to the concentrate juice . Source: Secex 2010
 In the last decade, Brazilian exports to European Union have been quite stable.
DEMAND ON FRUIT BEVERAGES - 2008 E UROPEAN M ARKET
Source: Euromonitor . Elaborated by Markestrat/USP (Center for Research and Projects in Marketing and Strategy) using slide kindly provided by Roel Van Poppel.
 The consumption is greater in Western Europe, though juice beverages in Eastern Europe have a larger participation.
FUTURE OF W E UROPEAN MARKET FOR BEVERAGES E STIMATES FOR
THE
W ESTERN E UROPEAN M ARKET FOR B EVERAGES
2013
33881,2
12995,7
61554,7
2012
33551,7
12837,6
60624,7 Carbonates
33200
2011
12687,4
59654
Fruit/Vegetable juice Bottled Water
2010
32881,2
12547,1
58647
2009
32522,9
12421,3
57732,1
0
20000
40000
60000
80000
100000
120000
Source: Euromonitor . Elaborated by CitrusBR using Roel Van Poppel slide.
 Estimates show that, for coming years, the Western European Juice Market is forecasted to further stagnate.
DEMAND ON FRUIT BEVERAGES E UROPEAN M ARKET
Source: Euromonitor Off Trade Volume GBO 2008. Elaborated by Markestrat/USP (Center for Research and Projects in Marketing and Strategy) using slide kindly provided by Roel Van Poppel.
The market for private labels is more mature in Western Europe than in Eastern Europe. In Western Europe the Private label share is highest in 100% Juice (47.6%). In Eastern Europe, Juice Drinks have the highest share with 7.5%.
MARKET SHARE IN %
MARKET SHARE IN %
C ONSUMPTION OF FRUIT JUICE IN EUROPE BY TYPE
FRUIT JUICE FLAVORS P REFERENCES
ON F RUIT J UICE FLAVORS IN
E UROPE - 2008
DEMAND ON FRUIT BEVERAGES
Source: Canadean. Elaborated by Markestrat/USP (Center for Research and Projects in Marketing and Strategy) using slide kindly provided by Rob Shutlleworth.
DEMAND ON FRUIT BEVERAGES
 There was abydecline in two(Center key markets - USA Germany Source: Elaborated Markestrat/USP for Research andand Projects in Marketing and Strategy) using kindly provided by Rob Shutlleworth. and growth inslide Russia and China.
Strategic Actions in the European Market
EUROPEAN C ONSUMER D EMAND
FOR ORGANIC AND NATURAL PRODUCTS ( RELATED TO
HEART HEALTH , IMMUNITY , BRAIN HEALTH )
Source: Elaborated by Markestrat/USP (Center for Research and Projects in Marketing and Strategy) using slide kindly provided by Roel Van Poppel.
EUROPEAN C ONSUMER D EMAND
FOR SUSTAINABLE PRODUCTS
Source: Elaborated by Markestrat/USP (Center for Research and Projects in Marketing and Strategy) using slide kindly provided by Roel Van Poppel.
EUROPEAN C ONSUMER D EMAND
FOR SUSTAINABLE PRODUCTS
Source: Elaborated by Markestrat/USP (Center for Research and Projects in Marketing and Strategy) using slide kindly provided by Guy Wollaert.
SUSTAINABILITY CitrusBr understands the concept of sustainability as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.
Our efforts to have a sustainable chain and then meet, not only the consumers demands, but also our own principles, are evidenced by our sustainability subcommittee, designed to discuss technical issues related to the sector.
The first discussion includes carbon emissions and capture and water usage, followed by proper usage of residues, sustainable agricultural practices and others. Studies are already in progress with the intention to disclose numbers related to the carbon footprint.
DIVULGING BENEFITS OF O RANGE JUICE In Europe, fruit juice has been losing consumers because it is said to contain too much natural sugar. Although some studies show this is not true, they get little support. Nevertheless, orange juice provides many benefits for health (Vitamin C, folic acid, phytovitamins, potassium, calcium, among others), which certainly compensates its sugar content. Then, it is extremely important that everybody works on the POSITIVE image of orange juice (with marketing campaigns or positive news on the media), divulging the several benefits of its consumption.
DIVULGING BENEFITS OF O RANGE JUICE  Attending this demand on a great market
campaign
orange
juice
CitrusBR,
in
Apex-Brazil,
to
increase
consumption,
partnership is
with
developing
a
strategic project in global scale that intends to attract many new orange juice consumers, as well as to recover those lost to other kinds of beverages.
Conclusions
PERSPECTIVES AND C HALLENGES Consumption of OJ in consolidated European markets is stable. Though, there is an expectation to achieve and enhance participation of new markets, mainly in developing countries in the long term. In the short and medium terms, efforts should be focused on recovering the consumption of 100% Orange Juice in EU and USA Strategic actions to increase OJ consumption, specially in Europe, include reducing economic barriers to OJ, global marketing campaigns, divulging of OJ benefits and efforts to advance on sustainable projects (water, carbon footprints, etc). European consumer is getting more and more demanding. To meet their demands, it is necessary to bet on organic, natural and sustainable products.