A Study of Philippine Fruit Juice Industry
I. EXECUTIVE SUMMARY
This paper studies the fruit juice market in the Philippines. The market has experienced significant growth in recent years primarily owing to the craze toward health-food consumption. However, the relatively higher prices of fruit juices compared to other types of beverages have limited the consumer base to a small percentage of the population. Furthermore, various factors such as high packaging costs, seasonality and unavailability of raw materials, and inadequate transportation facilities have greatly affected the growth of the fruit juice industry. Facing intense competition from imported products and other types of beverages like carbonated drinks and bottled water, domestic manufacturers must continuously find ways to improve quality or reduce costs in order to stay competitive locally as well as globally. This is also very important to the export market as the country is a net exporter of fruit beverages. Being an agricultural country, domestic producers must capitalize on the country¡¦s competitive edge of land availability, abundant supply and variety of locally-grown tropical fruits and the adequate supply of skilled and competent labor to tap the domestic and world market.
II. INDUSTRY BACKGROUND
A. Product Description/Definition
Under the definition adopted by the Bureau of Food and Drugs, the regulatory body of the beverage industry, fruit drinks may be classified generally into three (3) categories namely the Ready-To-Drink (RTD), Concentrates, and Powdered. (Refer to the table below).
Table 1. Summary of the Types of Fruit Beverages
Classification/Type Description Fruit Juice Concentration
Ready-to-Drink (RTD)
Fruit Juice
Fruit Juice Drink
Fruit Nectar
Fruit Flavored Drink Juice extracted from flesh or pulp
Mixture of fruit juice concentrate, water, sugar and citric acid.
Mixture of fruit puree, water, and sugar
Mixture of flavoring, water, citric acid, coloring, and
This paper studies the fruit juice market in the Philippines. The market has experienced significant growth in recent years primarily owing to the craze toward health-food consumption. However, the relatively higher prices of fruit juices compared to other types of beverages have limited the consumer base to a small percentage of the population. Furthermore, various factors such as high packaging costs, seasonality and unavailability of raw materials, and inadequate transportation facilities have greatly affected the growth of the fruit juice industry. Facing intense competition from imported products and other types of beverages like carbonated drinks and bottled water, domestic manufacturers must continuously find ways to improve quality or reduce costs in order to stay competitive locally as well as globally. This is also very important to the export market as the country is a net exporter of fruit beverages. Being an agricultural country, domestic producers must capitalize on the country¡¦s competitive edge of land availability, abundant supply and variety of locally-grown tropical fruits and the adequate supply of skilled and competent labor to tap the domestic and world market.
II. INDUSTRY BACKGROUND
A. Product Description/Definition
Under the definition adopted by the Bureau of Food and Drugs, the regulatory body of the beverage industry, fruit drinks may be classified generally into three (3) categories namely the Ready-To-Drink (RTD), Concentrates, and Powdered. (Refer to the table below).
Table 1. Summary of the Types of Fruit Beverages
Classification/Type Description Fruit Juice Concentration
Ready-to-Drink (RTD)
Fruit Juice
Fruit Juice Drink
Fruit Nectar
Fruit Flavored Drink Juice extracted from flesh or pulp
Mixture of fruit juice concentrate, water, sugar and citric acid.
Mixture of fruit puree, water, and sugar
Mixture of flavoring, water, citric acid, coloring, and
References: The fruit juice industry: Health consciousness trend propels growth. (September 1994). Industry Digest, 18, pp.1-11. Beverage industry: competition spurs investments. (June 1996). Industry Digest, 20, pp.1-10. The fruit juice market in the Philippines. (August 1999). Available at: http://atn-iae.agr.ca/info/asia/asean/e2769.htm