Industry News

ITC Eyes Higher Market Share in Fruit Based Beverages

India: Indian consumers are becoming more health conscious and their inclination for fruits-based beverages is on the rise. Companies are realizing this trend and now more products are being offered by them. Indian conglomerate ITC is relatively new entrant in this category that launched B Natural Juices in January 2016.

The share of fruit-based beverages in the overall food division of ITC is fairly less at the moment but company sees it going up to 7 percent to 9 percent in the next couple of years. In coming two years ITC will also expand to around 16 businesses in the food division from the current 11 businesses. Organized juice market is set to see phenomenal growth in the coming years, which is currently dominated by Dabur’s Real and Pepsi’s Tropicana. At present ITC’s market share in organized juice segment is around 7 percent and company is aiming to take it over 10% by around this time next year. Organized players are pushing the market forward by offering new products.

The company would be manufacturing the new beverage in its Bengaluru facility and is looking forward to the opening of ITC's new facility in Kapurthala in Punjab which can start producing B Natural's new variant once it is operational next year. The Kapurthala facility will be spread across 70 acres and will entail an investment of Rs 1,400 crore.

According to TechSci Research, packaged fruit-based beverages market is projected to register higher growth in coming years as consumers are showing a desire to consume packaged beverages. Furthermore, busy lifestyle of metro cities and Tier I cities is likely to propel the demand of fruits based beverages. Besides, India is experiencing an increase in personal disposable income, and also increasing expenditure on healthy beverages options. This consumer shift is likely to help ITC in having an increase share by next year. Besides, ITC has been growing very fast in the Indian market and it can leverage its existing resources to take it market share forward.