It is a fleeting beauty. Once a primary product that sustained the food and beverage company, food categories are emerging that are losing their positions. Notable products include juice and gum. Food and beverage companies are responding by reducing the production ratio of these products. They have determined that reversing the situation will not be easy.
According to Nielsen Korea on the 27th, the revenue size of the domestic vegetable and fruit beverage (juice) market is estimated to have decreased by 11% compared to five years ago as of 2024. The total annual retail sales of vegetable and fruit beverages in 2020 were 643.8 billion won, but it has decreased to 568.9 billion won in 2024. The situation in the overseas market is similar. The Washington Post in the United States reported in March that the orange juice brand 'Tropicana' is experiencing serious financial difficulties. This is due to a decrease in both revenue and operating profit.
This is due to the spread of the 'No Sugar' and 'Zero Sugar' trends, which prefer products that do not use or reduce sugar content. This reflects the increased consumer interest in health. For instance, there is a perception among people that the orange juice sold in the market is essentially sugar juice. Health-conscious individuals have shifted to the liquid tea market. The total retail sales of liquid tea have increased from 300.1 billion won in 2020 to 349.8 billion won in 2024, marking a 14% increase.
The food industry believes that the juice market will struggle to show growth and is reducing production itself. A representative case is LOTTE Chilsung Beverage, which leads the domestic fruit juice market and sold a 6,000-ton beverage tank it had acquired for juice production last year.
There are various reasons for the pessimistic outlook on the juice market. First, it cannot carry a 'Zero' sign. Because of the nature of fruit juice, it is not possible to reduce the sugar content. An industry insider noted, 'If we only consider sweetness, the carbonated beverage market should also stop growing, but carbonated beverages continue to grow after adding alternative sugars and carrying the 'Zero' sign. On the other hand, juice cannot inherently carry a 'Zero' sign and thus cannot ride the trend.'
The number of people looking for real fruit when they want to drink juice is increasing. This is because it has become an era where almost every household has a blending machine. An industry insider said, 'In the past, having a bottle of juice at home was considered a symbol of the middle class, but now it is much more meaningful to extract and drink fresh fruit juice every day.' He said, 'I believe it will be difficult to revive juice preference.'
One of the foods that have seen a decrease in demand, like juice, is gum. The distribution industry recently estimated that the size of the Korean gum market is around 100 billion won. Compared to 2003, the market has reduced to one-fifth of its size in about 20 years. This can also be seen in the sales trend of major distribution channels. According to GS25 convenience stores, the sales proportion of gum in the jelly, candy, and gum sector has been decreasing. As of the end of 2019, the sales proportion was 20%, but it had dropped to around 11% by the end of 2022.
The decline in gum sales is a global trend. The Japanese food company 'Meiji' has ceased sales of gum products 'Kishiritsu' and 'Petit Gum' due to declining sales. Meiji's gum sales in 2022 were 2 billion yen (approximately 18 billion won), a 92% decrease from sales of 26 billion yen (approximately 234.7 billion won) in 2007.
Many analyses suggest this is because the main consumer group has disappeared. As the awareness that reducing sugar intake is beneficial to health has taken hold, the number of young adults chewing gum has declined. They are now spending on alternative snacks like protein bars.
Young children are leaning towards jelly consumption instead of gum. This is because small packages of jelly often come as gifts for events at kindergartens, such as Children's Day or birthday parties. It is also common for cram schools targeting elementary school students to have a large supply of small jelly packages. They see it as suitable as a kind of 'reward gift' for children.
An industry insider said, 'This is the result of changing times,' adding that 'rather than focusing on marketing to increase sales, it is strategically more appropriate to shift focus to other food products.'