The cold pressed juices market is competitive with major market players operating at the global level. The key industry players in the cold pressed juices market have adopted the strategies such as geographic expansion, new product launch, acquisitions, agreement, and R&D to strengthen their business portfolio. Most of the companies operating in this market are focusing on expanding their operations across the geographies and undergoing strategic acquisitions to grow in organic cold pressed juices business. Moreover, they are augmenting their capabilities and investing in research and development to offer products with better functionality and have inclination towards organic market.
This graph indicates the percentage wise business strategies taken by key manufacturers of cold pressed juices who have their presence globally. PepsiCo Inc., among all accounted for the highest market share in terms of development and is projected to constitute 32% of the developmental share in the cold pressed juices market. The company is majorly focusing on geographical expansion wherein it is majorly focusing into emerging markets and highly investing to increase the production capacity in these areas. The company is also focusing on investing in R&D for instance; they opened a new research and development facility in Dubai, the UAE. Moreover, Suja Life LLC and Liquiteria Inc. are anticipated to account for a share of 18% each of the overall development in the cold pressed juices market. Suja Life LLC is identified to have more focus on new product launches to strengthen their product portfolio. Also, Coca Cola’s minor stake in the company has provided a huge opportunity to the company and it is exploring itself in every possible direction. For instance, Liquiteria Inc. is mainly focusing into expansion by opening new stores and increasing its geographical footprints.
Hain Celestial Group and Evolution Fresh also hold a substantial share in the market with strong emphasis on product launch and expansion of their geographical presence to grow in the industry. Other major players are also found to have high focus on strategic product launch to seek consumers’ attention towards their product range. They are also involved in the strategic agreement which will further support the company to expand and reach out to consumers across the regions.
This graph indicates the percentage wise business strategies taken by cold pressed juice manufacturers at a global level. In the strategy analysis, expansion segment is dominating the market accounting for a share of 45%. This expansion includes both business expansion and geographical expansion. In addition to the expansion, the key players in the cold pressed juices market are inclined towards new product launch wherein, they are continuously coming up with new products consisting new healthy ingredients. Moreover, R&D activities also hold a substantial position in strategy market for cold pressed juices.
Additionally, the companies are inclined towards online platform for marketing their cold pressed juices to the customers. Also, the companies are inclined towards product promotions and strengthening their marketing base. The promotional strategy aids in retaining the existing customers and to regenerate new customer base.
Michael Porter’s Five Forces model gives a framework that models the global cold pressed juices market, which is influenced by five forces. The strategic business managers, trying to create an edge over competitive firms in the global cold pressed juices market can utilize this model to better comprehend the industry connection, in which the firm operates. The components of each of the forces and the degree or impact of each component in the context of the global cold pressed juices market have been broken down and analyzed.
Threat of New Entrants
Economies of Scale: Cold pressed juices business is highly competitive and huge. Major Key players have their prominent presence across the globe, which makes the market highly competitive. The initial investments in the cold pressed juices market are high including the raw material costs, certification cost, and approval from the regulating bodies.
Also, the revenues are high considering the increasing demand from the consumers end. Production costs of cold pressed juices are identified to be high because of high investment in production equipment, skilled labor inputs, maintenance cost, and safety testing & certification.
Additionally, cold pressed juices market is dominated by established players in the market and to enter the market, new players need to invest enormously to create their brand identity through strategies such as high R&D investments and by creating product differentiation.
Based on this, the threat of new entrants to the global cold pressed juices market is high.
Threat of Substitutes
Availability of Substitutes & Ease of Substitution: There are only limited substitutes cold pressed juices available in the market, which primarily includes fresh juices. However, there alternatives are moderately not preferred due hygiene concerns and requires efficient processing parameters, which in-turn lowers its demand. Cold pressed juices have unique product characteristics; hence the substitution effect is moderate. Also, the substitution ease is very limited, and needs to undergo stringent regulatory parameters, which makes the substitution process relatively difficult.
Hence, the threat of substitute in the global cold pressed juices market is low.
Bargaining Power of Buyers
The bargaining power of buyers is directly proportional to the economic development. The bargaining power includes the pressure, that consumers exerts on businesses to procure higher quality products, better customer service, and lower prices.
Number of Customers: Cold pressed juices have a large customer base owing to its specific characteristics, despite of large customer base, the buyer power is limited in the cold pressed juices market. The number of consumers of cold pressed juices in the global market is high. Additionally, growing consumer awareness and high demand for superior quality beverages in the North America & Europe region has raised the demand in these regions. Increasing population and urbanization will ensure escalation in the demand for cold pressed juices.
Switching Cost of Consumers: The presence of large industrial players in the global cold pressed juices market has attracted a huge consumer base. Due to large number of existing manufacturers in the market, the switching cost of consumer falls. Furthermore, the presence of variety among the product range tends to decrease the switching cost. The consumers are well-educated about the product and they no longer have brand loyalty, which determines the bargaining power of buyers.
The bargaining power of buyers is moderate in the global cold pressed juices market.
Bargaining Power of Suppliers
Suppliers for cold pressed juices are the conventional fruits & vegetable growers, organic producers, distributors, importers and independent suppliers. Due to the availability of high count of competitors across the geographies, the suppliers have low bargaining power.
The Uniqueness of Suppliers: Cold pressed juices are available in different flavors, packaging format, and blends, depending upon the processing steps adopted by the manufacturers. Unique capabilities of suppliers for cold pressed juices enhance the supplier’s power.
Suppliers Control Over Prices: The bargaining power of suppliers is low to moderate since the supplier group is widely spread across the globe and the vendors try to go up with long-term agreement with the suppliers to maintain consistency in the quality and to ensure un-interrupted supply of raw material.
Therefore, the bargaining power of suppliers is low in the global cold pressed juices market.
Competitive Rivalry
Number of Competitors: The market is dynamic with the presence of many established as well as local players. The players in the market are competing based on new product launches, cost, and marketing activities. The competition is getting intensified due to large number of industrial players operational in this industry.
The Capacity of Competitors: Market players in the cold pressed juices industry have high production capacity and focus on strategic investments in R&D. However, the demand of cold pressed juices and the number of end-users has shown an exponential growth from last few years, this is likely to support the further growth of this market.
The cold pressed juices market has high intensity of competition due to existence of large number of competitors. This market is significantly growing, and manufacturers want to increase the production volume. Also, they are involved in capturing greater market share.
Hence, the competitive rivalry in the global cold pressed juices market is high.
