Expect to see a greater presence of juice and smoothie bars across the country as Australians sustain their health-conscious consumerism.
According to an IbisWorld report earlier this year, this sector of the beverages industry is likely to increase over the next five years.
And today we’re not just talking the simple juice blends we all know and love. There is a greater appreciation for value-added product supplements, such as protein shots, wheatgrass juice, multi-vitamins and immune boosters, says the report.
Of course these additions come with a premium price, and that’s good news for business operators who can increase prices and revenue.
Fruit, vegetables, milk, yogurt and honey are typical ingredients, so any price fluctuation in produce can have an impact on the bottom line.
This is already a well-represented market, which IbisWorld believes is moving closer to saturation.
That presents its own challenges for these specialist outlets with other operators and major supermarkets increasing competition. Cafes and hopsitality outlets also offer these drinks as part of their overall menu.
So who operates in the juice, smoothies sector?
There’s an undoubted leader in the juice bars space in Australia. Boost Juice, which holds a significant slice of the juice bars pie. Retail Zoo, which also operates the Cibo Espresso, Betty’s Burgers and Salsa’s brands, owns Boost Juice.
Recently the Boost Juice business partnered with tech companies to implement state-of-the-art tools and support portals for franchisees. It also linked with a finance tech firm to consolidate its procurement and inventory processes internationally. This allows franchisees to more efficiently manage their inventory.
The second largest firm operating in this arena is Top Juice, owned by Ayman Investments. Its expansion is predominantly throughout New South Wales – the business has more than 50 locations operating in Australia.
Together Boost Juice and Top Juice accounted for more than 70 per cent of the market share in Australia in 2021/22.