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 countryÐ'ÐŽÐ'¦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 preservatives

100%

minimum of 10%

minimum of 30%

May not contain fruit juice

Concentrate Fruit Puree

Fruit Puree

Fruit Juice Concentrate

Fruit Flavored Drink Concentrate

Seived or osterized fruit flesh or pulp

Dehydrated fruit juice

Mixture of fruit beverage base and syrup (fruit flavors/essences and coloring).

100%

100%

May not contain fruit juice

Powdered

Fruit Drink Mix

Mixture of dry fruit flavor, sugar, and citric acid

May not contain fruit juice

Table 1: Summary of the Types of Fruit Beverages

Source: The Fruit Juice Industry. (September 1994). Industry Digest, 18, p.2

In terms of export and import of fruit juice beverages, the following are the commonly traded items:

a. Mango puree, juice, and concentrate

b. Guyabano puree, juice, and concentrate

c. Orange juice and concentrate

d. Grapefruit juice and concentrate

e. Apple juice and concentrate

f. Tomato juice

In terms of packaging, the Ready-To-Drink (RTD) category may be divided into three (3) segments, namely:

a. those in Tetra Packs (e.g. Magnolia) and those in Doy packs (e.g. Zesto)

b. those packaged in glass or plastic bottles

c. those which come in easy-to-open cans

Meanwhile, concentrates come mostly in large glass or plastic bottle containers and cans. Powdered fruit drinks are usually sold in glass containers, foil/plastic packets and sachets of various sizes.

B. Processing Steps

Fruit juice processing consists of 5 basic operations namely, extraction, filtration, deaeration, pasteurization and packaging.

The fruits are first sorted, washed and prepared for extraction. There are 2 principal methods of extracting juice, depending on the type of fruit. Pineapples, grapes and apples are milled or grated prior to squeezing using a hydraulic or screw press. On the other hand, citrus fruit are cut into half, squeezed mechanically as hemispherical knobs are pressed into open halves.

Filtration involves the isolation of the pulp from the juice. For some juice such as orange or grapefruit, some pulp is allowed to remain in the liquid to closely approximate the freshly squeezed equivalent. For apples or grapes, on the other hand, a filter press or precoat filter is generally used. Using this equipment, juice is forced through a bed of filter aid such as diatomaceous earth. Which is supported on a fine wire or fabric mesh. A second stage of filtration through fine paper pads maybe used to achieve optimum clarity. Cloudy juices may be homogenized to increase stability of the suspended material.

The third process of deaeration is performed to remove the dissolved oxygen. It is done by spraying the juice into the vacuum chamber or allowing it to flow over a series of baffles (a device for checking or impeding the flow of gases) while subject to a high vacuum. Oxygen reacts with the Vitamin C, thus eliminating its nutritive content and may trigger a deterioration of juice flavor as a result of other chemical