How to Start Fruit Juice Business

Fruit juice is 100% pure juice made from the flesh of fresh fruit or from whole fruit, depending on the type used. It is not permitted to add sugars, sweeteners, preservatives, flavourings or colourings to fruit juice.

•         Fruit juices are usually described as:

• ü  From concentrate
• ü  Not from concentrate
• ü Freshly squeezed

1. Fruit juice from concentrate

• Juice is extracted from the fruit and the water content is reduced—by evaporating off the water naturally present—in the country of origin. The concentrated juice is usually frozen and shipped to the country of use for packing. Fruit juice packers then reconstitute the juice by adding back the water.

      2. Not from concentrate juice

• Juice is extracted from the fruit in the country of origin and then lightly pasteurised and frozen, chilled or aseptically transported to the country where it will be packed.

     3. Freshly squeezed juice

• Juice is extracted from the fruit and used immediately.

According to the business experts and market research, the current market size for the fresh fruit juice business in India is around 3200 crore. The market is estimated to grow at the rate of 25%-30%, owing to factors like urbanization, increasing disposable income and entry of organised players into the market. Majority of the fresh fruit juice business in India is still un-organised and dominated by roadside shops, run by sole proprietors. However, organised players have begun penetrating Tier 1 and Tier 2 cities in India by establishing fresh fruit juice chains and distribution of pre-packaged fresh fruit juices.

Within the beverages market, packaged fruit juice is one of the fastest-growing products. It has grown at a CAGR of over 30% over the past decade. At present, the Indian packaged juices market is valued at Rs.1100 crore and is projected to grow at a CAGR of 15% over the next three years.

The rising number of health-conscious urban consumers is giving a boost to fruit juices. Juices are healthy only when prepared hygienically. So the hygiene-conscious people are only buying packaged fruit juices for the companies that have trusted brand value in the market.

Growing affordability and rising disposable income are also responsible for the growing demand for fruit juices in the Indian market. Last but not least, the boom in retail merchandising and eCommerce plays as major growth drivers in the fruit juice market in India. Thus, we can conclude, small, medium or large scale fruit juice production is a profitable investment opportunity for new entrepreneurs.

Natural and fresh fruit juices are gaining immense popularity as the ideal solution to growing health and dietary concerns. Several combinations of fruit juices are processed to create different flavors that address specific body needs, reduce nutritional deficiencies, provide specific nutrition, and keep various health ailments at bay. While boosting immunity and delaying the aging process are the obvious benefits, consuming fruit juices offers numerous other health advantages.

The ready-to-drink packaging of fruit juice makes it a favorite among millions to stay fresh and hydrated on the go without compromising on essential nutrients.

If you want to start a small-scale fruit juice production business – can be started with a small investment. The raw material of this business – fruits, is easily available across the country. It doesn’t demand complex manufacturing technology. 

Setting up a fruit juice manufacturing plant - The Groundwork

While setting up a fruit juice processing plant is a profitable business in India, several points should be considered to ensure it remains profitable in the long run. You can start with a specific product, or choose to setup a multi-fruit juice manufacturing plant.

The amount of investment depends on the choice you make, and your revenue depends on the size and type of plant you establish. The ideal way is to start a small-scale fruit juice processing plant to understand the market, analyze the variations in demand, and plan for expansion in the future.

The type of manufacturing technology also depends on the type and size of your processing unit. The raw materials for this business – fruits are available easily across the country, and it usually doesn’t require a complex manufacturing technology.

Fruit Juice Production Business Compliance

To start a fruit juice production business in India, you will need to obtain different registrations and licenses from Govt. authorities. These are as follows:

Firm registration with ROC

Trade License from local Municipal authority

MSME Udyog Aadhaar Registration

FSSAI registration

GST registration

Compliance with the FPO act is mandatory.

Additionally, you must maintain the guidelines such as location and surroundings of the factory, sanitary and hygienic conditions of premises, personnel hygiene, portability of water, machinery & equipment with installed capacity, quality control facility & technical staff, product standards, limits for preservatives & other additives, etc.

Fruit Juice Production Machinery & Raw Materials

There are three types of fruit juices available in the market.  Fruit drinks, which have a maximum of 30% fruit content, are the highest-selling category. Fruit Juices, are 100% composed of fruit content and claim a 30% market share at present. In contrast, nectar drinks have between 25-90% fruit content but account for only about 10% of the total market. According to the specific product, you want to produce you must select the right machinery. Some of the common machines and equipment, required for fruit juice production is fruit sorting machine, fruit washing machine, fruit peeling and extracting machine, fruit pulper machine, fruit juice extractor, juice homogenizer and degasser, pasteurizer, packaging or bottle filling

machine, etc.  While selecting the machinery for your fruit juice manufacturing plant setup, you should consider some key points. Firstly, it is important to know the desired quantity output, and your expertise in the domain. If it’s the first time, then don’t choose a fully automatic machinery. A semi-automatic equipment is ideal that lets you understand the subject better and plan for expansion in the future.

For fruit juice production, major raw materials are different types of fruits. Apart from fruits, you must procure sugar, preservatives, food colors etc.

Packaging plays an important role in fruit juice production. Tetra pack is most popular among the consumer. Pet bottle pack is also running in the market. According to the size, you want to deliver, procure packaging consumables. In a case of pet bottles, you must arrange the labels with proper product information.

 

Fruit Juice Production Process

The production process is not same for the different types of fruit juice processing.  The common production process flow chart is as follows:

1. Fruit Selection & Preparation

Fresh, sound and the suitable variety of fruits are collected and sorted. They are first washed by rotary brushes to remove soil and dirt from the grove and stems and leaves need to be removed from the fruit.

2. Juice Extraction

The selected fruits must be crushed to a pulp before pressing, the result of this being what is known as the pumice. Pulping is often followed by the addition of enzymes, which break down the cell walls of the fruit and thus increase the amount of juice extracted.

3. Straining & Filtration

To clarify the juice, which is still cloudy, the juice is first centrifuged – during which process the larger particles such as broken fruit tissue, seed and skin, and various gums, peptic substances etc. settle to the bottom – and then filtered.

4. Cooling

Quick cooling is important. Otherwise, the product will have a burnt taste and the color of the syrup will become dark brown. Therefore, you will need to cool the syrup quickly.

5. Packing & Storage

Here, you can use a vacuum – based bottle filling machine to fill and pack the juice/syrup to increase the shelf life. Additionally, you must fill the juice/syrup in sterilized bottles to avoid fungus problems. The next step is sealing.  The last step in the fruit juice production process is labeling and bulk packaging for wholesale delivery.

Cold-Pressed Juice – The Latest Revelation

The already health-conscious individuals are getting smarter and getting more eagle-eyed when it comes to healthy consumption. The demand for cold-pressed fruit juice is on a rampant, and the trend is forcing the Indian fruit juice manufacturing process to transform its operations.

Cold-pressed juice is way different from regular packed juices, and the way they’re preserved clears all doubts. Traditional juicing methods are eliminated and hydraulic press is the latest procedure used to extract the juices.

While cold-pressed juice in its raw form lasts for only 4 days after which microbes begin to spoil it, a fruit juice processing plant adopts pasteurization technology called high pressure processing where bottled cold-pressed juices are submerged in cold water under high pressure. This technique kills the pathogens and enhances the shelf life to a whopping 45 days. The necessary vitamins and nutrients remain intact, delighting consumers always.

Process Involved in Starting Fruit Juice Business

The following process is involved in starting a fruit juice business in India:

Determine business model

The first step is to decide on the business model of the fruit juice business. The entrepreneur must choose whether to set up a fruit juice shop or a pre-packed juice business. The entrepreneur can look into the factors such as capital investment, location of the business, fruit juice recipes, the process of making the juice, etc., to decide on the business model. When the investment is low, it is better to start with a fresh fruit juice shop and then gradually expand the business to a pre-packed juice business.

Determine the niche

The entrepreneur must decide on the niche for his/her juice business. The niche is the specialised market the entrepreneur wants to target, such as selling energy juice, organic juices, bottled juices or juice smoothies. The entrepreneur needs to study the market, profitability, and competition before selecting the niche.

 Prepare a business plan

An entrepreneur must prepare a business plan for the business. While preparing the business plan, the entrepreneur must keep in mind the niche of the business, expected earnings, operating expenses, marketing, public relations strategies and analysis of competing businesses. It helps entrepreneurs to find solutions when they confront a problem or difficulty. A good business plan will keep the entrepreneurs informed about the financial goals and business fluctuations.

Select a location

The entrepreneur must select a location to open a fruit juice shop or establish a pre-packed fruit juice unit. While choosing the location, an entrepreneur must look into the availability of many essential features, such as water supply, road connectivity, electricity, and the existing workforce in that location. The entrepreneur must also decide whether to set up shop in a self-owned property or home or take the shop premises on rent.

License and registration for a fruit juice business

An entrepreneur must obtain various licenses and registration from the appropriate authorities to run a fruit juice business in India. The fruit juice business can be shut down when the entrepreneurs do not have the required licenses or registrations.

The FSSAI license and GST registration are compulsory to start a fruit juice business. An entrepreneur must obtain a license from the municipal corporation of the area. The entrepreneur must also register the business for it to be legally recognized.

Buy equipment and supplies

Various raw materials and equipment are required for running a fruit juice business. The entrepreneurs must buy commercial-grade juicers or juice extractors to make juice in huge quantities. A fruit juice business needs supplies like cups, utensils and napkins. Washing equipment, measuring instruments, packets, empty bottles, labels, fruits, sugar, etc., are some of the raw materials required for a fruit juice business.

Market the business

Marketing is an essential aspect of any business. The entrepreneurs can market their fruit juice business through various marketing strategies such as sending news releases to local media outlets, launching a promotional website, sponsoring a fitness day or health fair, or opening social networking accounts. Brand your products through website, TV, media, outdoor advertising, event planning, and trade exhibition. Design appealing packages and new tastes to attract customers.

Kindly see the below video for better understanding.