The purpose and scope of this information memorandum is to introduce the subject
matter and provide a general idea and information on the said area. All the material
included in this document is based on data/information gathered from various sources and
is based on certain assumptions. Although, due care and diligence has been taken to
compile this document, the contained information may vary due to any change in any of
the concerned factors, and the actual results may differ substantially from the presented
information.
SMEDA does not assume any liability for any financial or other loss
resulting from this memorandum in consequence of undertaking this activity. Therefore,
the content of this memorandum should not be relied upon for making any decision,
investment or otherwise. The prospective user of this memorandum is encouraged to
carry out his / her own due diligence and gather any information he/she considers
necessary for making an informed decision.
The content of the information memorandum does not bind SMEDA in any legal or other
form.
DOCUMENT CONTROL
Document No. PREF-7
Revision 2
Prepared by SMEDA- Sindh
Revision Date December, 2016
For information Provincial Chief – Sindh
mkumar@smeda.org.pk
Pre-Feasibility Report Fruit Juice Manufacturing
2
December, 2016
PROJECT PROFILE
1.1 OPPORTUNITY RATIONALE
The fruit juice industry coupled with beverage industry is considered to be one of the
largest industrial sectors in Pakistan
. As per new research report on Fruits and Vegetable
Juices. Asia-Pacific which includes Pakistan is forecasts to emerge as the region holding
significant growth potential at a CAGR (Cumulative Annual Growth Rate) of 6.3% over
the period 2009-2017.1
Modernization of this industry, in consonance with the change in urban life style, massive
shift of rural population to the urban areas, growth in population, etc., predict a growing
potential for instant solutions in fruit juice segment of the beverage industry.
Traditionally in Pakistan and generally all over the world people prefer to use natural
drinks rather then carbonated soft drinks and this perception is gaining more currency day
by day which also adds to the advantage of the fruit juice industry.
Common people especially young generation is inclined to have ready to consume drinks;
in addition hotels, hospitals are also expanding day by day where juices could be
marketed successfully. Moreover the global trend of preferring fresh fruits and juices also
marks possibilities of growth in this sector. Furthermore, the growing exports volume and
withdrawal of CED (customs and excise duty) on fruit juices (produced locally) could
further supplement significant growth in the fruit juice industry.
1.2 PROJECT BRIEF
Fruit juices are produced and consumed for their refreshing character and nutritional
qualities being rich in vitamins and minerals and having regulatory functions to the body
systems; such as argumenting of alkaline reserve of the blood and proper functioning of
blood vessels, including capillary, permeability and fragility as a result of contained
flavonoids. Juices also increase body retention of calcium, magnesium, nitrogen and are
also good sources of quick energy. These qualities need to be maximized in technologies
used to process fruit juices.
JUICE is generally defined as liquid extracted from the fruit, although many fruit juices
are the results of expressing the liquid from the whole or cut fruit. There are some fruits
where the distinction is not so apparent, e.g. fruits like mango, apple and banana when
squeezed yields little or no juice; rather flesh is obtained which when comminutes will
result in a dense puree and directly cannot be consumed as drink. Whereas in case of
lemon, expressed fluid cannot be called juice, it is too sour to consume and can only be
used as juice when diluted with sugar and water.
For commercial purposes, procedure involved in juice manufacturing varies from fruit to
fruit. This process is a bit technical and lengthy which we will discuss in detail later in
1 http://www.foodjournal.pk/Sept-Oct-2012/Sept-Oct-2012-PDF/Exclusive-article-Dr-Noor.pdf
Pre-Feasibility Report Fruit Juice Manufacturing
3
December, 2016
this document; however, broadly the fruit juice making process starts from fruit washing,
drying, skin removing (normally for citrus fruits i.e. orange), deseeding, pulp macerating,
pressing, pasteurizing and storage which is then used for producing fruit juices. The
process takes place using fruit processing machinery and during the process,
preservatives are also added in order to avoid microbial growth and increasing shelf life.
During the discussions with the industry experts and business stakeholders it was found
that usually C grade (A grade is of export quality, B is consumed locally) fruit is used for
the juicing or pulping purposes.
For industrial scale manufacturing of fruit juice, pulp is used which is available round the
year; on the other hand, fresh fruits are also being used for 100% pure juice production.
However, based on our discussions with industry experts, we understand that business
viability could be a question mark when fruit juice business starts with fresh fruits
processing.
The primary objective of the fruit processing is to preserve the perishable fruits in a
stable form or juice that can be stored and supplied to local and distant markets during all
months of the year. Processing also can change fruits into new or more usable forms and
make fruits more convenient to prepare.
In Pakistan, people generally prefer fresh fruit juice which is extracted directly from the
fresh fruit by using simple equipments like blender or squeezing machine. This type of
micro scale commercial setups can be seen in mega cities and towns as an unorganized
sector. However, preserved juices using tetra packs and other packaging forms and
intended for direct consumption are obtained by the mechanical process from ripe fruits
and subsequently preserved exclusively by physical means. The juice may be turbid or
clear.
The juice may have been concentrated and later reconstituted with water suitable
for the purpose of maintaining the essential composition and quality factors of the juice.
It is absolutely necessary for someone starting a juice manufacturing operation to be
familiar with the regulations and requirements of the market. For commercial purposes, it
is important to define the differences (from other juice products) carefully and ensure that
specifications and labeling are correct. There are circumstances where a 100 percent juice
or puree product is impractical while dilution with other juices and/or water and
sweeteners are practical, as long as the products are correctly identified. Water, sugar,
organic acids and low cost bulk juices are much cheaper than higher value fruit solids.
Thus, unlabelled dilution and adulteration practices are common in the market.
Following are the main types of fruit drinks:
Sport or isotonnesic beverages
Energy beverages
Nutraceutical beverages
Herbal beverages
Smart beverages
Fun beverages
Pre-Feasibility Report Fruit Juice Manufacturing
4
December, 2016
Sport or Isotonnesic Beverages
These products are designed to replace fluids and electrolytes and provide extra energy
during periods of intense exercise. Typically they have a low content juice base of 5 to 10
percent juice, added levels of sucrose, glucose (less sweet).
