Industry Analysis & Industry Trends
The Carbon Dioxide Production industry has remained stable over the past five years. Low revenue volatility has been derived from its reliance on resilient downstream demand markets. The industry provides carbon dioxide to food and beverage manufacturers primarily due to its application as a food additive. The industry has maintained stable profit margins over the past five years due to households continuing to purchase goods. Low discretionary incomes resulted in purchases of inexpensive luxuries by consumers. The industry also faced supply shortages in 2011-12 due to two major plants temporarily closing down, with soft drink manufacturers finding it difficult to source carbon dioxide in some areas. As a result, the industry grew by a compound annual rate of 1.7%... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry into the Carbon Dioxide Production industry tend to be high. Barriers to entry are high given the highly concentrated nature of the industry as well as the mature nature of the manufacturing and mining industries that comprise the bulk of the industry's downstream customers. The dominance of the existing major players (including the likes of BOC with its established network of customers and strong knowledge of the local market) can also act as an entry barrier.
High capital outlays and the need for specialised technical requirements can pose substantial barriers to entry. In addition to the high costs associated with the construction of production plants, the actual manufacturing process requires engineering and process expertise... purchase to read more