Industry Analysis & Industry Trends
A weak retail environment and changing consumer trends have limited growth in the Soft Drink Manufacturing industry over the past five years. Industry revenue is forecast to increase at an annualised 1.2% over the five years through 2014-15. This includes projected growth of 1.6% in 2014-15, to reach $4.3 billion. Despite these threats, increasing energy drink sales and the popularity of diet ranges have supported industry growth.
Retail conditions have struggled due to domestic and global uncertainty following the global financial crisis. Weak consumer sentiment over the past five years has led consumers to cut back on discretionary spending. This has reduced soft-drink consumption to an extent, as these products are typically considered discretionary... purchase to read more
Industry Report - Starting a New Business Chapter
There are high barriers to entry for the industry and the level has increased over the past five years. The market power, scale and scope of operations, and brand equity of the major players increase the barriers for new entrants.
The ability to compete with existing industry firms, which have well established distribution streams, requires significant investment. Coca-Cola Amatil's distribution network is a strong source of competitive advantage. Entry into the industry can occur through acquisition, as demonstrated by Asahi's purchase of Schweppes. Brand loyalty is also a barrier that new entrants will need to overcome... purchase to read more