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 - Industry Investment Chapter
The Soft Drink Manufacturing industry exhibits a high level of capital intensity. For every dollar paid as wages, the industry spends an estimated $0.48 on capital investment. The high level of capital intensity reflects the substantial amount of machinery and high levels of automation required in the industry. While manual labour is important to industry operations, machinery is required across nearly all operations, from manufacturing to distribution, with automation increasing across all areas. As a result, capital intensity has risen over the past five years and the trend is expected to continue as the level of automation increases and major players continue to invest in greener bottling technologies... purchase to read more