Industry Analysis & Industry Trends
Heavy discounting and changing consumer trends have restrained revenue growth over the past five years. During the five years through 2014-15, industry revenue is forecast to increase at an annualised rate of 1.2%. This includes weaker projected growth of 1.0% in 2014-15, to reach $4.3 billion. Despite these threats, industry growth has received support from increasing energy drink sales and popular diet ranges.
The retail environment has struggled under the weight of escalating domestic and global uncertainty following the global financial crisis. Consumers have generally become less confident, choosing to pay down debt rather than spend on discretionary purchases... purchase to read more
Industry Report - Starting a New Business Chapter
The industry has medium barriers to entry, with the level increasing over the past five years. The market power, wide range and brand awareness of the industry's major players increases 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 any new entrant would need to overcome. Advertising and marketing activities by the major players are substantial as they recognise the importance of making their brands into household names... purchase to read more