Industry Analysis & Industry Trends
The Bottled Water Manufacturing industry has performed well over the past five years, and competition has increased, following the introduction of private-label bottled water brands. Rising competition has driven volume growth, through lower prices and increased availability, but such prices have also meant that revenue has grown at a slower rate. IBISWorld forecasts that industry revenue will grow over the five years through 2014-15 at an annualised 3.7%, to $710.7 million. In 2014-15, industry revenue is expected to grow 5.0%.
Demand for bottled water has been mostly buoyed by population growth and ongoing consumer desire for healthy, convenient beverages. The industry also faced downward pressure from consumers' increased focus on its environmental footprint... purchase to read more
Industry Report - Industry Investment Chapter
The Australian Bottled Water Manufacturing industry has a medium level of capital intensity. IBISWorld estimates that for every $1.00 paid as wages, $0.26 is required for investment in capital. The level of capital intensity is lower than most other beverage manufacturing industries, due to the relative simplicity of the production process. However, new technology, such as computerisation and automation, requires high levels of capital investment, which in turn increases capital intensity. The degree of capital intensity varies depending on the size of the bottling plant. While the manufacturing process itself is capital-intensive, participants in the industry generally undertake significant levels of advertising and sales, which is more labour-intensive and therefore raises wage costs... purchase to read more