Industry Analysis & Industry Trends
The Bottled Water Manufacturing industry has grown strongly over the past five years. Competition in the industry has increased, following the introduction of private-label bottled water brands, driving volume growth through lower prices and increased availability. However, lower prices have also meant that revenue has grown at a slower rate than volumes. Industry revenue is expected to rise over the five years through 2014-15 by 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 has 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