Losing fizz: Falling soft drink consumption and strong price competition flatten revenue growth

Operators in the Soft Drink Manufacturing industry have faced challenging operating conditions over the past five years. Changing consumer health trends have driven demand away from carbonated soft drinks and towards bottled water and other beverages that are perceived as being healthier. Additionally, price competition between the major players and among private-label competitors have negatively affected the industry's performance. However, these threats have been slightly offset by the growing popularity of higher value sports and energy drinks and an increasing focus on diet, zero-sugar and low-sugar ranges. Overall, industry revenue is expected to decrease at an annualised 0.4% over the five years through 2018-19, to be worth $4.4 billion. This includes anticipated growth of 0.5%...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 14-19
-0.4%
Forecast Growth 19-24
Profit
Employment
4,897
Businesses
295

Industry Threats & Opportunities

  • Manufacturers have undertaken aggressive discounting strategies to boost sales volumes
  • Changing consumer lifestyles have supported demand for functional beverages
  • Demand for convenient and functional beverages will likely assist growth over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Soft Drink Manufacturing industry is highly concentrated. The industry's two largest players, Coca-Cola Amatil (CCA) and Asahi Holdings, make up over half of the industry, accounting for an estimated 68.6% of industry revenue in 2018-19. No other players hold over 5% of industry revenue, however the top four players are estimated to make up over 70% of industry revenue. CCA's and Asahi's declining revenue over the past five years has decreased overall market share concentration, as both companies have struggled with price competition and falling sales volumes of its beverages.The growing popularity of private labels is expected to reduce industry concentration slightly over the next five years. Lar...purchase to read more.

    Additional Insights for the Soft Drink Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Soft Drink Manufacturing are:

  • Control of distribution arrangements
  • Supply contracts in place for key inputs
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Demand from fast food and takeaway food services and Demand from supermarkets and grocery stores in the Soft Drink Manufacturing industry impact industry performance..

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    What's in this report

    What is the Soft Drink Manufacturing Industry?

    Industry firms primarily produce canned or bottled soft drinks (carbonated and non-carbonated), sport drinks and energy drinks. The industry does not include the production of bottled water, fruit juice drinks or fruit drinks.

    Industry Products
  • High-sugar CSDs
  • Low-sugar CSDs
  • Sports drinks
  • Energy drinks
  • Other beverages
  • Industry Activities
  • Soft drink production
  • Syrup production
  • Energy drink production
  • Sports drink production
  • Ice production
  • Powder flavour (for soft drinks)
  • Tonic and soda water
  • Cordial
  • Non-alcoholic cider and ginger beer
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from fast food and takeaway food services
  • Demand from supermarkets and grocery stores
  • Health consciousness
  • Real household disposable income

  • Current Performance
  • Trading landscape
  • Industry-wide profitability
  • Health consciousness
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability
  • Product innovation
  • Sugar pledge
  • Table: Soft Drink Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Soft Drink Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Soft Drink and Pre-Packaged Food Wholesaling
  • Supermarkets and Grocery Stores
  • Convenience Stores

  • Key Selling Industries
  • Fruit and Vegetable Processing
  • Metal Drum, Can and Bin Manufacturing
  • Sugar Manufacturing

  • Products & Services
  • High-sugar CSDs
  • Low-sugar CSDs
  • Sports drinks
  • Other beverages
  • Energy drinks
  • Chart: Soft Drink Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers and other markets
  • Supermarkets
  • Chart: Major Market Segmentation for the Soft Drink Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Soft Drink Manufacturing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Soft Drink Manufacturing Industry

  • Industry Globalization
    Coca-Cola Amatil Limited, Asahi Holdings (Australia) Pty Ltd,
  • Table: Coca-Cola Amatil Limited - financial performance
  • Table: Asahi Holdings (Australia) Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Soft Drink Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Soft Drink Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Carbonated Soft Drinks (Csd)
  • A non-alcoholic beverage that includes dissolved carbon dioxide gas, most often to improve the taste and/or texture.
  • Functional Beverage
  • A non-alcoholic beverage containing additional ingredients to provide specific benefits, such as health and endurance.
  • Polyethylene Terephthalate (Pet)
  • A type of polymer resin used in synthetic fibres, and to produce food and beverage containers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Soft Drink Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Soft Drink Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Soft Drink Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Soft Drink Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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