Burst bubble: Despite growth in energy drinks, falling soft drink consumption has limited revenue

The Soft Drink Manufacturing industry has exhibited modest growth over the past five years, constrained by a range of factors. 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 has hampered revenue growth and profit margins. Despite these threats, the growing popularity of higher value sports and energy drinks, and an increasing focus on diet and low-sugar ranges have supported industry growth. As a result, industry revenue is expected to increase at an annualised 0.7% over the five years through 2016-17, to reach $4.2 billion. This includes an expected decline of 0.3%...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 12-17
0.7%
Forecast Growth 17-22
Profit
Employment
6,462
Businesses
194

Industry Threats & Opportunities

  • Manufacturers have undertaken aggressive discounting strategies to attract and retain customers
  • Soft drinks are a discretionary beverage, with weak consumer sentiment typically affecting sales
  • The major players will come under pressure as supermarkets expand their private-label offerings
  • Industry Report - Starting a New Business Chapter

    The Soft Drink Manufacturing industry has high barriers to entry and the level has increased over the past five years. The market power, scale and scope of operations, and brand equity of the major players raises barriers for new entrants. The ability to compete with existing industry operators with well-established distribution networks requires significant investment. Coca-Cola Amatil's established 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 new entrants must overcome. The major players undertake significant advertising and marketing activities due to the importance of their brands being household names. Acq...purchase to read more.

    Additional Insights for the Soft Drink Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Soft Drink Manufacturing Industry 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 supermarkets and grocery stores and Demand from fast food and takeaway food services in the Soft Drink Manufacturing industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    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
  • Cola-flavoured CSDs
  • Other flavoured CSDs
  • Mixers
  • Sports drinks
  • Energy drinks
  • Other beverages
  • Industry Activities
  • Carbonated soft drink production
  • Syrup production
  • Energy drink production
  • Sports drink production
  • Flavoured mineral water production
  • Ice production
  • 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 supermarkets and grocery stores
  • Demand from fast food and takeaway food services
  • Health consciousness
  • Real household disposable income
  • World price of sugar

  • Current Performance
  • Trading landscape
  • Profitability
  • Health consciousness
  • Japanese ownership
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability
  • Product innovation
  • 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
  • Cola-flavoured CSDs
  • Other flavoured CSDs
  • Sports drinks
  • Energy drinks
  • Other beverages
  • Mixers
  • Chart: Soft Drink Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets
  • Specialty soft drink wholesalers
  • Grocery wholesalers
  • Other markets
  • 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Carbonated Soft Drinks (Csd)
  • Non-alcoholic beverages that include purified carbon dioxide gas.
  • 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?

    The Soft Drink Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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.

    Contact Us

    Want to speak to a representative? Call us.

    clear