Soda Production in the US Industry Market Research Report Now Available from IBISWorld
Although major soft drink brands like Coke and Pepsi will continue to draw sales from loyal customers, beverage drinkers will increasingly move away from soft drinks and toward healthier options that are not typically included in this industry. This competition will cause revenue and the number of industry players to fall. As a result, players will continue to consolidate and vertically integrate, as well as innovate their products to remain competitive. Over the next five years, the industry will also face a difficult operating environment as high unemployment rates offset rising consumer sentiment and discretionary spending. For these reasons, industry research firm IBISWorld has added a report on the Soda Production industry to its growing industry report collection.
Los Angeles, CA (PRWEB) July 07, 2012
Falling per capita carbonated soft drink (CSD) consumption and increasing health awareness are pushing down Soda Production industry revenue at an average annual rate of 7.3% over the five years to 2012, including a 5.9% decline in 2012 to $16.2 billion. This decline includes a significant decrease in consumption in 2009 as consumers reduced spending due to high unemployment. In 2012, CSD consumption in the United States is estimated to be 46.6 gallons per person compared with 49.5 in 2007, representing a 2.9-gallon per capita decrease. “To mitigate losses from such a drop in consumption, the industry has consolidated operations,” says IBISWorld industry analyst Agata Kaczanowska. “This has included laying off workers at an average annual rate of 6.8% over the five years to 2012.” Industry employment in 2012 is expected to total 46,065 people.
A steady decline in the per capita consumption of CSDs led the Soda Production industry to innovate and create market alternatives to attract increasingly health-conscious consumers. Major players responded to near-saturation in the CSD market by enlarging their product ranges and expanding into sports and energy drinks, premade tea, bottled water and other beverages. “These segments are growing at a faster rate than the CSD segment and are actually taking some sales away from CSDs,” adds Kaczanowska. “These products are targeted at market niches and attract a larger premium than CSDs.” As a result, the Juice Production industry (IBISWorld industry report 31211c), which includes sports and energy drinks, flavored water and premade tea and coffee, surpassed the Soda Production industry in size in 2008. The dominant players, The Coca Cola Company and PepsiCo, are currently undergoing major structural changes. These companies previously licensed a limited number of bottlers to produce finished beverages under their brand name but are now incorporating these operations into their company structure. They engage in significant marketing and brand promotion activities in order to generate brand loyalty, which translates to a larger market share for these CSD manufacturers.
Over the five years to 2017, the industry will face a difficult operating environment as high unemployment rates offset rising consumer sentiment and discretionary spending. Household wealth will remain low due to the lingering effects of the subprime mortgage crisis and associated stock market effects. New manufacturers are anticipated to enter the market by offering health-focused CSDs that will pique consumer interest. As a result, IBISWorld expects that private-label CSD sales will grow, almost balancing out flat consumption. Industry revenue is forecast to decrease from 2012 to 2017. For more information, visit IBISWorld´s Soda Production in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Firms in the Soda Production industry blend various ingredients with carbonated water and also package and distribute these beverages for resale. This industry excludes still beverage producers, water purifiers, ice manufacturers and companies that only produce beverage ingredients or distribute beverages.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/7/prweb9675793.htm