Juice and Smoothie Bars in the US Industry Market Research Report Now Available from IBISWorld
A drop in disposable income and escalating competition depressed demand for products in the Juice and Smoothie Bars industry over the past five years. In particular, competition increased from fast-food chains and frozen yogurt shops, many of which recently added smoothies and juices to their menus. In response, small juice and smoothie bars have been franchising in order to consolidate marketing costs. Over the coming years, these trends are forecast to continue, with franchising remaining a key driver of industry growth. To stay competitive and drive revenue growth, companies will expand offerings and look to markets overseas. At the same time, companies will downsize stores to cut on costs and reduce the number of employees at each establishment. For these reasons, industry research firm IBISWorld has added a report on the Juice & Smoothie Bars industry to its growing industry report collection.
Los Angeles, CA (PRWEB) February 06, 2012
A drop in disposable income and escalating competition depressed demand for products from the Juice and Smoothie Bar industry in the past five years. IBISWorld industry analyst Agata Kaczanowska says competition increased from fast-food chains and frozen yogurt shops, in particular, many of which recently added smoothies and juices to their menus. In response, small juice and smoothie bars are franchising in order to consolidate marketing costs. Likewise, large franchise operations are selling their locations to franchisees as a way of earning capital and cutting operating expenses.
The Juice and Smoothie Bars industry revenue is estimated to decline 0.4% annually on average since 2007 to $1.8 billion by 2012. According to Kaczanowska, though, the industry is expected to rebound in 2012 because consumers will have more money to buy industry products and less time to make their own juices or smoothies, as disposable income and employment grow.
Large industry operators are looking to expand internationally in order to capture faster disposable income growth abroad. For example, Jamba Juice has announced that it will expand significantly in South Korea over the next decade. Other major companies like Smoothie King and Robeks have sights set abroad too. At the same time, companies are expected to downsize their stores, in order to cut down operating expenses and bolster profit. Smaller stores require fewer employees, which is particularly important because the minimum wage is forecast to continue increasing during the next five years. Downsizing will help profit expand slightly; though it is not forecast to reach prerecession levels because competition from other food retailers forces the industry to keep prices low. Additionally, a shift to more environmentally friendly cups could eat into industry profit in the next five years. For more information, visit IBISWorld´s Juice and Smoothie Bars in the US industry page.
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IBISWorld industry Report Key Topics
This industry primarily sells smoothies and fresh-made juices. A smoothie is a blended, sometimes sweetened beverage primarily made from fresh fruit or vegetables combined with ice. They may contain chocolate, honey, syrup, milk, yogurt or ice cream and have a milkshake-like consistency thicker than slush drinks. Some juice and smoothie bars offer add-ins, like soy milk, whey powder, green tea and herbal or nutritional supplements. Revenue from other beverage and food sales is included.
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/prweb2012/2/prweb9167611.htm