Carbonated Soft Drink Production in the UK Industry Market Research Report Now Updated by IBISWorld

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The Carbonated Soft Drink Production industry has experienced mixed results in recent years. Before the economic downturn, sales of carbonated soft drinks (CSDs) were already losing their fizz as health-conscious consumers began purchasing healthier drinks. At the same time, a robust economy and consumers' desire for variety fuelled growth in more expensive niche products like sports and energy drinks, and premium fruit smoothies. However, since 2007-08 CSD sales have stabilised and outperformed other beverage classes, with cash-strapped consumers trading down to familiar and trusted brands like Coca-Cola and Pepsi. Investment in marketing new low-sugar soft drinks has also paid off, with demand for brands such as Pepsi Max and Coke Zero also rising. Moderate growth is forecast for 2012-13, at 2.0%, as these trends continue. IBISWorld estimates industry revenue will grow at a compound annual rate of 1.4% over the five years through 2012-13 to reach £2.82 billion. The outlook for the carbonated soft drink industry over the next five years is mixed. Conditions in the industry should improve in the short term as ongoing marketing initiatives, product innovation and gradually strengthening consumer conditions boost sales. Producers will also benefit as consumers continue to trade down from premium stills to cheaper, more familiar soft drinks. Later in the five-year period, growth is expected to moderate, with private-label brands gaining market share, and health awareness continuing to weigh on demand for sugary drinks. Over the next five years through to 2017-18 industry revenue is forecast to grow at a compound annual growth rate similar to that over the past five years. For these reasons, industry research firm IBISWorld has updated its report on the Carbonated Soft Drink Production industry.

IBISWorld Market Research

IBISWorld Market Research

Product innovation will boost sales, while health awareness hampers demand

The Carbonated Soft Drink Production industry has experienced mixed results in recent years. Before the economic downturn, sales of carbonated soft drinks (CSDs) were already losing their fizz as health-conscious consumers began purchasing healthier drinks. At the same time, a robust economy and consumers' desire for variety fuelled growth in more expensive niche products like sports and energy drinks, and premium fruit smoothies. However, since 2007-08 CSD sales have stabilised and outperformed other beverage classes, with cash-strapped consumers trading down to familiar and trusted brands like Coca-Cola and Pepsi. According to IBISWorld industry analysts Steven Connell, “investment in marketing new low-sugar soft drinks has also paid off, with demand for brands such as Pepsi Max and Coke Zero also rising”. Moderate growth is forecast for 2012-13, at 2.0%, as these trends continue. IBISWorld estimates industry revenue will grow at a compound annual rate of 1.4% over the five years through 2012-13 to reach £2.82 billion.

The outlook for the carbonated soft drink industry over the next five years is mixed. Conditions in the industry should improve in the short term as ongoing marketing initiatives, product innovation and gradually strengthening consumer conditions boost sales. Producers will also benefit as consumers continue to trade down from premium stills to cheaper, more familiar soft drinks. Connell adds, “later in the five-year period, growth is expected to moderate, with private-label brands gaining market share, and health awareness continuing to weigh on demand for sugary drinks”. Over the next five years through to 2017-18 industry revenue is forecast to grow at a compound annual growth rate similar to that over the past five years.

The Carbonated Soft Drink Production industry is highly-concentrated, with the top five major players estimated to generate over 70% of revenue in the industry during 2012-13. Coca-Cola Enterprises Inc and Britvic are the two dominant players, representing a combined 57% share of industry revenue. Both have an extensive portfolio of established quality brands and major distribution networks. They operate on major economies of scale and spend significant sums on advertising and product innovation. Other companies A.G. Barr, Cott Ltd and Princes Ltd all make up between 4.0% and 6.0% of revenue.

For more information on the Carbonated Soft Drink Production industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Firms in the Carbonated Soft Drink Production industry produce carbonated or fizzy beverages. Carbonated water is added to soft drink concentrate or syrup, which is then bottled, capped and labelled. This industry also includes carbonated, flavoured mineral waters. Energy drinks are excluded from the industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. 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 London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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