The industry is forecast to grow moderately in 2012, with emerging markets providing the major impetus for growth as developed markets continue to drag on growth
Los Angeles, CA (PRWEB) April 27, 2012
The Global Soft Drink & Bottled Water Manufacturing industry, which encompasses the manufacturing of carbonated soft drinks, bottled water and functional drinks, recorded solid revenue growth before 2009, underpinned by strong volume growth in emerging markets and rising demand for bottled water and other non-carbonated products in more mature markets. This occurred despite the industry's major product, carbonated soft drinks, gradually losing market share as consumers shifted toward healthier beverages. Industry revenue contacted in 2009 as the global economic downturn constrained demand across most markets. The industry is forecast to grow moderately in 2012, with emerging markets providing the major impetus for growth as developed markets continue to drag on growth, according to IBISWorld industry analyst Steven Connell. Over the five years through 2012, industry revenue is expected to grow at an annualized 0.7%. The industry is forecast to generate $193.2 billion in 2012, a 1.7% increase on the previous year.
The industry has been transformed by the Coca-Cola Company (TCCC) and PepsiCo's acquisitions of their North American bottling operations in 2009 and 2010, Connell says. Prior to this, both companies' main business was selling beverage concentrate or syrup. The companies – which with Nestle SA, Dr Pepper Snapple Group, Inc. and Group Danone control almost half of the industry’s market share outsourced the manufacturing and distribution of soft drinks to regional bottlers, which allowed the parent companies to focus on marketing and product innovation. However, the steadily declining sales of carbonated soft drinks in mature markets, the growing market power of big box retailers like Walmart and Costco and the economic downturn led the soft drink giants to buy back their bottling operations. This has helped streamline both companies' operations, significantly cutting costs and provided them with greater control and flexibility over their distribution networks.
The industry is expected to strengthen over the next five years. While developed markets will take time to recover, consumer trends should support sales of industry products, including low-sugar carbonated beverages, premium non-carbonated beverages and sports and energy drinks. The industry will also benefit from more buoyant economic conditions in emerging markets across Asia, Latin America and the Middle East, with rising disposable incomes and urbanization fueling demand for both carbonated and non-carbonated products. Forecast rising global temperatures also bode well for industry growth. Over the five years through 2017, IBISWorld forecasts that industry revenue will grow. For more information, visit IBISWorld’s Global Soft Drink and Bottled Water Manufacturing industry report page.
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IBISWorld industry Report Key Topics
The Global Soft Drink and Bottled Water Manufacturing industry produces bottled, tinned and canned beverages for human consumption. Finished soft drinks and bottled waters are sold to grocery product wholesalers, retailers and export markets. This industry comprises establishments engaged in one or more of the following: manufacturing carbonated soft drinks; purifying and bottling water; and manufacturing functional beverages, such as energy and sports drinks.
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.