Increased health consciousness and demand for trending beverages will drive growth
Los Angeles, CA (PRWEB) May 10, 2012
A healthy curiosity has caused consumers to quench their thirst with a growing variety of beverages. Increasingly, health-oriented consumers have switched from soda to the Juice Production industry's products, like ready-to-drink tea. “On the back of this consumer trend, marketing campaigns that promote stimulants or natural ingredients have furthered the detraction away from carbonated soft drinks and toward this industry's functional drinks and other beverages,” says IBISWorld industry analyst Agata Kaczanowska. Driven by rising demand for newer products from increasingly health-conscious consumers, the Juice Production industry is expected to expand at an annualized rate of 6.4% to $27.3 billion in the five years to 2012. Additionally, functional drinks and other new products that are heavily marketed to a young demographic are sustaining revenue, though low disposable income nationwide has weakened growth since 2008, including an expected contraction of 0.3% in 2012.
As revenue steadies in 2012, new companies will enter the Juice Production industry and employment will grow. Employment and enterprises grew relatively in line with industry revenue growth over the past five years. According to Kaczanowska, “Fast-growing niche markets like energy drinks are attracting businesses and driving industry expansion.” Given these conditions, the number of companies – and subsequently employment – has expanded every year on average over the past five years. Over the next five years, consolidation is expected to occur at a rapid rate as major players invest heavily in this growing beverage sector and away from carbonated soft drinks and acquire smaller juice and beverage producers. New companies are anticipated to continue forming and expanding the variety of beverages. Major companies include PepsiCo Inc., The Coca-Cola Company, Dr Pepper Snapple Group Inc., and major industry brands include SoBe, Naked, Lipton, Odwalla, Fuze and Snapple.
While falling disposable income has caused revenue declines in traditional categories, the introduction of new products has more than offset these dips. As consumers demonstrate increasing brand awareness for existing products, opportunities for new players will decline. Consequently, the number of enterprises and employees is forecast to stagnate over the five years to 2017. Despite stagnation in these structural aspects, new brands in the market are anticipated to increase product prices and continue an upward trend in industry profit. For more information, visit IBISWorld’s Juice Production in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures fruit juice, functional drinks, ready-to-drink coffee and tea, and flavored water. This industry excludes carbonated soda producers, water bottlers and ice makers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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