Product innovation will focus on health and nutrition
London, UK (PRWEB) July 31, 2012
The Fruit Drink & Functional Beverage Production industry has grown relatively strongly during the past five years. According to IBISWorld industry analyst Steven Connell, “before the recession, revenue growth was supported by soaring demand for energy and sports drinks and widespread demand for healthy, premium beverages”. Growth was more muted following the financial crisis as prices fell sharply and demand for beverages declined. Industry revenue is expected to grow 2.1% in 2012-13 as the London Olympics provides a boost to sales and ongoing tight economic conditions cause value-conscious consumers to trade down from more expensive fruit juices and smoothies to fruit drinks and dilutables. In the five years through 2012-13, industry revenue is expected to increase 1.9% per annum to total £1.85 billion.
The industry is forecast to grow solidly over the five years through 2017-18, buoyed by slowly improving economic conditions and ongoing demand for healthy, convenient beverages. Connell adds, “demand for functional beverages will remain strong over the long term, with rising health awareness and consumer demand for natural and premium products driving product innovation and helping producers boost revenue and profitability”. There is still significant opportunity for sustained growth in the industry. Producers will need to focus marketing and innovation on emphasising the health and nutritional benefits of their products, while developing their products' environmental credentials.
The Fruit Drink & Functional Beverage Production industry demonstrates a medium level of market share concentration. Between them, the four largest players in the industry account for almost 60% of revenue. Coca-Cola Enterprises Ltd is the largest firm operating in the industry, closely followed by Britvic plc. Combined, these two beverage giants generate over 40% of industry revenue. GlaxoSmithKlein, Gerber and Pepsico UK are the other major players in the industry, accounting for more than 5.0% of total revenue each.
For more information on the Fruit Drink & Functional Beverage 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 this industry manufacture a range of beverages, including fruit drinks, cordials and squash, sports and energy drinks, iced tea and flavoured mineral water. This industry excludes the production of fruit juice, mineral water and carbonated soft drink.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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