Bottled water is still considered healthier than tap water, which benefits the industry
Melbourne, Australia (PRWEB) September 15, 2012
The advent of the global financial crisis has caused widespread damage to most manufacturing industries in Australia. The Bottled Water Manufacturing industry consists of establishments that engage in the production of spring water, purified water, mineral water and bulk or packaged water. According to IBISWorld industry analyst, Ryan Lin, “the industry's growth over the past five years has been a mixed bag”. Buoyed mostly by ongoing consumer desire for healthy, convenient beverages, the industry also faced adverse downward pressure from volatile economic conditions and low consumer sentiment.
While bottled water has been among the best performing beverages for the past decade, the global financial crisis stunted revenue growth for the industry. IBISWorld estimates that industry revenue remains relatively stagnant over the five-year period through 2012-13, with an annualised increase of just 0.2% over the period to a total of $600.7 million. Lin adds, “in 2012-13, Bottled Water Manufacturing industry revenue is expected to be relatively flat, declining by 0.1%”. The Bottled Water Manufacturing industry displays a medium level of concentration. The top two players in the industry are Coca-Cola Amatil and Asahi Holdings Australia. Industry concentration has been increasing gradually over the past five years with larger beverage companies acquiring successful bottled water brands. For example, Coca-Cola Amatil entered the bulk packaged water segment with its purchase of Peats Ridge and Neverfail.
Over the next five years, the Bottled Water Manufacturing industry is anticipated to return to its previous momentum. Demand from supermarkets and convenience stores are expected to pick up again as consumer discretionary income increases. Opportunities for further growth lie in product innovation as well as the vertical integration of production lines. A growing trend has been the adoption of in-house bottle production by big manufacturers such as Coca-Cola Amatil in order to increase economies of scale and reduce overhead costs. New production methodology has also reduced the amount of plastic resin required in the manufacture of bottles, both lowering costs and addressing environmental concerns. Mounting environmental criticism, however, still remains a major threat to the bottled water industry. Producers have moved to counter this criticism by developing more environmentally friendly packaging and emphasising their green credentials in the extraction of ground water.
For more information, visit IBISWorld’s Bottled Water Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
The Bottled Water Manufacturing industry consists of establishments that manufacture or bottle purified water, spring water or functional water. Excluded are establishments that manufacture soft drinks, fruit juice, alcoholic beverages or milk drinks. Also excluded from this industry are firms that are mainly engaged in the supply of water by pipelines or mains.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
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 every Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.