The industry grows rapidly as product innovations encourage new consumers.
London, United Kindgom (PRWEB) April 12, 2013
The Cider & Other Fruit Wine Production industry has undergone a revival since 2005. Cider was previously viewed as the drink of choice for underage youths, elderly farmers and the downtrodden, but cider producers have reinvented the product's image to appeal to a new generation of cider drinkers. Irish beverage producer C&C Group, which promoted its Magners apple cider with an expensive advertising campaign, sparked this trend. During 2006, cider became the hit of the summer, with sales soaring as a new generation of young, urban drinkers experienced the product for the first time.
According to IBISWorld industry analyst Steven Connell, “the industry has continued to outperform other alcoholic beverages over the past five years, driven by product innovations, new producers entering the industry, heavy investment into advertising and promotions and increasing premiumisation”. The industry is expected to record moderate growth of 2.8% in 2012-13, with the poor economic outlook and wetter than average weather weighing on sales. During the five years through 2012-13, IBISWorld expects industry revenue will increase at an annualised 4.9% to reach £1.48 billion.
The industry is forecast to perform strongly over the next five years through 2017-18. Producers will continue innovating, with pear and other fruit flavoured ciders expected to grow the strongest. Smaller independent producers are expected to benefit from strengthening demand for premium cider and perry. Growth is expected to moderate in the long term as cider loses its trendy edge compared with other alcoholic beverages and discretionary spending weakens. Private labels will increase their share of the market, while government efforts to tackle underage drinking and other social problems caused by drinking could result in higher taxes and duties on cider. Connell adds, “continuing to tap into the lucrative female drinking market appears the industry's best long-term driver of growth."
The Cider & Other Fruit Wine Production industry displays a medium level of market share concentration, with the top three players accounting for over 40% of industry revenue. Major companies include Heineken UK, Aston Manor Brewery and C&C Group. During the last five years, concentration has decreased as new competitors entered the industry and demand for independent cider grew.
For more information on the Cider & Other Fruit Wine 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 produce cider from cider apples and other ingredients. The industry also covers the production of pear cider and ciders flavoured with other fruits.
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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