Global Soft Drink and Bottled Water Manufacturing Industry Market Research Report from IBISWorld Has Been Updated

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The industry will benefit from more buoyant economic conditions in emerging markets, with rising disposable incomes and urbanization fueling demand for both carbonated and non-carbonated products. For these reasons, industry research firm IBISWorld has updated a report on the Global Soft Drink and Bottled Water Manufacturing industry to its growing report collection.

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The industry is changing as consumers shift toward healthier beverages.

The global economic downturn constrained demand across most of the markets of the Global Soft Drink and Bottled Water Manufacturing industry, causing industry revenue to contract. Consequently, the industry's revenue is estimated to have grown at an annualized rate of just 0.6% since 2008. However, strong volume growth in emerging markets and rising demand for bottled water and other non-carbonated products in more mature markets are underpinning the industry’s performance. Driven by rising disposable income in most regions, industry revenue is expected to increase 0.6% in 2013 to $197.7 billion. “This slight growth comes despite the industry's major product, carbonated soft drinks, gradually losing market share as consumers shift toward healthier beverages, especially in developed markets,” says IBISWorld industry analyst Agata Kaczanowska.

The Global Soft Drink and Bottled Water Manufacturing industry was transformed when major players The Coca-Cola Company (TCCC) and PepsiCo merged with their respective North American bottling operations in 2010. Prior to this, both companies' main business was selling beverage concentrate or syrup. The companies 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 providing them with greater control and flexibility with their distribution networks,” adds Kaczanowska. The industry is continuing to consolidate, which has decreased the number of industry operators at a 3.3% annualized rate since 2008 to 4,723 in 2013.

The industry has a medium level of concentration; TCCC and PepsiCo dominate manufacturing soft drink concentrates. The two companies also engage in bottling other industry products, including water and functional beverages. Outside of the United States, TCCC and PepsiCo sell soft drink syrups or concentrates to many regional bottlers, and they maintain significant equity interests in these companies.

Over the next five years, the industry will benefit from better 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. Expected rising global temperatures will benefit the industry, as people increase drink consumption in hot weather. 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 & Bottled Water Manufacturing industry produces bottled, tinned and canned beverages for human consumption. This industry comprises establishments engaged in one or more of the following: manufacturing carbonated soft drinks; purifying and bottling water; and manufacturing of other beverages, such as energy, sports and juice drinks.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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 nearly every US and Global 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 or call 1-800-330-3772.

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Gavin Smith
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