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Juice Production in Canada Industry Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld

Jan 10, 2014, 10:00 ET

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Exotic beverages are expected to continue boosting industry revenue

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New York, NY (PRWEB) January 10, 2014 -- Growing health concerns, as a result of the rise in obesity and diabetes, has encouraged beverage customers to become increasingly selective with their drink consumption, migrating away from carbonated soft drinks (IBISWorld report 31211a) and towards industry products or bottled water (31211b). Marketing campaigns for low-calorie and all-natural beverages, as well as added fibre, omega-3 and probiotics, have further stimulated the movement towards juice substitutes. Consequently, over the past five years, Juice Production industry revenue has grown at an average annual rate of 1.0%, reaching $2.3 billion in 2013.

According to IBISWorld Industry Analyst Sarah Kahn, “Demand for new products has been fuelling industry revenue, as producers invest heavily in research and development and market increasingly varied and exotic drinks, such as coconut water, tropical flavours and kombucha.” New companies have been taking advantage of such opportunities, created by variety in demand, attracting new businesses and driving industry expansion. Additionally, increased consumer spending has been expanding demand from convenience stores, loosening consumers' pockets and encouraging impulsive on-the-go purchases of discretionary industry products. Revenue is therefore expected to grow 5.1% in 2013 alone, as the high investment in marketing and research and development begins to flourish.

“Over the next five years, exotic beverages are expected to continue boosting industry revenue as per capita soft drink consumption continues to decrease,” says Kahn. This is because a new concern regarding controlling sugar intake is driving consumers away from high sugar juices to more healthful alternatives. Increasing demand from grocery stores and supermarkets will also provide a stable revenue stream while rising per capita disposable income will continue to encourage impulse purchases from convenience stores and vending machines. Innovative and healthy products, coupled with the increasing prices of new brands, are expected to stabilize industry profit. Consequently, revenue is expected to increase at an average annual rate of 6.8% over the coming five years.

The Juice Production industry is highly fragmented. Market share concentration has slightly increased over the past five years through acquisitions, contracts and new product development. Additionally, Canadians are still drinking lots of soda, and sugary drink consumption and soda consumption are continuing to grow. Rising rates of obesity and diabetes are expected to help shift consumer preferences. As Canadian consumers shift their preferences away from carbonated soft drinks and to fruit juices, this industry is expected to continue growing, with new companies entering the market and creating new flavours.

For more information, visit IBISWorld’s Juice Production in Canada industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld

Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Juice Production industry primarily produces fruit-based and fruit-flavoured beverages, as well as other nonalcoholic beverages, including iced coffee, iced tea, sports drinks and energy drinks. Production of carbonated soft drinks (CSDs), ice and bottled water are not included in this industry.

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 every US and Canadian 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 http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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