Melbourne, Australia (PRWEB) March 15, 2014
Since the global financial crisis in late 2008, the retail environment has struggled under the weight of escalating domestic and global uncertainty. Consumers have generally become less confident, choosing to pay down debt rather than spend on discretionary purchases. As soft drink is typically considered a discretionary item, this reduction in spending increased revenue volatility for the Soft Drink Manufacturing industry in Australia. Demand for carbonated beverages has also been affected by changing social trends, with more health-conscious consumers moving away from high-sugar beverages. This has prompted a shift to low- and zero-sugar carbonated soft drinks. According to IBISWorld industry analyst Stephen Gargano, “Sports and energy drinks have proved an opportunity for producers, with both products recording strong growth over the past five years.”
During the five years through 2013-14, industry revenue is expected to grow at an annualised rate of 2.5%. “This includes weaker projected growth of 1.9% in 2013-14, to a total of $4.2 billion, as poor economic conditions and changing consumer trends are expected to weigh against the industry,” says Gargano. Despite these threats, industry growth has received support from increasing energy drink sales and popular diet ranges. The industry is characterised by a high level of market concentration, with major players Coca-Cola Amatil Limited and Asahi Holdings (Australia) Pty Ltd dominating.
Industry conditions are forecast to improve over the five years through 2018-19, underpinned by strengthening demand and ongoing marketing initiatives and product innovation. Rising health awareness and concern at the high sugar content of some carbonated beverages will mean diet varieties continue to increase their share of the market. Sports and energy drinks are expected to sell well, although growth is forecast to slow as the market for these products matures. High levels of competition are also expected to continue in the Soft Drink Manufacturing industry, resulting in heavy discounting and price competition among producers. This is expected to place pressure on profit levels, leading to widespread efficiency programs and cost savings. In response to changing consumer preferences, producers are also expected to introduce more environmentally friendly packaging and products.
For more information, visit IBISWorld’s Soft Drink Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in the Soft Drink Manufacturing industry primarily produce, canned or bottled soft drinks (carbonated and non-carbonated), sport drinks and energy drinks. The industry does not include the production of bottled water, fruit juice or fruit drinks.
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.