Syrup & Flavouring Production in Canada Industry Market Research Report from IBISWorld Has Been Updated

Revenue for the Syrup and Flavouring Production industry has declined in the past five years as downstream industries have consolidated, demanding fewer products. For this reason, industry research firm IBISWorld has updated a report on the Syrup & Flavouring Production industry in its growing industry report collection.

  • Share on TwitterShare on FacebookShare on Google+Share on LinkedInShare on PinterestEmail a friend
Growth in exports has somewhat offset unsteady demand for industry products

New York, NY (PRWEB) May 15, 2014

The Syrup and Flavouring Production industry's prospects are inextricably tied to the downstream activities of food and beverage producers, because most industry products are used either as a base for, or an additive to, foods and beverages. Demand from downstream manufacturers has declined in recent years, as many food and beverage producers have consolidated and begun producing their own syrups and flavourings in-house. Industry customers are also increasingly likely to source from abroad as the Canadian dollar has strengthened, making domestic products relatively more expensive both at home and in export markets. Because of the shift away from domestic sourcing and significant downstream merger activity, IBISWorld expects industry revenue to decrease at an annualized rate over the five years to 2014. As per capita soft drink consumption in Canada continues to fall, soft downstream demand is expected to cause a decrease in revenue in 2014 alone.

Canadian-made syrups and flavouring sold in export markets are estimated to generate a large proportion of total industry revenue in 2014. Over the past five years, according to IBISWorld Industry Analyst Jocelyn Phillips, “export growth has been primarily stimulated by macroeconomic recovery in the industry's largest export market, the United States.” Exports to the United States have grown to generate a large share of the industry's total annual revenue in 2014, helping to offset unsteady domestic demand, which declined at an annualized rate during the past five years, despite a massive spike in 2011.

The Syrup and Flavouring Production industry is highly concentrated, with the industry's two largest companies (Kerry Group PLC and Sensient Flavors Canada) generating a majority of total annual industry revenue. Industry performance relies heavily on downstream demand, particularly from food beverage producers. “Syrup and flavouring producers will be challenged by healthy-eating trends, decreasing consumer demand for sugary foods and beverages,” says Phillips. This changing market will challenge many traditional industry products but also boost demand for innovative new flavours and products, which could provide key opportunities for industry players in niche areas. US demand for these products is expected to be particularly strong, and as a result, IBISWorld projects exports' share of total industry revenue to dramatically increase by 2019. Due to this downstream growth, the Syrup and Flavouring Production industry is expected to grow over the five years to 2019, albeit at a slow average yearly rate.

For more information, visit IBISWorld’s Syrup & Flavouring 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 Syrup & Flavouring Production industry primarily manufactures soft drink concentrates, syrup and related products for soft drink production or soda fountain use. Establishments primarily producing maple syrup, chocolate syrup, flavouring extracts, powdered drink mixes or soft drinks are excluded from the 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.


Contact

  • Gavin Smith
    IBISWorld
    +1 (310) 866-5042
    Email