Functional Beverage Production in Australia Industry Market Research Report Now Available from IBISWorld
Melbourne, Australia (PRWEB) June 17, 2014 -- Over the past five years, the Functional Beverage Production industry has exhibited strong signs of growth, spurred on by the growing market shares of Coca-Cola Amatil (CCA) and Asahi. The two major players have increasingly flexed their domestic production powers against reigning imports of Redbull and V energy drinks. Sports drinks and health-related functional beverages have also grown increasingly popular with Australian consumers. Increased awareness of personal well-being amid rising concerns about obesity and other health complications has driven demand for industry products. Over the five years through 2013-14, industry revenue is forecast to grow at an annualised 5.4% to total $542.2 million. Revenue is expected to grow by 5.1% in 2013-14 as the increasing competitiveness of CCA and Asahi provides a boost to the number of functional beverages available to consumers.
While the key energy drink segment has been traditionally dominated by imports, CCA and Asahi have steadily boosted their market presence over the past five years through their energy drinks Mother and Monster. IBISWorld industry analyst Ryan Lin states, “stronger awareness of domestically produced products through marketing campaigns and broader distribution has allowed the Functional Beverage Production industry to gain an edge over imports, with imports declining over the past five years.” Over the coming five years, IBISWorld anticipates that the industry will continue to grow strongly, albeit at a slightly slower rate. Competitive pressures are expected to build up as strong competition between domestic products and imports persists. According to Lin, “the industry will demonstrate high levels of innovation as attractive profit margins provide the much-needed lure for innovation, allowing the industry to sustain relatively strong revenue growth despite rising competition.” A high awareness of health and personal wellbeing will further fuel consumer demand for health-related functional beverages.
The Functional Beverage Production industry is characterised by a medium level of market share concentration. However, the level of market share concentration can differ between segments. The energy and sports drink segments exhibit higher concentration than the overall industry. This increased concentration is largely due to the presence of major brands within these segments. Coca-Cola Amatil and Asahi dominate these segments with major brands such as Powerade, Gatorade, Mother and Monster. Other major brands in these segments are imported, including Red Bull and V. As a result, market share concentration in these segments is high. The health beverage segment is more fragmented, with most companies producing niche products in lower quantities. The lack of dominant products and brands within this segment means that brand name and market share are less significant in determining demand. Consumers are driven more by the perceived health benefits of products than by brand. For more information, visit IBISWorld’s Functional Beverage Production report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry includes firms that manufacture functional beverages, such as health drinks, sports drinks and energy drinks.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios
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.
Gavin Smith, IBISWorld, http://www.ibisworld.com.au, +61 396553833, [email protected]
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