Relaxation Drink Production in the US Industry Market Research Report from IBISWorld Has Been Updated

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Relaxation drink producers face several challenges that have the potential to derail growth, but barring any significant change in regulation, the industry should capitalize on growing demand for performance drinks in the beverage market. For these reasons, industry research firm IBISWorld has updated a report on the Relaxation Drink Production industry in its growing industry report collection.

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Higher demand from convenience stores and other retailers is expected to propel growth

The Relaxation Drink Production industry gathered steam over the five years to 2014. Industry operators were able to mass produce their products for the first time during the period, as well as establish distribution contracts with nation-wide retailers. The industry's fast paced growth is due in large part to its novelty; energy drinks have only been in existence since around 2005. Nevertheless, in that time, industry operators have been able to establish brands and grow quickly to capitalize on the market for sleep aid products. IBISWorld estimates industry revenue grew at an annualized rate during the past five years.

There are expected to be over 450 different types of relaxation drinks out on the market in 2014 (up from about 400 in 2012); however, demand is not yet saturated. According to IBISWorld Industry Analyst Will McKitterick, “The market extends beyond those who can't sleep to those who have trouble focusing.” New companies have entered into the relaxation drink market as relaxation beverage producers grow in popularity. As a result, the number of operators is expected to increase in 2014.

Over the next five years, the industry is expected to move into a new phase of established growth. Relaxation drink producers face several challenges that have the potential to derail growth, but barring any significant change in regulation, the industry should capitalize on growing demand for performance drinks in the beverage market. “Regulators may draw up stricter guidelines for beverages, which could force companies to change product formulas or labels,” says McKitterick. However, industry operators will resist any effort to reclassify their drinks under more restrictive guidelines.

The prospect for additional partnerships with or acquisitions by beverage behemoths such as Coca-Cola or PepsiCo is a positive driver for companies in an industry that would greatly benefit from such arrangements. Industry revenue growth will benefit from higher per capita disposable income and greater demand from convenience stores and other retailers. Ultimately, the industry is expected to grow quickly, although somewhat slower than over the past five years.

For more information, visit IBISWorld’s Relaxation Drink Production in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry produce drinks marketed for their relaxation or sleep-promoting properties. Most of these drinks contain the active ingredients melatonin or l-theanine. This industry excludes ready-to-drink tea as well as dairy-based and carbonated beverages.

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 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.

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Gavin Smith
IBISWorld
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