San Francisco, CA (PRWEB) September 01, 2013
Revenue for the Soda Production industry in China a is set to total $15.1 billion in 2013, says IBISWorld, reflection annualized growth of 11.2% over the past five years. Carbonated soft drinks comprise the third-largest sub-segment by output volume within the overall soft drink product segment (drinking water and fruit juice are the two largest). The share of carbonated drinks within the segment has been declining, however.
Consumers are becoming increasingly health conscious, which has restrained the growth of carbonated soft drinks to some degree. Currently, milk drinks and tea beverages are gaining market share from carbonated soft drinks; their consumption is growing at about three times that of carbonated soft drinks. This increased external competition, along with higher raw material costs and advertising prices, have led to a fall in profit margins for soda producers, says IBISWorld.
The Soda Production industry in China is highly concentrated. Coca-Cola and Pepsi-Cola alone dominate with an estimated joint market share of 74.0% in 2013. Large enterprises producing domestic brands, such as Future Cola and Jianlibao, account for a combined 6.1% market share. The leading positions of Coca-Cola and Pepsi-Cola have been reinforced in the past decade, says IBISWorld.
More carbonated soft drinks with fewer calories, caffeine and sugar will be developed in the future. However, increased competition from substitute beverages that are perceived as healthier, such as milk-based drinks, fruit juices and bottled water, will continue to contribute to difficult industry conditions.
For more information, visit IBISWorld’s Soda Production in China industry report page.
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IBISWorld Industry Report Key Topics
The Soda Production industry in China produces, bottles, and sells carbonated drinks, except those that contain carbon dioxide by fermentation.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.