As relaxation beverage producers succeed, new companies are entering into the relaxation drink market
(PRWEB) December 29, 2011
Growing per capita disposable income and demand from convenience stores and other retail outlets is projected to benefit the Relaxation Drink Production industry in the five years to 2016, according to a new report released from IBISWorld. Also, existing companies are already signing nationwide distribution deals, which indicate market acceptance and familiarity with relaxation drinks - so they are not growing from an extremely low base as they did over the prior five years. For this reason, industry research firm IBISWorld has added a report on the Relaxation Drink industry to its growing Wellness & Nutrition & Supplements Report collection.
The Relaxation Drink industry gained steam over the five years to 2011, as its products were first mass-produced and companies established distribution contracts with nation-wide retailers. The industry's fast-paced growth was possible because it was from an extremely low base and because there is an established market for sleep aids and products that help people focus. IBISWorld estimates industry revenue grew at a 68.7% annualized rate over five years, including a 49.5% increase from 2010 to 2011 to total $73.7 million. Relaxation drinks will make up about 0.3% of the Fruit Juice and Functional Beverage Production industry in 2011.
There are expected to be nearly 390 different types of relaxation drinks out on the market in 2011; however, the market is not yet saturated. Based on National Health Institute findings, IBISWorld estimates that there are more 53 million Americans that have trouble sleeping. Not only are such people a potential market but also people who have trouble focusing are likely to consume relaxation drinks that are marketed for that purpose. As relaxation beverage producers succeed, new companies are entering into the relaxation drink market. According to IBIS World analyst, Agata Kaczanowska, Concentration has increased significantly since the industry began in the mid-2000s. The major companies in the Relaxation Drink Industry include Dream Products LLC, which launched its first product, a relaxation beverage called Dream Water, in January 2010 and Innovative Beverage Group, a beverage distributor and the producer of the popular relaxation drink called drank. In addition, the relaxation drink, ViB, an acronym for vacation in a bottle, launched in 2008, has gradually increased its distribution network.
“The Relaxation Drink industry is already established and will be growing from a higher base, the potential demand pent-up in the market for relaxation drinks outweighs possible challenges to the industry,” says Kaczanowska. Regulators may draw up stricter guidelines for beverages, which could force companies to change product formulas or labels, and could also result in high expenditures on lobbying. However, the prospect of partnerships with or acquisitions by beverage behemoths like Coca-Cola or PepsiCo is a positive driver for companies in the industry that would greatly benefit from such arrangements. Higher demand from consumers with increasing disposable income and greater demand from convenience stores and other retailers is also expected to propel industry revenue growth. Consequently, IBISWorld forecasts slower annualized industry growth of about 24.8% over five years to $223.5 million in 2016. For more information, including latest Industry trends, statistics, analysis and market share information, purchase the full report from IBIS World, the nation’s largest publisher of industry research on the Relaxation Drink Industry for $850.
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