Companies in this industry produce carbonated and noncarbonated soft drinks, bottled water, and ice. Major companies include Coca-Cola, Dr Pepper Snapple, and PepsiCo (all based in the US), along with Britvic (UK), Cott (Canada), Danone (France), Nestlé (Switzerland), Red Bull (Austria), and Suntory (Japan).
Global sales of nonalcoholic beverages total more than $800 billion per year, and the worldwide market is growing despite weak sales of carbonated soft drinks, according to Euromonitor. The leading regional markets for soft drinks are Latin America, North America, and Western Europe.
The US nonalcoholic beverage manufacturing industry includes about 760 companies with combined annual revenue of about $45 billion. The industry's products include juice drinks, but makers of fruit and vegetable juices are covered in the Fruit & Vegetable Processing industry profile.
Demand for nonalcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large companies have economies of scale in production and distribution. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices. The US industry is highly concentrated: the top 50 companies account for 90% of revenue.
Largely because of the high costs of shipping a heavy product, US imports and exports of soft drinks are relatively low. Imports of nonalcoholic beverages account for about 6% of the US market; exports account for less than 3% of US production. Switzerland, Austria, and Mexico are the...