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Nonalcoholic Beverage Manufacturing

10 Pages First Research, Inc. July 06, 2015 SKU: FRRS5615355

Nonalcoholic Beverage Manufacturing

Brief Excerpt from Industry Overview Chapter:

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 expected to grow at an annual rate of 5 percent through 2017 (from 2014). The leading regional markets for soft drinks are Latin America, North America, and Western Europe, according to Euromonitor.

The US nonalcoholic beverage manufacturing industry includes about 800 companies with combined annual revenue of about $50 billion. The industry's products include juice drinks, but makers of fruit and vegetable juices are covered in the Fruit & Vegetable Processing industry profile.

COMPETITIVE LANDSCAPE

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 percent 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 5 percent of the US market; exports account for less than 3 percent...

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Nonalcoholic Beverage Manufacturing

First Research, Inc.
July 06, 2015

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