The Syrup and Flavouring Production industry manufactures beverage bases (e.g. concentrates and fountain syrups) and other flavouring syrups. The majority of industry products are used in the downstream manufacturing of finished beverages; consequently, the Soda Production industry (IBISWorld report 31211aCA) is a major buyer of industry products. Demand from downstream manufacturers has declined in recent years, as many food and beverage producers have consolidated and begun producing syrups and flavourings in-house. Nevertheless, the weakness of the Canadian dollar against the US dollar has made domestic products relatively inexpensive, expanding the industry's export market. Over the next five years, syrup and flavouring producers will be challenged by healthy-eating trends that are decreasing consumer demand for sugary foods and beverages. This changing market will challenge many traditional industry products but will also boost demand for innovative new flavours and products, which could provide key opportunities for industry players in niche areas.
This industry primarily manufactures drink concentrates, flavouring syrup and related products for beverage manufacturers, soft drink production or soda fountain use. Establishments primarily producing maple syrup, chocolate syrup, flavouring extracts, powdered drink mixes or soft drinks are excluded from the industry.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.