Industry Analysis & Industry Trends
The Energy Drink Production industry has experienced robust growth over the five years to 2014, primarily thanks to rising disposable income following the recession and consistent demand from core demographic markets. Furthermore, as the industry continues to introduce new products and health concerns over more traditional carbonated beverages increase (e.g. soda), it is poised to benefit from more consumers incorporating energy drinks into their diets. Over the five years to 2019, manufacturers are expected to introduce a variety of all-natural and organic energy drinks, appealing to consumers who are wary of the negative health consequences of artificial ingredients.... purchase to read more
Industry Report - Industry Investment Chapter
The Energy Drink Production industry exhibits a high level of capital intensity. Using wages as a proxy for labor and depreciation as a proxy for capital, IBISWorld estimates that for every $1.00 spent on labor in the industry, $0.55 will be spent on capital in 2014. This figure represents a growth from an estimated $0.48 in 2009. Capital expenditure is required in this industry to purchase and maintain machinery and equipment to produce a high volume of energy drinks. Moreover, the production of packaged beverages is largely automated, causing depreciation to account for a substantial share of revenue.
While depreciation's share of revenue has remained steady over the past five years, wages' share of industry revenue has declined... purchase to read more