Industry Analysis & Industry Trends
The industry's revenue growth has slowed over the past five years due to the global recession constraining demand across most of the industry's markets. The steadily declining sales of carbonated soft drinks in mature markets, the growing market power of big-box retailers like Walmart and Costco, and the economic downturn led soft drink giants to buy back their bottling operations. The industry will also benefit from more buoyant economic conditions in emerging markets, with rising disposable incomes and urbanization fueling demand for both carbonated and non-carbonated products... read more
Starting a New Business
Barriers to industry entry are medium and increasing. The industry is highly brand oriented, especially in the traditional CSD segment. Brands are supported by huge advertising and marketing expenditure, global bottling arrangements that boost distribution capacity and trademarked (and secret) recipes. Production techniques also limit market entry. While the technology required for production is relatively simple, capital requirements are high. Moreover, the industry benefits from significant economies of scale.
Barriers to entry into the manufacture of soft drinks and bottled water vary across the different industry segments... read more