Bubble up: Soda producers will refresh product lines to curb falling demand

Over the past five years, falling per capita soft drink consumption significantly affected the Soda Production industry's performance. Demand for both regular and diet carbonated soft drinks has declined as more consumers turn to healthier beverages to quench their thirst. However, robust growth of energy drink brands kept the industry from completely going flat. Nonetheless, strong media coverage on the adverse effects of sugary beverages ultimately burst producers' bubble. Over the five years to 2022, the industry's soda segment will experience a difficult operating environment, as government campaigns promoting healthier habits cause consumers to purchase less soda, despite improving consumer spending...purchase to read more.

Industry Statistics & Market Size
Revenue
$45bn
Annual Growth 12-17
-0.4%
Forecast Growth 17-22
Profit
Employment
51,692
Businesses
480

Industry Threats & Opportunities

  • Soda producers have introduced new products to mitigate losses
  • Restrictions on the sale of large servings of sugary beverages can significantly dampen industry demand
  • Producers will continue to introduce new products that satisfy consumers’ health and nutrition needs
  • Industry Report - Industry Products Chapter

    Soda produced by industry manufacturers are bottled in cans, glass bottles and plastic bottles in either single-serve or multi-serve container sizes. Manufacturers have added a variety of can and bottle sizes to their product lines, particularly smaller single-serve bottles, to appeal to busy consumers and also those who want to consume less calories. Producers have tried to combat the declining demand for both regular and diet soda by introducing new flavors and brand extensions that are made with natural sweeteners such as stevia.Regular carbonated soft drinksSodas that are sweetened with sugar, corn syrup and other natural sweeteners are included in this product category. Som...purchase to read more.

    Additional Insights for the Soda Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Soda Production Industry are

  • Control of distribution arrangements
  • Aggressive marketing - given the high level of competition
  • Economies of Scale
  • IBISWorld analysts also discuss how external factors such as Healthy eating index and Per capita soft drink consumption in the Soda Production industry impact industry performance..

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    What's in this report

    What is the Soda Production Industry?

    Companies in the Soda Production industry manufacture soft drinks by blending various ingredients with artificially carbonated water. This industry also includes energy beverages. Producers of bottled water, ready-to-drink teas and coffees, as well as juice manufacturers are excluded from this industry.

    Industry Products
  • Regular carbonated soft drinks
  • Diet carbonated soft drinks and sparkling water
  • Energy and sports drinks
  • Mixers
  • Industry Activities
  • Manufacturing carbonated soft drinks
  • Producing energy drinks
  • Producing sports drinks
  • Brand promotion
  • Research and development
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Healthy eating index
  • Per capita soft drink consumption
  • Per capita disposable income
  • Per capita sugar and sweetener consumption

  • Current Performance
  • Fizzling sales
  • Competition and innovation
  • Industry structure
  • Profitability rises
  • Chart: Revenue Growth

  • Industry Outlook
  • Health concerns and product innovation
  • Industry structure
  • Table: Soda Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Soda Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Soft Drink, Baked Goods & Other Grocery Wholesaling
  • Retail Trade
  • Vending Machine Operators
  • Consumers

  • Key Selling Industries
  • Glass Product Manufacturing
  • Metal Can & Container Manufacturing
  • Plastic Bottle Manufacturing
  • Seasoning, Sauce and Condiment Production
  • Sugar Processing
  • Syrup & Flavoring Production

  • Products & Services
  • Regular carbonated soft drinks
  • Energy and sports drinks
  • Diet carbonated soft drinks and sparkling water
  • Mixers
  • Chart: Soda Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Grocery Stores
  • Gas stations and convenience stores
  • Warehouse clubs and supercenters
  • Vending machines
  • Other
  • Exports
  • Chart: Major Market Segmentation for the Soda Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesMarketingOther
  • Chart: Cost Structure Benchmarking – Sector vs Soda Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Soda Production Industry

  • Industry Globalization
    The Coca-Cola Company, PepsiCo Inc., Dr. Pepper Snapple Group Inc., Monster Beverage Corp.,
  • Table: The Coca-Cola Company - financial performance
  • Table: PepsiCo Inc. - financial performance
  • Table: Dr. Pepper Snapple Group Inc. - financial performance
  • Table: Monster Beverage Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Soda Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Soda Production Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Per capita soft drink consumption (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Carbonated Soft Drinks (Csds)
  • Artificially carbonated, nonalcoholic beverage that contains some form of sweetener and flavor.
  • Energy Drinks
  • Novelty refreshment beverages. Contain a variety of vitamins and minerals, caffeine, taurine (a natural amino acid in humans) and other ingredients.
  • Private Label
  • Products sold as the house brand of a particular supermarket or retail chain, rather than the specific manufacturer.
  • Ready-To-Drink
  • A beverage packaged for immediate consumption.
  • Sparkling Beverage
  • A nonalcoholic beverage with carbonation, including energy drinks, waters and flavored waters.
  • Stevia
  • A natural sweetener made from stevia plant leaves with zero calories. It is more than 200 times sweeter than sugar and considered to be a safe alternative to sugar for those with diabetes.
  • Still Beverage
  • A nonalcoholic beverage without carbonation, including juices, juice drinks, teas, coffees, sports drinks, water and flavored water.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Soda Production provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Soda Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Soda Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Soda Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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