Good night's sleep: New companies will enter the industry at a rapid pace, boosting revenue growth

The Relaxation Drink Production industry, a very young industry, exhibited strong growth over the five years to 2017. Monumental growth was achieved as industry operators were able to mass produce their products for the first time over the period, as well as establish distribution contracts with nationwide retailers. The industry's fast-paced growth is due in large part to its novelty. Relaxation drinks have only existed since around 2005, but industry operators have been able to establish brands and grow quickly to capitalize on the market for sleep aid products. Over the next five years, the industry is expected to move into a new phase of established growth. Relaxation drink producers face several challenges that have the potential to derail growth...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Higher demand from convenience stores and other retailers is expected to propel growth
  • Demand from retailers grew due to higher per capita disposable income
  • Companies will have to spend more on marketing in an increasingly competitive environment
  • Industry Report - Industry Investment Chapter

    The Relaxation Drink Production industry has a low level of capital intensity due to the abundant presence of small scale operators. IBISWorld estimate, for every dollar spent on labor, the industry spends $0.06 on capital. Capital expenditures are low because companies in this industry use technologies that are not changing quickly and produce relaxation drinks using machinery that is relatively simple (and scalable). Many relaxation drinks, such as Vacation in a Bottle (ViB), were formulated by companies outside of the scope of this industry. Most companies in the industry focus on selling and marketing their products in local or regional areas, each of which are more labor-intensive tasks. As ...purchase to read more.

    Additional Insights for the Relaxation Drink Production Industry

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

  • Aggressive marketing of products
  • Economies of scale
  • Management of distribution agreements
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Per capita soft drink consumption in the Relaxation Drink Production industry impact industry performance..

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    What's in this report

    What is the Relaxation Drink Production Industry?

    Companies in this industry produce drinks marketed for their relaxation or sleep-promoting properties. Most of these drinks contain the active ingredients melatonin or l-theanine. This industry excludes ready-to-drink tea as well as dairy-based and carbonated beverages.

    Industry Products
  • Relaxation drinks
  • Relaxation shots
  • Relaxation drink mixes
  • Industry Activities
  • Producing melatonin-based drinks
  • Producing kava-based drinks
  • Producing theanine-based drinks
  • Producing relaxation beverages
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Per capita soft drink consumption
  • Regulation
  • Demand from convenience stores

  • Current Performance
  • Main ingredients
  • Structure and downstream demand
  • Competition and regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Improving consumer spending
  • Market saturation and regulation
  • Table: Relaxation Drink Production Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Soft Drink, Baked Goods & Other Grocery Wholesaling
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Pharmacies & Drug Stores
  • Bars & Nightclubs
  • Consumers

  • Key Selling Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Generic Pharmaceutical Manufacturing
  • Plastic Bottle Manufacturing
  • Sugar Processing
  • Syrup & Flavoring Production

  • Products & Services
  • Relaxation drinks
  • Relaxation shots
  • Relaxation drink mixes
  • Chart: Relaxation Drink Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Convenience stores and gas stations
  • Supermarkets and grocery stores
  • Food service and drinking places
  • Online sales
  • Other markets
  • Chart: Major Market Segmentation for the Relaxation Drink Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Relaxation Drink Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Relaxation Drink Production Industry

  • Industry Globalization
    The Chill Group Inc., Marley Beverage Company, Dream Products LLC,
  • Table: The Chill Group Inc. - financial performance
  • Table: Marley Beverage Company - financial performance
  • Table: Dream Products LLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Relaxation Drink 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 Relaxation Drink Production Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dietary Supplement
  • A product taken by mouth that contains a "dietary ingredient" intended to supplement the diet.
  • Food And Drug Administration (Fda)
  • The regulating body in the US for beverage producers.
  • Functional Drink
  • A beverage that performs a function, including sports drinks that enhance athletic performance and energy drinks that increase alertness.
  • Generally Recognized As Safe
  • The food and drug administration must approve food additives before they can be sold in the United States with no warning label.
  • Kava Root
  • Root from the kava plant, originating from the western Pacific, and used to produce a drink with sedative and anesthetic properties.
  • L-Theanine
  • An amino acid and a glutamic acid commonly found in tea.
  • Melatonin
  • A naturally occurring compound found in animals, plants and microbes. In humans, it plays a central role in sleep and regulates the body's circadian rhythms.
  • Ready-To-Drink
  • A beverage produced and packaged for immediate consumption.
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    Why buy this report?

    IBISWorld’s industry research report on Relaxation Drink 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
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    This report on Relaxation Drink 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 Relaxation Drink 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 Relaxation Drink Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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