Nonalcoholic Beverage Manufacturing
Companies in this industry produce carbonated and noncarbonated soft drinks, bottled water, and ice. Major companies include Coca-Cola, Keurig Dr Pepper, and PepsiCo (all based in the US), along with Britvic (UK), Cott (Canada), Danone (France), Nestlé (Switzerland), Red Bull (Austria), and Suntory (Japan).
Global sales of nonalcoholic beverages total about $870 billion per year, and the worldwide market is growing despite weak sales of carbonated soft drinks, according to Euromonitor International. The leading regional markets for soft drinks are Latin America, North America, and Western Europe.
The US nonalcoholic beverage manufacturing industry includes about 1,200 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $50 billion. The industry's products include juice drinks, but makers of fruit and vegetable juices are covered in the Fruit & Vegetable Processing industry profile.
Demand for nonalcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large companies have economies of scale in production and distribution. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices. The US industry is highly concentrated: the top 50 companies account for more than 90% of revenue.
Largely because of the high costs of shipping a heavy product, US imports and exports of soft drinks are relatively low. Imports of nonalcoholic beverages account for about 7% of the US market; exports account for less than 3% of US production. Austria, Switzerland, and Mexico are the largest exporters of nonalcoholic beverages to the US.
Products, Operations & Technology
Major products include soft drinks (more than 85% of industry revenue), bottled water (about 12%), and manufactured ice. Soft drinks include sodas (also
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms