Soft Drink Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 375 soft drink manufacturers in the US produce carbonated and non-carbonated beverages. Major flavor groups include cola, heavy citrus, lemon-lime, pepper, orange, and root beer. The category includes regular (or full-calorie), diet, and seltzer beverages. Firms may also produce bottled water, sports drinks, energy drinks, juice, dairy, plant-based beverages, and tea and coffee drinks.
CSD Market Declining
The carbonated soft drink (CSD) market is mature, with health-conscious consumers turning to more wholesome options, including bottled water.
Capital-Intensive Operations
Soft drink manufacturing is a volume-driven business that is heavily reliant on sophisticated production facilities.
Industry size & Structure
The average soft drink manufacturer employs about 217 workers and generates about $97 million annually.
- The soft drink manufacturing industry comprises about 375 firms, employs about 81,200 workers, and generates $36.5 billion annually.
- The industry is highly concentrated; the top 50 companies account for 92% of industry revenue.
- Large firms, including Coca-Cola, PepsiCo, and Dr Pepper/Snapple, have international operations and own brands with a global presence.
Industry Forecast
Soft Drink Manufacturers Industry Growth
Recent Developments
Feb 21, 2025 - Prices Keep on Rising
- The producer price index (PPI) for soft drink manufacturers, which measures the price producers receive for their products, rose 6.8% in December compared to a year ago after rising 5% in the previous December-versus-December annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices for soft drink manufacturers have risen by a third since the start of 2021. Beverage shipments and inventories both rose in November. Employment by the industry was relatively flat in December year over year – dipping 0.5% – per the BLS.
- New 25% tariffs on US aluminum imports imposed by the Trump administration will increase the cost of beverage cans and could raise the retail price of the soda and beer they contain. Beverage giant Coca-Cola said the new tariffs will increase the cost of beverage cans it sells in the US. However, Coke’s CEO James Quincey said the company has strategies to adapt, including shifting to more PET plastic bottles and raising prices. It can also make changes to its supply chain and use hedging on key materials — including aluminum — to manage costs and supply, he told analysts on a recent conference call. Aluminum beverage cans are popular because they’re lightweight and recyclable. According to the American Beverage Association, in 2018 when Trump set aluminum tariffs at 10%, they added half a billion dollars to production costs. The metals tariff is set to take effect March 12.
- New research linking high-fructose corn syrup (HFCS) to cancer growth could challenge the food and beverage industry’s reliance on the widely-used sweetener, Food Navigator reports. A new study from Washington University, Saint Louis published in the journal Nature analyzed the behavior of HFCS in the body and found that the liver converts dietary fructose into nutrients, which feed tumor growth. Animals with tumors fed a diet rich in fructose saw accelerated tumor growth, per the study. President-elect Donald Trump’s nominee to head the Department of Health and Human Services, Robert F. Kennedy Jr., is no fan of HFCS saying it “is just a formula for making you obese and diabetic.” HFCS is a central ingredient in many traditional soft drinks, including Coke, Pepsi, and Sprite. While diet sodas with zero calories don’t contain HFCS, they’re made with artificial sweeteners, which have also been subject to health concerns and RFK's ire.
- While soda is rarely considered a healthy beverage choice, the industry is working to change that with new better-for-you soft drinks. As consumers look to reduce their sugar intake and increase their consumption of better-for-you products containing functional ingredients, popular so-called healthier sodas have thrived, Food Dive reports. Jones Soda’s new all-natural prebiotic drink – Pop Jones – landed on supermarket shelves in October and features five flavors including Cucumber Watermelon and Pineapple Ginger. The new sodas are sweetened with real fruit juice, pure cane sugar, and natural stevia leaf extract and are estimated to contain half the added sugar of some functional brands and one-twentieth of a standard soda, while also providing “a generous dose of fiber and immune support,” according to the company. Other “healthy” soda brands include fast-growing Poppi and Olipop. The functional beverage market is forecast to reach $62 billion in 2027 from $50 billion in 2022.
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