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
Dec 21, 2024 - Persistent Price Inflation
- The producer price index (PPI) for soft drink manufacturers, which measures prices before reaching consumers, rose 5.1% in November compared to a year ago after rising 5.1% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Overall, the PPI for soft drink manufacturers is up nearly 33% since the start of 2021. Moreover, at the retail level, as measured by the consumer price index, the price of a 12-pack of soda is up 60% over 2019, per the BLS. Only eggs, frozen orange juice, sugar, and coffee – all commodities that have faced disease and/or climate pressure – have risen more on a percentage basis than soft drinks.
- 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.
- Bottled water held on to its title as America’s favorite packaged drink, outselling carbonated soft drinks (by volume) for the eighth consecutive year last year, new data from the Beverage Marketing Corporation (BMC) shows. The total volume of bottled water sold in 2023 was 15.94 billion gallons, compared to carbonated soft drinks, which sold 11.84 billion gallons. Bottled water retail sales topped $48 billion, up 6.5% from 2022. Bottled water’s zero-calorie status, lack of artificial ingredients, and perception among many people that it tastes better than tap water make it a favorite among consumers. Americans consumed, on average, 46.4 gallons of bottled water in 2023, compared to 34.4 gallons of soda.
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