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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 340 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 also includes regular (or full-calorie), diet, and seltzer beverages. Firm may also produce bottled water; sports drinks; energy drinks; juice, dairy or plant-based beverages; and tea and coffee drinks.

Capital-Intensive Operations

Soft drink manufacturing is a volume-driven business that is heavily reliant on sophisticated production facilities.

Carbonated Market Decline

The carbonated soft drink (CSD) market is mature and declining, with health-conscious consumers turning to more wholesome options.

Industry size & Structure

The average soft drink manufacturer employs about 237 workers and generates about $110 million annually.

    • The soft drink manufacturing industry consists of about 340 firms that employ about 80,600 workers and generate $37 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
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    Apr 29, 2022 - Higher Prices Test the Market
                                    • Pepsi and other beverage companies are “walking a fine line,” according to The New York Times, calculating how much they can raise prices on key products before consumers buy less or switch to cheaper substitutes. The beverage company said it believes consumers would continue to buy Pepsi’s products despite rising inflationary pressures. Pepsi in April reported strong first quarter revenue growth fueled by double-digit percent increases in prices for many of its beverage and food products. The bulk of the soft drink maker's 9.3% jump in revenue growth was driven by price increases in the quarter.
                                    • Consumers, especially younger ones, are driving interest among soft drink makers in recyclable polyethylene terephthalate (PET) plastic beverage containers. Sustainable packaging is a priority for a growing number of consumers, who are willing to pay more for products that align with their values. In response, producers are turning to suppliers of recycled PET (rPET). “The use of recycled PET (rPET) is a critical part of companies’ commitments to sustainable packaging within a circular economy,” says John Cullen, director of PET resins sales and marketing at DAK Americas. Overall, the global plastic bottles market is expected to reach $224.97 billion by 2025, up from $166.78 billion in 2019, according to a new report from Mordor Intelligence.
                                    • Jones Soda Company is entering the world of cannabis-infused beverages. The launch includes 15 new products, many based off the company’s popular soda flavors with varying amounts of cannabis added. The company is also introducing infused gummies and a cannabis syrup for use as a drink mixer, food topping, or shot. The products are launching in California, but the company plans to scale-up and roll out to all legal adult-use states.
                                    • Freedonia forecasts US soft drink production by volume to rise almost 1% annually through 2025. Soft drink shipment value is expected to increase 2% annually. Some products in the carbonated category will continue to decline in consumption due to health concerns over sugar intact and its links to diabetes, obesity, cardiovascular disease and cavities. Sales of sports drinks and niche beverages with organic ingredients or unconventional flavors are expected to grow. Producers are likely to pass higher input costs to consumers in the form of higher priced products, which will account for some of the shipment value gain.
                                    Get A Demo

                                    Vertical IQ’s Industry Intelligence Platform

                                    See for yourself why nearly 40,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                    Build valuable, lasting relationships by having smarter conversations -
                                    check out Vertical IQ today.

                                    Request A Demo