Sweeter success: Growth is forecast to quicken over the next five years, supported by innovation

The Fruit Drink and Functional Beverage Production industry’s revenue has remained fairly stable over the past five years. The revenue grew in the first two years of the period, weakening consumer confidence following the EU referendum caused domestic demand to decline, and revenue fell in the latter half of the period as a result. The industry’s performance has also been driven by increasing health consciousness, which has led to shift away from soft drinks and towards industry products such as fruit drinks and dilutables. However, demand for fruit juice and bottled water, which are not relevant to this industry, has also risen. Strong demand for energy drinks has also supported industry revenue...read more.

Industry Statistics & Market Size
Revenue
£1.3bn
Annual Growth 14-19
0.1%
Forecast Growth 19-24
Profit
Employment
4,627
Businesses
65

Industry Threats & Opportunities

  • Declining consumer confidence since the EU referendum has negatively affected demand
  • Many companies have expanded into the growing energy drink, iced tea and flavoured water markets
  • Health consciousness may result in fruit juices becoming an increasing competitive threat
  • Industry Report - Industry Key Buyers Chapter

    The Fruit Drink and Functional Beverage Production industry has a high level of market share concentration. The top four industry players – Britvic, Coca-Cola European Partners Great Britain, Lucozade Ribena Suntory and Refresco Group – are expected to account for 73.7% of industry revenue in 2018-19. Concentration has increased over the past five years, as larger firms have acquired smaller enterprises to benefit from economies of scale and higher demand through a differentiated product portfolio...purchase to read more.

    Additional Insights for the Fruit Drink & Functional Beverage Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fruit Drink & Functional Beverage Production Industry are

  • Control of distribution arrangements
  • Having a large supply contract
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and Real household disposable income in the Fruit Drink & Functional Beverage Production industry impact industry performance..

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    What's in this report

    What is the Fruit Drink & Functional Beverage Production Industry?

    This industry includes firms that manufacture a range of drinks, including sports and energy beverages, fruit drinks, dilutables, iced tea and flavoured mineral water. The industry does not include the manufacturing of fruit juices, carbonated soft drinks or mineral water.

    Industry Products
  • Fruit drinks
  • Dilutables
  • Energy drinks
  • Sports drinks
  • Iced tea and flavoured still water
  • Industry Activities
  • Manufacturing fruit drinks
  • Manufacturing dilutables
  • Manufacturing iced tea
  • Manufacturing flavoured water
  • Manufacturing energy drinks
  • Manufacturing sports drinks
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets
  • Real household disposable income
  • Fruit and vegetable prices
  • Average maximum temperature
  • World price of sugar

  • Current Performance
  • Healthy change
  • Product innovation
  • Profit performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Healthy trends
  • Innovative concoctions
  • Profit margins
  • Table: Fruit Drink & Functional Beverage Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fruit Drink & Functional Beverage Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Juice, Mineral Water & Soft Drink Wholesaling
  • Supermarkets
  • Full-Service Restaurants
  • Pubs & Bars
  • Convenience Stores

  • Key Selling Industries
  • Fruit & Vegetable Processing
  • Fruit Growing
  • Plastic Packing Goods Manufacturing
  • Sugar Production
  • Water Collection, Treatment & Supply

  • Products & Services
  • Fruit drinks
  • Dilutables
  • Energy drinks
  • Iced tea and flavoured still water
  • Sports drinks
  • Chart: Fruit Drink & Functional Beverage Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and grocers
  • Convenience stores and petrol stations
  • Pubs, bars and restaurants and cafes
  • Other
  • Chart: Major Market Segmentation for the Fruit Drink & Functional Beverage Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationMarketingTaxationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Fruit Drink & Functional Beverage Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fruit Drink & Functional Beverage Production Industry

  • Industry Globalization
    Britvic plc, Coca-Cola European Partners Great Britain Ltd, Lucozade Ribena Suntory Ltd, Refresco Group NV,
  • Table: Britvic plc - financial performance
  • Table: Coca-Cola European Partners Great Britain Ltd - financial performance
  • Table: Lucozade Ribena Suntory Ltd - financial performance
  • Table: Refresco Group NV - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fruit Drink & Functional Beverage 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 Fruit Drink & Functional Beverage Production Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dilutable
  • Squashes, cordials, powders and other concentrates that are diluted by consumers. Generally, they are mixed in a ratio of four or five parts water to one part concentrate.
  • Fruit Drink
  • Any still beverage that has a fruit content of between 5% and 99%. This includes nectars made from water, additives and fruit juice, and regular juice drinks.
  • Functional Beverage
  • A non-alcoholic, ready-to-drink beverage containing vitamins or additives designed to provide additional health benefits beyond general nutrition.
  • Horizontally Integrated
  • A strategy where one company acquires another company involved in the same production process and integrates it into their own operations.
  • Pet Packaging
  • Polyethylene terephthalate (PET) is a form of polyester. It is extruded or moulded into plastic bottles and containers for packaging beverages and other consumer products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fruit Drink & Functional Beverage Production market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Fruit Drink & Functional Beverage 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 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 Fruit Drink & Functional Beverage 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 Fruit Drink & Functional Beverage Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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