A bitter taste: Increasing concerns over sugar consumption have limited industry demand

Operators in the Fruit Drink and Functional Beverage Production industry have endured challenging conditions in recent years. Industry revenue has slipped from a position of strong consistent growth, as the economic recovery gathered pace, to a slump in the past two years. Over the five years through 2017-18, revenue is forecast to increase at a compound annual rate of 0.3% to reach £1.2 billion. While buoyant demand for fruit drinks and the emergence of energy drinks have supported demand, consumer preferences for bottled water have limited growth. Sales of sports drinks and dilutables have suffered from growing concerns regarding sugar, further restraining revenue expansion. Industry revenue is expected to contract by 1.1%...read more.

Industry Statistics & Market Size
Revenue
£1.2bn
Annual Growth 13-18
0.3%
Forecast Growth 18-23
Profit
Employment
4,601
Businesses
64

Industry Threats & Opportunities

  • The introduction of a sugar tax is expected to further encourage the use of natural sweeteners
  • Many firms have diversified their operations to capture a share of the growing iced tea market
  • Demand for sports drinks is likely to be threatened by increasing health concerns
  • Industry Report - Industry Key Buyers Chapter

    The Fruit Drink and Functional Beverage Production industry has a moderate level of market share concentration. The top four industry players – Britvic, Coca-Cola European Partners Great Britain, Lucozade Ribena Suntory and PepsiCo International – are expected to account for 69.3% of industry revenue in 2017-18. The industry has become increasingly concentrated in recent years following attempts by major producers to cut non-essential costs and improve profitability, achieving economies of scale.Britvic’s market share has risen over the past five years, while Coca-Cola has struggled as health-conscious consumers have increasingly shunned the company’s traditional brands. Luc...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..

    shopping_cartPURCHASE OPTIONS

    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
  • Fruit drink
  • Dilutable
  • Iced tea
  • Flavoured water
  • Energy drink
  • Sports drink
  • 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
  • Health concerns
  • Product innovation
  • Profit trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Healthy trends
  • Innovative concoctions
  • Pressure on profit
  • 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
  • Sports drinks
  • Iced tea and flavoured still water
  • 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
    ProfitPurchasesWagesDepreciationAdvertising and marketingOther 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,
  • Table: Britvic plc - financial performance
  • Table: Coca-Cola European Partners Great Britain Ltd - financial performance
  • Table: Lucozade Ribena Suntory Ltd - 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • 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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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
    • Quickly build competitive intelligence
    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.

    Contact Us

    Would you like to speak to an IBISWorld representative?

    clear