Topic > Soft Drink Industry - 2101

The global soft drink industry is currently expanding rapidly. This is due to two main factors. First, markets are expanding rapidly in developing countries, and second, people are turning towards natural, healthy, low-calorie beverages. So-called “new age” beverages, such as tea-based beverages, are greatly stimulating the development of the soft drink industry and also creating a great challenge for the carbonated beverage market. Partly to address this trend, large soft drink companies, such as Pepsi and Coke, are seeking to become a “total beverage company” (Seet and Yoffie 95), in which to serve the entire soft drink market. The value of discontinued beverages worldwide is gradually increasing year by year, from $231,401 in 2001 to $323,031 in 2006 (Global Market Information Database 2007). The largest market for soft drinks is still North America and Western Europe, which together consumed 43% of the world's gross soft drink volume in 2006 (Global Market Information Database '07). However, the overall market development trend of North America and Western Europe is now contracting in terms of the global market, while the Asian market is expanding very rapidly in recent years to now account for 22% of the global market ( Global Market Information Database '07). The market volumes of Africa, the Middle East and Australia are comparatively smaller. However, the Middle East, Africa, Eastern Europe and Asia-Pacific markets are “emerging markets” and attract many companies, from multinationals to niche specialists, who continue to see volume growth well above average. market average (Robinson '04). With volume growth, the average level of profitability of the soft drinks industry remains quite high.