Industry Analysis & Industry Trends
The Syrup and Flavouring Production industry manufactures beverage bases (e.g. concentrates and fountain syrups) and other flavouring syrups. The majority of industry products are used in the downstream manufacturing of finished beverages; consequently, the Soda Production industry (IBISWorld report 31211aCA) is a major buyer of industry products. Demand from downstream manufacturers has declined in recent years, as many food and beverage producers have consolidated and begun producing syrups and flavourings in-house. Nevertheless, the weakness of the Canadian dollar against the US dollar has made domestic products relatively inexpensive, expanding the industry's export market... purchase to read more
Industry Report - Starting a New Business Chapter
The technology required for production has become relatively advanced during the past few decades, so substantial capital requirements and in-depth knowledge of processing efficiencies are necessary to enter the industry. Also, research and development requires significant investment in a laboratory with related machinery. However, materials costs do not pose a high barrier to industry entry, as the raw materials used to produce concentrates and syrups are generally relatively low in price.
There is also a limit to the extent that new producers can compete due to the strong competitive position of the incumbent firms. Major players often write exclusive contracts with bottlers, reducing the ability of other syrup manufacturers from establishing agreements with them... purchase to read more