Soda pressing: Declining soft drink consumption will hamper revenue growth

Despite the poor performance of companies' soft drink business lines, operators have benefited from growing demand for energy drinks and sports drinks. Over the next five years, operators in the Soda Production industry in Canada will struggle to contend with both declining soda sales and competition from healthier beverages like ready-to-drink more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Though soda demand has declined, operators have benefited from demand for energy drinks and sports drinks
  • Soda producers have introduced new products to mitigate losses
  • Growth of functional beverages will not be enough to offset the decline of soda
  • Industry Report - Industry Locations Chapter

    Industry establishments of the Soda Production industry in Canada are in densely populated provinces. Consequently, Ontario accounts for the greatest number of facilities, with 28.0% of industry establishments, which is followed by British Columbia (22.7%) and Quebec (22.2%). In addition to being large population centres, these provinces have abundant agricultural resources used as inputs to produce soft drinks. For instance, 59.4% of corn farms are in Ontario and an additional 36.9% in Quebec, which is significant because one of the main ingredients used to produce soft drinks is high-fructose corn syrup. Plastic, which is used to make plastic bottles for finished beverages, is also primarily produced in Ontario and Quebec. Alb...purchase to read more.

    Additional Insights for the Soda Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Soda Production Industry are

  • Economies of scale
  • Economies of scope
  • Aggressive marketing given the high level of competition
  • IBISWorld analysts also discuss how external factors such as Per capita soft drink consumption and Total health expenditure in the Soda Production industry impact industry performance..

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    What's in this report

    What is the Soda Production Industry?

    This industry primarily produces carbonated soft drinks, as well as energy and sports drinks. Products are created by blending various ingredients with artificially carbonated water. Producers of bottled water, ready-to-drink teas and coffees, as well as juice manufacturers are excluded from this industry.

    Industry Products
  • Cola-flavoured CSDs
  • Diet cola-flavoured CSDs
  • Other carbonates (e.g. fruit-flavoured, carbonated water)
  • Energy and sports drinks
  • Industry Activities
  • Manufacturing carbonated soft drinks
  • Producing energy drinks
  • Producing 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
  • Per capita soft drink consumption
  • Total health expenditure
  • Per capita disposable income
  • Canadian effective exchange rate index
  • World price of aluminum
  • World price of sugar

  • Current Performance
  • Health-conscious era
  • Industry innovation
  • Declining profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Changing consumer preferences
  • Favourable trends
  • Table: Soda Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Soda Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling in Canada
  • Supermarkets & Grocery Stores in Canada
  • Gas Stations with Convenience Stores in Canada
  • Vending Machine Operators in Canada

  • Key Selling Industries
  • Aluminum Manufacturing in Canada
  • Plastic Bottle Manufacturing in Canada
  • Seasoning, Sauce and Condiment Production in Canada
  • Syrup & Flavouring Production in Canada

  • Products & Services
  • Cola-flavoured CSDs
  • Energy and sports drinks
  • Other carbonates (e.g. fruit-flavoured, carbonated water)
  • Diet cola-flavoured CSDs
  • Chart: Soda Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and mass merchandisers
  • Convenience stores and gas stations
  • Vending machines
  • Exports
  • Other
  • Chart: Major Market Segmentation for the Soda Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Soda Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Soda Production Industry

  • Industry Globalization
    The Coca-Cola Company, PepsiCo Inc.,
  • Table: The Coca-Cola Company - financial performance
  • Table: PepsiCo Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Soda 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 Soda Production Industry
  • 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)
  • Per capita soft drink consumption (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Carbonated Soft Drinks (Csds)
  • An artificially carbonated, nonalcoholic beverage that contains some form of sweetener and flavour.
  • Energy Drinks
  • Novelty refreshment beverages. Contain a variety of vitamins and minerals, caffeine, taurine (a natural amino acid in humans) and other ingredients.
  • Private Label
  • Products sold as the house brand of a particular supermarket or retail chain, rather than the specific manufacturer.
  • Ready-To-Drink
  • A beverage packaged for immediate consumption.
  • Sparkling Beverage
  • A nonalcoholic beverage with carbonation, including energy drinks, waters and flavoured waters.
  • Stevia
  • A natural sweetener made from stevia plant leaves with zero calories. It is more than 200 times sweeter than sugar and considered to be a safe alternative to sugar for those with diabetes.
  • Still Beverage
  • A nonalcoholic beverage without carbonation, including juices, juice drinks, teas, coffees, sports drinks, water and flavoured water.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Soda 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 Soda 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 of 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 Soda 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 Soda Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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