Not a sweet deal: The sugar tax is expected to increase the pressure on industry margins

Some products sold by the UK’s Juice, Mineral Water and Soft Drink Wholesaling industry have lost their fizz during the past five years. A challenging retail climate has prevailed over much of the period and consumer preferences have changed. Health concerns surrounding sugar consumption has led to a fall in demand for carbonated soft drinks and fruit juice, which has weighed heavily on industry operators. However, demand for bottled water has risen, mitigating some of these negative effects. Increasing wholesale bypass has also threatened the viability of industry operators. These factors are expected to result in revenue falling at a compound annual rate of 2.1% over the five years through 2018-19 to reach £1.5 billion. This includes a drop of 0.7% in more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • New regulations are expected to increase pressure on profit and constrain demand
  • The global stock of sugar is expected to rise in the current year, constraining wholesaling prices
  • Consumers are expected to continue to veer away from sugary drinks
  • Industry Report - Industry Key Buyers Chapter

    The industry demonstrates a high level of concentration. Between them, the top four major players are estimated to account for 80.3% of industry revenue in 2018-19. The industry’s market share concentration is expected to have risen significantly over the past five years. This is largely a result of wholesale bypass becoming an increasingly prevalent threat to industry operators, forcing many smaller firms out of the industry and the popularity of vertical integrated, consolidated supply chains.Additionally, according to the British Soft Drinks Association, the volume of soft drinks consumed in the United Kingdom has been falling in recent years, particularly in the carbonates, fruit juice, dilutables, and sports and energy drinks segments. Thi...purchase to read more.

    Additional Insights for the Juice, Mineral Water & Soft Drink Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Juice, Mineral Water & Soft Drink Wholesaling Industry are

  • Ability to control stock on hand
  • Having links with suppliers
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and Health consciousness in the Juice, Mineral Water & Soft Drink Wholesaling industry impact industry performance..

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    What's in this report

    What is the Juice, Mineral Water & Soft Drink Wholesaling Industry?

    This industry includes wholesalers of carbonated soft drinks, bottled water, dilutables, fruit juices, fruit drinks and smoothies. Companies also wholesale still beverages and functional drinks like sports and energy drinks.

    Industry Products
  • Carbonated soft drinks
  • Fruit juice and smoothies
  • Fruit drinks
  • Bottled water
  • Dilutables
  • Sports and energy drinks
  • Industry Activities
  • Carbonated soft drink wholesaling
  • Bottled water wholesaling
  • Dilutables wholesaling
  • Fruit juice and smoothie wholesaling
  • Fruit drink and still beverage wholesaling
  • Sports and energy drink wholesaling
  • 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
  • Health consciousness
  • World price of sugar
  • Average maximum temperature
  • Population aged 16 to 25 years

  • Current Performance
  • Pricing pressures
  • Wholesale bypass
  • Volatile input prices
  • Consumption patterns
  • Mitigating markets
  • Market structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Mixed growth
  • Competitive pressures
  • Environmental concerns
  • Table: Juice, Mineral Water & Soft Drink Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Juice, Mineral Water & Soft Drink Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets
  • Off-Licences
  • Petrol Stations

  • Key Selling Industries
  • Bottled Water Production
  • Fruit Drink & Functional Beverage Production
  • Soft Drink Production

  • Products & Services
  • Carbonated soft drinks
  • Fruit drinks
  • Bottled water
  • Fruit juice and smoothies
  • Dilutables
  • Sports and energy drinks
  • Chart: Juice, Mineral Water & Soft Drink Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and grocers
  • Convenience stores and petrol stations
  • Pubs and bars
  • Other
  • Food service operators and hotels
  • Chart: Major Market Segmentation for the Juice, Mineral Water & Soft Drink Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDistribution, depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Juice, Mineral Water & Soft Drink Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Juice, Mineral Water & Soft Drink Wholesaling Industry

  • Industry Globalization
    Coca-Cola European Partners plc, Britvic plc, Danone Waters (UK & Ireland) Ltd, Red Bull Company Limited,
  • Table: Coca-Cola European Partners plc - financial performance
  • Table: Britvic plc - financial performance
  • Table: Danone Waters (UK & Ireland) Ltd - financial performance
  • Table: Red Bull Company Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Juice, Mineral Water & Soft Drink Wholesaling 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 Juice, Mineral Water & Soft Drink Wholesaling Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Squashes, cordials, powders and other concentrates that are diluted to taste by consumers.
  • Fruit Drink
  • Drink that contains between 5% and 99% pure fruit juice. It can contain more water and sugar than pure juice and often includes flavourings, artificial sweeteners and colourings.
  • Pet Plastic
  • A form of plastic that is often used for food and drink packaging.
  • Smoothie
  • Made from 100% fruit, smoothies tend to be thicker than normal fruit juice.
  • What Our Customers Say

    Why buy this report?

    The Juice, Mineral Water & Soft Drink Wholesaling market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
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    • Inform your decisions for marketing, strategy and planning
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    This report on Juice, Mineral Water & Soft Drink Wholesaling:
    • 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 Juice, Mineral Water & Soft Drink Wholesaling 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 Juice, Mineral Water & Soft Drink Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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