Industry Analysis & Industry Trends
The Fruit Drink and Functional Beverage industry has endured a bumpy ride 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. During the five years through 2016-17, revenue is forecast to decline at a compound annual rate of 0.1% reaching £1.6 billion. This modest reduction reflects consumer preferences for bottled water and fruit juices. Many consumers view such products as healthier alternatives to industry-related beverages like fruit drinks. Products like sports drinks have suffered from growing concerns regarding sugar and its link to the obesity epidemic. Revenue is expected to decrease at a slower rate of 0.5%... purchase to read more
Industry Report - Industry Investment Chapter
Using depreciation and wages as proxies for capital and labour costs, IBISWorld estimates that for every pound invested in capital, £3.09 is spent on labour. This indicates a medium level of capital intensity. However, capital intensity has increased in recent years with new technology, such as computerisation and automation.
The largest facet of the industry involves the production of fruit drinks. The production of fruit drinks requires the extraction of fruit juices and the supply of clean water. IBISWorld estimates that producing juice drinks and dilutables directly from fresh fruits rather than from concentrates is a more capital-intensive process than those used to make other sorts of beverages. Thi.. purchase to read more