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Juice Production in the US Industry Market Research Report from IBISWorld has Been Updated
Date:4/2/2013

Los Angeles, CA (PRWEB) April 02, 2013

A healthy curiosity has caused consumers to quench their thirst with a growing variety of beverages. Increasingly, health-oriented consumers have switched from soda to the Juice Production industry's products, like ready-to-drink tea. “On the back of this consumer trend, marketing campaigns that promote stimulants or natural ingredients have encouraged the surge away from carbonated soft drinks toward this industry's functional drinks and other beverages,” says IBISWorld industry analyst Agata Kaczanowska. While these products have higher per-unit production costs, their steeper markups are expected to push industry profit to about 5.3% of revenue in 2013.

Driven by rising demand for new products, particularly from health-conscious consumers, the Juice Production industry's revenue is expected to expand at an annualized rate of 5.9% to $22.8 billion in the five years to 2013. Additionally, functional drinks and other new products that are heavily marketed to a younger demographic are sustaining growth. IBISWorld expects rising disposable income and rising market penetration to support an 8.2% revenue increase in 2013. As revenue rises, new companies are entering the industry at a rapid pace. Fast-growing niche products like energy drinks are attracting businesses, driving industry expansion. Over the five years to 2013, the number of companies is expected to expand at an annualized rate of 8.1% to 831. As consumers demonstrate increasing brand sensitivity for industry products, however, opportunities for new players will decline. Even so, the continued introduction of new brands in the market is anticipated to result in higher product prices, contributing to higher industry profit margins and revenue.

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