Bursting with energy: Strong demand for energy drinks has boosted industry revenue

The Functional Beverage Production industry has grown steadily over the past five years. The two major players, Coca-Cola Amatil (CCA) and Asahi, increased domestic production to compete with major imported energy drink brands Red Bull and V Energy. In May 2016, CCA acquired the Australian rights to Monster Energy, previously Asahi's only brand in the energy drinks segment. Sports drinks and health-related functional beverages have also become more popular with Australian consumers. Rising concerns about obesity and other health complications have increased consumer health consciousness, driving demand for these products. Industry revenue is expected to grow at an annualised 3.3% over the five years through 2019-20, to be worth $447.5 million. This includes anticipated growth of 2.4%...read more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Increased health consciousness has driven demand for health-related functional beverages
  • Operators have sought to expand their offerings to capture rising domestic demand
  • Health-related functional beverages and sports drinks will be the strongest growth areas
  • Industry Report - Industry Investment Chapter

    The Functional Beverage Production industry is moderately capital-intensive. For every dollar paid as wages, an estimated $0.31 is spent on capital investment. The bulk of the industry is made up of sports and energy drinks, which are produced using high levels of automation by the industry's major players. However, labour functions are more prevalent in smaller scale operations, especially for health-related functional beverages that may require manual synthesis of compounds or health benefiting elements. Despite this, most of the industry operates at a more moderate level of automation due to the significance of Coca-Cola Amatil (CCA) and Asahi.The industry's capital intensity has increased over the past five years, as wages have fallen as a share of revenue. Aut...purchase to read more.

    Additional Insights for the Functional Beverage Production Industry

    IBISWorld has determined the most important Key Success Factors for the Functional Beverage Production are:

  • Control of distribution arrangements
  • Establishment of brand names
  • Automation - reduces costs, particularly those associated with labour
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Soft drink consumption in the Functional Beverage Production industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    Look under the hood?

    Download a FREE sample report

    Top 500 Companies List
    has been released

    Click here for more

    What's in this report

    What is the Functional Beverage Production Industry?

    Industry firms primarily manufacture functional beverages, such as health drinks, sports drinks and energy drinks.

    Industry Products
  • Energy drinks
  • Sports drinks
  • Health beverages
  • Industry Activities
  • Energy drink
  • Sports drink
  • Health-related beverage
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Soft drink consumption
  • Sport participation
  • Trade-weighted index

  • Current Performance
  • Competition
  • Participation and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising competition
  • Participation and profit
  • Table: Functional Beverage Production Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Soft Drink and Pre-Packaged Food Wholesaling
  • Supermarkets and Grocery Stores
  • Convenience Stores

  • Key Selling Industries
  • Metal Drum, Can and Bin Manufacturing
  • Plastic Bottle Manufacturing
  • Sugar Manufacturing

  • Products & Services
  • Sports drinks
  • Energy drinks
  • Health beverages
  • Chart: Functional Beverage Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets
  • Wholesalers
  • Other retailers
  • Export markets
  • Chart: Major Market Segmentation for the Functional Beverage 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 Functional Beverage Production

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Coca-Cola Amatil Limited, Asahi Holdings (Australia) Pty Ltd,
  • Table: Coca-Cola Amatil Limited - financial performance
  • Table: Asahi Holdings (Australia) Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Functional Beverage 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 Functional Beverage Production Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Functional Beverage
  • A non-alcoholic beverage containing additional ingredients to provide specific benefits, such as health and endurance.
  • Polyethylene Terephthalate (Pet)
  • A type of polymer resin used in synthetic fibres, and to produce food and beverage containers.
  • Taurine
  • An amino acid found throughout the body. It is particularly concentrated in the brain, eyes, heart and muscles.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Functional Beverage Production market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Functional Beverage 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 Functional Beverage 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 Functional Beverage Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.