Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages
Case Study: Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages
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pavangradapp@gmail.com 1. What are the strategically relevant components of the global and U.S. beverage industry macro-environment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain.
Demographics:
The total sale for beverages in 2009 in the US was about 458.3 billion gallons and it is one of the largest markets with dollar value of 1,581.7 billion in 2009 and with a forecast of $1,775.3 billion for 2014. 48.2 percent of industry sales were from carbonated soft drinks and 29.2 percent of bottle water industry sales.
In 2009, The Alternative beverage industry included sports drinks, flavored or enhanced water and energy drinks made up 4%, 1.6%, and 1.2% of industry sales respectively. The global market for alternative beverages in 2009 was $40.2 billion, while it was $17 billion for alternative beverages in US market. It was $ 12.7 billion and $9.1 billion for Asia pacific and European markets respectively.
Market growth: The market growth has huge potential with the dollar value of the global market for alternative beverages grew at a 9.8% annually between 2005 and 2009, but was expected to slow down to 5.7% annually between 2010 and 2014.
US is the country which has strongest growth internationally in term of alternative beverage sales with an annual growth rate of 16.6% between 2005 and 2009 and a forecasted growth rate of 6.7% between 2010 and 2014.
Europe and Asia-Pacific grew at annual rates of 5.3% and 5.6% between 2005 and 2009 and were expected to grow at a rate of 4.4% and 5.1% respectively between 2010 and 2014. However poor economic conditions in the US in 2008 and 2009 led to a 12.3% decline in sports drink sales and a 12.5% decline in flavored and vitamin waters sales. It was also the reason why energy drinks
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pavangradapp@gmail.com 1. What are the strategically relevant components of the global and U.S. beverage industry macro-environment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain.
Demographics:
The total sale for beverages in 2009 in the US was about 458.3 billion gallons and it is one of the largest markets with dollar value of 1,581.7 billion in 2009 and with a forecast of $1,775.3 billion for 2014. 48.2 percent of industry sales were from carbonated soft drinks and 29.2 percent of bottle water industry sales.
In 2009, The Alternative beverage industry included sports drinks, flavored or enhanced water and energy drinks made up 4%, 1.6%, and 1.2% of industry sales respectively. The global market for alternative beverages in 2009 was $40.2 billion, while it was $17 billion for alternative beverages in US market. It was $ 12.7 billion and $9.1 billion for Asia pacific and European markets respectively.
Market growth: The market growth has huge potential with the dollar value of the global market for alternative beverages grew at a 9.8% annually between 2005 and 2009, but was expected to slow down to 5.7% annually between 2010 and 2014.
US is the country which has strongest growth internationally in term of alternative beverage sales with an annual growth rate of 16.6% between 2005 and 2009 and a forecasted growth rate of 6.7% between 2010 and 2014.
Europe and Asia-Pacific grew at annual rates of 5.3% and 5.6% between 2005 and 2009 and were expected to grow at a rate of 4.4% and 5.1% respectively between 2010 and 2014. However poor economic conditions in the US in 2008 and 2009 led to a 12.3% decline in sports drink sales and a 12.5% decline in flavored and vitamin waters sales. It was also the reason why energy drinks