Rise of the Carbonated Beverage Industry

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Recommended: The beverage industry of Coca Cola and PepsiCo an introduction

Introduction The global market for international soft drink industry is about $ 198 billion out of which the giants like Coca Cola and Pepsi hold a major stake. The marketing and sales trends vary from one country to another depending on the geographic and climatic conditions. Cadbury Schwepps is the third major player in the global soft drink industry. The three giants occupy about 90% of the total market. Over the past few years, the global trends have clearly indicated that the consumption of carbonated and non-carbonated soft drinks has nearly doubled. The western countries such as North and South America and Canada are consuming twice amount of beverage as they did nearly 10 years ago. With the introduction of retail sector and changing preferences of the consumer, one can easily find that the demand of these drinks have risen to a considerable proportion. (Datamonitor, 2005) Emergence of Retail sector and increase in product Mix With the emergence of retail sector, the marketing and advertising strategies of soft drink companies changed drastically. The soft drink industry was not just limited to production of soda drinks. With the changing preference and choices of customers, healthy drinks were also lunched. Minute Maid, Tropicana and diet soda are some of the examples of the changes made by these giants in order to garner the attention of the public. In the year 2013, more than 90% of the market was dominated by three major soft drink companies. The industry seems to be going in the oligopoly manner for a long time now. Coca cola remains the undisputed leader of this industry with nearly 50% market share closely followed by Pepsi. (Datamonitor, 2005) Marketing and advertising The business environment in this sector is... ... middle of paper ... ...lability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage Works Cited Datamonitor. (2005, May). Global Soft Drinks: Industry Profile. New York. Reference Code: 0199-0802. Murray, Barbara. (2006c). Carbonated Beverages. Hoovers. Retrieved February 13, 2006, from http://premium.hoovers.com/subscribe/ind/overview.xhtml?HICID=1049 Hein, Kenneth. (2004). Brand Loyalty 2004. Retrieved February 12, 2006 from http://www.brandkeys.com/news/press/102504Brandweek.Loyalty.pdf Murray, Barbara. (2006a). The Coca-Cola Company. Hoovers. Retrieved February 13, 2006, from http://premium.hoovers.com/subscribe/co/factsheet.xhtml?ID=10359 Sicher, J. D. (2005). Beverage Digest/Maxwell ranks U.S. soft drink industry for 2004. Retrieved February 10, 2006 from http://www.beverage-digest.com/pdf/top-10_2005.pdf

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