Alternative Beverage Industry - Paper
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.
The strategically relevant components of the global and U.S. beverage industry macro-environment are Market Size, Market Growth, Markets Segmentation, and Intensity of Rivalry.
Market Size:
The beverage industry serves an incredible large market. In 2009 alone, the beverage market consumed more than 458 million liters of beverage, resulting in over $1.58 trillion in sales for the industry. Although there is a declining trend in the consumption of carbonated soft drinks in the United States, as of 2009, carbonated soft drinks still accounts for the lion share of the U.S. beverage market with 48.2% of the market; while bottle water and fruit juice account for 29.2% and 12.4%, respectively. The remaining market space was occupied by the alternative beverages segment, which includes sports drinks, flavored or enhanced water, and energy drinks with 4.0%, 1.6%, and 1.2%, respectively
Market Growth:
While U.S. beverage market saw a decline of 2.1% and 3.1% for the years 2008 and 2009, respectively, due in large part to the economic recession, the global market dollar value as well as volume sales saw an increase year-after-year, from 2005 to 2009. The industry is expected to maintain a growth trend, with sales forecasted to reach approximately $1.78 trillion in 2014, as beverage producer enter new market and develop new types of beverages to accommodate the shifting consumer preferences—and capitalize on the growing and profitable alternative beverage segment.
Market Segmentation:
The global beverage market is categorized as carbonated soft drinks (soda), bottle water and alternative beverages, which includes sports drinks, energy drinks, vitamin-enhanced water, energy shots, and relaxation drinks. Sports drinks
The strategically relevant components of the global and U.S. beverage industry macro-environment are Market Size, Market Growth, Markets Segmentation, and Intensity of Rivalry.
Market Size:
The beverage industry serves an incredible large market. In 2009 alone, the beverage market consumed more than 458 million liters of beverage, resulting in over $1.58 trillion in sales for the industry. Although there is a declining trend in the consumption of carbonated soft drinks in the United States, as of 2009, carbonated soft drinks still accounts for the lion share of the U.S. beverage market with 48.2% of the market; while bottle water and fruit juice account for 29.2% and 12.4%, respectively. The remaining market space was occupied by the alternative beverages segment, which includes sports drinks, flavored or enhanced water, and energy drinks with 4.0%, 1.6%, and 1.2%, respectively
Market Growth:
While U.S. beverage market saw a decline of 2.1% and 3.1% for the years 2008 and 2009, respectively, due in large part to the economic recession, the global market dollar value as well as volume sales saw an increase year-after-year, from 2005 to 2009. The industry is expected to maintain a growth trend, with sales forecasted to reach approximately $1.78 trillion in 2014, as beverage producer enter new market and develop new types of beverages to accommodate the shifting consumer preferences—and capitalize on the growing and profitable alternative beverage segment.
Market Segmentation:
The global beverage market is categorized as carbonated soft drinks (soda), bottle water and alternative beverages, which includes sports drinks, energy drinks, vitamin-enhanced water, energy shots, and relaxation drinks. Sports drinks