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What Is Beverage Industry Analysis?

One beverage company might have many different types of beverage products.
Soda.
Bottled water.
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  • Written By: B. Turner
  • Edited By: W. Everett
  • Last Modified Date: 26 October 2014
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Beverage industry analysis is the study of the various companies that manufacture, bottle, and sell different types of beverages. This type of business analysis can be used to identify trends related to sales or specific products, or even to predict the future of the industry. Beverage industry analysis reports are produced by everyone from private investment organizations to the beverage companies themselves. The analysis can be limited to a particular brand or product line, or may entail a much more comprehensive study. Some of these reports cover only non-alcoholic products, like soft drinks and bottled water, while others include both alcoholic and non-alcoholic beverages.

Various agencies may perform a beverage industry analysis that may be shared with the public or kept private within the organization. Magazines and other beverage industry publications produce regular reports on the state of the industry that are typically published for subscribers or sold to interested parties. Independent research and consulting organizations create these reports for many industries, then sell them to financial agencies, beverage companies, or even the media. Many of the companies involved in the beverage industry conduct some level of beverage industry analysis to keep up with current trends and stay competitive with other companies. Finally, financial and investment groups may compile these reports to help investors determine the best companies or products with which to invest to maximize return.

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A beverage industry analysis may be broken down by market segment, or attempt to capture data about the entire industry. Some of these reports simply focus on a particular product line, such as bottled water or carbonated soft drinks, while others include sales statistics for virtually every type of beverage on the market. Many publications provide information on growth rates, developing markets, and factors that may influence future sales. These reports cover news that can impact the industry, from mergers and acquisitions to new companies that have recently entered the market.

One major focus of beverage industry analysis is to compare recent data to historical information in an effort to predict the future of the industry. For example, a decline in sales of sugary soft drinks may indicate a shift in demand towards healthier products, like bottled water or sports drinks. A sudden spike in sales for certain product lines may also encourage more firms to invest in that line to meet growing demand.

Beverage industry analysis reports can be beneficial to beverage makers, investors, and the general public. These reports allow manufacturers to set production goals based on recent trends and consumer demand. Investors can look for things that could impact the future of the industry, then use this information to create an effective investment strategy. Consumers may refer to these reports simply to learn more about new products and technologies that could impact their favorite beverages.

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