What is the Beverage Industry?

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  • Written By: Janis Adams
  • Edited By: Melissa Wiley
  • Last Modified Date: 23 November 2018
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The beverage industry is a global grouping of those who supply any and all types of beverages. This is a complex grouping of suppliers, as it includes both non-alcoholic and alcoholic beverages under the umbrella of the beverage industry. This industry encompasses the mom and pop start-up businesses as well as the international conglomerations that generate trillions of US Dollars (USD) in revenue annually.

There are two main issues facing the beverage industry that will likely persist for decades to come. The first issue facing the industry is the ever increasing demand for the beverage product, whatever type it may be. The second issue that weighs heavily upon the beverage industry is that of rapidly rising prices. This includes not only at point of purchase, but also the ingredients necessary to produce the beverage that will then be sold. Due to these to issues, the main concern for those in the beverage industry is to drive down cost while continuing to meet demands.


Beyond supply and demand, the beverage industry also faces a constant fluctuation in packaging. Gaining popularity are the small multi-packs. The packaging has reached such a status that it has now become a fashion statement. The drink a person has in hand is an accessory. Along with size and style, there is also the green movement that is affecting the industry. Some of those purchasing beverages want to avoid plastic bottles that cannot be disposed of and instead end up in landfills. The cost of producing such bottles has also become a factor, as their cost continues to rise.

The juice branch of the beverage industry sees the size of its products container continuing to increase. These juice and energy drink producers will capitalize on their large size options, pointing out to the consumer the greater benefit of choosing a healthier beverage while at the same time receiving more product than alternative drinks offer. To convey this healthier image, designs of the bottles will be simple so as to convey the message that there is no extra, unnecessary additives. On the other side of the industry, the rest of the beverage manufacturers see trending headed in the opposite direction, with packaging options growing smaller, more compact. These hand-held drinks are more decorated and noticeable in their packing.

Within the beverage industry there is fierce competition. There is a non-stop battle at all times. The main ingredient is that consumer preferences are constantly changing. Trends come and go, and players in the industry have to be constantly a step ahead in order to survive.


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