The Soft Drink Industry Essay

996 Words 4 Pages
Introduction

Today’s global soft drink industry that is worth approximately 511.6 billion dollars can trace its history back to the days when the first mineral water was found in natural springs (Reuters, 2014). According to Bellis (2014) people who started bathing in natural springs instantly realised that it is a healthy thing to do and due to that it was said that mineral water has healing powers. The carbon dioxide or in other words the magic that was behind the bubbles in natural spring water was soon discovered by the first scientists (Bellis, 2014). Later this wonder was the basis of invention of carbonated soft drinks, like coke. The first soft drink which was simple lemonade made out of mineral water, lemon juice and honey was
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According to Marketline (2013) particularly in 2012 the Irish soft drinks market has seen a growth of 1.3%, reaching total revenues of 1.3 billion euros. In comparison, other major EU soft drink markets like Germany and France also had a market value growth over the same period, for instance, German market had a CAGR of 2.2% while France had 2.6% CAGR (Marketline, 2013). Furthermore, considering the market volume for the period 2008-12, in the report (Marketline, 2013) statistics in the figure 1.2 has shown that a compound annual rate of change (CARC) was -1.6%. The market consumption volume in 2012 deteriorated by 0.2% and reached a total volume of 0.7 billion litres (Marketline, 2013). The information above indicates that in the recent years an Irish soft drink market has seen a marginal market value growth and a volume decline.
However the Marketline forecast shows that both market value and volume will progress in the near future. According to Marketline (2013) it is predicted that from 2012 to 2017 the soft drink market value will increase by 11.8% and it will result in a total value of 1.5 billion euros (see figure 1.3). The forecasts show that 1.7% will be the CAGR for the five year period (Marketline, 2013). In the report (Marketline, 2013) it is also estimated that from 2012 to 2017 the soft drink
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