US Beverage Industry Microeconomic Analysis

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Year after year, the United States’ beverage industry continues to see shifts in demand, demographics, and taste. Consumers are moving away from the standard high calorie soft drinks to healthier options, making it a perfect time to corner the healthy soft drink market. The following report provides a microeconomic analysis of the U.S. soft drink industry, and how a healthy soft drink start-up could take advantage of these market trends.
U.S. Soft Drink Industry Microeconomic Analysis
The primary driver of non-alcoholic beverages in the U.S. is soft drinks, carbonated beverages that are flavored and don’t contain alcohol. The multibillion dollar U.S. soft drink industry consists
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economy affects the typical business cycle. The business cycle is represented by four separate phases, the prosperity phase, the recession phase, the depression phase, and the recovery phase (Akrani, 2011). The business cycle looks like a roller coaster, peaks at the top and troughs at the bottom. The recovery and prosperity phases are a representation of a growing economy, while recession and depression phases are characteristics of a shrinking economy (Akrani, 2011). The U.S. economy acts in a similar way to the business cycle, and both affect each other accordingly. Following the mortgage crisis of 2008, the U.S. economy was in a deep recession, nearly hitting a depression. Hundreds of thousands of Americans lost their jobs, there was little to no growth, home values plummeted, and millions were left with high mortgages that they couldn’t afford. People weren’t spending money, which drove manufacturing companies to cut production, leading to more layoffs and more job loss. However, like all business cycles that go through a trough, the U.S. economy began to improve, leading into the recovery phase that we’re currently…show more content…
Recent trends in consumer preference illustrates that Americans are becoming more conscious of what they’re putting in their bodies. Americans want to eat healthier, drink healthier, and live a healthier lifestyle. The current soft drink industry isn’t providing consumers with healthy alternatives. Consequently, this company’s low calorie, all-natural soft drink product is the perfect alternative that consumers are craving. It would be extremely beneficial to penetrate the over bloated soft drink industry by cornering the healthy-minded market, and subsequently expanding to the entire United
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