Sweet and sour: Export growth will sustain the industry as domestic demand declines

The Syrup and Flavouring Production industry in Canada manufactures beverage bases (e.g. concentrates and fountain syrups) and other flavouring syrups. Most industry products are used in the downstream manufacturing of finished beverages. Consequently, the Soda Production industry in Canada (IBISWorld report 31211aCA) is a major buyer of industry products. Demand from downstream manufacturers has declined in recent years, as many food and beverage producers have consolidated and begun producing syrups and flavourings in-house. Industry performance relies heavily on downstream demand, particularly from food and beverage producers. Syrup and flavouring producers will be challenged by healthy-eating trends that are decreasing consumer demand for sugary foods and beverages...read more.

Industry Statistics & Market Size
Revenue
$136m
Annual Growth 13-18
-0.8%
Forecast Growth 18-23
Profit
Employment
430
Businesses
38

Industry Threats & Opportunities

  • The industry will be challenged by healthy-eating trends that are decreasing demand for sugary foods and beverages
  • New trade partners are also contributing to the booming export market
  • Larger operators are expected to engage in higher merger and acquisition activity
  • Industry Report - Industry Key Buyers Chapter

    The Syrup and Flavouring Production industry in Canada exhibits high concentration, with the industry’s three largest companies generating 90.5% of total annual industry revenue. The largest companies, The Coca-Cola Company and Kerry Group PLC, are multinational corporations with diversified and globalized syrup and flavouring production operations. Meanwhile, the remaining industry players tend to have a niche product focus and sell exclusively in North America. IBISWorld estimates that in 2018, the industry will comprise 38 enterprises total, with only 39 establishments. This suggests that most operators will have only one establishment for operation. The...purchase to read more.

    Additional Insights for the Syrup & Flavouring Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Syrup & Flavouring Production Industry are

  • Market research and understanding
  • Control of distribution arrangements
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Canadian effective exchange rate index and Per capita soft drink consumption in the Syrup & Flavouring Production industry impact industry performance..

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    What's in this report

    What is the Syrup & Flavouring Production Industry?

    This industry primarily manufactures drink concentrates, flavouring syrup and related products for beverage manufacturers, soft drink production or soda fountain use. Establishments primarily producing maple syrup, chocolate syrup, flavouring extracts, powdered drink mixes or soft drinks are excluded from the industry.

    Industry Products
  • Liquid beverage bases for soft drinks
  • Fountain soft drinks
  • Flavouring syrups for desserts and home beverage use
  • Flavouring syrups made from fruit
  • Other flavouring agents
  • Industry Activities
  • Beverage base production
  • Beverage concentrate production
  • Flavouring production
  • Fruit syrup production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian effective exchange rate index
  • Per capita soft drink consumption
  • World price of sugar
  • Adult obesity rate

  • Current Performance
  • Shifting demand
  • International trade
  • Profit expansion
  • Chart: Revenue Growth

  • Industry Outlook
  • Wellness and consumption
  • Industry structure and profit
  • Table: Syrup & Flavouring Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Syrup & Flavouring Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Snack Food Production in Canada
  • Soda Production in Canada
  • Juice Production in Canada

  • Key Selling Industries
  • Baking Mix & Prepared Food Manufacturing in Canada
  • Canned Fruit & Vegetable Processing in Canada
  • Corn Farming in Canada
  • Plastic Film, Sheet & Bag Manufacturing in Canada
  • Water Supply & Irrigation Systems in Canada

  • Products & Services
  • Liquid beverage bases for soft drinks
  • Flavouring syrups made from fruit
  • Flavouring syrups for desserts and home beverage use
  • Fountain soft drinks
  • Other flavouring agents
  • Chart: Syrup & Flavouring Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports to the United States
  • Exports to all other countries
  • Other domestic customers
  • Domestic bottlers and beverage manufacturers
  • Chart: Major Market Segmentation for the Syrup & Flavouring Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Syrup & Flavouring Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Syrup & Flavouring Production Industry

  • Industry Globalization
    Kerry Group PLC, The Coca-Cola Company,
  • Table: Kerry Group PLC - financial performance
  • Table: The Coca-Cola Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Syrup & Flavouring Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Syrup & Flavouring Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Per capita soft drink consumption (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Beverage Base
  • Product that is combined with water and sometimes sweeteners during third-party beverage manufacturing or at a soft drink fountain to create a finished beverage.
  • Concentrate
  • A substance that is made stronger or more pure by removing water.
  • Finished Beverage
  • Soda or other soft drink product that is ready to be consumed; may be sparkling or still.
  • Flavouring
  • A substance used to impart specific tastes to consumer products.
  • Fountain Syrup
  • Form of concentrate designed specifically for use in a soft drink fountain.
  • Soft Drink
  • A beverage that typically contains water (often carbonated), a sweetener and a flavouring agent and contains less than 0.5% alcohol by volume.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Syrup & Flavouring Production market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    This report on Syrup & Flavouring Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Syrup & Flavouring Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Syrup & Flavouring Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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