Industry insights and figures Manufacture of beverages

Operating margin
2.4 %
2020
Companies
31000
2020

Key insights Manufacture of beverages

Actionable signals from current data
EU27_2020
Average operating result: 2.4% of revenue (2020).
Personnel costs: 12.9% of revenue (2020).
Number of companies: 31,000 (2020).

Sector outlook Manufacture of beverages

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Manufacture of beverages sector across EU27 average comprises approximately 31,000 enterprises employing about 400,000 people and generating €140.0 bn in net turnover in 2020. The average enterprise size is – employees per firm. This is a useful yardstick when assessing whether your own operation sits within the typical scale band of the sector.

Profitability

With a thin operating margin of 2.4% of revenue in 2020, the sector reports €3.3 bn of gross operating surplus (Eurostat's EBITDA-equivalent, before depreciation). This figure provides the headline benchmark against which an individual operator can sanity-check their own bottom line, values significantly below indicate cost or pricing pressure, those above suggest competitive advantage worth defending.

Cost structure

Cost of revenue dominates the Manufacture of beverages P&L at 71.4% of turnover, reflecting the high material and input content of activities in this sector. Personnel costs account for 12.9%, with energy purchases adding –. Procurement efficiency and contract management are therefore the two strongest profit levers for operators in this segment.

Trend & trajectory

Over the period 2011 to 2020 the operating margin moved from 13.3% to 2.4% (-11.0 percentage points), a deteriorating trajectory that warrants attention. Sectors with stable or improving margins tend to reflect successful pass-through of input costs and disciplined capacity management; declining margins typically point to either over-supply or a structural cost squeeze that warrants strategic review.

Costs by category Manufacture of beverages

Sector average % of revenue
Cost structure for Manufacture of beverages in EU27_2020, 2011 to 2020, expressed as percentage of revenue.
Revenue / costs 2011 2012 2018 2020
Total revenue 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 11.3% 11.1% 11.6% 12.9%
Gross wages 8.6% 8.5% 8.9% 10.0%
Social and pension contributions 2.7% 2.6% 2.7% 2.8%
Other costs 74.5% 84.8%
Gross operating surplus (EBITDA) 13.3% 12.9% 13.9% 2.4%

Source: Eurostat Structural Business Statistics (latest available year).

Operating result over 4 years

Sector average % of revenue
Average
10.6%
Peak
13.92%
2018
Low
2.36%
2020
Latest
2.36%
2020

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Manufacture of beverages (2020)

Recommended next steps

Based on the latest available data for Manufacture of beverages