Pepsi Co. belongs to the beverage industry. The sales which were generated in the largest eight economies of the world namely US, UK, Canada, France, Germany and Italy etc generated sales of more than $320 billion for the year 2012 in the soft drink business.
The industry has to face challenges as the concern among the people is increasing related to health issues. Soft drinks are said to be of the factors causing obesity and so the health professionals, government agencies are trying to warn the people of the hazards.
Also the consumer preferences are changing and are constantly evolving. Consumer wants to have more choices than what is available. As a result the industry needs to evolve according to these changing preferences of the consumer (Pepsi Co. Enterprises Annual Report, 2012).
This industry is largely consumer driven and hence depends on state of macro economy. The products sold are not essential consumption items and so if the economy slows down then it can affect the sales of the company as consumer prefers to spend less on such items. However since it caters to mass of the people and with companies having global operation they can diversify their operations and achieve stable growth (Koplan & Brownell, 2012).
Overall this industry is mature but still there is huge scope as companies come out with new innovative products which can increase the sales of the industry.