A REBOUNDING ECONOMY AS WELL AS CONVENIENCE AND
a healthy image have helped bottled water sales recover
from years of decline in 2008 and 2009, according to Chicagobased
Mintel’s U.S. “Bottled Water” report released in March.
“Following sales declines of 2.8 percent in 2008 and 5.4 percent
in 2009, the bottled water market has rebounded to positive
growth each year since 2010,” the report stated. “This rebound
suggests not only at least a minor return in purchasing power
but also the appeal of bottled water as a convenient part of a
healthier lifestyle.”
Mintel estimated that 2012 sales of
bottled water increased 6.8 percent for
approximately $13.2 billion. Although
the market research firm forecasts
continued annual growth, it will be
at lower levels than the 6.8 percent
estimated for 2012, it says. With
these slightly lower increases, Mintel
forecasts bottled water sales to reach
$15.5 billion by 2017.
Chicago-based Information
Resources Inc. (IRI) reports that
the overall bottled water category
increased 3.7 percent versus the
prior-year period for approximately
$11.5 billion in the 52 weeks ending
May 19 in U.S. supermarkets, drug
stores, mass market retailers, military
commissaries, and select club and
dollar retail chains. Mintel reported
that although it has lost some market
share since 2011, Stamford, Conn.-
based Nestlé Waters North America, a
division of Nestlé S.A., still makes up
one-third of the overall bottled water
market. The next largest manufacturer
was private label at 26 percent,
followed by The Coca-Cola Co.,
Atlanta, at 15 percent, and Purchase,
N.Y.-based PepsiCo at 11 percent.
Both The Coca-Cola Co. and PepsiCo
have lost some market share as well,
while private label has increased, the
report stated.
For consumer purchases, it comes
down to value of the branded product
compared with private label, said
Jonas Feliciano, beverage industry
analyst for Chicago-based Euromonitor
International, in Beverage Industry’s
October 2012 issue. “The key for brands
is [that] they’re going to have to show
why they’re worth the premium price,”
he said.
One segment that has been making
a splash in the bottled water category
is sparkling/mineral water, which
saw sales increase 32 percent for the
52 weeks ending May 19, IRI reports.
Although the convenience/PET still
and jug/bulk bottled water segments
reported growth in 2011 and 2012,
sparkling outpaced both with 16.3
percent growth in 2011 and a 34
percent increase in 2012, according to
Mintel’s report. “The segment offers
a closer parity for consumers looking
to trade away from carbonated soft
drinks or other high-sugar drinks due
to the carbonation and frequently low
calorie count,” the report stated. Even
with the strong growth numbers, the
segment accounts for approximately
9 percent of the overall category,
Mintel reported.
The segment continues to see new
releases enter the market including
Preston, Wash.-based TalkingRain’s
Sparkling Ice brand, which released
Peach Nectarine and Crisp Apple
flavors earlier this year and most
recently Strawberry Lemonade,
Raspberry Lemonade and Lemonade
with Tea flavors to complement the
brand’s Classic Lemonade flavor,
which launched last year. LaCroix, a
brand of Sundance Beverage Co., a
division of National Beverage Corp.,
Ft. Lauderdale, Fla., launched its ninth
flavor last year: Peach-Pear.
Source by
www.bevindustry.com