The phrase “water is the essence of life” is used to explain how necessary water is for all residing organisms. The October 2024 problem of Beverage Business delved into the efficiency of the bottled water market. Specialists shared that, regardless of slowed quantity development, the class stays strong, exhibiting that water continues to be necessary to shoppers.
Michael Bellas, chairman and CEO at Beverage Advertising Company (BMC), Wintersville, Ohio, said that bottled water continues to be a prime beverage selection for shoppers, even with its sluggish development.
“The whole bottled water market has skilled slower quantity development from middle-single digits to low-single digits since 2022,” he stated in Beverage Business’s October 2024 problem. “Development is probably going to enhance because the financial system improves. General, it stays the most important beverage class within the U.S. on a quantity foundation.”
In accordance with Chicago-based Circana, the bottled water class recorded $29.9 billion in gross sales, a 3.6% improve, whereas quantity gross sales have been up 1% in whole U.S. multi-outlets for the 52 weeks ending April 20.
Well being and wellness traits have been the first development driver for the class, Bellas stated in Beverage Business’s October 2024 problem. He anticipated such traits would proceed to be a driver sooner or later.
“It’s the final well being and wellness beverage,” he added.
Bellas additionally famous that bottled water is the perfect worth proposition of any beverage.
“The class has an attraction to value-seeking shoppers. However well being and wellness is the first driver,” he defined.
Jill Culora, vice chairman of communications on the Worldwide Bottled Water Affiliation, famous information from BMC in Beverage Business’s October 2024 problem.
“Bottled water retained its title as America’s favourite packaged drink in 2023, outselling carbonated gentle drinks (CSDs) (by quantity) for the eighth 12 months in a row, information from BMC reveals,” Culora stated. “Bottled water’s whole quantity bought in 2023 was 15.9 billion gallons, in comparison with carbonated gentle drinks, which bought 11.8 billion gallons.”
In a Mintel February 2024 government abstract report titled “Nonetheless and Glowing Waters – US – 2024,” Julia Mills, food and drinks analyst for Mintel, Chicago, said that bottled water stays well-liked due to its diet and comfort.
“Fixation on hydration types the muse for demand for packaged waters as a handy, on-the-go well being increase,” Mills wrote within the report. “Nevertheless, alternatives exist to discover flavors, well being enhancements and sustainability to maintain the class contemporary. Key desired attributes have to be stored on the heart of latest product improvement.”
The report additionally famous that, on account of worth rises, shoppers would possibly commerce down or go for premium waters. Monetary constraints have led to shoppers buying and selling up and down, the report stated.
“As inflation continues to influence buying behaviors, a dichotomy emerges in water buy,” Mills said. “Shoppers could flip to retailer manufacturers and bigger pack sizes to save cash. However, a want for aspirational existence could affect buying and selling as much as premium waters as an reasonably priced luxurious and standing sign.”
Different traits have contributed to bottled water’s efficiency as nicely.
In Mintel’s report, Mills dove into shopper traits affecting the market.
The report pointed to Technology Z (Gen Z) and millennials as “engaged class customers” and famous that youthful shoppers are excessive bottled water customers creating “main development potential” for the general class.
“A mixture of energetic existence and curiosity in well being, type the first drivers behind their demand for packaged waters,” the report said. “These shoppers are most open to riffs on the classics via added flavors and well being advantages.”
BMC’s Bellas shared, in Beverage Business’s October 2024 problem, that though nonetheless unflavored water continued to be the vast majority of bottled water gross sales, taste innovation helped increase the glowing water section. He suspects it is going to proceed to influence development within the glowing section going ahead.
In accordance with Circana information, non-flavored comfort bottled nonetheless water accounted for $17.7 billion in gross sales, a 1% improve; nonetheless, quantity was down 0.9% for the 52 weeks ending April 20.
But, flavored comfort bottled nonetheless water noticed gross sales attain $2.8 billion, up 8.1%, with quantity up 1.2%. Seltzer and glowing even have fared nicely as flavored seltzer/glowing/mineral water noticed gross sales attain $5.1 billion, an 8.9% improve, with quantity up 4.1%. In the meantime, non-flavored seltzer/glowing/mineral water gross sales have been up 7.4%, totaling $1.5 billion, with quantity up 2.2%.
BMC’s Bellas additionally famous that specialty waters have proliferated within the class, however represented a really small share of the general water beverage market.
Within the Mintel report, Mills said that also and glowing water use instances deviated.
“Shoppers understand various water sorts as appropriate for various events, resulting in a necessity for distinctive approaches on positioning,” Mills wrote within the report. “Flavored nonetheless and glowing waters succeed as a drink various and ‘social’ drinks.”
The report famous that enhanced and unflavored bottled waters are acknowledged as helpful for well being advantages and train. It stated that younger shoppers are model loyal and never section loyal.
“Gen Z and millennials are extra devoted to the popular water manufacturers than every other era,” the report said. “However, they’re additionally most open to exploring varied water segments. Consequently, youthful shoppers, newer to the class, will prime the marketplace for innovation and revitalized nascent water varieties.”
Predicting the longer term
In Beverage Business’s October 2024 problem, consultants anticipated the bottled water class would proceed to develop.
BMC’s Bellas anticipated regular development, particularly as pricing moderated.
In Mintel’s February 2024 report, Mills famous predictions for the class and anticipated bottled water gross sales would proceed to ascend “as shoppers fall again on it for its perceived superior high quality and style” all year long. The report anticipated Gen Z and millennials to propel the class ahead.
“Their curiosity in added well being advantages, sustainability and aspirational existence will domesticate a requirement for premium water,” the report stated. “As these generations lower their alcohol consumption, glowing waters will proceed to be an interesting various.”
Mintel’s report additionally said, “sustaining inventory for emergencies will situate bottled waters as a should in lots of shoppers’ houses.” Moreover, the report stated that enthusiasm for sustainability, primarily amongst youthful shoppers, would require manufacturers to rethink their sourcing and packaging methods.
Within the report, Mills prompt alternatives for the class, considered one of which being that water acts as a “clean canvas” for enhancements.
“Construct off of water’s inherent well being advantages via the addition of enhancements for superior hydration, intestine well being, pores and skin well being and past,” she wrote within the report. “Shoppers purpose to extract extra advantages from the waters they drink.”
The report famous that beverage-makers ought to clearly talk any extra benefits to steer shoppers that the extras are definitely worth the added prices, however that the inherent advantages of water needs to be stored on the core of innovation.
“Hydration and low worth are robust buy drivers within the packaged water class, thus forming limitations to an curiosity in novel merchandise,” Mills stated within the report. “Innovating round well being, sustainability and taste might be profitable when advantages are clearly communicated and hydration, worth and portability are stored on the core.”
The Mintel analyst additionally emphasised that manufacturers ought to discover water’s worth within the sober curious class.
“As curiosity in a sober curious way of life grows, areas open for water manufacturers to step in with alcohol alternate options,” she wrote within the report. “Water manufacturers can mimic premium packaging and sourcing claims usually utilized by alcohol manufacturers. Moreover, added well being enhancements in water can probably replicate the feel-good advantages of alcohol sans the hangover.”
