Global Bottled Water Industry
The world’s bottled water industry recorded a yearly growth rate of 4% in 2010 to exceed $99 billion, reports MarketLine. The market is expected to expand by more than 27% in the five-year period ending 2015 to generate more than $126 billion in revenue. In 2010, the market had a volume in excess of 152 billion liters, forecast to reach close to 183 billion liters in 2010, representing a 20% increase in five years.
Still unflavored water represents the leading market segment (also among the largest in the soft drink industry), generating 65% of overall market revenue. The EU holds just over a 50% share of the global bottled water market. Groupe Danone is the leading company operating in the market with more than 14% market share in terms of volume.
The global bottled water industry involves the sale of still unflavored water, still flavored water, sparkling unflavored water and sparkling flavored water. There is a high degree of fluctuation in the market, according to research from Canadean. Larger companies are favoring consolidation, boosting capacity and extending their product portfolios by acquiring smaller companies with local or niche advantages. Consolidating activity is forecast to intensify, making the industry more concentrated as leading companies reinforce their market presence.
- Leading companies operating in the global bottled water market include: Groupe Danone, PepsiCo and Coca-Cola. Paris-based Groupe Danone operates in several industries including water, medical nutrition, infant nutrition and fresh dairy products. Market leaders Volvic, Evian and Aqua are among its bottled water brands. The company, which employed more than 100,000 people in 2010, has been enjoying double-digit growth in its waters division, with Mexico and Indonesia representing the two leading regions in terms of sales. The company’s Aqua Lestari sales in Indonesia rose 15% reaching 60% market share with its brands Mizone and Aqua. Bonafont rose almost 13% in Mexico, reaching 40% market share.
- PepsiCo employs 285,000 employees worldwide, generating revenue of over $60 billion. The company produces leading bottled water brand Aquafina across over 40% purification sites in the US and Canada, using the company’s HydRO-7 purification system.
Regional Market Share
- The EU bottled water market exceeded $47 billion in 2010, reports MarketLine. The region recorded in excess of 2% yearly growth between 2006 and 2010. Sparkling unflavored water represented the leading market segment generating more than $22 billion in 2010 for almost 47% of the region’s overall market. Market expansion is expected to accelerate to a yearly rate of almost 2.5% for the five-year period ending 2015 to exceed $53 billion.
- The US bottled water market reached almost $17 billion in 2010, reports MarketLine. Market growth was close to 1.5% yearly between 2006 and 2010. Still unflavored water represented the leading market segment, generating close to $15 billion in 2010 for almost 90% of the overall market in terms of value. Market expansion is expected to accelerate to a yearly growth rate of 1.5% between 2010 and 2015, when it should hit almost $18 billion.
- The Asia-Pacific bottled water industry was worth close to $21 billion in 2010, having recorded yearly growth in excess of 12% for the four preceding years, according to research from MarketLine. Still unflavored water represented the leading market segment, generating close to $19 billion in 2010, or totaling in excess of 90% of the region’s overall bottled water market in terms of value. Market expansion is expected to slow to a yearly rate of less than 12% between 2010 and 2015, when it should hit over $35 billion. The Asia-Pacific bottled water market is forecast to record strong growth with new companies entering the market. Market share will be dictated by factors such as product, pricing, distribution, technology and marketing approaches.
The global bottled water industry was negatively impacted by the economic recession but entered a recovery phase with strong sales in 2010, reports Euromonitor International. Over the coming years, global bottled water sales are expected to continue showing strong growth.
Leading Industry Associations
- International Bottled Water Association
- Canadian Bottled Water Association
- The International Council of Bottled Water Associations
- Australasian Bottled Water Institute
- Asia and Middle East Bottled Water Association
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