Innovations in Bottled Water: NPD opportunities in flavored, functional, natural and premium waters

Innovations in Bottled Water: NPD opportunities in flavored, functional, natural and premium waters

Between 2006 and 2010 the value of the combined US, European and Japanese bottled water market is projected to see a compound annual growth rate (CAGR) of 5.0%. Volume growth will be healthy at a projected CAGR of 4.7% for the total market. In value terms, Europe is the largest regional market for bottled water and this will remain constant over the period. Of all markets, the UK is projected to see the highest rate of value growth at 8.7%, from $2.4 billion in 2006 to $3.3bn in 2010. The largest single market is the US market, with a value in 2006 of $15.3bn, projected to rise by $4.0bn by 2010. In monetary terms, this represents the greatest value growth, driven by the size of the market and a high projected CAGR rate of 6.0%. The still unflavored water category is the largest of all the bottled water categories. In 2006 the combined markets of Europe, the US and Japan was estimated to be worth $32.4bn. Still unflavored water is also by far the largest bottled water category in terms of volume sales. In 2006, volume sales for this category were estimated at 56.3bn liters. This is projected to rise by 12.1bn liters to a new level of 68.4bn liters in 2010.

Table of Contents
Innovations in Bottled Water
Executive Summary 8
Growth opportunities in bottled water 8
Innovation and NPD in the bottled water market 9
Key trends in the bottled water market 10
Chapter 1 Introduction 12
What is this report about? 12
The bottled water market defined 12
Report structure 13
Research methodology 14
Chapter 2 Growth opportunities in bottled
water 16
Summary 16
Introduction 17
Bottled water market value 17
Bottled water market value by category 19
Sparkling flavored water 20
Sparkling unflavored water 21
Still flavored water 23
Still unflavored water 23
Bottled water market volume 24
Bottled water market volume by category 26
Sparkling flavored water 27
Sparkling unflavored water 28
Still flavored water 29
Still unflavored water 30
Chapter 3 Innovation and NPD in the
bottled water market 34
Summary 34
Introduction 35
Growth in new bottled water product launches 35
Share of bottled waters launched by category 38
Category analysis 40
Plain waters 41
Fruit and fruit flavored bottled waters 42
Health waters 43
Isotonic and energy producing bottled waters 44
Regional analysis 46
Europe 46
North America 47
Asia-Pacific 47
Product tags on bottled waters 48
Flavor trends 50
Innovative manufacturers 51
Danone 51
Nestlé 55
PepsiCo 56
Chapter 4 Key trends in the bottled water
market 60
Summary 60
Introduction 61
Health 61
Marketing bottled water to kids 61
Weight control 66
Beauty 69
Functional 71
Fortified waters 73
Wellbeing 75
Sports, performance and energy 77
Natural, pure, additive free 79
Premiumization 85
Prestige 85
Convenience 88
Portability 88
Storage 90
Bottled water and the environment 91
Chapter 5 Conclusions 98
Introduction 98
Market influences 98
Obesity and health 98
Labeling regulations 98
The environment 99
Market opportunities 100
Wellbeing 100
Premiumization 100
Convenience 101
Key markets 101
Index 102
List of Figures
Figure 3.1: Percentage growth in bottled waters launched, by category, 2004-2007 35
Figure 3.2: Fun bottled waters for kids; Nestlé’s blackberry flavored Vittel for kids 36
Figure 3.3: Percentage share of bottled waters launched, by category, 2004-2007 38
Figure 3.4: Subtle health positioning; Carpe Diem 39
Figure 3.5: Natural and pure plain waters, South Pole Pure Water 41
Figure 3.6: Premium plain waters; Hartridges Speyside Glenlivet Natural Mineral Water 42
Figure 3.7: Healthy positioning of fruit and fruit flavored waters; Vitsmart 43
Figure 3.8: Health waters; St Yorre’s L’eaux Minerales 44
Figure 3.9: Energy positioning; Nestlé Energy E 45
Figure 3.10: Percentage share of products launched, by region, 2004-2007 46
Figure 3.11: Danone’s global brands 52
Figure 3.12: Danone functional drinks - Mizone 53
Figure 3.13: Danone – fruit flavored waters 54
Figure 3.14: Nestlé global brands 55
Figure 3.15: Nestlé flavored waters and waters for kids 56
Figure 3.16: PepsiCo – Aquafina and brand extensions 57
Figure 3.17: Propel Calcium and Propel Fitness Water 58
Figure 4.18: Kids drinks – the importance of packaging design, Aquapod, Aquarel and Eden 63
Figure 4.19: Minute Maid Fruit Falls – appealing to two audiences 64
Figure 4.20: Wateroos all natural flavored water 65
Figure 4.21: Low calorie positionings - Rosemary Conley’s Spring Waters 67
Figure 4.22: Slim Fluid, Slim Water and Watercare 68
Figure 4.23: Evian Skin Care 69
Figure 4.24: Borba Skin Balance and L'Eau Bronzante 71
Figure 4.25: Otsuka Match, The Juice Doctor and Infinite Health + 73
Figure 4.26: Functional wellbeing drinks; Asahi Fujisan, Melodian Platinume Aqua and Calpis
Aqua Nyusankin 75
Figure 4.27: H2O and Glaceau XXX Vitamin Water 76
Figure 4.28: Hi Ball and Water Joe 78
Figure 4.29: Pristine source water; Virga, Iceberg and Kona Deep 81
Figure 4.30: Power Water, SubZero and Priya Yours 82
Figure 4.31: Talking Rain Twist, Metromint and Hint 84
Figure 4.32: Evian Palace 86
Figure 4.33: Super-Premium Artesian Waters and Fiji Water 87
Figure 4.34: Stylish portable packaging; Lil’ Figi, Evian and Evian Envie 89
Figure 4.35: Convenient Packaging; Nestlé Pure Life, Nestlé Ice Mountain Spring Water and Evian
Minibar 90
Figure 4.36: Park City IceWater 92
Figure 4.37: Biodegradable packaging: Belu 93
Figure 4.38: Apollinaris Silence 95
List of Tables
Table 2.1: Bottled water market value, $m, Europe, the US and Japan, 2006-2010 17
Table 2.2: Bottled water market value, $m, by category, Europe, the US 19
Table 2.3: Bottled water market value, $m, by category, Europe, the US 20
Table 2.4: Bottled water market volume, $m, Europe, the US and Japan, 2006-2010 25
Table 2.5: Bottled water market volume, $m, by category, Europe, the US 26
Table 2.6: Bottled water market volume, $m, by category, Europe, the US 27
Table 3.7: Top 20 tags on new product packaging - % of all bottled water drinks launched, 2005-
2007 49
Table 3.8: Top 20 flavors of new product introductions - % of all bottled water drinks launched,
2005-2007 51
Table 4.9: Overweight and obese EU and US children (5-9 year olds), by country, millions, 2005-
2010 62