Bottled Water - US

A commodity that quickly became the essential accessory, bottled water has seen its sales increase 49% between 2002 and 2007. (This was a 31% increase in constant 2007 prices.) Mintel dives in to address the state of the bottled water industry, noting both threats and opportunities in the marketplace:

While water sales were impressive during the first five years of the review period, a slow down occurred between 2006 and 2007. Sustainability is the primary cause, with consumers becoming more aware of the environmental effects of water bottle waste.

Efforts to “green” the bottled water market are underway, with major companies offering bottles made with less plastic and more initiatives to recycle the plastic that is used.

Water has been “upgraded” as consumers look for premium in every aspect of their lives. Plain water is losing ground to the flavored and enhanced sub-segment, led by popular products such as vitaminwater and Propel fitness water.

65% of respondents to Simmons NCS report drinking bottled water. According to Mintel’s exclusive research 43% of respondents drink flavored bottled water, while 43% drink enhanced (flavored or unflavored) bottled water.

This report builds on the analysis presented in Mintel’s Bottled Water—US, May 2006. Mintel covers the US market for bottled water as defined by the International Bottled Water Association (IBWA). The IBWA defines bottled water as water that is sealed in a sanitary container to be sold for human consumption. This water may come from a natural spring or be artificially purified. Flavored carbonated and non-carbonated waters are included in this report, but water from bulk dispensers or coolers, water sold in restaurants, and home or office water delivery are not.

This report contains US IRI InfoScan data.  
 

SCOPE AND THEMES

What you need to know

Definition

Resources used for The Consumer sections

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

In a nutshell

Major players

By segment

Factors to growth

Health and wellness

Enhanced/flavored water

Challenges to growth

Ethics and the environment

Home water filters

Pricing pressure in PET segment

Health backlash could encircle ensnare water

The value of enhanced water questioned

Market trends

Fortification with beneficial elements

“Low in” health claims

Greater “naturalness”

Water with a pedigree

Upscale and premium brands

Functional and mood-enhancing water

Consumer usage of bottled water

Consumer attitudes and opinions

MARKET DRIVERS

Health and wellness

Figure 1: Incidence of drinking various beverages among respondents currently dieting or trying to lose weight

by dieting most of the time, 2002-06

Figure 2: Non-alcoholic beverage perceptions, by type of beverage, February 2007

Figure 3: Types of beverages drunk, May 2006-June 2007

Pricing pressure in PET segment

Figure 4: FDM per gallon price of convenience/PET bottled water for various brands and private labels, 2002-07 15

Children’s health

Figure 5: Television ad for Aquapod

The value of enhanced water

Some enhancements are questionable

Ethics and the environment

Municipal efforts to wean consumers off bottled water

Foodservice efforts

Recycling

Home water filters: a threat to bottled water

MARKET SIZE AND TRENDS

Market size

Figure 6: Sales of bottled water, 2002-07

Market trends

Figure 7: New product launches, bottled water, 2002-07

Figure 8: Package claims on new bottled water product launches, 2002-07

Fortification with beneficial elements

“Low in” health claims

Greater “naturalness”

Water with a pedigree

Upscale and premium brands

Functional and mood-enhancing water

Focus on different population segments

MARKET SEGMENTATION

Figure 9: FDM sales of bottled water, by segment, 2005 and 2007

Convenience/PET still water

Figure 10: FDM sales of convenience/PET still water, at current and constant prices, 2002-07

Jug/bulk still water

Figure 11: FDM sales of jug/bulk still water, at current and constant prices, 2002-07

Sparkling/mineral water

Figure 12: FDM sales of sparkling/mineral water, at current and constant prices, 2002-07

SUPPLY STRUCTURE

Figure 13: Manufacturer FDM sales of bottled water, 2006 and 2007

Convenience/PET still water

Figure 14: Manufacturer and brand FDM sales of convenience/PET still water, 2006 and 2007

Jug/bulk still water

Figure 15: Manufacturer and brand FDM sales of jug/bulk still water, 2006 and 2007

Sparkling/mineral water

Figure 16: Manufacturer and brand FDM sales of sparkling/mineral water, 2006 and 2007

RETAIL DISTRIBUTION

Figure 17: Sales of bottled water, by FDM channel, 2005 and 2007

Supermarkets

Figure 18: Sales of bottled water through supermarkets, at current and constant prices, 2002-07

ADVERTISING AND PROMOTION

PepsiCo.

Figure 19: Television ad for Aquafina, 2007

Figure 20: Television ad for Aquafina Alive, 2007

Figure 21: Television ad for Propel Fitness Water, 2007

Figure 22: Television ad for Propel Fitness Water, 2007

Figure 23: Television ad for Propel Fitness Water, 2007

Figure 24: Television ad for SoBe Life Water, 2007

Figure 25: Television ad for SoBe Life Water, 2007

Kraft Foods Inc

Figure 26: Television ad for Capri-Sun Roaring Waters, 2007

Figure 27: Television ad for Fruit2O Relax, 2007

Figure 28: Television ad for Fruit2O Energy and Hydration, 2007

Figure 29: Television ad for Fruit2O Hydration, 2007

Nestlé Waters North America

Figure 30: Television ad for Ice Mountain, 2007

Danone Waters of North America

THE CONSUMER: USAGE OF BOTTLED WATER

Summary

ADULT CONSUMPTION OF BOTTLED WATER

Overview

Figure 31: Usage of non-sparkling and sparkling water, by gender, age, income and race/ethnicity, May 2006-

June 2007

Figure 32: Type of drinking water used at home, by age, November 2007

Trended usage

Figure 33: Usage of bottled water, 2003-07

Flavored or unflavored

Figure 34: Usage of flavored and unflavored carbonated and non-carbonated bottled water, May 2006-June

2007

Amount of bottled water consumed per week

Figure 35: Mean number of glasses of bottled water (non-carbonated and carbonated) consumed per week,

May 2006-June 2007

Brand preference

Figure 36: Brand preference for non-carbonated and carbonated bottled water, May 2006-June 2007

TEEN CONSUMPTION OF BOTTLED WATER

Overview

Figure 37: Usage of bottled water by teenagers, by gender, age and race/ethnicity, full year 2006

Figure 38: Types of beverages consumed by teenagers, by gender, full year 2006

Figure 39: Usage of bottled water by teenagers, sparkling vs non-sparkling, 2003-07

Flavored or unflavored

Figure 40: Teenagers’ use of flavored and unflavored bottled water, by gender, full year 2006

Amount of bottled water consumed per week by teens

Figure 41: Mean number of glasses of bottled water (non-carbonated and carbonated) consumed per week by

teenagers, full year 2006

Teens’ brand preferences

Figure 42: Teens’ brand preferences for non-carbonated and carbonated bottled water, full year 2006

THE CONSUMER: ATTITUDES AND OPINIONS

Summary

Consumption of flavored and enhanced water

Figure 43: Usage of enhanced water, by type, by age, November 2007

Figure 44: Usage of enhanced water, by type, by race/ethnicity, November 2007

Figure 45: Usage of enhanced water, by type, by presence of children in the household, November 2007

Reasons for drinking bottled water

Figure 46: Reasons for buying/drinking bottled water, by age, November 2007

Issues of choice and conservation

Figure 47: Agreement with specific questions concerning bottled water choice and conservation, by age,

November 2007

Bottled water brand loyalty

Figure 48: Agreement with specific questions concerning bottled water, by age, November 2007

Water with benefits

Figure 49: Interest in specific enhanced water attributes, by age, November 2007

Why respondents do not drink bottled water

Figure 50: Reasons for not drinking bottled water, by age, November 2007

Figure 51: Reasons for not drinking bottled water, by household income, November 2007

MARKET FORECAST

Figure 52: Forecast of total U.S. retail sales of bottled water, at current and constant prices, 2007-12

Figure 53: Forecast of sales of bottled water, at current and constant prices, 2007-12

Convenience/PET still water

Figure 54: Forecast of sales of convenience/PET still water, at current and constant prices, 2007-12

Jug/bulk still water

Figure 55: Forecast of sales of jug/bulk still water, at current and constant prices, 2007-12

Sparkling/mineral water

Figure 56: Forecast of sales of sparkling/mineral water, at current and constant prices, 2007-12

Forecast factors

APPENDIX: TRADE ASSOCIATIONS