Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Products covered in this Report
Executive Summary
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- Impact of COVID-19 on bottled water
- Significant value and volume decline expected in 2020
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- Figure 1: UK value sales of bottled water (COVID-19 adjusted forecast), 2014-24
- Figure 2: Expected impact of COVID-19 on bottled water, short, medium and long term, 19th June 2020
- The market
- 2019 sees bottled water category falter
- Still water dominates retail value sales
- Concern over plastic continues to threaten market, Deposit Return Scheme set to be introduced
- As other soft drinks cut sugar, health concerns may cease to benefit bottled water as much
- Companies and brands
- Highland Spring posts growth; Volvic sees a sharp decline
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- Figure 3: Leading brands’ sales in the UK bottled water retail market, by value, 2018/19 and 2019/20
- Flavoured water retains a strong lead in NPD, L/N/R calorie claims feature on one in five launches in 2019
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- Figure 4: Share of bottled water launches featuring L/N/R sugar and calorie claims, 2015-20
- Functional claims continue to rise
- Plastic PET still dominates launches
- Coca-Cola urges people to send their plastic in a circle; Highland Spring spends big
- The consumer
- Bottled water still drunk by three quarters of people, unflavoured leads on daily use
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- Figure 5: Usage of bottled water, by type, 2017-20
- 16-24 year olds are most frequent users
- Over a third of consumers use water filter products; reusable water bottles used by nearly two thirds
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- Figure 6: Usage of water filter products at home and carrying of reusable water bottles out of home, February 2020
- Price is biggest priority in bottled water; taste is important for half
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- Figure 7: Factors prioritised when choosing between different bottled waters, February 2020
- Two thirds set themselves daily water intake goals
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- Figure 8: Behaviours related to bottled water, February 2020
- Brands supporting plastic reduction appeal to half
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- Figure 9: Bottled water concepts of interest, February 2020
- Nearly 60% think it is important to check the source of bottled water
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- Figure 10: Attitudes towards bottled water, February 2020
- What we think
The Impact of COVID-19 on Bottled Water
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- Short, medium and long-term impact on the industry
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- Figure 11: Expected impact of COVID-19 on bottled water, short, medium and long term, 19th June 2020
- Opportunities and Threats
- Income squeeze will put pressure on bottled water to prove its value
- Immunity looks set to be a key health concern going forward
- Plastic waste concerns are temporarily subdued but expected to return
- British brands could benefit from emphasis on localism wrought by COVID-19
- Impact on the market
- Bottled water boosted by panic buying but loses impulse occasions
- Economic downturn will curb demand
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- Figure 12: UK value sales of bottled water (COVID-19 adjusted forecast), 2014-24
- The large players leading the market are well placed to weather the disruption
- Shifts in consumer behaviour
- Focus on health is expected to endure
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- Figure 13: Change in priorities regarding eating healthily since the start of the COVID-19/coronavirus outbreak, by age, 7th-14th May 2020
- The spotlight is off plastic waste, but many people place more emphasis on the environment
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- Figure 14: The environment as a priority since the COVID-19 outbreak, by age, 7th-14th May 2020
- Hygiene concerns stand to slow down Refill movement in the short term
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- Figure 15: Agreement that COVID-19 makes using in-store refills less hygienic, by demographics, 4th-11th June 2020
- Heightened interest in local community
- Impact on key consumer segments
- 16-24s core users likely to feel brunt of recession
- Recession heightens need for brands to attract older demographics
- How a COVID-19 recession will reshape the market
- Household income squeeze will hit bottled water
- Bottled water brands will need to prove their worth
- Own-label and value brands look set to do well
- British brands could benefit from emphasis on localism wrought by COVID-19
- Health benefits and suitability as a mixer could prove beneficial
- Impact on the marketing mix
- Tapping into health concerns holds potential going forward
- Larger stores will continue to overindex, vending machines could gain relevance
- Evian uses hydration reminders and positivity to target those in lockdown
- COVID-19: Market context
Issues and Insights
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- Emphasising UK sourcing could prove successful in COVID-19 recession
- The facts
- The implications
- Brands supporting plastic reduction appeal to half
- The facts
- The implications
- Microplastic-free claims appeal widely
- The facts
- The implications
- Avoiding thirst on the go is important for nearly 80%
- The facts
- The implications
The Market – What You Need to Know
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- 2019 sees bottled water category falter
- Significant value and volume decline expected in 2020
- Retail segment dominates the market
- Still water leads retail value sales
- Concern over plastic continues to threaten market
- Deposit Return Scheme set to be introduced
- Use of reusable bottles and water filters increases further
- As other soft drinks cut sugar, health concerns may cease to benefit bottled water as much
Market Size and Forecast
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- 2019 sees bottled water category falter
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- Figure 16: UK value and volume sales of bottled water, 2014-19
- Outlook in light of COVID-19
- Lockdown halts crucial on-the-go sales
- Significant value and volume loss expected in 2020
- Economic downturn will hit the market
- Headwinds ahead beyond 2022
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- Figure 17: UK value and volume sales of bottled water (COVID-19 adjusted forecast), 2014-24
- Figure 18: UK value sales of bottled water (COVID-19 adjusted forecast), 2014-24
- Figure 19: UK volume sales of bottled water (COVID-19 adjusted forecast), 2014-24
- Pre-COVID-19 forecast predicts market would have returned to minimal growth
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- Figure 20: UK value and volume sales of bottled water (pre-COVID-19 forecast), 2014-24
- Figure 21: UK value sales of bottled water (pre-COVID-19 forecast), 2014-24
- Figure 22: UK volume sales of bottled water (pre-COVID-19 forecast), 2014-24
- Forecast methodology
Market Segmentation
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- Still water dominates retail value sales
- Fortified water is only sub-category to see growth
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- Figure 23: UK retail value and volume sales of bottled water, by segment, 2017-19
- Long run of growth for retail and on-premise sales has come to halt
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- Figure 24: UK value and volume sales of bottled water, by retail and on-premise channel, 2014-19
Market Drivers
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- Concern over plastic continues to threaten market
- Danone and Nestlé make plastic pledges
- Drinks companies join forces with L’Oréal in plastic consortium
- Greenpeace criticism will add to consumer concerns
- Smaller brands look to distinguish themselves through non-plastic packaging
- Issue of microplastics highlighted by WHO report
- Deposit Return Scheme set to be introduced
- Use of reusable bottles and water filters increases further
- As other soft drinks cut sugar, health concerns may cease to benefit bottled water as much
- Increase in 15-24s could benefit the market
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- Figure 25: Trends in the age structure of the UK population, 2014-19 and 2019-24
Companies and Brands – What You Need to Know
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- Highland Spring posts growth; Volvic sees a sharp decline
- Flavoured water retains a strong lead in NPD
- L/N/R calorie claims feature on one in five launches in 2019
- No-sugar seltzers continue to attract activity
- Functional claims continue to rise
- Plastic PET still dominates launches
- Canned launches continue to gain share
- Coca-Cola focuses on plastic, Highland Spring spends heavily in 2019
Market Share
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- Highland Spring posts growth in declining category
- Brand leader Volvic sees a sharp decline in sales
- San Pellegrino sees NPD pay off
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- Figure 26: Leading brands’ sales and shares in the UK bottled water retail market, by value and volume, 2016/17-2018/19
Launch Activity and Innovation
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- Flavoured water retains a strong lead in NPD
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- Figure 27: Share of new product launches in the UK bottled water market, by sub-category, 2015-20
- Figure 28: Recent examples of flavoured water launches, 2019-20
- L/N/R calorie claims feature on one in five launches in 2019
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- Figure 29: Share of bottled water launches featuring L/N/R sugar and calorie claims, 2015-20
- No-sugar seltzer attracts NPD
- Ugly expands its flavour range
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- Figure 30: Ugly Water and Daylesford No. 1 Water, 2019
- Daylesford launches premium line of seltzers
- Something & Nothing looks to versatility as a mixer and non-alcoholic alternative
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- Figure 31: Something & Nothing Hibiscus & Rose seltzer emphasising versatility, 2019
- Functional claims continue to rise
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- Figure 32: Share of flavoured and unflavoured bottled water launches featuring functional and vitamin/mineral-fortified claims, 2015-20
- Figure 33: Recent examples of electrolyte water launches, 2019
- Immunity claims could win big due to COVID-19
- Ribena launches enhanced waters
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- Figure 34: Ribena Frusion Blackcurrant Water infused with blueberry with Vitamin C claim, 2019
- Innocent emphasises immunity with new products
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- Figure 35: Innocent refresher raspberry & rosemary flavoured water with Vitamin C claim, 2019
- CBD-infused water launched by ThreeDots
- Get More ViTS looks to help consumers up their fibre intake, Press London goes probiotic
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- Figure 36: Press water + and on-packaging detail of probiotic bacteria and support of Mind charity, 2019
- Plastic PET still dominates launches
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- Figure 37: Bottled water launches, by packaging material, 2015-20
- Leading players look to rPET
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- Figure 38: Bottled water launches, by ethical claims, 2015-20
- Highland Springs’ eco bottles are joined by Glacéau, Evian and Buxton
- Canned launches continue to gain share
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- Figure 39: Share of bottled water launches, by packaging type, 2015-20
- One Water reveals new look with cans, The Feel Good Drinks Co moves from glass to cans
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- Figure 40: Recent examples of bottled water launches in cans, 2019-20
Advertising and Marketing Activity
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- Coca-Cola leads adspend in 2019
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- Figure 41: Total above-the-line, online display and direct mail advertising expenditure on bottled water, by leading advertisers, 2019 and 2020
- Coca-Cola urges people to send their plastic in a circle
- Potential ASA investigation into recycled claims
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- Figure 42: Coca-Cola advert emphasising recycling credentials of its products’ bottles, 2019
- 2019 sees high adspend for Highland Spring
- ‘Remarkabubble’ campaign celebrates sparkling water
- Highland Spring creates computer game to launch kids’ eco bottle
- Ribena spends big on its blackcurrant artistry campaign
- Robinsons emphasises naturalness of Refresh’d range in TV advert
- Evian brings back its highly successful dancing babies
- Buxton celebrates up-and-coming talent
- Nielsen Ad Intel coverage
Brand Research
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- Brand map
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- Figure 43: Attitudes towards and usage of selected brands, April 2020
- Key brand metrics
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- Figure 44: Key metrics for selected brands, April 2020
- Brand attitudes: Glacéau Smartwater leads as innovative
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- Figure 45: Attitudes, by brand, April 2020
- Brand personality: San Pellegrino enjoys the most exclusive image
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- Figure 46: Brand personality – macro image, April 2020
- Highland Spring is seen as the most traditional
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- Figure 47: Brand personality – micro image, April 2020
- Brand analysis
- Volvic is viewed as fun by a third
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- Figure 48: User profile of Volvic, April 2020
- Evian is seen most strongly to deliver consistent high quality
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- Figure 49: User profile of Evian, April 2020
- Highland Spring leads on good value perception
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- Figure 50: User profile of Highland Spring, April 2020
- Glacéau Smartwater is seen as the most innovative brand
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- Figure 51: User profile of Glacéau Smartwater, April 2020
- S.Pellegrino leads on sophistication
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- Figure 52: User profile of S.Pellegrino, April 2020
The Consumer – What You Need to Know
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- Bottled water still drunk by three quarters of consumers
- Unflavoured still water drunk most frequently
- 16-24 year olds are most frequent users
- Over a third of people use water filter products; reusable water bottles used by nearly two thirds
- Price is biggest priority in bottled water; taste is important for half
- Environmental friendliness scores low despite war on plastic
- Two thirds set themselves daily water intake goals
- Nearly 80% keen to avoid thirst on the go
- Brands supporting plastic reduction appeal to half
- Nearly 60% think it is important to check the source of bottled water
- Filtering microplastics could help premiumisation
Usage of Bottled Water
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- Bottled water still drunk by three quarters of consumers
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- Figure 53: Usage of bottled water, by type, 2017-20
- Unflavoured still water drunk most frequently
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- Figure 54: Frequency of drinking bottled water, by type, February 2020
- 16-24 year olds are most frequent users
Usage of Water Filter Products and Reusable Water Bottles
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- Over a third of consumers use water filter products
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- Figure 55: Usage of water filter products at home, February 2020
- Reusable water bottles used by nearly two thirds
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- Figure 56: Carrying of reusable water bottles out of home, February 2020
- Reusable bottle use peaks among under-25s
- Reusable water bottle usage is highest in London and cities
- Motivations vary but growing Refill movement poses threat
Choice Factors of Bottled Water
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- Price is biggest priority in bottled water
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- Figure 57: Factors prioritised when choosing between different bottled waters, February 2020
- Taste is important for half of bottled water buyers
- Environmental friendliness scores low despite war on plastic
Behaviours Related to Bottled Water
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- Two thirds set themselves daily water intake goals
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- Figure 58: Behaviours related to bottled water, February 2020
- Better visibility of quantity of water on-pack and “tracker” bottles could appeal
- Nearly 80% keen to avoid thirst on the go
- Higher visibility in transport hubs needed
- More overt messages of quenching thirst could help brands stand out
- Half of consumers trust water in transparent containers more
Bottled Water Concepts of Interest
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- Brands supporting plastic reduction appeal to half
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- Figure 59: Bottled water concepts of interest, February 2020
- Brands look to recycled plastic
- Recycling initiatives hold sponsorship potential
- Leading brands back Hubbub recycling bins pilot
- Branded water stations are popular with a third
- Branded water stations should call out purity and filtration
- Using wonky fruit and vegetables could boost sustainability credentials
- Amount of wonky fruit and vegetables saved should be called out more
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- Figure 60: Dash Water and Flawsome! detailing food waste impact on-pack, 2018-19
Attitudes towards Bottled Water
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- Nearly 60% believe it is important to check the source of bottled water
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- Figure 61: Attitudes towards bottled water, February 2020
- Bottled water sourced in the UK could gain relevance after Brexit transition ends
- Emphasising Britishness could help UK brands win favour in the economic downturn
- Filtering microplastics could help add value
- Sparkling water purchase seen as justified if no means of making it
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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- Figure 62: UK value sales of bottled water, best- and worst-case forecast (pre-COVID-19), 2019-24
- Figure 63: UK volume sales of bottled water, best- and worst-case forecast (pre-COVID-19), 2019-24
Appendix – Market Share
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- Figure 64: Leading manufacturers’ sales and shares in the UK bottled water retail market, by value and volume, 2016/17-2018/19
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Appendix – Launch Activity and Innovation
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- Figure 65: Share of new product launches in the UK bottled water market, by top 20 claims, 2015-20 (sorted by 2019)
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