- Contents
- *Overview
- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: Market context
- Economic and other assumptions
What you need to know
Total packaged water sales increased 8%, driven by panic purchases of bottled water and the continued strong growth of sparkling water. Though seemingly similar categories, bottled water and sparkling water function as two distinct markets with diverging trajectories. Though the bottled water category has an engaged consumer base, brands are subject to trade-down behaviors, and a renewed interest in sustainability post-pandemic will result in slower growth. Sparkling water will remain a fast-growing category within the wider beverage industry due to consumer interest in health and wellness.
Key issues covered in this Report
The impact of COVID-19 on consumer behavior and the packaged water market
The varying performance of bottled water versus sparkling water
Market opportunities for waters with functional benefits
The role sustainability plays in the packaged water market
Definition
For this Report water is segmented as follows:
Convenience/PET plastic still bottled water – may be plain, flavored or enhanced with vitamins, minerals or other supplements.
Seltzer/sparkling/mineral bottled water – may be plain, flavored or enhanced; includes sweetened flavored sparkling waters such as Sparkling ICE.
Jug/bulk still bottled water – plain water sold in multiserve containers; excludes jug/bulk containers that are filled by the consumer.
This Report excludes the following:
Water sold from bulk dispensers or coolers. This includes sales through vending machines, foodservice and delivery services.
Coconut water and other plant-based waters.
Water filtration products.
COVID-19: Market context
The first COVID-19 case was confirmed in the US in January 2020. It was declared a global health pandemic and national emergency in early March 2020. Across the US, various stay-at-home orders were put in place in Spring 2020, and nonessential businesses and school districts closed or shifted to remote operations. The remainder of 2020 saw rolling orders, as states and local governments relaxed and reinforced guidelines according to the spread of the virus in each region.
Vaccine distribution began in December 2020, and it is expected take anywhere from July to December 2021 for 70-90% of the population to be vaccinated to reach herd immunity. Mintel anticipates business operations in the US will remain in a state of flux through 2021 as the vaccine is widely administered.
Economic and other assumptions
Mintel’s economic assumptions are based on CBO estimates released on February 1, 2021. The CBO’s previous forecast for US GDP to fall by 5.8% in 2020 was revised after a stronger second half of the year, and the updated estimate indicates negative 3.5% GDP for the year. The CBO forecasts GDP to grow by 4.6% in 2021 and projects unemployment to continue to fall to average 5.7% for the year.
