Table of Contents
Issues in the Market
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- Key themes of the report
- Definition
- Definition excludes
- Explanation and types
- Abbreviations
Insights and Opportunities
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- Vegetables with flavour
- Bottling sensations
- Water with personality
- Male focus
- Connoisseurs of carbonation
Market in Brief
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- Topline trends
- Bottled water fits the bill (but so do juice drinks)
- Brands and ethics
- Future trends
Fast Forward Trends
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- Trend 1: Market as Conversation
- Definition
- What's it about?
- What next?
- Trend 2: End of (U.S.) Empire?
- Definition
- What we've seen
- What’s next?
Internal Market Environment
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- Key points:
- Health and fitness – mineral water drinkers more proactive
- Flavoured water drinkers – guilt- and diet-obsessed
- Focus on green credentials intensifies
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- Figure 1: Agreement with selected attitudinal statements on diet and health, by consumption of bottled mineral water, 2006
- Schools – working up a thirst…
- How does this affect bottled water?
- …but confusion over guidelines causes chaos
- Leisure venue catering
Broader Market Environment
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- Key points:
- Bottled water companies like it hot
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- Figure 2: Trends in the amount of sunshine and rainfall in the UK, 1971-2000 and 2002-06
- Pure water v pure air
- More opportunities for regional brands
- Smoking ban – mixed blessings
- Key European markets provide insight
- Keeping ABs hydrated
- Older age – developing a taste for water
- Adapting to one-person households
Strengths and Weaknesses
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- Strengths
- Weaknesses
Competitive Context
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- Key points:
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- Figure 3: UK retail sales of soft drinks, by value, 2002-06
- Bottled water and fruit juice meet consumer demand
- School rules favour bottled water
- Energy and sports drinks v functional bottled water
- Smoothies – sales growing faster than bottled water
- Water cooler sales stagnate
Who’s Innovating?
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- Key points:
- Savour that exotic flavour
- Splashing around – bottled water for children
- Lunchbox launches
- Trendy teenagers and active urbanites
- Ethical concerns
- Free-from
- Health and fitness
- Blurring the boundaries – functional water and functional drinks
- Getting to grips with packaging
- Oxygen…disappearing into thin air?
- The Scottish heritage trail
- A lighter touch
- Cross-branding
- Premium launches
- Bottling sensations
- Freeze!
- Future NPD
Market Value and Forecast
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- Key points:
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- Figure 4: Forecast of UK sales of bottled water*, by volume, value and average price, 2007-12
- Hot summers help boost volume sales in 2003 and 2006
- Value growth boosted by premiumisation and ethical launches
- Future trends
Segment Performance
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- Key points:
- Spring/table water gains momentum
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- Figure 5: UK retail volume sales of bottled water, by type of source, 2003-06
- Flavour – a major focus for NPD
- Sugar versus sugar-free
- Still water flows more freely
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- Figure 6: UK retail volume sales of bottled water, by volume and value, by carbonation, 2003-06
- More products for children
- NPD adds value to still water sales
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- Figure 7: Bottled water volumes, by packaging type, 2003-06
- Convenience factor favours plastic packaging
- On-the-go lifestyles favour sports cap bottles
- Popularity of multipacks a key source of growth
- On-trade – different operating conditions
Market Share
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- Key points:
- Volume sales reflect benefit of brand owner investment
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- Figure 8: Estimated brand shares in the bottled water off-trade, by volume*, 2004-06
- And the winner is…Danone
- Niche players battle with big brands
- Own-label share declines
- Value sales favour key brands
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- Figure 9: Estimated brand shares in the bottled water off-trade, by value*, 2006
- Volvic and Evian command significant premium
- Niche players achieve value growth
- On-trade boost value for specialists
Companies and Brands
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- Key points:
- Britvic Soft Drinks – tighter focus on better-for-you drinks
- Coca-Cola dips its toe in UK waters again
- Greencore invests in vertical integration
- Highland Spring invests in promoting hydration benefits
- Matthew Clark – new joint venture signals expansion
- Nestlé Waters revitalises Buxton and Vittel
- Princes invests heavily in Aqua-Pura brand
- Ty Nant cultivates arty image
- Niche companies intensify focus on bottled water
- Ethical concerns – charting new waters
- Own-brands – premiumisation trends
Brand Communication and Promotion
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- Key points:
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- Figure 10: Main monitored media advertising expenditure on bottled water, 2002-07
- Brands drive market
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- Figure 11: Main monitored media advertising expenditure on bottled water, by key brand, 2002-06
- Evian – hey big spender
- Volvic – it’s a taste eruption
- Buxton – nothing touches it
- Highland Spring – a long journey
- TV loses to press and outdoor advertising
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- Figure 12: Main monitored media advertising expenditure on bottled water, by media, 2002-07
- Spending reveals seasonal nature of market
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- Figure 13: Main monitored media advertising expenditure on bottled water, by channel, by quarter, 2006
- Preparing for summer
Brand Elements
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- Brand map
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- Figure 14: Attitudes and usage of bottled water brands, May 2007
- Evian
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- Figure 15: Words associated with danone water’s Evian brand, May 2007
- Brand qualities
- Evian preferred choice. Excellent, but why?
- San Pellegrino
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- Figure 16: Words associated with Nestlé’s San Pellegrino brand, May 2007
- Brand qualities
- San Pellegrino – The Jewel of the Italian Alps has untapped magic
- Volvic/Volvic Touch of Fruit
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- Figure 17: Words associated with Danone’s Volvic and Volvic Touch of Fruit brands, May 2007
- Brand qualities
- Full of volcanicity for all ages
- Vittel
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- Figure 18: Words associated with Nestlé’s Vittel brand, May 2007
- Brand qualities
- Vittel needs re-vittelising right enough
- Perrier
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- Figure 19: Words associated with Nestlé’s Perrier brand, May 2007
- Brand qualities
- Perrier losing its fizz, pride and UK ratings
- Brand qualities
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- Figure 20: Consumer usage of various bottled water brands, May 2007
- Rugged Highland Spring and boring Buxton are the most ethical brands
- Usage of brands
- Evian, Volvic and Highland Spring lead the way
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- Figure 21: Consumer usage of various bottled water brands, May 2007
- Attitudes towards brands
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- Figure 22: Attitudes towards bottled water brands, May 2007
- Brand satisfaction and performance
- Evian tops excellence. Perrier rates poorest
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- Figure 23: Customer rating of users of bottled water brands, May 2007
- Brand commitment
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- Figure 24: Degree of customer commitment to bottled water brands, June 2007
- Round up
Channels to Market
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- Key points:
- Stronger on-trade growth in 2006
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- Figure 25: UK retail sales of bottled water, by outlet type, 2004-06
- Health issues influence on-trade market
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- Figure 26: UK retail sales of bottled water, by outlet type, 2004-06
- Grocery multiples driving growth
- Other impulse favours vending
- Wider availability in leisure and catering outlets
- Pubs and clubs clean up their act
The Consumer – Consumption Trends
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- Key points:
- Bottled water consumption declines with age
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- Figure 27: Consumption of selected soft drinks – 7-14-year-olds, by age, 2002-06
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- Figure 28: Consumption of bottled water – 7-19-year-olds, 2006
- Drinking preferences
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- Figure 29: Flavoured or unflavoured – 7-14-year-olds, 2006
- Location, location, location
- Medium users – fastest-growing adult group
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- Figure 30: Consumption of bottled mineral water (non-flavoured) in the last 12 months, 2002-06
- Medium users – young, female and living in Greater London
- Non-users – chart
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- Figure 31: Types drunk, 2002-06
- Still water gains further momentum
- Importance of branding for plain water
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- Figure 32: Consumption of branded and supermarket own-label bottled mineral water, 2006
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- Figure 33: Consumption of branded and supermarket own-label, flavoured water, herbal and premium soft drinks, 2006
The Consumer – Popularity of Different Types
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- Key points:
- Come a long way
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- Figure 34: Types of water drunk, March 2007
- Offering potential for growth
- Competition from water filters in the home
- Incentives to drink bottled water
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- Figure 35: Main reasons for drinking bottled water, March 2007
- Health and fitness
- Eau naturel
- Cross-branding opportunities
- Understanding conscientious objectors
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- Figure 36: Reasons for not buying bottled water, March 2007
- Price – the biggest obstacle to purchasing bottled water
- Just tap water for me please
- Hot drinks – hindrance to bottled water
Consumer Priorities
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- Key points:
- Decision-making
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- Figure 37: Important factors when choosing bottled water, March 2007
- Still or sparkling – the deciding factor
- Straightforward intentions
- Bottled connoisseurs
- Who are these selective shoppers?
- Distinct habits
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- Figure 38: Nets of bottled water consumption, March 2007
Appendix
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- Consumer research
- ACORN
- Advertising data
- Internal market environment
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- Figure 39: Body mass index cross-tabs, 2006
- Figure 40: Agreement with selected attitudinal statements on health, 2002-06
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- Figure 41: Agreement with selected attitudinal statements on diet and health, by consumption of flavoured water, herbal and premium soft drink, 2006
- Broader market environment
- Forecast adult population trends
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- Figure 42: Forecast adult population trends, by socio-economic group, 2001-11
- Trends in age structure
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- Figure 43: Trends in the age structure of the UK population, by gender, 2001-11
- Household size
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- Figure 44: UK households and one-person households, 2000-10
- Competitive context
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- Figure 45: Penetration and frequency of consumption of soft drinks, by type, by country, 2005
- Who’s innovating?
- All in a good cause
- I’m a Celebrity – get me a bottled water deal
- Market value and forecast
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- Figure 46: UK sales of bottled water*, by volume and average price, 2002-07
- Figure 47: UK retail value sales of bottled water*, 2002-07
- Factors used in the forecast
- Consumer 1 – Detailed demographics
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- Figure 48: Consumption of bottled water – 11-14-year-olds, 2002-06
- Figure 49: Still or sparkling – 11-14-year-olds, 2002-06
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- Figure 50: Where bottled water is drunk – 7-10-year-olds, 2006
- Figure 51: Where bottled water is drunk – 11-14-year-olds, 2002-06
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- Figure 52: Consumption of bottled water – 7-14-year-olds, by gender, age, socio-economic group and region, 2006
- Figure 53: Consumption of bottled mineral water (non-flavoured) in the last 12 months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, household size and car ownership, 2006
- Consumption of flavoured water, herbal and premium soft drinks
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- Figure 54: Consumption of flavoured water, herbal and premium soft drinks in the last 12 months, 2002-06
- Stagnation in flavoured water consumption
- Plain v flavoured water – different demographics
- Functional water for the over-65s?
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- Figure 55: Consumption of flavoured water, herbal and premium soft drinks in the last 12 months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, household size and car ownership, 2006
- Consumer 2 – Detailed demographics
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- Figure 56: Types of water drunk, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, daily Internet usage, supermarket usage, mobile phone provider, TV reception and smoker/non-smoker, March 2007
- Figure 57: Main reasons for drinking water, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, daily Internet usage, supermarket usage, mobile phone provider, TV reception and smoker/non-smoker, March 2007
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- Figure 58: Important factors when choosing bottled water, March 2007
- Figure 59: Important factors when choosing bottled water, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, daily Internet usage, supermarket usage, mobile phone provider, TV reception and smoker/non-smoker, March 2007
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- Figure 60: Important factors when choosing bottled water, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, daily Internet usage, supermarket usage, mobile phone provider, TV reception and smoker/non-smoker, March 2007
- Figure 61: Reasons for not buying bottled water, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, daily Internet usage, supermarket usage, mobile phone provider, TV reception and smoker/non-smoker, March 2007
- Consumer 3 – Detailed demographics
- Repertoires
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- Figure 62: Repertoire of influences when buying bottled water, by gender, age, socio-economic group, region, newspaper readership, household income, presence of children, supermarket usage, mobile phone provider, satellite TV and smoker/non-smoker, March 2007
- Figure 63: Repertoire of influences when buying bottled water, March 2007
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- Figure 64: Repertoire of influences when buying bottled water, by reasons for drinking bottled water, March 2007
- Figure 65: Repertoire of influences when buying bottled water, by influences when buying bottled water, March 2007
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- Figure 66: Tap versus bottled water nets, by gender, age, socio-economic group, region, newspaper readership, household income, presence of children, daily internet usage, supermarket usage, mobile phone provider, satellite TV and smoker/non-smoker, March 2007
- Figure 67: Tap versus bottled water nets, March 2007
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- Figure 68: Tap versus bottled water nets, by reasons for drinking bottled water, March 2007
- Figure 69: Tap versus bottled water nets, by influences when buying bottled water, March 2007
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- Figure 70: Tap versus bottled water nets, by reasons for not drinking bottled water, March 2007
- Figure 71: Tap versus bottled water nets, by gender, age, socio-economic group, region, newspaper readership, household income, presence of children, supermarket usage, mobile phone provider, satellite TV and smoker/non-smoker, March 2007
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- Figure 72: Tap versus bottled water nets, March 2007
- Figure 73: Tap versus bottled water nets, by reasons for drinking bottled water, March 2007
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- Figure 74: Tap versus bottled water nets, by influences when buying bottled water, March 2007
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