Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising clips
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
- Bottled water makes anemic recovery in 2011
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- Figure 1: Percent change in dollar sales of bottled water segments over the previous year, 2007-11
- Private label market share exhibits growth
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- Figure 2: Trend in FDMx dollar sales share of branded and private label bottled water (total), 2006-16
- Enhanced/flavored bottled water sales growth slows
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- Figure 3: Trend in FDMx* dollar sales growth/decline of flavored/enhanced and flavored (only) convenient/PET bottled water, 2006-16
- Growth potential from sparkling/mineral water during 2011-16
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- Figure 4: Annual rate of change in dollar sales of sparkling/mineral water, 2006-16
- Forecast
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- Figure 5: Fan chart forecast for bottled water, at best-, worst-, and central-case scenarios, 2006-16
- Market factors
- Decline in households with children negatively influences the market
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- Figure 6: Households with and without presence of children, by percent of total, 2001-11
- Blacks and Hispanics offer growth opportunities
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- Figure 7: Rate of change in the U.S. population, by blacks/Hispanic origin, 2006-16
- Companies, brands, and innovation
- The top three companies account for nearly two thirds of the total market sales in FDMx
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- Figure 8: Selected FDMx manufacturers sales of bottled water, 2011 and 2012
- New product introductions rebound in 2011
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- Figure 9: New bottled water product count, 2006-11
- The consumer
- Bottled water usage remains stable among adults in 2011
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- Figure 10: New bottled water product count, 2006-11
- Filtered water more popular than bottled water
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- Figure 11: Daily water consumption, by type and volume, February 2012
- Taste is the top factor in purchasing non-carbonated, non-enhanced/non-flavored (plain) bottled water
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- Figure 12: Degree of importance of various factors in non-carbonated, non-flavored/non-enhanced bottled water purchase decision, February 2012
- Young adults more interested in environmentally friendly efforts and packaging
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- Figure 13: Importance of environmentally friendly attributes in non-carbonated, non-flavored/non-enhanced bottled water purchase decision, February 2012
- Enhanced water claims/flavors important to consumers
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- Figure 14: Degree of importance of various factors in flavored/enhanced bottled water purchase decision, February 2012
- What we think
Issues in the market
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- What influence do private labels have on the market?
- What segments/subsegments offer the biggest growth opportunities in the next five years?
- Do consumers consider the industry’s high carbon footprints when purchasing bottled water?
- What are the growth prospects for enhanced bottled water?
Insights and Opportunities
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- Know your competition
- Bottled water and growing popularity of water enhancers
- Unique packaging to create differentiation
Inspire Insights
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- Trend: The Big Issue
- Trend: Accentuate the Negative
Market Size and Forecast
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- Key points
- Bottled water makes anemic recovery in 2011
- Growth opportunities exist in the market
- Sales and forecast of bottled water
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- Figure 15: Total U.S. retail sales and forecast of bottled water, at current prices, 2006-16
- Figure 16: Total U.S. retail sales and forecast of bottled water, at inflation-adjusted prices, 2006-16
- Fan chart forecast
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- Figure 17: Fan chart forecast for bottled water, at best-, worst-, and central-case scenarios, 2006-16
- Walmart sales
Market Drivers
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- Key points
- Demographic factors
- Households with kids show decline in 2011—a negative for the market
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- Figure 18: Households, by presence of children, 2001-11
- Female population expected to grow at a slower rate
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- Figure 19: Population of women, by age, 2006-16
- Hispanics and blacks offer growth opportunities
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- Figure 20: Population, by race and Hispanic origin, 2006-16
- Figure 21: Average number of children in households, by race/Hispanic origin of householder, 2011
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- Figure 22: Household size, by race/Hispanic origin of householder, 2011
- Teens are an important consumer
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- Figure 23: teens population, 2006-16
- Economic and social factors
- Rise in commodity prices may hurt market growth
- Cities, college campuses continue to ban bottled water
- Major players engaged in offering environmentally friendly packaging
Competitive Context
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- Key points
- Tap water continues to pose threat to bottled water
- Filtered water offers similar product at cheaper prices
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- Figure 24: Brita TV ad, “Make A Difference,” 2011
- Does bottled water compete with filtered/tap water?
- Flavors and vitamins in enhanced water can be replaced by other competing beverages
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- Figure 25: Common claims in flavored/enhanced water, sports drinks, RTD tea, and juice drinks, Jan. 2011-May 2012
- Figure 26: Common flavors in flavored/enhanced water, sports drinks, RTD tea, and juice drinks, Jan. 2011-May 2012
Segment Performance
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- Key points
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- Figure 27: U.S. sales of bottled water, by segment, 2006-16
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- Figure 28: U.S. sales of bottled water, by segment, 2009-11
Segment Performance—Convenience/PET Bottled Water
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- Key points
- Branded PET bottled water continues to cede share to private labels
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- Figure 29: Trend in FDMx dollar sales share of branded and private label convenience/PET bottled water, 2006-16
- Enhanced/flavored bottled water contributes to segment growth
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- Figure 30: Trend in FDMx* dollar sales growth/decline of flavored/enhanced and flavored (only) convenient/PET bottled water, 2006-16
- Total sales of convenience/PET bottled water
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- Figure 31: U.S. sales of convenience/PET bottled water, 2006-16
Segment Performance—Jug/Bulk Bottled Water
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- Key points
- Lack of convenience and competition from filtration devices negatively influence the segment
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- Figure 32: Aqua Falls TV ad, “Affordable Water,” 2011
- Future outlook remains grim
- Total sales of jug/bulk bottled water
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- Figure 33: U.S. sales of jug/bulk bottled water, 2006-16
Segment Performance—Sparkling/Mineral Bottled Water
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- Key points
- Sparkling water exhibits impressive growth in 2011
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- Figure 34: Trends in FDMx dollar and volume sales and prices of sparkling bottled water, 2006-16
- Flavor innovation in the segment can bring growth
- Total sales of sparkling/mineral bottled water
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- Figure 35: U.S. sales of sparkling/mineral bottled water, 2006-16
Retail Channels
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- Key points
- Supermarkets lose market share to drug stores and other
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- Figure 36: U.S. sales of bottled water, by retail channel, 2009 and 2011
Leading Companies
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- Key points
- The top three companies lose market share to private labels and “other” players
- Private labels continue to grow market share
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- Figure 37: FDMx sales of bottled water, by leading manufacturers, 2011 and 2012
Brand Share—Convenience/PET Bottled Water
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- Key points
- Nestlé turns in lackluster performance
- Coca-Cola’s Dasani rebounds, Glacéau Zero continues its winning streak
- PepsiCo’s Aquafina, SoBe Lifewater disappoint
- Private labels gain market share
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- Figure 38: FDMx sales of leading convenience/PET bottled water brands, 2011 and 2012
Brand Share—Jug/Bulk Bottled Water
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- Key points
- Private labels continue to rule the segment
- Nestlé gains on the strength of Pure Life
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- Figure 39: FDMx sales of leading jug/bulk bottled water brands, 2011 and 2012
Brand Share—Sparkling/Mineral Bottled Water
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- Key points
- Nestlé’s premium brands exhibit impressive growth
- National Beverage Corp.’s La Croix offers flavors and value
- Talking Rain expands distribution to national from regional
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- Figure 40: FDMx sales of leading sparkling/mineral bottled water brands, 2011 and 2012
Innovations and Innovators
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- Key points
- New product introductions rebound in 2011
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- Figure 41: New bottled water products count, 2006-12
- Environmentally friendly packaging the top claim in bottled water
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- Figure 42: Top 10 claims in new bottled water products, 2006-11
- New bottled water products: private labels vs. branded
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- Figure 43: New bottled water product counts, by branded and private label, 2006-11
- Artesian claims on the rise in bottled water
- Bottled water with functional ingredients
- Purity claims to the max
- Going beyond vitamins and minerals—alkaline water
- Flavor palate expands beyond fruits
Marketing Strategies
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- Key points
- Coca-Cola supports Dasani “PlantBottle” with green efforts
- Nestlé Pure Life markets hydration at a value price to families and Hispanics
- Blue Delta promotes alkaline water
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- Figure 44: Blue Delta Alkaline Water TV ad, “Cleansing,” 2011
- Crystal Geyser underscores the natural source in TV ad
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- Figure 45: Crystal Geyser TV ad, “The Source,” 2011
Bottled Water—Usage, Type, and Brands
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- Key points
- Bottled water usage remains stable in 2011
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- Figure 46: Trends in the incidence of personal consumption of bottled water, 2004/05-2010/11
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- Figure 47: Trends in the mean frequency of drinking bottled water, 2005-11
- Women and adults aged 18-34 are the key consumers
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- Figure 48: Consumption of non-carbonated bottled water and sparkling water/seltzer/natural soda, by gender, age, household income, presence of children, and region, October 2010-November 2011
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- Figure 49: Volume consumption of non-carbonated bottled water and sparkling water/seltzer/natural soda, by gender, age, household income, presence of children, and region, April 2010-June 2011
- Majority of bottled water users drink unflavored type
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- Figure 50: Consumption of non-carbonated bottled water and sparkling water/seltzer/natural soda by type, by gender, October 2010-November 2011
- Adults aged 18-34 are the key flavored water consumers
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- Figure 51: Consumption of non-carbonated bottled water and sparkling water/seltzer/natural soda by type, by age, October 2010-November 2011
- Aquafina is the top non-carbonated bottled water brand
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- Figure 52: Non-carbonated bottled water brands consumed in the past seven days, by age, October 2010-November 2011
- Perrier and San Pellegrino grow consumer base in sparkling water
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- Figure 53: Sparkling water/seltzer/natural soda brands consumed in the past seven days, by age, October 2010-November 2011
- Filtered water more popular than bottled water
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- Figure 54: Daily water consumption, by type and volume, February 2012
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- Figure 55: Daily water consumption by volume, by age, February 2012
- Figure 56: Daily water consumption by volume, by presence of children in household, February 2012
Importance of Various Attributes in Bottled Water Purchase Decision
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- Non-carbonated, non-enhanced/non-flavored bottled water
- Taste is the top factor in purchasing non-carbonated, non-enhanced/non-flavored (plain) bottled water
- Single-serve packaging format preferred for convenience
- Source of water important to more than half of all plain bottled water buyers
- National brands more popular than private label brands
- Environmentally friendly packaging and efforts important to consumers
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- Figure 57: Degree of importance of various factors in non-carbonated, non-flavored/non-enhanced bottled water purchase decision, February 2012
- Young adults more interested in environmentally friendly efforts and packaging
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- Figure 58: Degree of importance of various factors in non-carbonated, non-flavored/non-enhanced bottled water purchase decision, by age, February 2012
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- Figure 59: Degree of importance of various factors in non-carbonated, non-flavored/non-enhanced bottled water purchase decision, by presence of children in household, February 2012
- Importance of various factors in flavored/enhanced bottled water purchase decision
- Taste is the most preferred attribute in flavored/enhanced bottled water
- Consumers are wary of high sugar content of flavored/enhanced bottled water
- Vitamins/minerals, functional claims, flavors—deciding factors for the majority
- The difference in the preference for private labels and national brands not big
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- Figure 60: Degree of importance of various factors in flavored/enhanced bottled water purchase decision, February 2012
- Adults aged 18-34 more likely to consider functional attributes
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- Figure 61: Degree of importance of various factors in flavored/enhanced bottled water purchase decision, by age, February 2012
Attitudes and Behaviors Toward Bottled Water
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- General attitudes toward hydration, economy, flavors, and carbonation
- Bottled water taste scores over that of tap water
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- Figure 62: Attitudes toward bottled water, February 2012
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- Figure 63: Attitudes toward bottled water, by age, February 2012
- Attitudes toward branded and private label bottled water
- Bottled water vs. other non-alcoholic beverages
- Water enhancer products can find bigger growth without the artificial sweetener
- Bottled water and health
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- Figure 64: Attitudes toward bottled water, February 2012
- Women are more likely than men to believe in enhanced bottled water claims
- Women less interested in sports drinks compared to men
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- Figure 65: Attitudes toward bottled water, by gender, February 2012
- Consumer behavior with respect to bottled water
- Shoppers’ behavior toward branded and private label bottled water
- Less than 20% of all bottled water shoppers replace other beverages with bottled water
- Less than one fifth reduce consumption due to the economy/concern for the environment
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- Figure 66: Behaviors toward bottled water, by age, February 2012
- Nearly half of all bottled water shoppers report recycling their plastic containers
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- Figure 67: Attitudes toward bottled water, by age, February 2012
Impact of Race/Hispanic Origin
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- Key points
- Blacks and Hispanics are the key consumer in the market
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- Figure 68: Consumption of non-carbonated bottled water and sparkling water/seltzer/natural soda, by race/Hispanic origin, October 2010-November 2011
- Bottled water volume consumption up among blacks and Hispanics
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- Figure 69: Volume consumption of non-carbonated bottled water and sparkling water/seltzer/natural soda, by race/Hispanic origin, April 2010-June 2011
- Blacks among all racial/ethnic groups favor flavored bottled water
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- Figure 70: Consumption of non-carbonated bottled water and sparkling water/seltzer/natural soda by type, by age, October 2010-November 2011
- Nestlé Pure Life increases penetration among Hispanics
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- Figure 71: Non-carbonated bottled water brands consumed in the past seven days, by race/Hispanic origin, October 2010-November 2011
- Perrier and San Pellegrino find favor among blacks and Hispanics
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- Figure 72: Sparkling water/seltzer/natural soda brands consumed in the past seven days, by age, October 2010-November 2011
- Blacks and Hispanics more interested in water from natural sources
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- Figure 73: Degree of importance of various factors in non-carbonated, non-flavored/non-enhanced bottled water purchase decision by race/Hispanic origin, February 2012
- Hispanics look for functional ingredients, claims, and flavor variety in enhanced/flavored water
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- Figure 74: Degree of importance of various factors in flavored/enhanced bottled water purchase decision, by race/Hispanic origin, February 2012
Custom Consumer Group
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- Bottled water consumption varies by age and gender
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- Figure 75: Bottled water consumption, by gender and age, October 2010-November 2011
- Age- and gender-based differences exist in consumption behavior with respect to different sources of water
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- Figure 76: Daily water consumption by volume, by gender and age, February 2012
- Adults watching diet or dieting are important bottled water consumers
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- Figure 77: Bottled water consumption, by gender and age, October 2010-November 2011
- Teens reduce bottled water consumption
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- Figure 78: personal consumption of bottled water among teens, January 2007-November 2011
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- Figure 79: Trends in the mean frequency of drinking bottled water among teens, January 2007-November 2011
- Female teens aged 15-17 are key bottled water consumers
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- Figure 80: personal consumption of bottled water among teens, by gender and age, October 2010 –November 2011
- Female teens, the key bottled water consumer, prefer flavored water
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- Figure 81: Consumption of non-carbonated bottled water and sparkling water/seltzer/natural soda by type among teens, by gender and age, October 2010-November 2011
Appendix—Retail Channels
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- Retail channels—supermarkets
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- Figure 82: U.S. sales of bottled water at supermarkets, 2006-11
- Retail channels—drug stores
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- Figure 83: U.S. sales of bottled water at drug stores, 2006-11
- Retail channels—other
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- Figure 84: U.S. sales of bottled water at other channels, 2006-11
Appendix—Other Useful Tables
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- Figure 85: Consumption of non-carbonated bottled water and sparkling water/seltzer/natural soda by type, by region, October 2010-November 2011
- Figure 86: Degree of importance of various factors in non-carbonated, non-flavored/non-enhanced bottled water purchase decision, by household income, February 2012
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- Figure 87: Degree of importance of various factors in non-carbonated, non-flavored/non-enhanced bottled water purchase decision, by gender and age, February 2012
- Importance of various factors in bottled water purchase decision
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- Figure 88: Degree of importance of various factors in non-carbonated, non-flavored/non-enhanced bottled water purchase decision, by region, February 2012
- Attitudes toward bottled water
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- Figure 89: Attitudes toward bottled water, by presence of children in household, February 2012
- Figure 90: Attitudes toward bottled water, by age, February 2012
- Figure 91: Attitudes toward bottled water, by presence of children in household, February 2012
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Appendix—Trade Associations
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