Table of Contents
Executive Summary
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- The issues
- Sales have fallen from 2010-15, with water filters posting steep declines
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- Figure 1: Sales of water filtration products, by segment, at current prices, 2013 and 2015
- Bottled water competes with filtered water and has shown strong growth
- Barriers to usage range from adequate tap water to the cost of water filters
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- Figure 2: Select barriers to use of water filtration devices, August 2015
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- Figure 3: Select concerns of water filtration products, August 2015
- The opportunities
- Dynamic, growing demographic groups are top users of water filtration products
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- Figure 4: Any ownership of water filtration products, by millennials, Asians, and Hispanics, August 2015
- Benefits to usage include heath, taste, saving money, and being eco-friendly
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- Figure 5: Top five reasons for owning water filtration products, August 2015
- High interest in a range of innovations suggests growth opportunities
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- Figure 6: Interest in select product innovations, by millennials and Hispanics, August 2015
- What it means
The Market – What You Need to Know
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- Sales have fallen from 2010-15, declines projected to continue
- Bottled water offers steep competition
- Safety and taste issues with tap water can drive water filtration usage
- Growth in Millennial, Asian, and Hispanic populations should drive sales
Market Size and Forecast
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- Sales decline for the third consecutive year
- Prospects for growth lie with Millennials, Hispanics, and Asians
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- Figure 7: Total US sales and fan chart forecast of water filtration products, at current prices, 2010-20
- Figure 8: Total US sales and forecast of water filtration products, at current prices, 2010-20
Market Breakdown
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- Despite being largest segment, water filters see market share shrink
- Filter sales projected to decline through 2020, devices to grow modestly
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- Figure 9: Sales of water filtration products, by segment, at current prices, 2013 and 2015
- Figure 10: Total US sales and forecast of water filtration products, by segment, at current prices, 2010-20
- Other retail channels account for 90% of water filtration sales
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- Figure 11: Total US sales of water filtration products, by channel, at current prices, 2013 and 2015
Market Perspective
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- Bottled water competes on many fronts with water filtration products
- Top users of bottled water also over index for water filtration usage
- Interest in sparkling and enhanced water shape opportunities
- Refrigerator or house-wide filters can limit water filtration device usage
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- Figure 12: Water filtration system ownership and interest, August 2015
Market Factors
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- Concerns about tap water drive water filtration usage
- Growth in Millennial population should be a positive driver
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- Figure 13: Any ownership of select water filtration products, by generations, august 2015
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- Figure 14: population by generations, 2010-20
- Millennials concerns, interests and tech-friendly habits will shape market
- Hispanic and Asian population growth should also drive market
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- Figure 15: Any ownership of water filtration products, by race and Hispanic origin, august 2015
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- Figure 16: population by race and Hispanic origin, 2010-20
Key Players – What You Need to Know
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- Largest suppliers – Clorox and Helen of Troy – see MULO sales fall
- New pitchers and filter indicators among Brita and PUR innovations
- ZeroWater Technologies and Keurig Green Mountain grow share
- More smart devices and embedded technology lie ahead
Manufacturer Sales of Water Filtration Products
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- Clorox and Helen of Troy hold 78% market share, but see sales fall
- Private label products are a growing market force
- A few smaller suppliers build greater share of MULO sales
- Manufacturer sales of water filtration products
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- Figure 17: MULO sales of water filtration products, by leading companies, rolling 52 weeks 2014 and 2015
What’s Working?
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- Brita innovates around product design
- PUR’s “Ultimate” and “PUR Plus” pitchers incorporate new features
- Filtering integrated into Keurig brewing system post strong sales
- ZeroWater Technologies touts superior performance, shares information
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- Figure 18: ZeroWater Television ad, comparison with brita, october 2014
What’s Struggling?
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- Brita and PUR water filters are losing share to private label filters
- 3M Filtrete devices and filters post declining MULO sales
What’s Next?
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- Imbedded technology and automatic replenishment services
- High-end filters integrated into connected refrigerators, brewers
- Stylish, eco-friendly, high-end, and high-tech filtered water bottles
- Seventh Generation’s stylish, fun, eco-friendly bobble
- Black+Blum’s retro design with binchotan active charcoal
- Tiny Watergizzi for everyday, emergency use and travel
- ZeroWater Technologies new tumbler model with filter indicator
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- Figure 19: ZeroWater tumbler ad, november 2014
The Consumer – What You Need to Know
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- Younger adults, parents, and multicultural consumers represent core user
- Health, taste, cost, and eco-friendliness motivate usage
- Built-in filter system owners value space-saving and cost efficiency
- High interest in a range of innovations suggests growth opportunities
- Customers seek ease of use, ease of cleaning, and best water taste
Ownership and Interest in Water Filtration Products
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- Almost six in 10 own filtration products, with pitchers most widely owned
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- Figure 20: Water filtration product ownership and interest, August 2015
- Ownership of water filtration products peaks among those aged 18-34
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- Figure 21: Any ownership of water filtration products, by age and parental status, august 2015
- Hispanics over index for the full range of water filtration devices
- Asians report high usage of pitchers and water bottles
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- Figure 22: Any ownership of water filtration products, by race and Hispanic origin, august 2015
Reasons for Owning Water Filtration Products
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- Top factors driving water filtration ownership are health and taste
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- Figure 23: Reasons for owning water filtration products, August 2015
- 18-34-year-olds place high value on cost and eco-friendliness
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- Figure 24: Reasons for owning water filtration products, by age and by Hispanic origin, August 2015
- Hispanics also use filtered water for cooking and beverage making
Attitudes toward Water Filtration Systems
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- Water systems valued for saving shelf-space and money
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- Figure 25: Attitudes toward water filtrations systems, August 2015
- Consumers aged 45+ have more positive attitudes toward systems
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- Figure 26: Attitudes toward water filtration systems, by age, August 2015
Issues and Concerns
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- A majority find filtered water healthier and better tasting
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- Figure 27: Select issues and concerns with tap water and filtered water, by age, Hispanic origin, and parental status, August 2015
- “Clean enough to drink” tap water creates barrier to usage
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- Figure 28: Issues and concerns with tap water and filtered water, August 2015
- Focus on health, value, and overall savings could temper cost concerns
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- Figure 29: Concerns about cost and safety of water filtration products, August 2015
- More information on features and models could boost usage
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- Figure 30: Concerns with water filtration products and systems, August 2015
- Top demographics for filtration products more likely to have issues
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- Figure 31: Concerns about cost and safety of water filtration products, by age, Hispanic origin, and parental status, August 2015
Interest in Product Innovations
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- Millennials and parents show high interest in bottles with added features
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- Figure 32: Interest in portable water bottle innovations, August 2015
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- Figure 33: Interest in portable water bottle innovations, by age and parental status, August 2015
- Interest in sustainable materials, drink mixes or decorative pitchers
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- Figure 34: Interest in pitcher/carafe innovations, August 2015
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- Figure 35: Interest in pitcher/carafe innovations, by age and parental status, August 2015
- Indicators showing need for filter replacement are valued features
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- Figure 36: Interest in filter innovations, August 2015
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- Figure 37: Interest in filter innovations, by age, Hispanic origin, parental status, August 2015
- Millennials and parents want smart technology in refrigerator filters
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- Figure 38: Interest in refrigerator water filtration systems, August 2015
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- Figure 39: Interest in refrigerator water filtration systems, by age and parental status, August 2015
Purchase Influencers
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- Ease-of-use, ease of cleaning, and superior taste are top influencers
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- Figure 40: Water filtration product purchase influencers, August 2015
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- Figure 41: Water filtration product purchase influencers ranked as very important, by age, Hispanic origin and parental status, August 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market
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- Market size and segment performance
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- Figure 42: Total US sales and forecast of water filtration products, at inflation-adjusted prices, 2010-20
- Figure 43: Total US sales and forecast of water filters, at inflation-adjusted prices, 2010-20
- Figure 44: Total US sales and forecast of water filtration devices, at inflation-adjusted prices, 2010-20
- Figure 45: Sales of water filtration products, by segment, at current prices, 2013 and 2015
- Market factors
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- Figure 46: Generations, by race and hispanic origin, 2015
Appendix – Key Players
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- Manufacturer sales of water filters
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- Figure 47: MULO sales of water filters, by leading companies and brands, rolling 52 weeks 2014 and 2015
- Manufacturer sales of water filtration devices
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- Figure 48: MULO sales of water filtration devices, by leading companies and brands, rolling 52 weeks 2014 and 2015
Appendix – Consumer
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- CHAID methodology
- Analysis suggests granular marketing opportunities for key innovations
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- Figure 49: Product innovations – CHAID – Tree output, August 2015
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- Figure 50: Product innovations – CHAID – Table output, August 2015
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- Figure 51: Product innovations – CHAID – Table output, August 2015
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