Table of Contents
Executive Summary
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- The market
- Bottled water sees impressive growth
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- Figure 1: UK value sales of bottled water, 2010-20
- Backlash against sugar in soft drinks continues
- Growth in real incomes should facilitate trading up
- Companies and brands
- Little change in competitive landscape
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- Figure 2: Leading brands in the UK retail bottled water market, by value share, 2014/15*
- Brands dominate bottled water NPD activity
- Total adspend continues to climb in 2015
- The consumer
- Seven in 10 drink bottled water
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- Figure 3: Frequency of drinking bottled water in the last three months, by type, December 2014 and December 2015
- Citrus flavours hold the widest appeal
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- Figure 4: Interest in bottled water flavours, December 2015
- Convenience is key reason for drinking bottled water
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- Figure 5: Reasons for drinking bottled water instead of tap water, December 2015
- Brand is important to just three in 10 buyers
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- Figure 6: Choice factors for the purchase of bottled water, December 2015
- Lighter carbonation and flavouring has potential
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- Figure 7: Preferences with regards to bottled water, December 2015
- Seven in 10 are interested in supermarket recycling schemes
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- Figure 8: Attitudes towards bottled water, December 2015
- What we think
Issues and Insights
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- Functional water has growth potential among Millennials
- The facts
- The implications
- Convenience continues to warrant focus
- The facts
- The implications
- Flavoured water suffers from doubts over healthiness
- The facts
- The implications
The Market – What You Need to Know
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- Bottled water sees impressive growth
- Retail bottled water growth slows down
- Backlash against sugar in soft drinks continues
- Growth in real incomes but still a focus on price
- Warm summers boost bottled water demand
Market Size and Forecast
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- Bottled water sees impressive growth
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- Figure 9: UK value and volume sales of bottled water, 2010-20
- Forecast
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- Figure 10: UK value sales of bottled water, 2010-20
- Figure 11: UK volume sales of bottled water, 2010-20
- Forecast methodology
Market Segmentation
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- Retail bottled water growth slows down
- Sparkling water growth lags behind
- Glacéau Smartwater boosts fortified water sales
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- Figure 12: UK value and volume retail sales of bottled water, by segment, 2013-15
- On-premise share continues to fall
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- Figure 13: UK value and volume sales of bottled water, by retail and on-premise, 2010-15
Market Drivers
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- Backlash against sugar in soft drinks
- Growth in real incomes but still a focus on price
- Taste and quality of tap water influence demand for bottled water
- Warm summers boost bottled water demand
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- Figure 14: UK hours of sunshine, by month, January 2011-February 2016
- Ageing population poses a challenge for bottled water
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- Figure 15: Trends in the age structure of the UK population, 2010-20
- Growing child population creates opportunities for water
Companies and Brands – What You Need to Know
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- Little change in competitive landscape
- Danone and Nestlé take nearly half of value retail sales
- Bottled water launches drop in 2015
- Brands dominate bottled water NPD activity
- Total adspend continues to climb in 2015
- Danone focuses adspend on Volvic
Market Share
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- Overall market growth sees shares remain stable
- Glacéau sees impressive growth
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- Figure 16: Leading brands’ sales and shares in the UK bottled water retail market, by value and volume, 2013/14 and 2014/15
- Danone and Nestlé take nearly half of value sales
- Smaller manufacturers see notable growth
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- Figure 17: Leading manufacturers’ sales and shares in the UK bottled water retail market, by value and volume, 2013/14 and 2014/15
Launch Activity and Innovation
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- Bottled water launches drop in 2015
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- Figure 18: Share of new bottled water product launches in the UK non-alcoholic drinks market, 2011-15
- Brands dominate bottled water NPD activity
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- Figure 19: Share of NPD in the UK bottled water market, branded vs own-label, 2011-15
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- Figure 20: Share of NPD in the UK bottled water market, by top 10 companies (sorted by 2015), 2011-15
- Other selected branded launches
- Environmentally friendly packaging and health claims continue to grow
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- Figure 21: Top 10 claims made by bottled water brands – Unflavoured water, 2011-15
- Figure 22: Top 10 claims made by bottled water brands – Flavoured water, 2011-15
- Lemon and lime is the most common flavour blend
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- Figure 23: Top 10 flavour blends in the flavoured water category (ordered by 2015), 2011-15
Advertising and Marketing Activity
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- Total adspend continues to climb in 2015
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- Figure 24: Total above-the line, online display and direct mail advertising expenditure on bottled water, by category, 2012-15
- Nestlé becomes biggest spender on ad space in 2015
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- Figure 25: Total above-the line, online display and direct mail advertising expenditure on bottled water, by top 5 advertisers (sorted by 2015), 2012-15
- Danone focuses adspend on Volvic
- Volvic Mineral Water tie-in with The Force Awakens
- Glacéau scales back adspend on Smartwater
- Dry January is targeted by Glacéau Smartwater and Evian
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- Figure 26: Total above-the line, online display and direct mail advertising expenditure on bottled water, by top 10 brands (sorted by 2015), 2012-15
- Highland Spring doubles adspend with ‘Everyone for Tennis’
- Nielsen Media Research coverage
The Consumer – What You Need to Know
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- Seven in 10 drink bottled water
- Millennials and people in urban areas are core users
- Citrus flavours hold the widest appeal
- Convenience is key reason for drinking bottled water
- Brand is important to just three in 10 buyers
- Added vitamins and minerals appeal to Millennials
- Lighter carbonation and flavouring has potential
- Seven in 10 are interested in supermarket recycling schemes
- Flavoured water suffers from doubts over healthiness
Usage of Bottled Water
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- Seven in 10 drink bottled water
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- Figure 27: Frequency of drinking bottled water in the last three months, by type, December 2014 and December 2015
- Millennials are the core users of bottled water
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- Figure 28: Usage of different types of bottled water at least once a week in the last three months, by age, December 2015
- Bottled water usage skewed towards urban areas
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- Figure 29: Usage of different types of bottled water at least once a week in the last three months, by urban vs rural location, December 2015
Interest in Bottled Water Flavours
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- Citrus flavours hold the widest appeal
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- Figure 30: Interest in bottled water flavours, December 2015
- Exotic flavours have potential
- Herbal flavours can take inspiration from teas
- Dessert flavours can be explored through limited editions
Reasons for Drinking Bottled Water over Tap Water
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- Convenience is key reason for drinking bottled water
- Convenience also warrants a focus at home
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- Figure 31: Reasons for drinking bottled water instead of tap water, December 2015
- Three in 10 prefer the taste of bottled water
- Younger users most likely to think bottled water is healthier
Choice Factors for the Purchase of Bottled Water
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- Brand is important to just three in 10 buyers
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- Figure 32: Choice factors for the purchase of bottled water, December 2015
- Country of origin holds limited sway
- Added vitamins and minerals appeal to Millennials
- Vitamin and flavour releasing caps interest 16-24-year-olds
- Space for functional waters to target exercise
Bottled Water Preferences
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- Lighter carbonation and flavouring has potential
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- Figure 33: Preferences with regards to bottled water, December 2015
- One in three prefer smaller bottles
- Space for more visually appealing bottles
Attitudes towards Bottled Water
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- Seven in 10 are interested in supermarket recycling schemes
- TerraCycle provides cues for return packaging
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- Figure 34: Attitudes towards bottled water, December 2015
- Flavoured water suffers from doubts over healthiness
- Branded water refilling stations have potential with students
- Whole ingredients could add differentiation to flavoured water
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Definitions
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
- Best- and worst-case forecast
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- Figure 35: UK value sales of bottled water, best- and worst-case forecast, 2015-20
- Figure 36: UK volume sales of bottled water, best- and worst-case forecast, 2015-20
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