Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Overview
- Bottled water reaps benefits of current concerns and trends
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- Figure 1: Total US sales and fan chart forecast of bottled water, at current prices, 2012-22
- The issues
- Category growth eventually will begin to taper
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- Figure 2: Total US retail sales and forecast of bottled water, by segment, at current prices, 2012-22
- Consumers don’t understand the claims they see
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- Figure 3: Attitudes toward bottled water, November 2017
- Not all consumers are willing to pay for luxury waters
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- Figure 4: Premium bottled water qualities, November 2017
- The opportunities
- Sparkling water has ample room for growth
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- Figure 5: Water consumption, November 2017
- Keep it simple
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- Figure 6: Appealing attributes, November 2017
- Bottled water doesn’t have to be expensive to appear premium
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- Figure 7: Premium bottled water qualities, by generation, November 2017
- What it means
The Market – What You Need to Know
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- Strong sales continue as bottled water booms ahead
- Sparkling water continues double-digit growth streak
- Access to filtered water at home remains strong as consumers shift drinking behaviors in favor of water
- Acquisitions, sin taxes, and natural disasters effect category in totality
Market Size and Forecast
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- Bottled water category grows another 6% in 2017
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- Figure 8: Total US sales and fan chart forecast of bottled water, at current prices, 2012-22
- Figure 9: Total US sales and forecast of bottled water, at current prices, 2012-22
- Figure 10: Total US retail sales and forecast of bottled water, at inflation-adjusted prices, 2012-22
Market Breakdown
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- Convenience/PET still bottled water maintains momentum
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- Figure 11: Total US retail sales of bottled water, by segment, market share at current prices, 2017
- Figure 12: Total US retail sales and forecast of bottled water, by segment, at current prices, 2012-22
- Sparkling water to remain fastest growing, though taper
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- Figure 13: Total US retail sales and forecast of bottled water, percent change by segment, at current prices, 2012-22
- Sales shift out of drugstores
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- Figure 14: Market share based on total US retail sales of bottled water, by channel, at current prices, 2015 and 2017
- Figure 15: US supermarket, convenience store, and other retail channel sales of bottled water, at current prices, 2012-17
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- Figure 16: US drugstore sales of bottled water, at current prices, 2012-17
Market Perspective
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- At-home water technology challenges the need for bottled water purchase
- Filters
- At-home carbonation
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- Figure 17: Jillian Michaels Sodastream infomercial 1', November 2017
- On-the-go water filtration
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- Figure 18: QUARTZ – The World's First Self-Cleaning Water Bottle, November 2017
- Acquisition of Topo Chico helps Coca-Cola bolster their bottled water arsenal
- CSD consumers make a shift to drink more water
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- Figure 19: Replacement beverages, December 2016
- Raw water movement emphasizes desire for natural, unprocessed food and drink
Market Factors
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- Sin taxes benefit bottled water
- Natural disasters effect US water quality
- Key consumers gain more spending power
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- Figure 20: Share of population by generation in 2018
Key Players – What You Need to Know
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- Competition heats up in bottled water category
- La Croix sets the stage for other sparkling water brands to grow
- Bland packaging falls by the wayside
- Bottled water advertising grows the less commoditized the category becomes
Company and Brand Sales of Bottled Water
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- Smaller brands chip away at key category players
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- Figure 21: Multi-outlet sales of bottled water, by leading companies, rolling 52 weeks 2016 and 2017
- PepsiCo, private label, smaller players grow in convenience/PET still water segment
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- Figure 22: Multi-outlet sales of convenience/PET still water, percent change, by leading companies and brands, rolling 52 weeks 2016 and 2017
- Success in sparkling water segment among large companies push category forward
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- Figure 23: Multi-outlet sales change of sparkling/mineral water, by leading companies, rolling 52 weeks 2016 and 2017
- Cott Corp. takes a hit in jug water segment
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- Figure 24: Multi-outlet sales of jug/bulk water, by leading companies and brands, rolling 52 weeks 2016 and 2017
What’s Working?
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- La Croix’s popularity pushes sparkling water segment forward
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- Figure 25: Multi-outlet sales and sales change of sparkling/mineral water, by largest positive sales change, rolling 52 weeks 2016 and 2017
- Private label water
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- Figure 26: Multi-outlet sales change of private label bottled water, rolling 52 weeks 2016 and 2017
- Premium priced waters reign supreme
- Canned water takes charge
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- Figure 27: Water packaging type, percent per six-month period, six-month periods Q1 2013-Q2 2017
What’s Struggling?
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- Bland bottles fade to the background
- Waning Nursery water hurts Cott Corp
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- Figure 28: Multi-outlet sales of jug/bulk water, Cott Corp leading brands, rolling 52 weeks 2016 and 2017
What’s Next?
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- Water advertising turns mainstream
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- Figure 29: Culligan Water, “As You Wish,” January 2018
- "Unbottled" water gaining ground
- Perks of natural water in the forefront
The Consumer – What You Need to Know
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- Unflavored bottled water is drunk more than tap water
- Hydration and thirst are main motivators to drink water
- Premium waters should come with better taste and natural water
- Spring water most appealing attribute
- Majority of consumers don’t understand claims on bottled waters
- Unflavored, still bottled water and enhanced water fight for the same occasions
Consumption of Bottled Water and Water Enhancers
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- Though a thriving segment, sparkling water shows limited reach
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- Figure 30: Water consumption – Nets, November 2017
- Figure 31: Water consumption, November 2017
- Enhanced waters appeal to male consumers
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- Figure 32: Water consumption, by gender, November 2017
- Youngest consumers drive emerging bottled water trends
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- Figure 33: Water consumption – Still water, by age, November 2017
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- Figure 34: Water consumption – Sparkling water, by age, November 2017
- Tap water a big competitor for white, non-Hispanic consumers
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- Figure 35: Water consumption, by race and Hispanic origin, November 2017
Consumption of Bottled Water and Water Enhancers – Repertoire Analysis
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- Half of consumers drink one or two types of water or water enhancers
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- Figure 36: Repertoire of consumption of bottled water and water enhancers, November 2017
- Younger Millennials (aged 24-30) have the largest repertoires
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- Figure 37: Repertoire of consumption of bottled water and water enhancers, by generation, November 2017
- Higher income expands younger consumer choices
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- Figure 38: Repertoire of consumption of bottled water and water enhancers, by age and income, November 2017
- Asian, Black consumers have the most limited repertoire
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- Figure 39: Repertoire of consumption of bottled water and water enhancers, by race and Hispanic origin, November 2017
Reasons for Drinking
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- Practical reasons drive water consumption
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- Figure 40: Reasons for drinking – Net: any water, November 2017
- Flavored, sparkling waters consumed for taste more than hydration
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- Figure 41: Reasons for drinking, by water type, November 2017
- Value-focused men drink enhanced bottled waters
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- Figure 42: Reasons for drinking – Good value, by gender, November 2017
- Older Millennials use sparkling waters to cut back on caffeine and calories
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- Figure 43: Reasons for drinking – Sparkling water, November 2017
- Convenience, quality, and value attract multicultural consumers to flavored water
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- Figure 44: Reasons for drinking – Flavored water, November 2017
Expected Qualities of Premium Bottled Water
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- Taste and water source are two main components of premium water
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- Figure 45: Premium bottled water qualities, November 2017
- Unique packaging stands out to iGen bottled water consumers
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- Figure 46: Premium bottled water qualities, by generation, November 2017
- Urban areas are a key location to appeal via packaging
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- Figure 47: Premium bottled water qualities, by location, November 2017
- Black consumers expect added benefits from premium bottled water at reasonable cost
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- Figure 48: Premium bottled water qualities, by race and Hispanic origin, November 2017
Appealing Bottled Water Attributes
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- Spring water is most appealing to consumers
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- Figure 49: Appealing attributes, November 2017
- Claims about the water itself are most appealing, though vitamin-enhanced stands out to younger consumers
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- Figure 50: Appealing attributes – Functional focus, by age, November 2017
- Figure 51: Appealing attributes – Water focus, by age, November 2017
- Young, high-income men are a strong target for introducing new waters
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- Figure 52: Appealing attributes – Niche and functional claims, any rank, by age and gender, November 2017
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- Figure 53: Appealing attributes – Niche and functional claims, any rank, by age and income, November 2017
- Hispanic Millennials especially attracted to spring water, Hispanic non-Millennials have vastly different priorities
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- Figure 54: Appealing attributes, by Hispanic and Millennial status, November 2017
Attitudes toward Bottled Water
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- Only one in five consumers understand claims on bottled water
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- Figure 55: Attitudes toward bottled water, November 2017
- Older consumers more likely to stick with private label bottled water, while younger will spend for a brand they like
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- Figure 56: Attitudes toward bottled water, by generation, November 2017
- Price may be a deterrent for Midwesterners
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- Figure 57: Attitudes toward bottled water, by region, November 2017
- Hispanic Millennials a bright spot for brands
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- Figure 58: Attitudes toward bottled water, by Hispanic origin and generation, November 2017
Bottled Water Drinking Occasions – Correspondence Analysis
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- Blurred lines between water types and drinking occasions
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- Figure 59: Correspondence analysis – Drinking occasions by water type, November 2017
- Methodology
- Still, unflavored water sees competition for consumption during exercise
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- Figure 60: Bottled water drinking occasions – Unflavored, still bottled water, by age of Millennial, November 2017
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- Figure 61: Bottled water drinking occasions – Enhanced bottled water, by age of Millennial, November 2017
- Sparkling water
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- Figure 62: Bottled water drinking occasions – Sparkling water, by generation, November 2017
- Black consumers a strong target for flavored waters and flavored water mixes
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- Figure 63: Bottled water drinking occasions – Flavored bottled water, by Black and non-Black consumers, November 2017
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- Figure 64: Bottled water drinking occasions – Water with added flavor powder or liquid mix, by Black and non-Black consumers, November 2017
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 – The Market
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- Figure 65: Fan chart of US sales and forecast of PET/convenience water, at current prices, 2012-22
- Figure 66: Fan chart of US sales and forecast of jug/bulk water, at current prices, 2012-22
- Figure 67: Fan chart of US sales and forecast of sparkling water, at current prices, 2012-22
- Figure 68: Total US retail sales and forecast of bottled water, by segment, at current prices, 2012-22
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- Figure 69: Total US retail sales of bottled water, by segment, at current prices, 2015 and 2017
- Figure 70: Total US retail sales and forecast of convenience/PET still water, at current prices, 2012-22
- Figure 71: Total US retail sales and forecast of convenience/PET still water, at inflation-adjusted prices, 2012-22
- Figure 72: Total US retail sales and forecast of jug/bulk still water, at current prices, 2012-22
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- Figure 73: Total US retail sales and forecast of jug/bulk still water, at inflation-adjusted prices, 2012-22
- Figure 74: Total US retail sales and forecast of seltzer, sparkling, and mineral water, at current prices, 2012-22
- Figure 75: Total US retail sales and forecast of seltzer, sparkling, and mineral water, at inflation-adjusted prices, 2012-22
- Figure 76: Total US retail sales of bottled water, by channel, at current prices, 2012-17
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- Figure 77: Total US retail sales of bottled water, by channel, at current prices, 2015 and 2017
- Figure 78: US supermarket sales of bottled water, at current prices, 2012-17
- Figure 79: US convenience store sales of bottled water, at current prices, 2012-17
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- Figure 80: US drugstore sales of bottled water, at current prices, 2012-17
- Figure 81: US sales of bottled water through other retail channels, at current prices, 2012-17
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Appendix – Key Players
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- Figure 82: Multi-outlet sales of convenience/PET still water, by leading companies and brands, rolling 52 weeks 2016 and 2017
- Figure 83: Multi-outlet sales of sparkling/mineral water, by leading companies and brands, rolling 52 weeks 2016 and 2017
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- Figure 84: Multi-outlet sales of jug/bulk water, by leading companies and brands, rolling 52 weeks 2016 and 2017
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Appendix – The Consumer
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- Bottled water drinking occasions – Correspondence analysis – Data and methodology
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- Figure 85: Bottled water drinking occasions, November 2017
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