Table of Contents
Overview
-
- What you need to know
- Products covered in this Report
Executive Summary
-
- The market
- Bottled water sales power forward
- The category faces uncertainties on many fronts
-
- Figure 1: UK value sales of bottled water, 2012-22
- Unflavoured still water continues robust growth
-
- Figure 2: UK retail value sales of bottled water, by segment, 2016 and 2017
- On-premise sees inflation return
-
- Figure 3: UK value sales of bottled water, by retail and on-premise channels, 2016 and 2017
- Plastic waste is in the spotlight
- Sugar reduction remains on the health agenda
- Companies and brands
- Volume sales are supported by price cuts for market leader Danone
- Highland Spring becomes third biggest brand
-
- Figure 4: Leading brands’ value shares in the UK bottled water retail market, 2016/17*
- Low-sugar innovation rise in flavoured water
- Functional claims rise
- Advertising spend dips
- The consumer
- Three in four drink bottled water
-
- Figure 5: Frequency of drinking bottled water, by type, December 2017
- A low price is key purchase factor
-
- Figure 6: Important factors influencing the choice of unflavoured bottled water, December 2017
- Low/no sugar is important for flavoured water
-
- Figure 7: Important factors influencing the choice of flavoured bottled water, December 2017
- Fortified waters for kids garners interest
- Functional ingredients have strongest appeal among the young
-
- Figure 8: Interest in product concepts in bottled water, December 2017
- Recycling ambitions are high in bottled water
-
- Figure 9: Behaviours relating to bottled water, December 2017
- Category blurring could alienate consumers
-
- Figure 10: Attitudes towards bottled water, December 2017
- What we think
Issues and Insights
-
- A need for brands to go beyond recyclability
- The facts
- The implications
- Functional ingredients present a tangible way to add value to bottled water among the younger generation
- The facts
- The implications
- Looking to stronger flavour profiles should attract the younger generation
- The facts
- The implications
The Market – What You Need to Know
-
- Bottled water sales power forward
- The category faces uncertainties on many fronts
- Unflavoured still water continues robust growth
- On-premise sees inflation return
- Plastic waste is in the spotlight
- Sugar reduction remains on the health agenda
Market Size and Forecast
-
- Bottled water sales continue to power forward
-
- Figure 11: UK value and volume sales of bottled water, 2012-22
- The future
- Long-term impact of Sugar Levy uncertain
- Focus on plastic waste leaves bottled water vulnerable
- Squeezed household budgets could curb sales
- Overall inflation expected to push values up
-
- Figure 12: Forecast of UK value sales of bottled water, 2012-22
- Figure 13: Forecast of UK volume sales of bottled water, 2012-22
- Forecast methodology
Market Segmentation
-
- Unflavoured still water posts robust growth
- Flavoured still water sees steepest deflation
- Inflation boosts value growth for sparkling waters
-
- Figure 14: UK retail value and volume sales of bottled water, by segment, 2015-17
- Inflation returns on-premise in 2017
-
- Figure 15: UK value and volume sales of bottled water, by retail and on-premise channels, 2012-17
Market Drivers
-
- Plastic waste and its environmental impact is in the spotlight
- The presence of microplastics in bottled water draws attention
- Widespread feelings of guilt related to plastic waste
- Offering more free water refill points aims to cut plastic waste
- Companies are making moves to address plastic waste issue
- Support for deposit return schemes
- Inflation returns to food and drink market
- Squeezed consumer incomes could dampen sales
-
- Figure 16: Annual percentage change in CPI and AWE (regular pay), monthly basis, January 2014-December 2017
- Sugar reduction remains on the health agenda
- Concerns over sugar benefit bottled water
- Flavoured water steps up innovation in L/N/R sugar variants
- Moderation in alcohol consumption could offer opportunities
- Aging population a challenge, growth in kids offers opportunities
-
- Figure 17: Trends in the age structure of the UK population, 2012-17 and 2017-22
Companies and Brands – What You Need to Know
-
- Volume sales are supported by price cuts for market leader Danone
- Highland Spring becomes third biggest brand
- An upsurge in low-sugar launch activity in flavoured water
- Functional claims rise
- Advertising spend dips
Market Share
-
- Price cuts support volumes for market leader Danone
- Volvic sees value sales fall
- Evian grows behind the overall market
-
- Figure 18: Leading brands’ sales and shares in the UK bottled water retail market, by value and volume, 2015/16 and 2016/17
- Highland Spring powers past Buxton to become third biggest brand
- Pure Life drives Nestlé’s growth
- Retailers continue to gain share
- Growth from smaller manufacturers increases competition
-
- Figure 19: Leading manufacturers’ sales and shares in the UK bottled water retail market, by value and volume, 2015/16 and 2016/17
Launch Activity and Innovation
-
- Flavoured water grows share of launches
-
- Figure 20: Share of new product launches in the UK bottled water retail market, by segment, 2013-17
- Low sugar an increasing focus in flavoured water innovation
-
- Figure 21: Share of flavoured bottled water launches featuring an L/N/R sugar claim, 2013-17
- Vimto makes its debut in bottled water
- Feel Good Drinks extends its portfolio with Infusions line
- Glacéau Smartwater and Perrier branch out into flavoured sparkling water
- Wonky fruit and veg water launched by Dash Water
- Nuva relaunches as No&More; Ugly Drinks gives range a shake-up
- Category blurring remains a trend
- Functional claims rise
-
- Figure 22: Share of flavoured and unflavoured bottled water launches featuring a functional claim, 2013-17
- Functional water target active consumers
- Actiph launches alkaline ionised water to ‘enhance hydration’
- Vegesentials target gut health
- Protein trend inspires launches in bottled water
- Volvic and Disney looks to make hydration more fun for kids
Advertising and Marketing Activity
-
- Adspend dips in 2017
-
- Figure 23: Total above-the-line, online display and direct mail advertising expenditure on bottled water, by segment, 2014-17
- Nestlé becomes top spender
- Perrier’s new flavoured duo supported by adverting push
-
- Figure 24: Total above-the-line, online display and direct mail advertising expenditure on bottled water, by top advertisers (sorted by 2017), 2014-17
- Danone encourages volcanic inner strength, looks to Snapchat for ‘Live Young’
- Volvic launches motivational ‘Find Your Volcano’ campaign
- Volvic flavoured water push looks to connect with millennials
- Evian ‘Live Young’ campaign sidesteps TV in favour of Snapchat
- Sports sponsorships remain an integral part of bottled water marketing
- Highland Spring links hydration with everyday success for ‘Brave By Nature’ push…
- …and targets Christmas entertaining occasions
- Robinsons Fruit Shoot celebrates kids’ self-expression
- Harrogate Spring launch recycling push
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
-
- Three in four drink bottled water
- A low price is key purchase factor
- Low/no sugar is important for flavoured water
- Fortified waters for kids garners interest
- Functional ingredients have strongest appeal among the young
- Recycling ambitions are high in bottled water
- Category blurring could alienate consumers
Usage of Bottled Water
-
- Three in four drink bottled water
-
- Figure 25: Usage of bottled water, by type, December 2016 and December 2017
- Just one in five drinks unflavoured still bottled water daily
-
- Figure 26: Frequency of drinking bottled water, by type, December 2017
- 16-34-year-olds and high-earners are the core users
-
- Figure 27: Usage bottled water, by type of bottled water and age, December 2017
- Usage of water filters remain low
-
- Figure 28: Usage of water filter products at home, December 2017
Factors Influencing Choice of Bottled Water
-
- Price is key driver
-
- Figure 29: Important factors influencing the choice of unflavoured bottled water, December 2017
- On-the-go consumption drives need for portability
- Sugar content is firmly on shoppers’ radar
-
- Figure 30: Important factors influencing the choice of flavoured bottled water, December 2017
- Strong flavours in demand
Interest in Product Concepts in Bottled Water
-
- Scope for fortified waters for kids
-
- Figure 31: Interest in product concepts in bottled water, December 2017
- Functional ingredients have strongest appeal among the young
- Interest in energy-boosting ingredients echoes wider focus on energy levels
- Interest in canned water is limited
Behaviours Relating to Bottled Water
-
- Recycling ambitions are high in bottled water
- A need to go beyond recyclability
-
- Figure 32: Behaviours relating to bottled water, December 2017
- Colour points to sugar for many
Attitudes towards Bottled Water
-
- Category blurring could alienate consumers
-
- Figure 33: Attitudes towards bottled water, December 2017
- Sparkling flavoured water in strong position as fizzy drinks alternative
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
-
- Forecast methodology
-
- Figure 34: UK value sales of bottled water, best- and worst-case forecast, 2017-22
- Figure 35: UK volume sales of bottled water, best- and worst-case forecast, 2017-22
Appendix – Launch Activity and Innovation
-
-
- Figure 36: Share of new product launches in the UK bottled water retail market, by brands and private label, 2013-17
- Figure 37: Share of new product launches in the UK bottled water retail market, by top 10 companies (sorted by 2017), 2013-17
- Figure 38: Share of new product launches in the UK bottled water retail market, by top 10 claims, 2013-17
- Figure 39: Share of new product launches in the UK bottled water retail market, by package type, 2013-17
-
Back to top