Water Filtration - US - October 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Water filtration market struggles to grow
Figure 1: Total US sales and fan chart forecast of water filtration market, at current prices, 2013-23
Ownership of filtration systems lessens the need for products
Figure 2: Ownership of dispensers built into the refrigerator, 2017-18, July 2017 and July 2018
Trust in safety of tap water prevents adults from buying filtration products
Figure 3: Select barriers to purchase, by product, July 2018
Bottled water continues to challenge water filtration market
Figure 4: Select attitudes and behaviors toward bottled water, July 2018
The opportunities
Younger adults and renters motivated by safety, convenience, and eco-friendliness
Figure 5: Select water filtration product ownership and attitudes toward water filtration products, by age and housing situation, July 2018
Black and Hispanic adults express high interest in filtration products
Figure 6: Interest in select water filtration product innovations, by race and Hispanic origin, July 2018
Water bottles with smart features have potential
Figure 7: Interest in smart water filtration product innovations, by age, July 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Water filtration market continues to struggle
Competition between filtration products and bottled water intensifies
Homeownership, poor water quality, and aging population impact market
MARKET SIZE AND FORECAST
Water filtration market continues to struggle
Figure 8: Total US sales and fan chart forecast of water filtration market, at current prices, 2013-23
Figure 9: Total US retail sales and forecast of water filtration, at current prices, 2013-23
MARKET PERSPECTIVE
Competition between filtration products and bottled water intensifies
MARKET FACTORS 
A rebound in homeownership can lead to market struggles
Figure 10: Homeownership rate, 2007-17
Water quality concerns increase the need for water filtration products
Aging population challenges category growth
Figure 11: Population aged 18 or older, by age, 2013-23
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Clorox dominates market, but Zero Technologies sees largest gains
Long lasting and faster filtration is a must; ZeroWater filters see gains
Countertop filters, dispensers on surfaces, and private label struggle
Smart products that help users reach hydration goals have potential
COMPANY AND BRAND SALES OF WATER FILTRATION
Clorox dominates market, but Zero Technologies sees largest gains
Sales of water filtration market by company
Figure 12: Sales of water filtration, by company, rolling 52 weeks, 2017 and 2018
WHAT’S WORKING?
Faster filtration power is a must for filters
Figure 13: MULO sales of Brita Stream products, rolling 52 weeks 2017 and 2018
Longer lasting filters take the spotlight
ZeroWater filters see gains thanks to the amount of impurities it removes
Figure 14: ZeroWater, September 2018
WHAT’S STRUGGLING?
Countertop filters and dispensers that sit on surfaces are too big
Preference for brand name filters challenge private label
Figure 15: MULO sales of private label water filtration, rolling 52 weeks 2017 and 2018
WHAT’S NEXT?
Smart products that help users reach hydration goals have potential
THE CONSUMER – WHAT YOU NEED TO KNOW 
Dispensers built into refrigerator and pitchers dominate ownership
Most purchases made at mass merchandisers and online-only retailers
Positive perceptions toward tap water prevents product purchases
Functional benefits are key, but positive customer reviews matter too
Safety is the main reason why consumers use water filtration products
Innovations that provide greater convenience generate the most interest
OWNERSHIP AND INTEREST IN WATER FILTRATION PRODUCTS AND SYSTEMS 
Dispensers built into refrigerator and pitchers dominate ownership
Figure 16: Ownership and interest in water filtration products and systems, July 2018
Ownership of water filtration systems is growing
Figure 17: Ownership of water filtration systems 2017-18, July 2017 and July 2018
Younger adults are engaged in the category
Figure 18: Water filtration ownership and interest in owning, by age, July 2018
Concerns about safety drive engagement among parents
Figure 19: Water filtration ownership and interest in owning, by parental status, July 2018
Homeowners own systems, while renters use water filtration products
Figure 20: Water filtration ownership, by housing situation, July 2018
Figure 21: Repertoire of ownership, by housing situation, July 2018
Black and Hispanic adults express interest in all products and systems
Figure 22: Select water filtration ownership and interest in owning, by race and Hispanic origin, July 2018
RETAILERS SHOPPED 
Most purchases made at mass merchandisers and online-only retailers
Figure 23: Retailers purchased, July 2018
Figure 24: In-store vs. online, July 2018
Adults aged 35-44 tend to shop around, especially online
Figure 25: Select retailers purchased, by age, July 2018
Figure 26: In-store vs. online, by age, July 2018
BARRIERS TO PURCHASE 
Positive perceptions toward tap water prevents product purchases
Figure 27: Barriers to purchase, July 2018
Price and lack of information are key barriers for young adults
Figure 28: Select barriers to tap mounted filter, pitcher, and portable water bottle, by age, July 2018
Tap water is trusted more by homeowners than renters
Figure 29: Select barriers to purchase pitcher, tap mounted filter, and portable water bottle, by housing situation, July 2018
Black adults don’t trust tap water, but prefer bottled water
Figure 30: Select barriers to purchase dispenser and tap mounted filter, by race and Hispanic origin, July 2018
PURCHASE INFLUENCERS 
Functional benefits are key, but positive customer reviews matter too
Figure 31: Purchase influencers, July 2018
Figure 32: TURF analysis – Purchase influencers, July 2018
Methodology
Older adults seek functionality; input from others influence young adults
Figure 33: Select purchase Influencers, by age, July 2018
Recommendations and advertisements influence Black adults
Figure 34: Select purchase Influencers, by race and Hispanic origin, July 2018
ATTITUDES AND BEHAVIORS TOWARD WATER FILTRATION
Safety is why consumers use water filtration products
Figure 35: Attitudes and behaviors toward water filtration, July 2018
Eco and cost-related benefits motivate young adults
Figure 36: Select attitudes and behaviors toward water filtration, by age, July 2018
Bottled water appeals to parents
Figure 37: Select attitudes and behaviors toward water filtration, by parental status, July 2018
Renters motivated by safety and convenience
Figure 38: Select attitudes and behaviors toward water filtration, by housing situation, July 2018
Black and Hispanics trust bottled water more than water from products
Figure 39: Select attitudes and behaviors toward water filtration, by race and Hispanic origin, July 2018
INTEREST IN WATER FILTRATION PRODUCT INNOVATIONS 
Innovations that provide convenience generate the most interest
Figure 40: Interest in water filtration product innovations, July 2018
Smart features can encourage young adults and renters to trade up
Figure 41: Interest in select water filtration product innovations, by age and housing situation, July 2018
Parents’ interest in innovations reflects high engagement
Figure 42: Interest in select water filtration product innovations, by parental status, July 2018
Black and Hispanic adults are interested in nearly all innovations
Figure 43: Interest in select water filtration product innovations, by race and Hispanic origin, July 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET 
Figure 44: Total US sales and forecast of water filtration, at inflation-adjusted prices, 2013-23
Figure 45: Total retail sales of water filtration, by channel, at current prices, 2013-18
Figure 46: Total US retail sales of water filtration, by channel, at current prices, 2016 and 2018
APPENDIX – KEY PLAYERS 
Figure 47: Multi-outlet sales of water filtration devices, by leading companies and brands, rolling 52 weeks 2017 and 2018
Figure 48: Multi-outlet sales of water filters, by leading companies and brands, rolling 52 weeks 2017 and 2018