Still and Sparkling Water - US - February 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
Figure 1: Total US sales and fan chart forecast of packaged still and sparkling water, 2013-23
The issues
Water brands start facing plastic backlash
Refillable water bottles are cheap, convenient, sustainable, and trendy
Figure 2: Water statement agreement, by reluctant water buyers, November 2018
Consumers are most interested in no-frills, inexpensive water
Figure 3: Water brand type purchases, November 2018
The opportunities
Sales of sparkling water keep bubbling
Figure 4: Total US retail sales and forecast of packaged still and sparkling water, by segment, at current prices, 2013-23
Packaging innovation tackles environmental concerns
Figure 5: Water-packaging opportunity matrix, feasibility, perceived environmental impact, and price premium, November 2018
Functional water has appeal across generations
Figure 6: Water product interest, by generation, November 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Growing sales across all segments lifts the total water market
Home water becomes cleaner, and refillable bottles become cool
Plastic bottles come under fire, beverage industry strives for changes
MARKET SIZE AND FORECAST
Strong continued growth of packaged water market
Figure 7: Total US sales and fan chart forecast of packaged still and sparkling water, 2013-23
Figure 8: Total US sales of packaged still and sparkling water, 2013-23
MARKET BREAKDOWN
Double-digit projected growth of sparkling water
Figure 9: Total US retail sales and forecast of packaged still and sparkling water, by segment, at current prices, 2013-23
Figure 10: Total US retail sales and forecast of packaged still and sparkling water, by segment, at current prices, 2013-23
MARKET PERSPECTIVE
Water bottles are trendy must-have products
High ownership of home water filtration products
Figure 11: Ownership and interest in water filtration products and systems, July 2018
When everything is “water”
MARKET FACTORS 
Cities start banning the bottle
Beverage companies work toward sustainability
Micro-plastic, big-problem?
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Private label dominates while brands differentiate
Big brands are stuck in the middle
Packaging is an issue and opportunity
COMPANY AND BRAND SALES OF PACKAGED WATER
Private label water leads the market
Figure 12: Multi-outlet sales of still and sparkling water, by leading companies, rolling 52 weeks 2017 and 2018
Largest water companies see lackluster still water growth
Figure 13: Multi-outlet sales of convenience/PET still water, by leading companies and brands, rolling 52 weeks 2017 and 2018
La Croix closes in on segment dominance
Figure 14: Multi-outlet sales of seltzer/sparkling/mineral water, by leading companies and brands, rolling 52 weeks 2017 and 2018
WHAT’S WORKING?
Hydration is synonymous with good health
Sparkling waters and brand profiles
La Croix, definitely not just for Midwest moms
The big bubbling threat to sparkling water brands
Coke goes for authenticity in its sparkling water acquisition
Original sparkling water brands stays strong
Flavor profile delivers Spindrift rapid growth
The new dark horses in the sparkling water market
Water becomes an aspirational product
Get more out of water
Making water fun
WHAT’S STRUGGLING?
Big three brands face rough waters
WHAT’S NEXT?
Water wars go beyond the bottle
Water’s plastic issue
Sea what’s next in water
Future for canna-fizz water?
THE CONSUMER – WHAT YOU NEED TO KNOW 
Waters satisfy a variety of occasions
At-home water consumption is high, yet threatened
Environmentally conscious water buyers are a small but affluent group
Millennials want water with more
WATER CONSUMPTION
Sparkling water has plenty of room for growth
Figure 15: Beverage consumption, November 2018
Figure 16: Sparkling water consumption, November 2018
Most consumers drink packaged water
Figure 17: Water consumption, November 2018
iGens travel with water bottle in tow
Figure 18: Water consumption, among water drinkers, by generation, November 2018
CONSUMPTION OCCASIONS BY WATER TYPE
Bottle battles
Figure 19: Correspondence analysis, consumption occasions by water type, November 2018
Figure 20: Correspondence analysis, consumption occasions by water type, November 2018
Packaged water is often consumed at home
Figure 21: Consumption occasions, net any packaged water, November 2018
Sparkling water can act as an alcoholic beverage substitute
Figure 22: Consumption occasions, sparkling water, November 2018
REASONS FOR DRINKING PACKAGED WATER AT HOME
Water bottles represent major threat to home packaged water consumption
Figure 23: Reasons for drinking packaged water at home, November 2018
Convenience is key for young consumers
Figure 24: Reasons for drinking packaged water at home, by generation, November 2018
Risk of rural consumers dropping out of packaged water market
Figure 25: Reasons for drinking packaged water at home, by area, November 2018
WATER BRAND TYPE PURCHASES
Most water buyers are brand agnostic
Figure 26: Water brand type purchases, November 2018
Environmentally conscious consumers are a desirable group
Figure 27: Water brand type buyers demographic profile, indexed against all packaged water drinkers, November 2018
Figure 28: Water brand type purchases, by food and drink shopper segmentation, November 2018
Reluctant water buyers go cheap or go environmental
Figure 29: Water brand type purchases, by reluctant water buyers, November 2018
Opportunity for functional waters in environmentally friendly packaging
Figure 30: Water brand type purchases, by health-first water buyers, November 2018
WATER PACKAGING: PURCHASE INTELLIGENCE DEEP DIVE
The right ethical cues are key
Figure 31: Purchase intent of water by packaging type
Figure 32: Water product perception by water-packaging type
WATER PACKAGING: PRICE PREMIUM
Mass market consumers won’t pay a packaging price premium
Figure 33: Water packaging price premium, November 2018
Figure 34: Water packaging price premium, by water brand type buyers, November 2018
Entice reluctant water buyers with sustainable packaging
Figure 35: Water packaging price premium, by water brand type buyers, November 2018
Connect with young buyers through packaging
Figure 36: Water packaging price premium, by water brand type buyers, November 2018
WATER PACKAGING: PERCEIVED ENVIRONMENTAL IMPACT
Confusion likely exists around packaging sustainability
Figure 37: Water packaging perceived environmental impact, November 2018
PET plastic bottles can still appeal to environmentally conscious consumers
Figure 38: Water packaging perceived environmental impact, by environment-first water buyers, November 2018
WATER PACKAGING: OPPORTUNITY MATRICES 
Focus on current and future packaging opportunities
Figure 39: Water-packaging opportunity matrix, price premium and perceived environmental impact, November 2018
Figure 40: Water-packaging opportunity matrix, feasibility, perceived environmental impact, and price premium, November 2018
PACKAGED WATER ATTITUDES 
Strong positive perception of water bottles
Figure 41: Water statement agreement, by reluctant water buyers, November 2018
Keep healthful consumers hydrated
Figure 42: Water statement agreement, by reluctant water buyers, November 2018
Younger women are water watchers
Figure 43: Water statement agreement, by reluctant water buyers, November 2018
WATER PRODUCT INTEREST
Opportunity for further product differentiation in the water market
Figure 44: Water product interest, November 2018
Retailers must offer the correct variety of waters
Figure 45: TURF water product interest, November 2018
Don’t neglect Gen X in functional water marketing
Figure 46: Water product interest, by generation, November 2018
Figure 47: Water product interest, by gender and age, November 2018
Reluctant water buyers express interest in B-Corp. brands
Figure 48: Water product interest, by water attitudes, November 2018
Healthy water drinkers want it all
Figure 49: Water product interest, by water brand type buyers, November 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Purchase Intelligence
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET 
Figure 50: Total US sales of packaged still and sparkling water, at inflation-adjusted prices, 2013-23
Figure 51: Total US retail sales and forecast of convenience/PET still water, at inflation-adjusted prices, 2013-23
Figure 52: Total US retail sales and forecast of jug/bulk still water, at inflation-adjusted prices, 2013-23
Figure 53: Total US retail sales and forecast of seltzer/sparkling/mineral water, at inflation-adjusted prices, 2013-23
Figure 54: Total US retail sales of still and sparkling water, by channel, at current prices, 2013-18
APPENDIX – KEY PLAYERS 
Figure 55: Multi-outlet sales of jug/bulk still water, by leading companies and brands, rolling 52 weeks 2017 and 2018