Bottled Water - US - March 2015

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
Overview
Moderate growth driven by avoidance of sugary drinks
Figure 1: Total US retail sales and forecast of bottled water, at current prices, 2009-19
Convenience/PET leads but sparkling grows most
Figure 2: Total US retail sales of bottled water, by segment, in millions, at current prices, 2012 and 2014
Key players
Figure 3: MULO share of sales of bottled water, by rolling 52 weeks 2013 and 2014
The consumer
Consumers most apt to buy unflavored still bottled and jug/bulk water
Figure 4: Bottled water purchases – Any purchase, December 2014
Most drink bottled water for hydration, health, taste; 28% drink as an alternative to less healthful beverages
Figure 5: Reasons for drinking bottled water, December 2014
Environmental, health concerns important to many users
Figure 6: Attitudes and behaviors toward bottled water, December 2014
What we think
ISSUES AND INSIGHTS
Should the convenience/PET category focus on enhanced water to grow?
Issues
Insight: Provide a wider range of benefits, combined with flavor
Can sparkling water be more than just an alternative to sugary drinks?
Issues
Insight: Functional benefits can draw users seeking added features
How can brands maintain the attention of Millennials?
Issues
Insight: Transparent claims, wide distribution, environmental responsibility
MARKET SIZE AND FORECAST
Key points
Sales and forecast of bottled water
Figure 7: Total US retail sales and forecast of bottled water, at current prices, 2009-19
Figure 8: Total US retail sales and forecast of bottled water, at inflation-adjusted prices, 2009-19
Fan chart forecast
Figure 9: Total US retail sales and forecast of bottled water, at current prices, 2009-19
Fan chart methodology
MARKET DRIVERS
Key points
Bottled water sales benefit from sugary drink avoidance
Figure 10: Beverage tracker, June-December 2014
Figure 11: Beverage tracker, June-December 2014 (continued)
Figure 12: Beverage tracker (percentage point change), June-December 2014
Hydration/health is a key driver
Demographics play a significant role in purchases
Figure 13: Population, by generation, 2010-20
Figure 14: Population by race and Hispanic origin, 2010-20
Figure 15: Median household income, in inflation-adjusted dollars, 2003-13
Figure 16: Households, by presence of own children, 2003-13
SEGMENT PERFORMANCE
Key points
Convenience/PET holds majority share, but sparkling grows fastest
Sales of bottled water, by segment
Figure 17: Total US retail sales of bottled water, by segment, at current prices, 2012 and 2014
Sales and forecast of convenience/PET still water
Figure 18: Total US retail sales and forecast of convenience/PET still water, at current prices, 2009-19
Flavored still bottled water declines significantly
Figure 19: Total US retail sales of still bottled water, by segment, at current prices, 2009-14
Sales and forecast of sparkling/mineral water
Figure 20: Total US retail sales and forecast of sparkling/mineral water, at current prices, 2009-19
Flavored sparkling bottled water sales increase rapidly
Figure 21: Total US retail sales of sparkling bottled water, by segment, at current prices, 2009-14
Sales and forecast of jug/bulk still water
Figure 22: Total US retail sales and forecast of jug/bulk still water, at current prices, 2009-19
RETAIL CHANNELS
Key points
Supermarkets increase sales, but other channels comprise most share
Sales of bottled water, by channel
Figure 23: Total US retail sales of bottled water, by channel, 2012 and 2014
Supermarkets grow 2012-14, face increasing competition from other channels
Figure 24: US supermarket sales of bottled water, 2009-14
Drug stores show solid growth but share remains small
Figure 25: US drug store sales of bottled water, 2009-14
Other channel sales underscore the wide range of bottled water retailers
Figure 26: US other channel sales of bottled water, 2009-14
Millennials most likely to report buying at a wide range of channels
Figure 27: Where bottled water is bought, by generations, December 2014
Enhanced and flavored sparkling shows strong growth through natural channel
Figure 28: Natural supermarket sales of bottled water, by segment, at current prices, rolling 52 weeks 2012 and 2014
LEADING COMPANIES
Key points
Nestlé leads MULO sales; private label follows closely, gains most
MULO sales of bottled water
Figure 29: MULO sales of bottled water, by rolling 52 weeks 2013 and 2014
MULO sales of convenience/PET still water
Figure 30: Pure Life television ad, 2014
Figure 31: Dasani PlantLife television ad, 2015
Figure 32: MULO sales of convenience/PET still water, 2013 and 2014
MULO sales of sparkling/mineral water
Figure 33: Sparkling ICE television ad, 2014
Figure 34: Perrier television ad, 2015
Figure 35: MULO sales of sparkling water, 2013 and 2014
MULO sales of jug/bulk bottled water
Figure 36: Crystal Geyser television ad, 2015
Figure 37: MULO sales of jug/bulk bottled water, 2013 and 2014
INNOVATIONS AND INNOVATORS
Environmentally friendly remains top claim; low/no/reduced calorie claims increase
Figure 38: Top 10 bottled water product claims, by percentage of total claims, 2010-14
Brands look for ways to reduce their carbon footprint
The rise of enhanced water increases fortification claims
Flavors get more exotic
THE CONSUMER – REASONS FOR DRINKING BOTTLED WATER
Key points
Most use for hydration, overall health, especially Boomers
Figure 39: Reasons for drinking bottled water, by generations, December 2014
THE CONSUMER – JUG/BULK AND UNFLAVORED STILL BOTTLED WATER
Key points
Highest household penetration for unflavored still and jug/bulk waters
Figure 40: Bottled water purchases (jug/bulk and unflavored still), December 2014
Figure 41: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by generations, December 2014
Figure 42: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by household income, December 2014
Figure 43: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by presence of children in household, December 2014
Bottled water versatility encourages unflavored still and jug/bulk purchases
Figure 44: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by reasons for drinking bottled water, December 2014
Figure 45: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by reasons for drinking bottled water, December 2014 (continued)
Figure 46: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by where bottled water is bought, December 2014
Figure 47: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by where bottled water is bought, December 2014 (continued)
Many buy despite environmental, health objections
Figure 48: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by attitudes and behaviors toward bottled water, December 2014
Figure 49: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by attitudes and behaviors toward bottled water, December 2014(continued)
Incentivizing purchases through added product features
Figure 50: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by what persuades users to buy bottled water, December 2014
Figure 51: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by what persuades users to buy bottled water, December 2014 (continued)
THE CONSUMER – FLAVORED STILL BOTTLED WATER
Key points
A third buy flavored still bottled water
Figure 52: Bottled water purchases (flavored still), December 2014
Figure 53: Bottled water purchases (flavored still) – Any purchase, by gender, December 2014
Figure 54: Bottled water purchases (flavored still) – Any purchase, by generations, December 2014
Figure 55: Bottled water purchases (flavored still) – Any purchase, by household income, December 2014
Figure 56: Bottled water purchases (flavored still) – Any purchase, by presence of children in household, December 2014
Those who drink water for extra nutrition very likely to buy flavored water
Figure 57: Bottled water purchases (flavored still) – Any purchase, by reasons for drinking bottled water, December 2014
Figure 58: Bottled water purchases (flavored still) – Any purchase, by reasons for drinking bottled water, December 2014 (continued)
Figure 59: Bottled water purchases (flavored still) – Any purchase, by where bottled water is bought, December 2014
Figure 60: Bottled water purchases (flavored still) – Any purchase, by where bottled water is bought, December 2014 (continued)
Flavored water brands may appeal to those looking for functional water, but enhanced, flavored brands will likely appeal more
Figure 61: Bottled water purchases (flavored still) – Any purchase, by attitudes and behaviors toward bottled water, December 2014
Figure 62: Bottled water purchases (flavored still) – Any purchase, by attitudes and behaviors toward bottled water, December 2014 (continued)
Added features likely to encourage flavored water sales
Figure 63: Bottled water purchases (flavored still) – Any purchase, by what persuades users to buy bottled water, December 2014
Figure 64: Bottled water purchases (flavored still) – Any purchase, by what persuades users to buy bottled water, December 2014 (continued)
THE CONSUMER – ENHANCED WATER
Key points
A third or more third buy enhanced water
Figure 65: Bottled water purchases (enhanced), December 2014
Figure 66: Bottled water purchases (enhanced) – Any purchase, by gender, December 2014
Figure 67: Bottled water purchases (enhanced) – Any purchase, by generations, December 2014
Figure 68: Bottled water purchases (enhanced) – Any purchase, by household income, December 2014
Figure 69: Bottled water purchases (enhanced) – Any purchase, by presence of children in household, December 2014
Enhanced water can be marketed for a wider range of purposes than other types
Figure 70: Bottled water purchases (enhanced) – Any purchase, by reasons for drinking bottled water, December 2014
Figure 71: Bottled water purchases (enhanced) – Any purchase, by reasons for drinking bottled water, December 2014 (continued)
Figure 72: Bottled water purchases (enhanced) – Any purchase, by where bottled water is bought, December 2014
Figure 73: Bottled water purchases (enhanced) – Any purchase, by where bottled water is bought, December 2014 (continued)
High likelihood to buy enhanced water despite objections to plastic bottles
Figure 74: Bottled water purchases (enhanced) – Any purchase, by attitudes and behaviors toward bottled water, December 2014
Figure 75: Bottled water purchases (enhanced) – Any purchase, by attitudes and behaviors toward bottled water, December 2014 (continued)
Added features may encourage enhanced water purchases
Figure 76: Bottled water purchases (enhanced) – Any purchase, by what persuades users to buy bottled water, December 2014
Figure 77: Bottled water purchases (enhanced) – Any purchase, by what persuades users to buy bottled water, December 2014 (continued)
THE CONSUMER – SPARKLING WATER
Key points
Roughly a third buy sparkling water
Figure 78: Bottled water purchases (sparkling), December 2014
Figure 79: Bottled water purchases (sparkling water) – Any purchase, by gender, December 2014
Figure 80: Bottled water purchases (sparkling) – Any purchase, by generations, December 2014
Figure 81: Bottled water purchases (sparkling) – Any purchase, by race/Hispanic origin, December 2014
Figure 82: Bottled water purchases (sparkling) – Any purchase, by household income, December 2014
Figure 83: Bottled water purchases (sparkling) – Any purchase, by presence of children in household, December 2014
Sparkling brands have an opportunity to offer product enhancements
Figure 84: Bottled water purchases (sparkling) – Any purchase, by reasons for drinking bottled water, December 2014
Figure 85: Bottled water purchases (sparkling) – Any purchase, by reasons for drinking bottled water, December 2014 (continued)
Figure 86: Bottled water purchases (sparkling) – Any purchase, by where bottled water is bought, December 2014
Figure 87: Bottled water purchases (sparkling) – Any purchase, by where bottled water is bought, December 2014 (continued)
Home sparkling water appliance owners very likely to buy sparkling water
Figure 88: Bottled water purchases (sparkling) – Any purchase, by attitudes and behaviors toward bottled water, December 2014
Figure 89: Bottled water purchases (sparkling) – Any purchase, by attitudes and behaviors toward bottled water, December 2014 (continued)
Added features/packaging/labeling, new flavors may attract more buyers
Figure 90: Bottled water purchases (sparkling) – Any purchase, by what persuades users to buy bottled water, December 2014
Figure 91: Bottled water purchases (sparkling) – Any purchase, by what persuades users to buy bottled water, December 2014 (continued)
THE CONSUMER – IMPORTANT BOTTLED SPARKLING WATER ATTRIBUTES
Key points
Little difference in attribute importance between regular and unflavored
Figure 92: Important bottled sparkling water attributes, December 2014
THE CONSUMER – WHERE BOTTLED WATER IS BOUGHT
Key points
Most buy at supermarkets; households with kids use wide range of stores
Figure 93: Where bottled water is bought, by age, December 2014
Figure 94: Where bottled water is bought, by presence of children in household, December 2014
THE CONSUMER – ATTITUDES AND BEHAVIORS TOWARD BOTTLED WATER
Key points
Environmental, health issues important to many users
Figure 95: Attitudes and behaviors toward bottled water, by generations, December 2014
Figure 96: Attitudes and behaviors toward bottled water, by presence of children in household, December 2014
THE CONSUMER – WHAT PERSUADES USERS TO BUY
Key points
Labeling, packaging, and flavor features could persuade some users to buy
Figure 97: What persuades users to buy bottled water, by generations, December 2014
Figure 98: What persuades users to buy bottled water, by presence of children in household, December 2014
THE CONSUMER – RACE AND HISPANIC ORIGIN
Key points
Hispanics, Blacks, Asians more likely than Whites to buy select products
Figure 99: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by race/Hispanic origin, December 2014
Figure 100: Bottled water purchases (flavored still) – Any purchase, by race/Hispanic origin, December 2014
Figure 101: Bottled water purchases (enhanced) – Any purchase, by race/Hispanic origin, December 2014
Figure 102: Bottled water purchases (sparkling) – Any purchase, by race/Hispanic origin, December 2014
Figure 103: Reasons for drinking bottled water, by race/Hispanic origin, December 2014
Figure 104: Where bottled water is bought, by race/Hispanic origin, December 2014
Figure 105: Attitudes and behaviors toward bottled water, by race/Hispanic origin, December 2014
Figure 106: What persuades users to buy bottled water, by race/Hispanic origin, December 2014
APPENDIX – OTHER USEFUL CONSUMER TABLES
The consumer – Reasons for drinking bottled water
Figure 107: Reasons for drinking bottled water, by gender, December 2014
Figure 108: Reasons for drinking bottled water, by age, December 2014
Figure 109: Reasons for drinking bottled water, by household income, December 2014
Figure 110: Reasons for drinking bottled water, by presence of children in household, December 2014
The cnsumer – Jug/bulk and unflavored still bottled water
Figure 111: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by gender, December 2014
Figure 112: Bottled water purchases (jug/bulk and unflavored still) – Any purchase, by age, December 2014
The consumer – Flavored still bottled water
Figure 113: Bottled water purchases (flavored still) – Any purchase, by age, December 2014
The consumer – Enhanced water
Figure 114: Bottled water purchases (enhanced) – Any purchase, by age, December 2014
The consumer – Sparkling water
Figure 115: Bottled water purchases (sparkling) – Any purchase, by age, December 2014
The consumer – Important bottled sparkling water attributes
Figure 116: Important bottled sparkling water attributes – Sparkling water, by age, December 2014
Figure 117: Important bottled sparkling water attributes – Sparkling water, by presence of children in household, December 2014
Figure 118: Important bottled sparkling water attributes – Unflavored sparkling water, by gender, December 2014
Figure 119: Important bottled sparkling water attributes – Unflavored sparkling water, by age, December 2014
Figure 120: Important bottled sparkling water attributes – Unflavored sparkling water, by presence of children in household, December 2014
The consumer – Where bottled water is bought
Figure 121: Where bottled water is bought, by gender, December 2014
Figure 122: Where bottled water is bought, by household income, December 2014
Figure 123: Attitudes and behaviors toward bottled water, by age, December 2014
The consumer – Attitudes and behaviors toward bottled water
Figure 124: Attitudes and behaviors toward bottled water, by gender, December 2014
Figure 125: Attitudes and behaviors toward bottled water, by age, December 2014
Figure 126: Attitudes and behaviors toward bottled water, by household income, December 2014
The consumer – What persuades users to buy
Figure 127: What persuades users to buy bottled water, by age, December 2014
Figure 128: What persuades users to buy bottled water, by household income, December 2014
APPENDIX – TRADE ASSOCIATIONS
American Beverage Association
International Bottled Water Association (IBWA)
International Society of Beverage Technologists
National Association for PET Container Resources
Sustainable Packaging Coalition (SPC)