Bottled Water - US - February 2018

OVERVIEW 
What you need to know
Definition
EXECUTIVE SUMMARY
Overview
Bottled water reaps benefits of current concerns and trends
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
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
Figure 3: Attitudes toward bottled water, November 2017
Not all consumers are willing to pay for luxury waters
Figure 4: Premium bottled water qualities, November 2017
The opportunities
Sparkling water has ample room for growth
Figure 5: Water consumption, November 2017
Keep it simple
Figure 6: Appealing attributes, November 2017
Bottled water doesn’t have to be expensive to appear premium
Figure 7: Premium bottled water qualities, by generation, November 2017
What it means
THE MARKET – WHAT YOU NEED TO KNOW 
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 
Bottled water category grows another 6% in 2017
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 
Convenience/PET still bottled water maintains momentum
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
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
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
Figure 16: US drugstore sales of bottled water, at current prices, 2012-17
MARKET PERSPECTIVE 
At-home water technology challenges the need for bottled water purchase
Filters
At-home carbonation
Figure 17: Jillian Michaels Sodastream infomercial 1', November 2017
On-the-go water filtration
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
Figure 19: Replacement beverages, December 2016
Raw water movement emphasizes desire for natural, unprocessed food and drink
MARKET FACTORS 
Sin taxes benefit bottled water
Natural disasters effect US water quality
Key consumers gain more spending power
Figure 20: Share of population by generation in 2018
KEY PLAYERS – WHAT YOU NEED TO KNOW 
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 
Smaller brands chip away at key category players
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
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
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
Figure 24: Multi-outlet sales of jug/bulk water, by leading companies and brands, rolling 52 weeks 2016 and 2017
WHAT’S WORKING? 
La Croix’s popularity pushes sparkling water segment forward
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
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
Figure 27: Water packaging type, percent per six-month period, six-month periods Q1 2013-Q2 2017
WHAT’S STRUGGLING? 
Bland bottles fade to the background
Waning Nursery water hurts Cott Corp
Figure 28: Multi-outlet sales of jug/bulk water, Cott Corp leading brands, rolling 52 weeks 2016 and 2017
WHAT’S NEXT? 
Water advertising turns mainstream
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 
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 
Though a thriving segment, sparkling water shows limited reach
Figure 30: Water consumption – Nets, November 2017
Figure 31: Water consumption, November 2017
Enhanced waters appeal to male consumers
Figure 32: Water consumption, by gender, November 2017
Youngest consumers drive emerging bottled water trends
Figure 33: Water consumption – Still water, by age, November 2017
Figure 34: Water consumption – Sparkling water, by age, November 2017
Tap water a big competitor for white, non-Hispanic consumers
Figure 35: Water consumption, by race and Hispanic origin, November 2017
CONSUMPTION OF BOTTLED WATER AND WATER ENHANCERS – REPERTOIRE ANALYSIS 
Half of consumers drink one or two types of water or water enhancers
Figure 36: Repertoire of consumption of bottled water and water enhancers, November 2017
Younger Millennials (aged 24-30) have the largest repertoires
Figure 37: Repertoire of consumption of bottled water and water enhancers, by generation, November 2017
Higher income expands younger consumer choices
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
Figure 39: Repertoire of consumption of bottled water and water enhancers, by race and Hispanic origin, November 2017
REASONS FOR DRINKING 
Practical reasons drive water consumption
Figure 40: Reasons for drinking – Net: any water, November 2017
Flavored, sparkling waters consumed for taste more than hydration
Figure 41: Reasons for drinking, by water type, November 2017
Value-focused men drink enhanced bottled waters
Figure 42: Reasons for drinking – Good value, by gender, November 2017
Older Millennials use sparkling waters to cut back on caffeine and calories
Figure 43: Reasons for drinking – Sparkling water, November 2017
Convenience, quality, and value attract multicultural consumers to flavored water
Figure 44: Reasons for drinking – Flavored water, November 2017
EXPECTED QUALITIES OF PREMIUM BOTTLED WATER 
Taste and water source are two main components of premium water
Figure 45: Premium bottled water qualities, November 2017
Unique packaging stands out to iGen bottled water consumers
Figure 46: Premium bottled water qualities, by generation, November 2017
Urban areas are a key location to appeal via packaging
Figure 47: Premium bottled water qualities, by location, November 2017
Black consumers expect added benefits from premium bottled water at reasonable cost
Figure 48: Premium bottled water qualities, by race and Hispanic origin, November 2017
APPEALING BOTTLED WATER ATTRIBUTES 
Spring water is most appealing to consumers
Figure 49: Appealing attributes, November 2017
Claims about the water itself are most appealing, though vitamin-enhanced stands out to younger consumers
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
Figure 52: Appealing attributes – Niche and functional claims, any rank, by age and gender, November 2017
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
Figure 54: Appealing attributes, by Hispanic and Millennial status, November 2017
ATTITUDES TOWARD BOTTLED WATER 
Only one in five consumers understand claims on bottled water
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
Figure 56: Attitudes toward bottled water, by generation, November 2017
Price may be a deterrent for Midwesterners
Figure 57: Attitudes toward bottled water, by region, November 2017
Hispanic Millennials a bright spot for brands
Figure 58: Attitudes toward bottled water, by Hispanic origin and generation, November 2017
BOTTLED WATER DRINKING OCCASIONS – CORRESPONDENCE ANALYSIS 
Blurred lines between water types and drinking occasions
Figure 59: Correspondence analysis – Drinking occasions by water type, November 2017
Methodology
Still, unflavored water sees competition for consumption during exercise
Figure 60: Bottled water drinking occasions – Unflavored, still bottled water, by age of Millennial, November 2017
Figure 61: Bottled water drinking occasions – Enhanced bottled water, by age of Millennial, November 2017
Sparkling water
Figure 62: Bottled water drinking occasions – Sparkling water, by generation, November 2017
Black consumers a strong target for flavored waters and flavored water mixes
Figure 63: Bottled water drinking occasions – Flavored bottled water, by Black and non-Black consumers, November 2017
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
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
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
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
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
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
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
APPENDIX – KEY PLAYERS 
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
Figure 84: Multi-outlet sales of jug/bulk water, by leading companies and brands, rolling 52 weeks 2016 and 2017
APPENDIX – THE CONSUMER 
Bottled water drinking occasions – Correspondence analysis – Data and methodology
Figure 85: Bottled water drinking occasions, November 2017