Home Market Analysis The Way forward for the Bottled Water Trade

The Way forward for the Bottled Water Trade

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The Way forward for the Bottled Water Trade

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Water is a basic a part of all our lives, however bottled water can symbolize a must have each day merchandise for some or a deal with for others. With many British customers opting to drink extra free water to restrict their spending on bottled water, and fewer than a 3rd of Individuals opting to drink premium bottled water, it seems that tighter financial circumstances have pushed customers to suppose twice about consuming bottled water. 

With financial problem, in addition to a client pattern in direction of sustainability, how has the bottled water trade fared in 2023? Be a part of Mintel as we discover the trade, client preferences, and the way forward for the worldwide bottled water trade.

What Bottled Water Customers Need

Bottled Water within the UK

Within the UK, consumption of bottled water is evenly break up throughout women and men, who usually drink bottled water as typically as each other. Nevertheless, after we dive additional into typical customers of bottled water by way of age group, youthful customers are way more more likely to drink bottled water than older customers. Three-quarters of Brits aged 16-19 drink bottled water, in comparison with lower than a 3rd of customers aged 65 and over. This determine has stayed the identical between 2022 and 2023, which means that on a constant degree, youthful customers are inclined to drink extra bottled water than older customers.

Curiously, throughout all styles of bottled water, consumption declines as demographics become older. This consists of nonetheless and glowing, in addition to flavoured and unflavoured water. No matter flavour and champagne, younger customers are extra avid customers of bottled water than older customers within the UK.

This may be defined, partially, by a notion of security, which can be a key buy issue. Thrice as many younger customers than older customers suppose that bottled water is safer than faucet water. In the meantime, round two-thirds of all customers suppose that filtered water and bottled water style equally good. Customers place significance in hygiene, and benefit from the style of filtered water. Manufacturers might harness these client priorities by driving curiosity in water-filter merchandise, which can provide customers the specified hygiene and style coupled with comfort and sustainability.

Nevertheless, as utilization of reusable water bottles declines with every age group improve, we are able to see that sustainable water consumption remains to be vital to younger customers – however maybe sustainable packaging is extra of a priority than sustainable water sourcing.

Go to the Mintel Retailer for extra Drinks Trade Insights

Bottled Water within the US

Evaluating US bottled water consumption to that of the UK, the identical generational divide doesn’t translate. Whereas the UK sees a major generational disparity in bottled water consumption, within the US there’s a vary of lower than 10% between the age teams. There’s a higher generational disparity regarding glowing water than nonetheless water – 18% extra younger folks drink glowing water than older customers, whereas there’s an insignificant distinction of two% as pertains to nonetheless water.
So, the age of customers seems to have much less affect on water consumption habits within the US than within the UK – however what does affect customers’ choices? For many, the important thing consider consuming water has to do with hydration relatively than security. Evaluating American customers who worth hydration as a well being aim and who suppose bottled water is the safer consuming water choice, a 3rd extra customers worth hydration than bottled water for security. What’s extra, virtually three-quarters of American customers famous that they drink faucet water to economize, which highlights thrift as a key decision-making consider water habits.

Rising Developments within the International Bottled Water Trade

With sustainability representing a worldwide pattern, particularly inside product packaging, it would come as no shock to most {that a} main pattern within the bottled water trade globally is a shift in direction of extra climate-conscious packaging. For a lot of bottled water producers, which means shifting away from bottles and in direction of cans. That is a part of a pattern of latest launches in cans relatively than plastic bottles which has been ongoing for the previous couple of years, and that continued considerably in 2023. 

Within the UK, 60% of customers agreed that plastic bottles are the least environmentally pleasant drink packaging, whereas a 3rd agreed that non-plastic packaging is extra sustainable. With round half of British customers discovering sustainable packaging to be an vital a part of drinks packaging design, it seems that bottled water producers are shifting away from plastic bottles in a bid to seize a sustainable market. 

To get on board with this pattern, manufacturers can incentivise and help customers of their efforts to recycle. In 2022, Evian partnered with Sainsbury’s for a two-week ‘Return4Reward’ digital reward scheme. This invited customers to deliver their Evian bottles and cans to be recycled in one of many chain’s shops in North London to enter a draw to win tickets to the 2023 Wimbledon last. It is a nice instance of manufacturers bringing collectively client values with a advertising and marketing technique.

With sustainable water prioritised within the UK, what about the remainder of the world? Within the Center East and Africa, bottled water merchandise with added nutritional vitamins and minerals are thriving, with extra recorded new launches than in earlier years. That is additionally outstanding in America, the place virtually half of customers take pleasure in bottled water with added dietary advantages with a view to be higher hydrated.

Within the APAC area, sustainable launches have additionally been vital in 2023. Though bottles are undoubtedly the first packaging alternative for water, canned water launches have tripled since 2019. Usually related to flavoured and glowing waters, there’s room for sustainable packaging innovation in Asia.

New Bottled Water Launches

With sustainability and added diet on the coronary heart of latest bottled water product launches in 2023, who’re the main gamers?

  • In Ecuador, Fakulti has launched a CBD-infused glowing water providing rest advantages in addition to hydration and recent flavours.
  • Australian model Serving to People has launched immunity-boosting flavoured waters which harness pure components like turmeric and echinacea.
  • Within the UK, Amazon has launched a fairly priced 5-litre bottle of spring water, which cuts down on plastic packaging while providing bottled water hygiene.
  • Thailand’s Greenery Mineral Water presents customers recyclable steel packaging with their hydration.

Trying Forward with Mintel

Lately, sustainability has pushed manufacturers to innovate in direction of much less plastic packaging, so we count on to see a continuation of latest launches showcasing different, and extra conservative, packaging kinds. That is more likely to embrace canned water choices, in addition to plastic bottles with lowered packaging and plastic bottles made out of recycled supplies.

As youthful customers are usually the standard bottled water client, largely on account of security and hygiene considerations, we can also see manufacturers capitalising on the notion of bottled water as safer than faucet water. This can be exaggerated with an current pattern in direction of bottled water with added minerals and nutritional vitamins. If bottled water merchandise can provide a clear, nutritious beverage, then they are going to be focusing on client priorities.

Signal as much as Highlight

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