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Bottled Water in the U.S.

Bottled Water in the U.S.

It’s easy to poke fun at bottled water – you want me to pay how much for something I can get from a fountain for free?

But the market for bottled water is no joke. Consumers are losing interested in sodas and other sugary drinks. Sports drinks have their appeal, but increasingly health experts and diet advocates are suggesting the plain old water is best for athletes and recreational jocks, not to mention the sedentary public. So enter the bottled water market. Health and wellness concerns, the fitness fad and the perennial struggle of many consumers with obesity and being overweight have combined to make bottled water the zero-calorie/ultra-low calorie beverage of choice for growing millions of Americans.

Packaging and flavor innovations offer new, appealing options for consumers. While consumption of premium European sparkling water brands has long served as a status symbol for urban elites, premium still water packaged in designer bottles has become the fashion statement du jour for more and more Millennials and GenXers.

But the future for the market is not without its challenges. As supermarkets stock their shelves with loss-leading cases of plain bottled water, simply competing on the basis of volume and price no longer seems feasible to marketers of major brands. Major players such as Coca-Cola Company and PepsiCo, Inc. have been forced to revisit their strategies in the face of increasingly fierce competition from branded premium products from upstart brands like Talking Rain Beverage Company as well as low-priced commodity products from private label manufacturers.

Bottled Water in the U.S. highlights the challenges facing marketers of bottled water and analyzes their strategic responses in an increasingly hostile competitive landscape. The report also highlights trends shaping the market for bottled water; provides an estimate of U.S. retail sales of bottled still and sparkling waters for the 2008 through 2013 period and a projection of U.S. retail sales through 2018; identifies marketing and new product trends; and provides an in-depth look at today’s consumers of bottled water.
Scope of the Report

This report analyzes the U.S. market for the following categories of bottled water: still water packaged in polyethylene terephthalate (PET) bottles; still water sold in jugs or bulk; and sparkling/mineral water. Bottled still water can either be sourced from natural springs or consist of purified water from other water sources. The sparkling/mineral water category includes naturally carbonated bottled water but does not include seltzers and club soda, which are artificially carbonated. Both bottled still and carbonated waters can be enhanced with vitamins or minerals and various flavorings.

Methodology

The main source of consumer data in this report is the Simmons National Consumer Survey (NCS) for Fall 2013 (and Fall 2004 in the case of 10-year-trend tables and figures) from Experian Marketing Services. On an ongoing basis, Experian Marketing Services conducts booklet-based surveys of a large and random sample of consumers (approximately 25,000 for each 12-month survey compilation) who in aggregate represent a statistically accurate cross-section of the U.S. population. Simmons NCS uses the term “non-carbonated,” but for the sake of consistency, the term “still water” is used throughout this report.

Retail sales figures credited to IRI (Chicago, IL) are based on IRI aggregated multi-outlet (MULO) sales tracking, which represents sales through U.S. supermarkets, drugstores (including Walgreens, CVS, and Rite Aid), mass merchandisers (Walmart, Target, Kmart, and Shopko), warehouse clubs (Sam’s Club and BJ’s, but excluding Costco), dollar stores (excluding Dollar Tree), and military commissaries.

The report is also based upon data collected from field surveys of food retailers in various channels as well as a wide range of industry sources, including company websites, trade publications, business newspapers and magazines, consumer blogs, and annual reports, 10Ks and other releases from public companies.


  • Executive Summary
    • Scope of the Report
    • Methodology
    • Market Overview
      • Table U.S. Retail Sales of Bottled Still and Sparkling/Mineral Waters, 2008-2013 (in million $)
      • Table Projected U.S. Retail Sales of Bottled Still and Sparkling/Mineral Waters, 2013-2018 (in million $)
    • Insights and Opportunities
      • Premium Waters Seen as Salvation for Meager Profits
      • Perceived Purity of the Product Still Matters
      • "Natural" Enhancements Important
      • Bold Colors and Flavors Start to Trend Upward
      • Water Enhancers Create Promise and Loom as a Threat
      • At-Home Carbonation Enters the Fray
      • C-Stores Offer Hope for Bottom Lines of Bottled Water Marketers
      • Sparkling Water Users Are Elite Consumers
    • Competitive Strategies
      • Major Marketers Forced to Hit Reset Button
      • Talking Rain Beverage Company Disrupts Sparkling Water Market
    • Marketing and New Product Trends
      • PepsiCo Markets New Water Brand to Teens
      • Essentia Water Promotes Health and Happiness
      • Bottled Water Companies Support Drink Up Initiative
      • Premium Still Water Offers "Ectrolytenment"
      • Evian Takes Steps to Rebuild Brand
      • LaCroix Revives Spree and Launches C. rate
    • Demographic Highlights
      • Users of Bottled Still Water Tend to Be Young and Multicultural
      • Sparkling Water Works for GenXers
      • Perrier and S. Pellegrino Succeed with Upscale Urbanites
      • Bottled Water Appeals to Weight-Conscious Americans
      • Fitness Buffs Key Segment in Bottled Water Market
      • Bottled Water Users Less Likely to Eat Three Square Meals a Day
      • Healthy Snacking Appeals
      • Bottled Water Fans Like to Try New Food and Beverage Products
      • Sparkling Water Devotees Shop Natural Channel
      • Ads Can Reach Bottled Water Drinkers on Social Media and Cellphones
  • Insights and Opportunities
    • Bottled Water Market Rich with Opportunities and Rife with Challenges
    • Major Brands Threatened from All Sides
      • Table IRI-Tracked Dollar and Volume Sales of Selected Beverages for the 52 Weeks Ending March 23, 2014, Private Labels vs. Branded (in thousand $)
    • Upstart Firms Become a Major Force
    • Premium Waters Seen as Salvation for Meager Profits
    • Perceived Purity of the Product Still Matters
      • Table Excerpts of Marketing Claims Made about Sources of Selected Water Brands
      • "Natural" Enhancements Important
        • Table Excerpts of Health and Wellness Marketing Claims Made by Selected Enhanced and Flavored Waters
    • Bold Colors and Flavors Start to Trend Upward
      • Table Flavors and Colors of Selected New Bottled Water Products
    • Water Enhancers Create Promise and Loom as a Threat
    • At-Home Carbonation Enters the Fray
    • Dispensing Caps Open New Vistas
    • C-Stores Offer Hope for Bottom Lines of Bottled Water Marketers
    • Bottled Water Becomes a Fashion Statement
    • Bottled Water Users a Desirable Demographic
    • Sparkling Water Users Are Elite Consumers
  • Market Overview
    • Historical Trends
      • Consumers Shift from Carbonated Soft Drinks to Bottled Water
        • Table Number of Adults Drinking Five or More Glasses of Non-Alcoholic Beverages in Last Seven Days by Type of Beverage, 2004 vs. 2013 (in thousands)
      • More Consumers Drink Large Quantities of Bottled Water
        • Table Number of Adults Drinking Bottled Non-Carbonated Water by Number of Glasses Consumed in Last 7 Days, 2004 vs. 2013 (in thousands)
        • Table Number of Glasses of Bottled Non-Carbonated Water Consumed in Last 7 Days, 2004 vs. 2013 (in thousands)
      • Bottled Water Use Mirrors Demographic Trends in U.S. Society
        • Table Selected Demographic Characteristics of Adults Drinking 7 or More Glasses of Bottled Non-Carbonated Water or 5 or More Glasses of Sparkling Water in Last 7 Days, 2004 vs. 2013
        • Table Number of Adults Consuming 7 or More Glasses of Bottled Non-Carbonated Water in Last 7 Days by Age Group, 2004 vs. 2013 (in thousands)
    • Size and Composition of the Market
      • Market for Sparkling Water Bubbles, Still Water Flat
        • Table U.S. Retail Sales of Bottled Still Water, 2008-2013 (in million $)
        • Table U.S. Retail Sales of Bottled Sparkling/Mineral Water, 2008-2013 (in million $)
        • Table U.S. Retail Sales of Bottled Still and Sparkling/Mineral Waters, 2008-2013 (in million $)
      • Still Water Volumes Up, Dollar Sales Down
        • Table IRI-Tracked Sales of Bottled Water by Dollar and Volume Growth and Type, 52 Weeks Ending February 23, 2014
      • Convenience Stores Bolster Bottled Water Sales
    • Factors Affecting Market Growth
      • Shift from Carbonated Soft Drinks Expected to Last
      • Industry Sources Bullish about the Future
      • Still More Room for Growth in American Market
      • Health and Fitness Movement Will Boost Bottled Water Market
      • Public Policy Favors Bottled Water as Better-for-You Beverage
      • Higher Prices for Premium Waters Will Help Dollar Sales
      • Sparkling/Mineral Water to Stay on High Growth Curve
      • Liquid Enhancers Will Boost Interest in Water
      • Continued Commoditization of Plain Bottled Water Will Squeeze Profits
      • PET Bottle Bans Create Obstacles to Growth
    • Projected Market Growth
      • Growth Will Accelerate
      • Sparkling/Mineral Water Will Continue to Lead the Way
        • Table Projected U.S. Retail Sales of Bottled Still Water, 2013-2018 (in million $)
        • Table Projected U.S. Retail Sales of Sparkling/Mineral Water, 2013-2018 (in million $)
        • Table Projected U.S. Retail Sales of Bottled Still and Sparkling/Mineral Waters, 2013-2018 (in million $)
  • Competitive Strategies
    • Overview
      • Top Marketers Lose Ground to Private Labels
        • Table Leading Marketers' Shares of IRI-Tracked Dollar Sales of Bottled Still and Sparkling/Mineral Waters, 52 Weeks Ending February 23, 2014 (in thousand $)
      • Private Labels Get Boost from PET/Convenience Segment
        • Table Private Labels' Shares of IRI-Tracked Dollar Sales of Bottled Still and Sparkling Waters, 52 Weeks Ending February 23, 2014 (in thousand $)
      • Nestlé Waters North America Stays on Top of Still Water Market
        • Table Leading Marketers' Shares of IRI-Tracked Dollar Sales of Convenience/PET Still Water, 52 Weeks Ending February 23, 2014 (in thousand $)
        • Table Leading Marketers' Shares of IRI-Tracked Dollar Sales of Jug/Bulk Still Water, 52 Weeks Ending February 23, 2014 (in thousand $)
      • Talking Rain Beverage Company Disrupts Sparkling Water Market
        • Table Leading Marketers' Shares of IRI-Tracked Dollar Sales of Sparkling/Mineral Water, 52 Weeks Ending February 23, 2014 (in thousand $)
    • Competitive Strategies
      • Nestlé Waters North America Remains in the Lead
        • Table IRI-Tracked Dollar Sales of Bottled Still and Sparkling/Mineral Waters by Nestlé Waters North America, 52 Weeks Ending February 23, 2014 (in thousand $)
        • Table IRI-Tracked Dollar Sales of Perrier and S. Pellegrino Brands vs. Other Brands of Nestlé Waters North America, 52 Weeks Ending February 23, 2014 (in thousand $)
      • Coca-Cola Company "Hits a Speed Bump"
        • Table IRI-Tracked Dollar Sales of Bottled Still and Sparkling/Mineral Waters by Coca-Cola Company, 52 Weeks Ending February 23, 2014 (in thousand $)
        • Table IRI-Tracked Dollar Sales of Major Brands of Bottled Still and Sparkling/Mineral Waters by Coca-Cola Company, 52 Weeks Ending February 23, 2014 (in thousand $)
      • PepsiCo Hopes Premium Products Will Keep Its Water Business Afloat
        • Table IRI-Tracked Dollar Sales of Bottled Still and Sparkling/Mineral Waters by PepsiCo, Inc., 52 Weeks Ending February 23, 2014 (in thousand $)
      • Sparkling ICE a One-Hit Wonder for Talking Rain Beverage Company
  • Marketing and New Product Trends
    • Marketing Trends
      • PepsiCo Launches Water Brand for Teens
      • Essentia Water Promotes Health and Happiness
      • Bottled Water Companies Support Drink Up Initiative
      • Premium Still Water Offers "Ectrolytenment"
      • Evian Takes Steps to Rebuild Brand
    • New Product Trends: Sparkling Water
      • Talking Rain Expands Fast-Growing Brand
      • LaCroix Revives Spree and Launches C. rate
      • Coca-Cola Launches DASANI Sparkling
    • New Product Trends: Still Water
      • New Brand of Premium Fashion Water Launched
      • Blossom Water Introduces Essence Water
      • Oceans Omega Offers Healthy Hydration with Omega Infusion
      • Balance Water Adds Flower Extracts
      • Ultra-Premium Canadian Water Introduced
  • Demographic Highlights
    • Who Drinks Bottled Water
      • Users of Bottled Still Water Tend to Be Young and Multicultural
        • Table Selected Demographic Characteristics of Adults Drinking Bottled Still Water by Number of Glasses Consumed in Last 7 Days, 2013
      • Sparkling Water Works for GenXers
        • Table Selected Demographic Characteristics of Adults Drinking Sparkling Water by Number of Glasses Consumed in Last 7 Days, 2013
      • Perrier and S. Pellegrino Succeed with Upscale Urbanites
        • Table Selected Demographic Characteristics of Adults Naming Perrier or S. Pellegrino the Brand of Sparkling Water Used Most Often, 2013
    • Focus on Health and Fitness
      • Bottled Water Appeals to Weight-Conscious Americans
        • Table Attitudes toward Weight Management of Adults Drinking High Volumes of Bottled Still and Sparkling Waters in Last 7 Days, 2013
      • Fitness Buffs Key Segment in Bottled Water Market
        • Table Physical Fitness Activities of Adults Drinking High Volumes of Bottled Still and Sparkling Waters, 2013
    • Eating Habits and Food Preferences
      • Bottled Water Users Less Likely to Eat Three Square Meals a Day
      • Healthy Snacking Appeals
        • Table Healthy Snacking by Adults Drinking High Volumes of Bottled Still and Sparkling Waters, 2013
      • Households of Bottled Water Drinkers Eat Lots of Other Snacks
        • Table Household Use of Snacks by Adults Drinking High Volumes of Bottled Still and Sparkling Waters by Type and Volume of Snack Consumed in Last 30 Days, 2013
      • Energy and Sports Drinks Appeal
        • Table Use of Other Beverages by Adults Drinking High Volumes of Bottled Still and Sparkling Waters, 2013
      • Sparkling Water Drinkers Have Gourmet Tendencies
        • Table Food Preferences of Adults Drinking High Volumes of Bottled Still and Sparkling Waters in Last 7 Days, 2013
      • Bottled Water Consumers Big Spenders in Grocery Stores
        • Table Supermarket Shopping Profile of Adults Drinking High Volumes of Bottled Still and Sparkling Waters, 2013
      • Bottled Water Fans Like to Try New Food and Beverage Products
        • Table Attitudes toward Trying New Food and Beverage Products of Adults Drinking High Volumes of Bottled Still and Sparkling Waters in Last 7 Days, 2013
      • Sparkling Water Devotees Shop Natural Channel
        • Table Attitudes toward Natural Foods of Adults Drinking High Volumes of Bottled Still and Sparkling Waters, 2013
    • Receptivity to Marketing and Advertising
      • Ads Can Reach Bottled Water Drinkers on Social Media and Cellphones
        • Table Receptivity to Marketing and Advertising on Cellphones and Social Media of Adults Drinking High Volumes of Bottled Still and Sparkling Waters in Last 7 Days, 2013
      • Magazines Work Too
        • Table Importance of Magazines of Adults Drinking High Volumes of Bottled Still and Sparkling Waters in Last 7 Days, 2013

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