Global bottled water driven by developing markets

Asia/Australasia reinforced its position as the biggest volume regional market, achieving a 28 percent share, after a rise of 11 percent. Africa and the Middle East also recorded gains of 14 percent and 6 percent respectively, but hold a combined share of just 11 percent. Consumption increased in all other regions except West Europe, which remained static, and North America, which contracted by 0.7 percent in 2008. Despite a decline, the United States is still the largest national market in the world in both volume and value.

“Broadly, it can be said that the bottled water world is split into two halves,” commented Zenith Market Intelligence Director Gary Roethenbaugh. “The more mature markets of North America and West Europe have witnessed a gradual deceleration over the past few years; whereas most other countries are continuing to drive growth of the category and this is likely to remain the case in the near future.”

Other points highlighted by the Zenith report include findings that

– consumption per person reached 32.3 litres in 2008, up 1.1 litres on 2007;

– the United States and China were the two biggest volume markets, with Indonesia and Mexico maintaining their lead over Germany in 5th place;

– still water continued to outpace sparkling water, reaching 86 percent of total volume;

– bulk sizes above 10 litres accounted for 36 percent of overall consumption.

The world’s top four bottled water companies – respectively Nestlé, Danone, Coca-Cola and PepsiCo – held a combined 31 percent volume share in 2008. Danone and Nestlé each own three of the top 10 brands by volume. The top five global brands in volume terms were Aqua from Danone, Pure Life from Nestlé, Wahaha from Danone, Aquafina from PepsiCo and Electropura also from PepsiCo. Coca-Cola and PepsiCo each have two brands in the top 10.

Providing detailed forecasts by country for the next five years, Zenith predicts bottled water consumption will rise a further 18 percent to 259 billion litres in 2013.