Return to growth predicted for UK bottled water
“The past two years have seen exceptionally poor summer weather compounded by a deteriorating economy,” commented Zenith Chairman Richard Hall. “Consumer research shows that people are switching to other beverages rather than tap water and that environmental issues have yet to make a substantial impact. These are just some of the factors giving us confidence in a return to growth of around 5% a year from 2012”, he continued. “As to the environment, bottled water has the lowest carbon footprint of any beverage on retailer shelves, all bottles are 100% recyclable and recycling rates are rising rapidly. On World Water Day, it is worth noting that bottled water is one of the most efficient uses of water, its sources are naturally replenished and the total market represents under 0.01% of all fresh water use worldwide. When you look at other countries, UK consumption is lower than East Europe or Latin America and one third of the average in West Europe and North America. So we anticipate a return to growth by 2010, though a good summer could make all the difference this year,” he concluded.
Among other findings of the 2009 Zenith report:
• Still water was responsible for 87% of 2008 volume and sparking water 13%.
• Natural mineral water took a 61% share, spring water 27%, purified water 2% and other waters 10%.
• Locally produced waters accounted for 78% and imported waters 22%.
• Bottled water coolers have fallen to 18% of consumption.
• Packaged retail volumes are 5% higher than 5 years ago.
• The most popular retail pack size is 50cl, followed by 2 litre and 1.5 litre.
• The top five retail brands by volume are Evian, Highland Spring, Volvic, Buxton and Aqua-Pura.
• Of the top 10 retail brands, 5 are English, 2 Scottish, 1 Welsh and 2 French.
Zenith’s forecasts allow for a further 3% market decline in 2009, leading on to renewed growth from 2010 and total sales approaching 2,500 million litres by 2015.