According to a new study by Zenith International, worldwide sales of premium bottled water advanced 3.9% to 10.3bn litres in 2014, taking its overall retail value to more than $15bn.
“85% of sales were in the mature markets of North America and West Europe,” commented Zenith senior consultant Karen Wells. “In many of these countries, premium brands outperformed other packaged waters, demonstrating that consumers appreciate the attributes of provenance and style as well as quality and convenience”.
Global premium water growth 2009-14. © Zenith International
Other notable regions include Asia Pacific, where premium water has been boosted by rising levels of disposable income, allowing consumers to trade up from mainstream products. In China, premium bottled water has grown at a compound annual growth rate of 17% since 2010. The Middle East also continues to attract interest from premium water brand owners, as the spread of wealth in countries such as Saudi Arabia and UAE makes the potential returns attractive.
The global premium water market is relatively consolidated, with the leading five brands – Evian, Volvic, Vittel, Gerolsteiner and S Pellegrino – accounting for more than half of total volume. For smaller premium brands wishing to enter new markets, having a robust route-to-market plan and finding the right distribution partner remains paramount to success.
Zenith estimates that the global market for premium water will have exceeded 10.6bn litres in 2015 and will increase to more than 12.5bn litres by 2020. “Packaged water responds to a wide variety of consumer needs around the world and is expected to continue growing strongly in the next five years. Premium water is also set to benefit from this trend,” concluded Karen Wells.
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