Food & Beverage News: Top Stories - Bottled water consumption witnesses strong growth across all markets

The increasing awareness of hydration and association of bottled water with a healthy lifestyle has driven the growth of the bottled water market over the past five years.

Bottled water occasions are seeing strong growth across Europe and the US. Per capita consumption is currently highest in countries where the practice of drinking bottled water is more established in Italy, France and Spain. However, countries with traditionally lower sales of bottled water such as the UK and Sweden are seeing extraordinary growth.

Global annual NAB (non-alcoholic beverages) sales are valued at $650 billion and expected to touch $1 trillion by 2020. The bottled water is up from $ 54 billion in 2002 to $96 billion in 2007.

In comparison the Indian CSD (carbonated soft drinks) market stands at $1.2 billion and the fruit-based beverages and bottled water at $ 600 million and $ 300 million, respectively.

The changing demographics & consumption and buying patterns, increasing urbanisation due to migration from rural areas, shift from unorganised to organised sector are factors driving the sector, stated Yogesh Bellani, Business Head, Del Monte Foods.

In a presentation titled 'Global Beverage Markets versus Indian Beverage Market:
Room for Growth', Bellani highlighted that the bottled water occasions are increasing, taking an increasing 'share of throat'. Consumers associate a healthy lifestyle more with bottled water than any other bottled beverage

At the FUTUREPAC -- All India Conference On Beverages, the Next Sunrise Industry organised by Manjushree Advanced Packaging Solutions at Taj West End Hotel, Bangalore, Bellani gave an overview of the global beverage market which comprises carbonated beverages, beer, bottled water, tea and coffee, fruit-based drinks, milk & soy beverages, functional beverage (energy and isotonic varieties).

New beverage occasions are emerging as consumers look to satisfy conflicting needs. For instance, consumers in Germany have the highest per capita soft drink occasions in Europe, with 1,225 occasions per person per year. This forecast is expected to increase to 1,416 by 2011. In the US, consumers have the highest number of drink occasions per person per year estimated at 1,355 occasions. This is forecast to increase slowly by a CAGR of 1.2% through 2011. The UK and Italy are expected to forecast the strongest growth through 2011, growing at a CAGR of 4.4% and 4.5% respectively.

Rather than carbonate occasions being replaced by juice/healthy/bottled water occasions, consumers are having more occasions in an effort to balance their different health needs. Quoting the Datamonitor 2007 report, Bellani said that US Coffee study found that there was a growing number of consumers who regarded coffee as a self-indulgent treat. But with tea indicating higher health benefits, a growing number of US consumers are shown to switch from coffee to tea, he stated.

Healthier drinks are growing to be a 'share of consumer's throat'. The importance of instantaneous and constant hydration to consumers is growing. This has led to the iimportance attached to drinking plenty of water as a dietary approach which has led to higher purchase of bottled water. The carbonates market is showing little growth as consumers switch to healthier beverages. However, Netherlands, Spain and Germany forecast above average growth, which is mainly due to the continued growth of diet carbonates continuing to replace sugared carbonates. More mature markets such as the UK and the US are forecast to decline in per capita consumption as consumers switch to healthier options.

Juices growth is being driven by the health and convenience trends. Consumers believe that juices are a convenient way of providing part of their five-a-day fruit and vegetable requirements. Germany has the highest number of per capita juice occasions, at 330 per year. One of the key selling points of juices is that they are an easy way of providing one of five-a-day fruit and vegetable requirements

Functional drink occasions are also growing as consumers take preventative and convenience driven approach to consumption. In the US, consumers had on average 87 functional drink occasions per year, the highest out of all the countries covered. This is forecast to rise to 114 occasions per year by 2011. Germany has the highest number of per capita occasions in Europe, at 50 occasions per year and is forecast the quickest growth in occasions per capita, at a CAGR of 7.3% through 2011.