Table of Contents
Executive Summary
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- The issues
- Preference for tap water
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- Figure 1: Consumption – Any/frequent drinkers, October 2015
- Most bottled water varieties consumed moderately
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- Figure 2: Consumption – Frequent/moderate drinkers only, October 2015
- Consumers drink a variety of beverages
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- Figure 3: Beverage and coffee tracker – Any consumption, September 2015 and October 2015
- The opportunities
- New approaches to environmental concerns
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- Figure 4: Environmental attitudes and behaviors, October 2015
- Consumers want added function
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- Figure 5: Ideal bottled water – Function/attributes, October 2015
- Premium waters gain traction
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- Figure 6: Attitudes and behaviors toward premium water, October 2015
- What it means
The Market – What You Need to Know
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- Category grows 6.4% in estimated 2015
- Bottled water segments see sales growth
- Water filtration innovation, other beverages create competition
- Health among drivers aiding bottled water growth
Market Size and Forecast
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- Category growth forecast to continue through 2020
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- Figure 7: Total US sales and fan chart forecast of bottled water, at current prices, 2010-20
- Figure 8: Total US sales and forecast of bottled water, at current prices, 2010-20
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- Figure 9: Total US sales and forecast of bottled water, at inflation-adjusted prices, 2010-20
Market Breakdown
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- Bottled water segments continue to see sales growth
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- Figure 10: Total US retail sales and forecast of bottled water, by segment, at current prices, 2010-20
- Sparkling water experiences strongest growth through 2020
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- Figure 11: Growth and projected growth rates of bottled water (% change), by segment, at current prices, 2010-20
- Other channels dominate category sales, supermarkets close behind
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- Figure 12: Total US retail sales of bottled water, by channel, at current prices, 2013 and 2015
- Natural channel sales grow
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- Figure 13: Natural supermarket sales of bottled water, at current prices, rolling 52 weeks Oct. 6, 2013-Oct. 4, 2015
- Figure 14: Natural supermarket sales of bottled water, by segment, at current prices, October 2015
- Lime sparkling waters leads flavored waters at natural channels
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- Figure 15: Natural supermarket sales of flavored sparkling water, by flavor, at current prices, October 2015
- Figure 16: Natural supermarket sales of flavored still water, by flavor, at current prices, October 2015
Market Perspective
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- Water filtration products have high overall penetration
- Bottled water sees competition from coffee, CSDs
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- Figure 17: Beverage and Coffee tracker – Any consumption, September 2015 and October 2015
Market Factors
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- Health concerns remain top-of-mind with consumers
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- Figure 18: Important to achieve good health – Any top three rank, May 2015
- Key age group of bottled water drinkers on the rise
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- Figure 19: Growth rates of population (% change), by age, 2010-20
- Declining household income challenges bottled water market
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- Figure 20: Median household income, in inflation-adjusted dollars, 2004-14
- Households with children decline
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- Figure 21: Households, by presence of own children, 2003-13
- Hispanic population experiencing growth
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- Figure 22: Growth rates of population (% change), by race and Hispanic origin, 2010-20
Key Players – What You Need to Know
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- Leading companies experience growth
- Innovation helps fuel growth across bottled water types
- Price, waste, threat of bans challenge bottled water industry
- Flavors, sources, and functionality create unique innovations
Manufacturer Sales of Bottled Water
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- Leading companies see MULO sales growth
- Manufacturer sales of bottled water
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- Figure 23: MULO sales of bottled water, by leading companies, rolling 52 weeks 2014 and 2015
What’s Working?
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- Premium/craft/artisan waters increase presence at MULO channels
- Enhanced and functional water innovation continues
- Sparkling water sees continued growth and innovation
- For the greater good
What Are the Challenges?
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- Price and packaging waste challenge greater growth
- Industry continues to justify benefits in wake of bans
- California drought fuels protest
What’s Next?
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- Bottled water flavors become more sophisticated
- Premium, artesian, and craft waters gain traction
- Brands innovate with new water sources
- Bottled waters see more functionality
- Waters fuse with other beverages
The Consumer – What You Need to Know
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- Men, consumers aged 25-34, Hispanics among core drinkers
- Ideal bottled water is natural and unflavored
- Supermarkets, mass merchandisers top purchase locations
- Price important consideration in bottled water purchase
- Environmental concerns impact bottled water purchases
- Majority prefer premium waters
- Majority finds category too large, prefer water filtration methods
Consumption of Bottled Water
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- Still, unflavored bottled water, and tap water most consumed types
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- Figure 24: Consumption – Any/frequent/moderate drinkers, October 2015
Core Consumers
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- Men heaviest water drinkers
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- Figure 25: Consumption – Any, by gender, October 2015
- Consumers aged 25-34 heaviest consumers of each bottled water type
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- Figure 26: Consumption – Any, by age, October 2015
- Higher income influences bottled water consumption
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- Figure 27: Consumption – Any, by household income, October 2015
- Parents heavy bottled water drinkers
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- Figure 28: Consumption – Any, by presence and age of children in the household, October 2015
- The Hispanic bottled water consumer
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- Figure 29: Consumption – Any, by Hispanic origin, October 2015
Ideal Bottled Water
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- Ideal bottled water natural, unflavored spring water with vitamins
- Spring water preferred water source
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- Figure 30: Ideal bottled water – Source, October 2015
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- Figure 31: Ideal bottled water – Source, by age and age of children in household, October 2015
- Unflavored bottled water preferred
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- Figure 32: Ideal bottled water – Flavor, October 2015
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- Figure 33: Ideal bottled water – Flavor, by age, October 2015
- Four in five consumers want additional function
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- Figure 34: Ideal bottled water – Function/attributes, October 2015
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- Figure 35: Ideal bottled water – Function/attributes, by age, October 2015
- Natural, no artificial ingredients top claims
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- Figure 36: Ideal bottled water – Product claims, October 2015
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- Figure 37: Ideal bottled water – Product claims, by age, October 2015
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- Figure 38: Ideal bottled water – Product claims, by select demographics, October 2015
Purchase Location
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- Supermarkets, mass merchandisers top purchase locations
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- Figure 39: Purchase location, October 2015
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- Figure 40: Share of bottled water new product/new variety/new range extension, by retail location, rolling year ending Jan. 5, 2016
- Hispanics shop at supermarkets
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- Figure 41: Purchase location, by Hispanic origin, October 2015
- Income level impacts bottled water retail purchases
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- Figure 42: Purchase location, by household income, October 2015
- Function, flavor have greatest impact at natural, c-store channels
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- Figure 43: Product attributes, by purchase location, October 2015
Purchasing Attributes
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- Price important consideration
- One third of drinkers look for no artificial ingredients
- Consumers purchase in bulk
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- Figure 44: Purchasing attributes, October 2015
- Attributes worth price for core consumers
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- Figure 45: Purchasing attributes, by select demographics, October 2015
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- Figure 46: Purchasing attributes, by age, October 2015
Attitudes and Behaviors – Environmental Impact
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- Environmental concerns impact bottled water purchases
- Preferences for reusable packaging over biodegradable
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- Figure 47: Environmental attitudes and behaviors, October 2015
- Environmental concerns decrease with age
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- Figure 48: Environmental attitudes and behaviors, by age, October 2015
Attitudes and Behaviors – Premium Waters
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- Majority prefer premium waters
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- Figure 49: Attitudes and behaviors toward premium water, October 2015
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- Figure 50: Attitudes and behaviors toward premium water, by select demographics, October 2015
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- Figure 51: Attitudes and behaviors toward premium water, by age, October 2015
Attitudes and Behaviors – Bottled Water Preferences
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- Majority find category too large, prefer water filtration methods
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- Figure 52: Attitudes and behaviors toward product choice and water filtration, October 2015
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- Figure 53: Attitudes and behaviors toward product choice, by select demographics, October 2015
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- Figure 54: Attitudes and behaviors toward product choice and water filtration, by age, October 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – Market
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- Figure 55: Total US retail sales and forecast of convenience/PET still water, at current prices, 2010-20
- Figure 56: Total US retail sales and forecast of convenience/PET still water, at inflation-adjusted prices, 2010-20
- Figure 57: Total US retail sales and forecast of jug/bulk still water, at current prices, 2010-20
- Figure 58: Total US retail sales and forecast of jug/bulk still water, at inflation-adjusted prices, 2010-20
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- Figure 59: Total US retail sales and forecast of sparkling/mineral water/seltzer, at current prices, 2010-20
- Figure 60: Total US retail sales and forecast of sparkling/mineral water/seltzer, at inflation-adjusted prices, 2010-20
- Figure 61: US supermarket sales of bottled water, at current prices, 2010-15
- Figure 62: US convenience stores sales of bottled water, at current prices, 2010-15
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- Figure 63: US drug store sales of bottled water, at current prices, 2010-15
- Figure 64: US sales of bottled water through other retail channels, at current prices, 2010-15
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Appendix – Key Players
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- Figure 65: MULO sales of jug/bulk bottled water, by leading companies and brands, rolling 52 weeks 2014 and 2015
- Figure 66: MULO sales of convenience/PET still water, by leading companies and brands, rolling 52 weeks 2014 and 2015
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- Figure 67: MULO sales of sparkling water, by leading companies and brands, rolling 52 weeks 2014 and 2015
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