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Bottled Water - UK - March 2017

“That 46% of drinkers/buyers cut back when money is tight signals a warning for the market, given the economic uncertainty and threat of future inflation. An emphasis on environmental preservation offers a promising means for companies to differentiate their offering given the strong consumer interest in this area.”
Alice Baker, Research Analyst

This report covers the following areas:

  • Strong consumer interest in the environment provides opportunities for those best able to trade on positive credentials
  • Make-your-own flavoured water kits would cater to consumer desire for customisation
  • Parents' strong tendency to buy bottled water provides scope for expansion in children's products

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Health concerns and low prices drive sales growth 2011-16
              • Soft drinks levy and economy to determine sales 2016-21
                • Figure 1: Forecast of UK sales of bottled water, by value, 2011-21
              • Unflavoured waters gain most from consumer sugar concerns
                • Greater volatility in on-premise sales
                  • Soft drinks levy could strengthen category
                    • Companies and brands
                      • Volvic remains market leader but volume sales fall
                        • Figure 2: Leading brands’ shares in the UK retail bottled water market, by value, 2015/16*
                      • L/N/R sugar claims for flavoured water rise in 2016
                        • Category blurring continues into 2016
                          • Advertising spend rises in 2016
                            • Evian is the most trusted brand, while Glacéau is the most likely to be seen as different
                              • The consumer
                                • Overall usage unchanged, but flavoured sparkling usage frequency rises
                                  • Figure 3: Usage frequency for bottled water, by type, December 2016
                                • Future direction of the economy significant for bottled water sales
                                  • Figure 4: Bottled water drinking and buying behaviours, December 2016
                                • Only a minority see bottled water as bad for the environment, but backlash risks are high
                                  • Emphasising environmental credentials is a promising means to appeal
                                    • Figure 5: Attitudes towards bottled water, December 2016
                                  • What we think
                                  • Issues and Insights

                                    • Strong consumer interest in the environment provides opportunities for those best able to trade on positive credentials
                                      • The facts
                                        • The implications
                                          • Make-your-own flavoured water kits would cater to consumer desire for customisation
                                            • The facts
                                              • The implications
                                                • Parents’ strong tendency to buy bottled water provides scope for expansion in children’s products
                                                  • The facts
                                                    • The implications
                                                    • The Market – What You Need to Know

                                                      • Health concerns and low prices drive sales growth over 2011-16
                                                        • Soft drinks levy and economy to determine sales 2016-21
                                                          • Unflavoured waters gain most from consumer sugar concerns
                                                            • Greater volatility in on-premise sales
                                                              • Soft drinks levy could strengthen category
                                                              • Market Size and Forecast

                                                                • Bottled water volumes benefit from low prices and sugar controversy over 2011-16
                                                                  • Figure 6: UK value and volume sales of bottled water, 2011-21
                                                                • Forecast
                                                                  • Soft drinks levy likely to drive up volume sales over 2016-21
                                                                    • State of the economy could have conflicting effects
                                                                      • Demographic changes provide a boost and a challenge
                                                                        • Effects of exchange rates to be limited, but overall inflation to push up values over 2016-21
                                                                          • Figure 7: Forecast of UK sales of bottled water, by value, 2011-21
                                                                          • Figure 8: Forecast of UK sales of bottled water, by volume, 2011-21
                                                                        • Forecast methodology
                                                                        • Market Segmentation

                                                                          • Unflavoured waters benefit particularly from heightened sugar concerns
                                                                            • Figure 9: Retail value and volume sales of bottled water, by segment, 2014-16
                                                                          • Fortified water benefits from increased availability and health trends
                                                                            • Greater volatility in on-premise sales
                                                                              • Figure 10: Value and volume sales of bottled water, by retail and on-premise channels, 2011-16
                                                                          • Market Drivers

                                                                            • State of the economy is key to future sales
                                                                              • Pound’s depreciation could lead to inflation for imported waters
                                                                                • Health concerns over sugar continue
                                                                                  • Soft drinks tax could give a boost to unflavoured water
                                                                                    • Some flavoured variants could lose out
                                                                                      • Government advises parents to limit their children’s intake of sugary drinks
                                                                                        • Changing population dynamics provide a challenge and an opportunity
                                                                                        • Companies and Brands – What You Need to Know

                                                                                          • Volvic remains market leader but volume sales fall
                                                                                            • L/N/R sugar claims for flavoured water rise in 2016
                                                                                              • Category blurring continues into 2016
                                                                                                • Advertising spend rises in 2016
                                                                                                  • Evian is the most trusted brand, while Glacéau is the most likely to be seen as different
                                                                                                  • Market Share

                                                                                                    • Mixed results for Danone’s brands
                                                                                                      • Increased advertising and range extensions helps Glacéau to grow
                                                                                                        • Figure 11: Leading brands’ sales and share in the UK bottled water retail market, by value and volume, 2013/14-2015/16
                                                                                                        • Figure 12: Leading manufacturers’ sales and share in the UK bottled water retail market, by value and volume, 2013/14-2015/16
                                                                                                    • Launch Activity and Innovation

                                                                                                      • Environmentally friendly packaging remains the top claim, but little real innovation
                                                                                                        • Figure 13: New product launches in the UK bottled water market, by top 20 claims (sorted by 2016), 2012-16
                                                                                                      • L/N/R sugar claims rise for flavoured water
                                                                                                        • CCE targets parents’ health concerns with Capri-Sun Fruity Water
                                                                                                          • Artificial sweeteners the primary sugar substitute, but some use of alternatives
                                                                                                            • Category blurring continues into 2016
                                                                                                              • Between flavoured waters and juice drinks…
                                                                                                                • …and coloured sparkling flavoured waters, offering competition to CSDs
                                                                                                                  • Cucumber waters appear from smaller brands looking to appeal to desire for less sweet tastes
                                                                                                                  • Advertising and Marketing Activity

                                                                                                                    • Advertising spend rises in 2016
                                                                                                                      • Figure 14: Total above-the line, online display and direct mail advertising expenditure on bottled water, by top advertisers (sorted by 2016), 2012-16
                                                                                                                    • CCE overtakes Danone as largest advertiser
                                                                                                                      • Pushing a message of simplicity and purity with seasonal summaries
                                                                                                                        • Beacon campaign pushes out-of-home recommendations
                                                                                                                          • Promoting associations with Christmas to encourage winter drinking
                                                                                                                            • Danone takes multiple approaches to promoting Volvic in 2016
                                                                                                                              • Sports-led focus for Volvic’s plain variants
                                                                                                                                • Flavoured variants portrayed as a way for people to express their individuality
                                                                                                                                  • Volvic Juiced shown as a mood-booster
                                                                                                                                    • Volvic draws on volcanic origins to promote inner strength
                                                                                                                                      • Evian continues its ‘Live Young’ campaign
                                                                                                                                        • AG Barr supports Rubicon Spring launch
                                                                                                                                          • Nielsen Ad Intel coverage
                                                                                                                                          • Brand Research

                                                                                                                                              • What you need to know
                                                                                                                                                • Brand map
                                                                                                                                                  • Figure 15: Attitudes towards and usage of selected brands, January 2017
                                                                                                                                                • Key brand metrics
                                                                                                                                                  • Figure 16: Key metrics for selected brands, January 2017
                                                                                                                                                • Brand attitudes: Evian is the most trusted brand
                                                                                                                                                  • Figure 17: Attitudes, by brand, January 2017
                                                                                                                                                • Brand personality: Volvic is seen as the most fun
                                                                                                                                                  • Figure 18: Brand personality – Macro image, January 2017
                                                                                                                                                • Brand personality: Glacéau is seen as stylish and sophisticated
                                                                                                                                                  • Figure 19: Brand personality – Micro image, January 2017
                                                                                                                                                • Brand analysis
                                                                                                                                                  • Glacéau Smartwater stands out from other brands
                                                                                                                                                    • Figure 20: User profile of Glacéau Smartwater, January 2017
                                                                                                                                                  • Volvic scores highest for taste but fails to stand out
                                                                                                                                                    • Figure 21: User profile of Volvic, January 2017
                                                                                                                                                  • Evian is the brand most seen as worth paying more for
                                                                                                                                                    • Figure 22: User profile of Evian, January 2017
                                                                                                                                                  • Highland Spring enjoys favour among people in Scotland
                                                                                                                                                    • Figure 23: User profile of Highland Spring, January 2017
                                                                                                                                                  • Buxton could do more to showcase its support for the environment
                                                                                                                                                    • Figure 24: User profile of Buxton, January 2017
                                                                                                                                                • The Consumer – What You Need to Know

                                                                                                                                                  • Overall usage unchanged, but flavoured sparkling usage frequency rises
                                                                                                                                                    • Future direction of the economy influential for bottled water sales
                                                                                                                                                      • Only a minority see bottled water as bad for the environment, but backlash risks are high
                                                                                                                                                        • Emphasising environmental credentials is a promising means to appeal
                                                                                                                                                        • Usage of Bottled Water

                                                                                                                                                          • 71% drink bottled water, with sugar focus boosting sparkling variants
                                                                                                                                                            • Only a minority drink bottled water daily
                                                                                                                                                              • Figure 25: Usage frequency for bottled water, by type, December 2016
                                                                                                                                                            • Ageing population could limit volume sales growth
                                                                                                                                                              • Figure 26: Usage of bottled water (any type), by age, December 2016
                                                                                                                                                            • Filtered water a potential rival
                                                                                                                                                              • Environmental concerns help to drive water filter usage
                                                                                                                                                              • Bottled Water Buying Occasions

                                                                                                                                                                • Out-of-home occasions dominate, but over half buy to drink at home
                                                                                                                                                                  • Figure 27: Bottled water buying occasions, December 2016
                                                                                                                                                                • Designer packaging could encourage special occasion usage
                                                                                                                                                                  • Opportunities for expansion in lunchbox formats
                                                                                                                                                                  • Bottled Water Drinking and Buying Behaviours

                                                                                                                                                                    • Sugar concerns prompt switching
                                                                                                                                                                      • L/N/R sugar flavoured waters will need to strongly emphasise this attribute
                                                                                                                                                                        • Consumer suspicions of artificial sweeteners present a barrier to reformulation
                                                                                                                                                                          • Figure 28: Bottled water drinking and buying behaviours, December 2016
                                                                                                                                                                        • The future direction of the economy is pivotal for bottled water sales
                                                                                                                                                                          • Flavoured water especially vulnerable to spending cutbacks
                                                                                                                                                                            • Make-your-own flavoured water kits would cater to consumers’ desire for customisation
                                                                                                                                                                            • Attitudes towards Bottled Water

                                                                                                                                                                              • Bottled water is seen as bad for the environment by a significant minority
                                                                                                                                                                                • Figure 29: Attitudes towards bottled water, December 2016
                                                                                                                                                                              • Strong consumer interest in environmentally friendly options
                                                                                                                                                                                • Recycled plastic bottles have strong appeal
                                                                                                                                                                                  • Demonstrating environmental commitments should provide a boost
                                                                                                                                                                                    • Need to make environmental policies more prominent
                                                                                                                                                                                      • Funding conservation projects would allow companies to demonstrate their commitment to the environment
                                                                                                                                                                                        • Need to make charity links more tangible
                                                                                                                                                                                        • Qualities Associated with Flavoured Water vs Juice Drinks

                                                                                                                                                                                          • Flavoured water is associated with positive attributes such as hydration and refreshment
                                                                                                                                                                                            • Figure 30: Qualities Associated with flavoured water vs juice drinks, December 2016
                                                                                                                                                                                        • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                            • Abbreviations
                                                                                                                                                                                              • Consumer research methodology
                                                                                                                                                                                              • Appendix – Market Size and Forecast

                                                                                                                                                                                                  • Figure 31: Forecast of UK sales of bottled water, by value, best- and worst-case, 2016-21
                                                                                                                                                                                                  • Figure 32: Forecast of UK sales of bottled water, by volume, best- and worst-case, 2016-21
                                                                                                                                                                                                • Forecast methodology

                                                                                                                                                                                                Companies Covered

                                                                                                                                                                                                To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                                Bottled Water - UK - March 2017

                                                                                                                                                                                                US $2,583.33 (Excl.Tax)