“Offerings that stress hydration, health, and convenience will support increased bottled water consumption. Consumers remain price sensitive in the category, and with so many choices, value will be what consumers fall back on. Products with higher price points need to be justified through unique flavors and innovation to draw in new users. However, the ultimate goal should be easy accessibility in a variety of forms.”
– Elizabeth Sisel, Beverage Analyst
Some questions answered in this report include:
- Still water sales growth has stalled - how can consumers be encouraged to continue purchasing?
- With consumers drinking a variety of beverages and water products where do opportunities within the market lie?
- How can brands stand out in a crowded market?
The bottled water and drink mix market has seen great success from recent health trends. However, consumers’ continued recovery from the economic recession and perceptions about possible environmental effects continue to challenge the category. This increases competition in the market, encouraging tap water consumption, interest in reusable vessels and filtration systems, and private label offerings.
However, bottled water and drink mixes continue to appeal to consumers for their convenience and innovation in providing a healthy drink replacement for sugary carbonated sodas and juices.
Manufacturers must continue to address the category’s drawbacks, which include sustainability and price sensitivity. However, bottled water and beverage mix companies also can take advantage of recent trends favoring low- and no-calorie beverages with new flavors and functional innovation.
For the purposes of this report, Mintel has used the following definitions: Mintel covers the US market for bottled water as defined by the IBWA (International Bottled Water Association). The IBWA defines bottled water as water sealed in a sanitary container to be sold for human consumption. This water may be artificially purified or tapped from a natural spring, may be still or sparkling (carbonated), flavored or unflavored. For this report, Mintel has segmented the bottled water market as follows:
Convenience/PET still bottled water – including flavored and unflavored Sparkling bottled water – including flavored and unflavored Jug/bulk still bottled water
Private label still and sparkling waters are shown as separate segments due to lack of sufficient data to allocate them to the different segments. In addition, this report includes a special supplement on the sales, marketing strategies, and consumer use of powdered and liquid beverage mix products, including Crystal Light and MiO, as it relates to water consumption.
Excluded from this report are water sold from bulk dispensers or coolers; water sold in foodservice; and home or office water delivery.