US Still and Sparkling Water Market Report 2021
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Description
Providing the most comprehensive and up-to-date information and analysis of the US Still and Sparkling Water market, including the behaviours, preferences and habits of the consumer.
While bottled water and sparkling water are both covered in this report, they are two distinct markets that have faired very differently throughout the pandemic.
Sales in bottled water saw a spike in purchases early on in the pandemic, with 8% of total sales driven by panic buying as lockdowns came into force. However, with fewer social occasions driving sales and with brands subject to trade-down behavior from financial pressures, the post-pandemic recovery will be slow.
Sparkling water continues to perform strongly, with a lot of potential to attract new customers to the market. Health and wellness has also been a benefit to sparkling water sales, with many consumers interested in the health benefits of sparkling water.
Both markets are facing increasing pressure from sustainability concerns. The pandemic has brought the environment even greater attention, meaning that plastic packaging is under scrutiny from consumers. Innovation into sustainable packaging and non-packaged water solutions will be important to helping the market grow, as well as marketing towards younger consumers.
Read on to discover more details or take a look at all of our U.S Drinks market research.
Quickly understand
- The impact of COVID-19 on consumer behavior and the packaged water market.
- The varying performance of bottled water versus sparkling water.
- Market opportunities for waters with functional benefits.
- The role sustainability plays in the packaged water market.
Covered in this report
Brands: Nestle (Pure Life, Poland Spring, Deer Park, Ozarka, Ice Mountain, Zephyrhills, Arrowhead, Perrier, San Pellegrino), Coca-Cola (Dasani, Vitaminwater, Smartwater, Topo Chico), PepsiCo (Aquafina, Propel, Bubly), LaCroix, Kroger, H-E-B 1877, Lidl, Good & Gather, Aura Bora, AHA, Cascade Ice, Voss, H20, Kimimo, Sanzo, Liquid Death, ZenWTR, Evian, Talking Rain Beverage, Bubbl’r, Nixie, Waterloo, Clearly Canadian, Spindrift.
Expert analysis from a specialist in the field
Written by Caleb Bryant, a leading analyst in the Food & Drink sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
The pandemic resulted in relatively strong sales of bottled water and further solidified its status as a necessary staple product in the minds of many core category consumers, a designation that will benefit the category for years to come. However, the loss of key social occasions weighed down the market, and while consumers have largely positive views of bottled water, the market remains vulnerable to losses stemming from consumers’ interest in sustainability. Sparkling water in contrast is poised for continued strong growth as interest in health and wellness results in the trading of sugary drinks for sparkling water.
Caleb Bryant
Associate Director of Food and Drink Reports
Table of Contents
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Overview
- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: Market context
- Economic and other assumptions
- What you need to know
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Executive Summary
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- Top takeaways
- Market overview
- Figure 1: Total US retail sales and forecast of still and sparkling waters, at current prices, 2015-25
- Impact of COVID-19 on still bottled water and sparkling water
- Figure 2: Short-, medium- and long-term impact of COVID-19 on bottled water and sparkling water, March 2021
- Challenges
- Interest in sustainability threatens bottled water’s future
- Figure 3: Water attitudes, any agree, by generation, December 2020
- Success of private label water comes at the expense of mid-tier brands
- Figure 4: Water attitudes, brand loyalty, any agree, by gender and generation, December 2020
- Pandemic reduces frequency of key bottled water consumption occasions
- Opportunities
- Pandemic makes bottled water a “must have” necessity
- Figure 5: Reasons for purchasing more bottled water, December 2020
- Reinforce consumers’ bottled water stocking behaviors
- Figure 6: Water stocking behaviors, bottled water vs sparkling water, among water type consumers, December 2020
- Sparkling water sales soar, product innovation will push the market to new highs
- Figure 7: Total US retail sales and forecast of still and sparkling waters, by segment, at current prices, 2015-25
- Make water the ultra-functional beverage
- Figure 8: Water functional benefit appeal, most appealing and any appeal, December 2020
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The Market – Key Takeaways
- The pandemic offers short term benefits despite loss of key consumption occasions
- Psychological scars of the pandemic solidifies bottled water as a necessity
- Brands must address sustainability concerns
- Decline of national brands indicative of the market’s future
- Sparkling water encroaches on CSD consumption occasions
- The pandemic offers short term benefits despite loss of key consumption occasions
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Market Size and Forecast
- Water rises as pandemic rages
- Figure 9: Total US retail sales and forecast of still and sparkling waters, at current prices, 2015-25
- Figure 10: Total US retail sales and forecast of still and sparkling waters, at current prices, 2015-25
- Impact of COVID-19 on bottled water and sparkling water
- Figure 11: Short-, medium- and long-term impact of COVID-19 on still and sparkling water, July 2020
- Lockdown
- Re-emergence
- Recovery
- COVID-19: US context
- Consumers traded down and dropped out during Great Recession
- Figure 12: Total US sales of packaged water, 2006-2011
- Water rises as pandemic rages
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Segment Performance
- Bottled water’s performance points to a future slowdown
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- Figure 13: Total US retail sales and forecast of still and sparkling waters, by segment, at current prices, 2015-25
- Figure 14: Total US retail sales and forecast of still and sparkling waters, by segment, at current prices, 2015-25
- Sparkling water market continues to bubble
- Jug water is growing sleepy category ripe for disruption
- Falling c-store sales indicates loss of impulse-driven purchases
- Figure 15: Total US retail sales of still and sparkling waters, by channel, at current prices, 2015-20
- Bottled water’s performance points to a future slowdown
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Market Factors
- Panic creates a sense of needing to be prepared, benefiting the water market
- Water loses key social and travel occasions
- Sustainability takes a back seat to safety in the short term
- Innovations in home water filtration challenges the market
- Figure 16: Total US sales of water filtration products*, at current prices, 2015-20
- Water benefits as consumers seek to lose the Quarantine-15
- Population changes pose future challenges to the bottled water market
- Figure 17: Population by generation, 2016-26
- Prolonged economic recovery will result in more bottled water brand trading behaviors
- Figure 18: US unemployment rate, January 2007-January 2021
- Figure 19: Consumer sentiment index, January 2007- February 2021
- Panic creates a sense of needing to be prepared, benefiting the water market
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Market Opportunities
- Water needs to go big
- Private label water can offer consumers more
- Water can enhance the great outdoors
- Flavor innovation keeps sparkling water interesting
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- Figure 20: Top 30 sparkling water flavors, % of product launches by year, 2017 vs 2020
- Figure 21: Experience and interest in non-alcoholic beverage flavors, November 2019
- Sustainability is a status symbol
- Figure 22: US Water product launches, select ethical claims, % of annual product launches, 2017-20
- Water needs to go big
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Companies and Brands – Key Takeaways
- Bottled water market splits in two directions
- Sparkling water elicits brand loyalty
- Added functionality makes water the ultimate BFY drink
- Bottled water market splits in two directions
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Market Share
- Private label wins the water wars during the pandemic
- Figure 23: Multi-outlet sales of convenience/pet still water, by leading companies and brands, rolling 52 weeks 2019 and 2020
- Sparkling water soars as consumers seek flavor experiences
- Figure 24: Multi-outlet sales of seltzer/sparkling/mineral water, by leading companies and brands, rolling 52 weeks 2019 and 2020
- Private label wins the water wars during the pandemic
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Competitive Strategies – A Focus on Functionality
- Now: Changes in exercise activities creates new opportunities for easy-drinking water/sports drinks hybrid
- Next: Oxygenated water can build off the success of alkaline water
- Figure 25: Recovery + Rise: Stephen Curry
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- Figure 26: Recovery + Rise: James, Frontline Transit Driver
- Now: Pandemic increases demand for immune-support waters
- Next: connect gut health with immune health
- Now: Sleep/relaxation waters offer consumers respite
- Next: botanical waters use adaptogens as a hero ingredient with catch-all benefits
- Now: Changes in exercise activities creates new opportunities for easy-drinking water/sports drinks hybrid
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The Consumer – Key Takeaways
- Bottled water consumers are not the same as sparkling water consumers
- Increased time at home was a double-edged sword for the bottled water market
- Positive perceptions of bottled water override environmental concerns among category users
- Leverage water’s health halo to create the ultimate functional beverage
- Bottled water consumers are not the same as sparkling water consumers
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Water Consumption
- Lower bottled water consumption among young consumers indicates future issues
- Figure 27: Water consumption, December 2020
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- Figure 28: Water consumption, by generation, December 2020
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- Figure 29: Water consumption, by age and HHI, December 2020
- Lower bottled water consumption among young consumers indicates future issues
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Water Stocking Behaviors
- Bottled water is a necessity for category purchasers
- Figure 30: Water stocking behaviors, bottled water vs sparkling water, among water type consumers, December 2020
- Sparkling water is a must-have for Millennials and high-income consumers
- Figure 31: Water stocking behaviors, bottled water, among water type consumers, by generation, December 2020
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- Figure 32: Water stocking behaviors, sparkling water, among water type consumers, by generation, December 2020
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- Figure 33: Water stocking behaviors, bottled water, among water type consumers, by HHI, December 2020
- Figure 34: Water stocking behaviors, sparkling water, among water type consumers, by HHI, December 2020
- Bottled water is a necessity for category purchasers
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Changes in Bottled Water Purchases and Why
- Category purchasers are highly engaged consumers
- Figure 35: Changes in unflavored bottled water purchases, by select demographics, December 2020
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- Figure 36: Changes in unflavored bottled water purchases, by water type consumers, December 2020
- Pandemic propels the bottled water market
- Figure 37: Reasons for purchasing more bottled water, December 2020
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- Figure 38: Reasons for purchasing more bottled water, by age, December 2020
- Increased time at home is a double-edge sword
- Figure 39: Reasons for purchasing less bottled water, December 2020
- Category purchasers are highly engaged consumers
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Water Flavor Interest
- Make unique flavors a market differentiator
- Figure 40: Water flavor interest, among still and sparkling water consumers, December 2020
- Core sparkling water consumers want flavor experiences
- Figure 41: Water flavor interest, by water stocking behaviors, December 2020
- Flavor variety can make bottled water more appealing to younger consumers
- Figure 42: Water flavor interest, by generation, December 2020
- Make unique flavors a market differentiator
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Water Attitudes
- Consumers hold positive views of bottled water despite sustainability hesitancies
- Figure 43: Water attitudes, any agree, December 2020
- Lower bottled water brand loyalty may result in trade-down behaviors
- Figure 44: Water attitudes, brand loyalty, any agree, by gender and generation, December 2020
- Black consumers view bottled water in a positive light
- Figure 45: Water attitudes, any agree, by race/ethnicity, December 2020
- Opportunity for highly sustainable sparkling waters
- Figure 46: Water attitudes – CHAID – tree output, December 2020
- Consumers hold positive views of bottled water despite sustainability hesitancies
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Functional Benefits Interest
- Functional benefits enhance water’s health halo
- Figure 47: Water functional benefit appeal, most appealing and any appeal, December 2020
- Reach unique consumer groups through functional claims
- Figure 48: Water functional benefit appeal, any appeal, by gender and age, December 2020
- Immune system support can be the foundation on which to build additional benefits
- Figure 49: Water functional benefit appeal, any appeal, by select water type consumers, December 2020
- Functional benefits enhance water’s health halo
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Appendix – Data Sources and Abbreviations
- Data sources
- Sales data
- Forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Data sources
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Appendix – The Market
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- Figure 50: Total US retail sales and forecast of still and sparkling waters, at inflation-adjusted prices, 2015-25
- Figure 51: Total US retail sales of still and sparkling waters, by segment, at current prices, 2018 and 2020
- Figure 52: Total US retail sales and forecast of convenience/pet still water, at inflation-adjusted prices, 2015-25
- Figure 53: Multi-outlet sales of convenience/pet still water, by value and volume, 2015-20
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- Figure 54: Total US retail sales and forecast of jug/bulk still water, at inflation-adjusted prices, 2015-25
- Figure 55: Multi-outlet sales of jug/bulk still water, by value and volume, 2015-20
- Figure 56: Total US retail sales and forecast of seltzer/sparkling/mineral water, at inflation-adjusted prices, 2015-25
- Figure 57: Multi-outlet sales of seltzer/sparkling/mineral water, by value and volume, 2015-20
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Appendix – Company and Brands
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- Figure 58: Multi-outlet sales of still and sparkling water, by leading companies, rolling 52 weeks 2019 and 2020
- Figure 59: Multi-outlet sales of jug/bulk still water, by leading companies and brands, rolling 52 weeks 2019 and 2020
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Appendix – The Consumer
- CHAID Methodology
- CHAID Results
- Figure 60: Water attitudes – CHAID – tree table, December 2020
- CHAID Methodology
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