A vast majority of consumers consider bottled water—in all of its forms—to be healthier than soft drinks, according to newly released findings from a survey conducted online by Harris Poll of more than 2,000 U.S. adults aged 18 years and older for the International Bottled Water Association.
By product type, bottled waters are classified as still water, carbonated water, flavored water and functional water. By revenue, still water is the largest contributor in the U.S. bottled water market in 2014 with almost $3 billion in sales, according to Information Resources Inc. (IRI) data.
A new market report published by Transparency Market Research “Bottled Water (Still, Carbonated, Flavored and Functional) Market—Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014–2020” forecasted that the net worth of the global bottled water market will rise from $157.27 billion in 2013 to $279.65 billion by 2020, reporting growth at a compound annual growth rate (CAGR) of 8.7% over the period.
According to market projections, the greatest market growth is expected in the functional and flavored water segments, projected to move at a significant CAGR of 12%, growing to nearly $29 billion in 2018.
That’s a lot of consumers of bottled water. A healthy slice of that demographic is found in the U.S. military branches.
“I think the continued focus on making healthier decisions when it comes to food and beverages has contributed to the growth in this category,” said Adrienne Townes, a senior buyer for Army & Air Force Exchange Service (Exchange). Townes currently manages non-alcoholic beverage category purchases for more than 800 Exchange locations.
Howard Telford, global beverages analyst for Euromonitor International, predicts higher value growth and volume growth for functional and carbonated waters in 2015.
“We’re classifying all these things as waters, but the lines are blurring,” Telford said, explaining that more carbonated waters, for example, boast a variety of flavors that are striking a chord with consumers. Recently, the sparkling water market has gotten more crowded with brands, such as LaCroix, which is unsweetened and sold in cans, and Sparkling ICE, also promoted for its distinct flavors.
Consistent performers like Coke-Cola’s vitamin-enhanced Glacéau Vitaminwater and electrolyte-enhanced Glaceau Smartwater are gaining more c-store cold vault space as well.
SPORTS GALORE
Sports drinks also had a banner year, generating U.S. dollar sales of $2.62 billion, during the 52 weeks ending Dec. 28, 2014, according to Information Resources Inc. (IRI).
In today’s on-the-go lifestyle, Telford said, bottled water is a convenient, healthy-hydration choice, but sports drinks enjoy a large market share because of effective marketing to younger demographics, including Millennials.
