Drinking more water is consumers’ No. 1 health goal for 2023, which is good news for bottled water sales at c-stores.
A whopping 68% of consumers indicated they want to increase their water consumption this year, noted Mike Kostyo, trendologist and associate director for market research firm Datassential.
According to NielsenIQ, more than 1 billion units of bottled water were sold at c-stores for the 52 weeks ending Dec. 31, 2022, a 7% decrease over the previous year, with the average price increasing 12.2% with a per-unit cost of $2.12. Overall sales revenue for bottled water increased 4.4% in 2022, with sales reaching $2.2 billion.
“Bottled water products that highlight hydration and health on packaging or in marketing materials will be key this year,” he said.
Sports drink dollar sales rang in at $4.47 billion in c-stores, up 11% for the 52 weeks ending Jan. 1, 2023, per IRI. Unit sales dipped 1.8% for the period, with the per-unit cost up 13%.
Trends to Watch
“Sustainability concerns continue to impact the bottled water category,” Kostyo said.
Retailers should expect to see more packaging innovation in the future.
“Differentiation is always a main driver in the bottled water category,” he added. “We’ll see more brands using bolder marketing tactics, following in the footsteps and success of Liquid Death.”
New flavors, sparkling water launches and functional additions also will drive innovation in bottled waters.
“Look for more alkaline and hydrogen waters, seasonal flavor releases, waters inspired by cocktails like Spindrift’s new Nojito option, and unusual offerings like Splendor volcanic artesian water with colloidal silver and gold,” Kostyo said.
Stinker Stores started offering private-label water over a year ago, with a few SKUs targeting some sub-segments of the category, noted Billy Colemire, marketing director for Stinker Stores, which operates 110 c-stores in Idaho, Colorado and Wyoming.
“We’ve been really impressed with how quickly the customers have taken it on,” Colemire added of the private-label water. “At this point, we’re trying to figure out how we can expand that private-label segment a little more.”
Consumers are wanting more consistency in stocking status, Colemire said.
“That’s what’s led us down that route,” he added. “The supply chain has been pretty disrupted over the last couple years, to say the least. For us, it’s having something that customers know or brands that resonate with them and that’s consistently in stock.”
Additionally, Colemire has noted a shift from carbonated soft drinks to flavored waters and isotonics, a trend he expects will continue throughout the year.
“We expect sports drinks to maintain their current position or slightly grow, depending on supply chain and distribution challenges, within the overall packaged beverage category,” he said, adding he sees plenty of innovation to sustain growth over the coming year.
