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Bottled Water - UK - March 2014

INTRODUCTION
Natural mineral water
Spring water
Table water
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Forecast of UK value sales of bottled water, 2008-18
Market factors
Sales soar during July 2013 heat wave
Figure 2: Mean temperature, rainfall and sunshine hours over summer (June, July and August), 2008-13
The ageing population presents a challenge
Return to consumer spending bodes well for the market
Companies, brands and innovation
Danone extends its lead in value sales
Figure 3: Leading brands’ shares in the UK bottled water off-trade market, by value, 2013*
An uptick in new launches in 2013
Figure 4: Share of NPD in the UK bottled water market as a percentage of all launches in the drinks market, 2009-13
Adspend at a five-year low
Figure 5: Main monitored media advertising spend on bottled water, 2009-13
The consumer
Unflavoured still water remains the nation’s favourite
Figure 6: Frequency of drinking bottled water, by sub-category, November 2013
Bottled water consumption is highest at home
Figure 7: Occasions for usage of bottled water, by gender, November 2013
Hydration is all-important
Figure 8: Reasons for drinking bottled water, November 2013
Portable hydration
Figure 9: Attitudes towards bottled water, November 2013
Health concerns work both for and against the flavoured water market
Figure 10: Attitudes towards flavoured water, November 2013
What we think
ISSUES AND INSIGHTS
Companies can help overcome bottled water’s reliance on hot summer weather through flavour innovation and new marketing themes
The facts
The implications
Packaging innovation grow the appeal of bottled water?
The facts
The implications
Flavoured bottled water could compete more effectively with other soft drinks
The facts
The implications
TREND APPLICATION
Trend: Play Ethic
Trend: Make it Mine
Mintel futures: Access Anything Anywhere
MARKET DRIVERS
Key points
2013 July heat wave created a major boost in the peak summer season
Figure 11: Mean temperature, rainfall and sunshine hours over summer (June, July and August), UK, 2008-13
Healthy attitudes benefit the bottled water market
Ageing population presents a challenge
Figure 12: Trends in the age structure of the UK population, 2008-18
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Unflavoured water matches flavoured in NPD
Figure 13: Share of NPD in the UK bottled water market as a percentage of all launches in the drinks market, 2009-13
Figure 14: Share of NPD in the UK bottled water market, by sub-category, 2009-13
Brands continues to dominate NPD
Figure 15: Share of NPD in the UK bottled water market, branded vs own-label, 2009-13
Morrisons snatches the lead in NPD
Figure 16: Share of NPD in the UK bottled water market, top 10 companies in 2013, 2009-13
Figure 17: Share of NPD in the UK bottled water market, top 10 brands in 2013, 2009-13
Stevia reformulations saw Coca-Cola lead the branded charge in 2013
The prominence of “green” packaging reaches a peak in 2013
Figure 18: Top ten claims in the UK bottled water market, 2009-13
An uptick in new launches of fortified water
New flavour enhancers enter the UK market
MARKET SIZE AND FORECAST
Key points
A big summer boost from July heat wave
Figure 19: UK Value and volume sales of bottled water, 2008-18
Growth of 20% over 2008-13
The future
Figure 20: Forecast of UK volume sales of bottled water, 2008-18
Figure 21: Forecast of UK value sales of bottled water, 2008-18
Factors used in the forecast
SEGMENT PERFORMANCE
Key points
Still water continues to dominate
Figure 22: UK Value and volume off-trade sales of bottled water, by segment, 2012-13
Encouraging growth from flavoured still water
Sparkling water growing in popularity
MARKET SHARE
Key points
Danone extends its lead in value sales
Figure 23: Leading brands’ shares in the UK bottled water off-trade market, by value, 2013*
Figure 24: Leading brands’ sales and shares in the UK bottled water off-trade market, by value and volume, 2012* and 2013**
Highland Spring and San Pellegrino had the strongest 2013
CCE fails to benefit from the summer surge
A steady presence for own-label
COMPANIES AND PRODUCTS
Britvic
Coca-Cola
Danone Waters
Highland Spring
Isklar
Nestlé Waters
BRAND COMMUNICATION AND PROMOTION
Key points
Adspend at a five-year low
Figure 25: Main monitored media advertising spend on bottled water, 2009-13
Still water’s share of adspend continues to dwindle
Figure 26: Share of monitored media advertising spend on bottled water, by sub-category, 2009-13
Danone accounted for almost half of adspend in 2013
Figure 27: Share of above-the-line advertising spend on bottled water, by top advertisers, 2013
Figure 28: Above-the-line advertising spend on bottled water, by advertiser (top 4 in 2013) and brand, 2009-13
Figure 29: Above-the-line advertising spend, bottled water, top 10 brands, 2009-13
Danone Water
Nestlé ramps up investment across water brands
Vita Coco looks to capitalise on growth of segment
Rise in fortified and sparkling water adspend
BRAND RESEARCH
Brand map
Figure 30: Attitudes towards and usage of brands in the bottled water sector, January 2014
Correspondence analysis
Brand attitudes
Figure 31: Attitudes, by bottled water brand, January 2014
Brand personality
Figure 32: Bottled water brand personality – macro image, January 2014
Figure 33: Bottled water brand personality – micro image, January 2014
Brand experience
Figure 34: Bottled water brand usage, January 2014
Figure 35: Satisfaction with various bottled water brands, January 2014
Figure 36: Consideration of bottled water brands, January 2014
Figure 37: Consumer perceptions of current bottled water brand performance, January 2014
Brand recommendation
Figure 38: Recommendation of various bottled water brands, January 2014
THE CONSUMER – USAGE OF BOTTLED WATER
Key points
Unflavoured still water remains the nation’s favourite
Figure 39: Frequency of drinking bottled water, by sub-category, November 2013
Usage is heavily skewed towards under-35s
Figure 40: Usage of bottled water at least once a week in the last three months, by age group, November 2013
Busy lifestyles and families benefit the market
THE CONSUMER – USAGE OCCASIONS
Key points
Bottled water consumption is highest at home
Figure 41: Occasions for usage of bottled water, by gender, November 2013
Figure 42: Selected occasions for bottled water usage, by age group, November 2013
THE CONSUMER – REASONS FOR DRINKING BOTTLED WATER
Key points
Hydration is all-important
Figure 43: Reasons for drinking bottled water, November 2013
Favourable comparisons to soft drinks help to drive sales
One in three prefer the taste to tap water
THE CONSUMER – ATTITUDES TOWARDS BOTTLED WATER
Key points
Portable hydration
Figure 44: Attitudes towards bottled water, November 2013
Question marks over vitamin water
Older consumers care most about green issues, while under-25s express most interest in aesthetics
Figure 45: Consumers who agree that for social events it is important that the water comes in a bottle which looks good and consumers who would like to see more bottled water in eye catching packaging, by age group, November 2013
THE CONSUMER – ATTITUDES TOWARDS FLAVOURED WATER
Key points
Health concerns both work both for and against the market
Figure 46: Attitudes towards flavoured water, November 2013
One in four are put off by overly sweet flavours
Opportunities for NPD in unusual flavours…
Figure 47: Consumers who would like to see more unusual flavours, consumers who find unflavoured water boring to drink, and those who would be interested in flavoured water which gives them an energy boost, by age group, November 2013
… and energy-boosting ingredients
APPENDIX – MARKET SIZE AND FORECAST
Figure 48: Best- and worst-case forecasts for the total bottled water market, by volume, 2013-18
Figure 49: Best- and worst-case forecasts for the total bottled water market, by value, 2013-18
APPENDIX – BRAND COMMUNICATION AND PROMOTION
Figure 50: Share of above-the-line advertising spend on bottled water, top 10 brands, 2009-13
APPENDIX – BRAND RESEARCH
Figure 51: Brand usage, January 2014
Figure 52: Brand commitment, January 2014
Figure 53: Brand momentum, January 2014
Figure 54: Brand diversity, January 2014
Figure 55: Brand satisfaction, January 2014
Figure 56: Brand recommendation, January 2014
Figure 57: Brand attitude, January 2014
Figure 58: Brand image – macro image, January 2014
Figure 59: Brand image – micro image, January 2014
APPENDIX – THE CONSUMER – USAGE OF BOTTLED WATER
Figure 60: Frequency of usage of bottled water by type, November 2013
Figure 61: Frequency of usage of bottled water by type – Any bottled water, by demographics, November 2013
Figure 62: Frequency of usage of bottled water by type – Unflavoured still, by demographics, November 2013
Figure 63: Frequency of usage of bottled water by type – Flavoured still, by demographics, November 2013
Figure 64: Frequency of usage of bottled water by type – Unflavoured sparkling, by demographics, November 2013
Figure 65: Frequency of usage of bottled water by type – Flavoured sparkling, by demographics, November 2013
APPENDIX – THE CONSUMER – OCCASIONS FOR DRINKING BOTTLED WATER
Figure 66: Occasions for drinking bottled water, November 2013
Figure 67: Most popular occasions for drinking bottled water, by demographics, November 2013
Figure 68: Next most popular occasions for drinking bottled water, by demographics, November 2013
APPENDIX – THE CONSUMER – REASONS FOR DRINKING BOTTLED WATER
Figure 69: Reasons for drinking bottled water, November 2013
Figure 70: Most popular reasons for drinking bottled water, by demographics, November 2013
Figure 71: Next most popular reasons for drinking bottled water, by demographics, November 2013
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS BOTTLED WATER
Figure 72: Attitudes towards bottled water, November 2013
Figure 73: Agreement with the statement ‘Carrying a bottle of water with you is a good way to keep hydrated throughout the day’, by demographics, November 2013
Figure 74: Agreement with the statement ‘Bottled water with added ingredients is overpriced’, by demographics, November 2013
Figure 75: Agreement with the statement ‘It is important to me that bottled water is environmentally friendly’, by demographics, November 2013
Figure 76: Agreement with the statement ‘Bottled water is more hydrating than other drinks’, by demographics, November 2013
Figure 77: Agreement with the statement ‘Sparkling water is a good alternative to having fizzy drinks’, by demographics, November 2013
Figure 78: Agreement with the statement ‘I prefer bottled water from the UK than bottled water from other countries’, by demographics, November 2013
Figure 79: Agreement with the statement ‘For social events it’s important that the water comes in a bottle which looks good’, by demographics, November 2013
Figure 80: Agreement with the statement ‘I trust that bottled water with added vitamins is healthier than standard bottled water’, by demographics, November 2013
Figure 81: Agreement with the statement ‘Bottled water is worth the expense over drinking tap water’, by demographics, November 2013
Figure 82: Agreement with the statement ‘Sparkling water tastes better than still water’, by demographics, November 2013
Figure 83: Agreement with the statement ‘I would like to see more bottled water in eye catching packaging’, by demographics, November 2013
Figure 84: Agreement with the statement ‘I prefer sports/energy drinks to bottled water when exercising’, by demographics, November 2013
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS FLAVOURED WATER
Figure 85: Attitudes towards flavoured water, November 2013
Figure 86: Most popular attitudes towards flavoured water, by demographics, November 2013
Figure 87: Next most popular attitudes towards flavoured water, by demographics, November 2013

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