Bottled water to overtake carbonates in two years

While some carbonated beverages are struggling in the current economic climate, one bottled beverage continues to thrive: bottled water. According to market research organisation Canadean, demand for packaged water has rocketed exponentially, with volumes doubling in the past decade despite the global downturn.

This may be surprising in itself, but Canadean’s report reveals something even more unexpected: packaged water will overtake carbonates as the leading soft drinks category in 2015. Canadean says bottled water’s profile has been boosted by its healthy image, plus actual necessity in those areas of the world lacking safe water supplies.

Packaged water market by region.

Canadean predicts volumes will rise in Asia by 16% in 2013 alone - more than twice the global rate of increase. The region already absorbs one in every three litres of packaged water consumed around the world, but the per-capita intake remains well below the international average. This underlines the huge market potential still to be released in this region, particularly in underdeveloped markets like Pakistan, the Philippines and Vietnam.

The Chinese market, despite its size, remains fragmented, with the four main players representing less than a third of category sales. While China represents the cornerstone of Asian packaged-water consumption, India is showing more dynamic advances, at more than 20% each year.

Despite the North American market suffering in recent years, the rate of annual growth is now re-accelerating. This is due in part to rapidly rising prices of other beverages and packaged water’s healthy image. However, conditions still remain challenging, Canadean says.

Water filters and Italian initiatives to promote tap water are creating challenging conditions in West Europe, in addition to the economic crisis. However, market positivity is slowly returning, and Canadean says it sees a positive future for packaged water across all regions.