Eastern European Demand for Bottled Water to Soar

Warmer summers and higher standards of living are expected to push a surge in demand for bottled water in Eastern Europe, says a new report

Consumption rose nine per cent to 10bn litres in 2005, a figure predicted to rise consistently over the next five years, according to beverage market research group Zenith International.

While the average annual consumption in Eastern Europe of 33 litres per person still falls short of the 108 litres boasted in Western Europe, the report estimates the gap is set to narrow over the coming years. It adds that Eastern European consumption in 2006 could exceed the 11bn-litre mark.

Multinational firms have been quick to seize upon these emerging markets and move their operations eastward, with Nestlé Waters, Danone, Coca-Cola and PepsiCo0 all making acquisitions in the region over the last few years.

However, despite their reputations, the major players have found stiff competition from native brands already present in the market. Brands like the Czech Republic's Karlovarske, and Myrhorod in the Ukraine, possess strong recognition among domestic consumers and have helped to drive demand over the last few years.

Romanian producer Romaqua estimates that it supplies a quarter of domestic bottled water consumption, and has recently invested €10m in its infrastructure to meet growing demand.

Accepting that more temperate climates have been a driving factor of growth in bottled water markets, Zenith research director Gary Roethenbaugh sees a wider number of trends helping to push growth of bottled water in Eastern Europe.

“Annual rises are forecast at around 7 per cent over the next five years. With sustained marketing investment and favourable weather conditions, these estimates could prove conservative,” he said commenting on the report.

Source: Beverage Daily