Bottled water represents the fastest growing segment of the global beverage market. World bottled water market is expected to reach $65.9 billion by 2012, stimulated by rising population, consumer spending patterns, lifestyle trends, and growing levels of health consciousness, among others. The market is expected to grow rapidly in the coming years due to growing consumer concerns about fitness, water quality and health.
San Jose, CA (PRWEB) November 10, 2008 -- In the refreshing drinks market, bottled water is the most vibrant segment with market share of about 38%. Several bottled water companies are looking to enter developing markets with immense growth potential such as Asia and Middle East. China is one such market where sales of bottled water are rapidly increasing. Companies are trying to capitalize on weather changes such as summer and increase in health consciousness amongst consumers. The bottled water industry is expected to witness greater participation from soft drink and dairy processing companies, fostered by economies offered by existing international distribution network, and processing equipment.
As stated by the recent report published by Global Industry Analysts Inc., global bottled water market is dominated by Europe and United States, which together account for about 55% of the market value estimated in the year 2008. Bottled water will continue to fare well in the global beverage marketplace as a healthy alternative to carbonated soft drinks. Gains in bottled water market will also come from flavored varieties and convenient packaged formats, especially single-serve packs.
Bottled Water: A Global Strategic Business Report
Sparkling water market is dominated by Europe, which accounts for more than 75% of the world market estimated in 2008. Western Europe comprises of some of the world's largest per capita bottled water consumer markets, which include Germany, France, Spain and Italy. The largest proportion of bottled water consumers can be found in Germany as 88.2% of its adult population drinks bottled water. The non-sparkling water market constitutes the bulk of bottled water shipments, accounting between 80-85% of the market in both volume and value terms. Non-sparkling bottled water is also expected to offer the highest growth opportunity, outgrowing the sparkling bottle water market by three to four times. Market for non-sparkling water in United States is projected to reach US$15.1 billion by 2012.
The major challenge for most companies is product innovation and differentiation as water is still just water. Containers are an important part of bottled water, as they constitute nearly 47% of cost. Even look, weight and price of the product are as significant as the water itself. For instance, Colorado-based Biota sells bottled water in biodegradable bottles that are produced using corn in order to attract consumers who are ecologically conscious. Some companies try to attract children by selling bottled water in attractive bottles with vivid designs and colors.
The bottled water industry is in a continuous state of flux. Entry barriers are low, and decreasing by the day. Large companies are consolidating by acquiring local/small/niche players to increase capacity as well as product portfolio. Consolidation in the industry is expected to accelerate, resulting in higher degree of concentration, with the leading players strengthening their global presence. Bottled water industry in the Asia-Pacific region is expected to experience a major boost, as more companies venture into the market to capitalize on the latent demand potential.
Product, marketing/promotion, packaging, distribution, price, and technology would be the key factors in garnering market share in the industry. With the ever-increasing presence of soft drink majors, such as, Coca-Cola, and PepsiCo, and established leaders Nestle, and Danone, the market is expected to become a cauldron of action in the future.
Key players dominating the global Bottled Water market include Aqua Gold International Inc, Boreal Water Collection Inc, China Water & Drinks Inc, Groupe Danone, Danone Naya Waters Inc, Isbre Holding Corp, Nestle SA, PepsiCo, Quilmes Industrials Sa-Adr, Saint Elie, San Miguel Corporation, and The Coca-Cola Company.
The report titled "Bottled Water: A Global Strategic Business Report" published by Global Industry Analysts, Inc., provides a comprehensive review of market overview, key market trends, product overview, product introductions/innovations, and recent industry activity. The report analyzes market data and analytics in value and volume sales for regions such as the United States, Canada, Japan, Europe, Asia-Pacific (excluding Japan), Latin America and Rest of World. The study also analyzes the Bottled Water market by the following product segments - sparkling water, and non-sparkling water.
Resource: Global Industry Analysts, Inc.