PRODUCT ZONE
BEVERAGE
LESS IS MORE IN THE BOTTLED WATER BUSINESS
In 2016, bottled water dethroned soft drinks as the leader in beverage sales. As the container market experiences a wave of innovative packaging solutions, changing consumer consumption patterns and ultra-premium water brands are soaring in popularity, ushering in a new age for what has become the world’s biggest-selling beverage According to a report by statista, a leading provider of market and consumer data, revenue in the bottled water segment will total USD 305 million in 2020, with expected annual market growth estimated at +6 percent (CAGR 2020-2023). The average price per unit in the bottled water segment will stand at US 0.7 in 2020. Most revenue will be generated in the US,
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HOSPITALITY NEWS ME | FEB-MAR 2020
followed by China, with Germany, Mexico and Indonesia taking third, fourth and fifth positions respectively. By 2023, 36 percent of spending in the bottled water segment will be attributed to out-ofhome consumption.
Sustainable practices are expected to become the norm in the beverage industry, as many producers transition towards glass, while also considering the use of aluminum A report by Market Research indicates that the global bottled water market is highly fragmented. To stand out among competitors, companies started changing the look and feel of packaging bottles to obtain more market traction. Some strategies include re-sealable and recyclable cans and transparent sophisticated bottles, as well as inks and coatings to enhance customer experience through unique visual effects and more shelf appeal.
Variety of tastes and trends Arcadia, an organization helping various manufacturing industries optimize energy consumption, reported that bottled waters may appear to be the same, but are not. In fact, natural mineral and spring waters are unique and offer very different tastes due to varying mineral composition, depending on the specific geological environment. A report by KPMG projects that as soda consumption declines, more brands are developing sparkling water products. Healthy drinks, like plant-based waters and other functional varieties, are gaining popularity. Due to sustainability issues, and as single-use plastic water bottles continue to be an ongoing concern, companies are changing their packaging to more eco-friendly options, including aluminum cans and paper boxes. In terms of functionality, consumers willing to pay more also expect additional benefits. These include clean ingredients, offering increased mental clarity, energy, a better mood and less stress,
