Zenith Global Report
2019
UK Water Plus Drinks Report An in-depth analysis of the UK flavoured, functional and juicy waters sectors
Zenith report on UK water plus drinks March 2019 28th edition
Copyright All copyright in this document is reserved. Liability This document contains information and may contain conclusions and recommendations. Every effort has been made to ensure that the information is accurate and that the opinions expressed are sound. However, Zenith Global Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on the information. Important notice on distribution This report should not be quoted, referred to or transmitted to another party, in whole or in part, with out the prior written consent of Zenith Global Ltd. Should you desire to release a copy of this report to another party for information purposes, we request you and the requesting party to indemnify Zenith Global Ltd from any liability related to the report distribution. Such readers however will not be considered “users� of this report.
Zenith UK water plus drinks report 2019
Introduction This is the twenty-eighth Zenith Global Report on the UK Bottled Water Market. As the UK bottled water market continues to grow and evolve so does our report. This year, we have produced three reports on the sector in order to provide a complete review of this dynamic market.
The UK Plain Bottled Water Market Report The UK Water Plus Market Report The UK Bottled Water Drinks Market Report
As always, our aim is to make contact with every significant company active in the relevant sector and to produce as complete a picture as possible at a price accessible to any business with a serious commercial interest. We are particularly grateful for the help we receive from the bottled water companies we profile. The 2019 report contains up to date profiles of the industry’s leading bottled water companies, while text, charts and Tables analyse recent developments in the UK market. The report represents exceptional coverage of the UK bottled water drinks market and we hope that you find it useful in your business planning. As our research is updated on a regular basis, we always welcome any comments or suggestions about possible improvements.
Robin Bell Senior Consultant Zenith Global
© Zenith Global Ltd 2019
Zenith UK water plus drinks report 2019
Contents Brief summary ------------------------------------------------------------------------------------------ 7 Research overview ------------------------------------------------------------------------------------ 8 1
Market overview -------------------------------------------------------------------------------- 9 1.1 Economy ----------------------------------------------------------------------------------------- 10 1.2 Weather ------------------------------------------------------------------------------------------ 11 1.3 Media --------------------------------------------------------------------------------------------- 13
2
Sector performance ------------------------------------------------------------------------- 14
3
UK water plus packaging ------------------------------------------------------------------ 17
4
UK water plus distribution ---------------------------------------------------------------- 19
5
UK water plus companies and groups ------------------------------------------------ 21 5.1 UK water plus companies ------------------------------------------------------------------ 21 5.2 UK water plus groups ----------------------------------------------------------------------- 24 5.3 UK water plus brands ----------------------------------------------------------------------- 25
6
UK water plus producers ------------------------------------------------------------------ 27
7
UK still water plus brands ----------------------------------------------------------------- 29
8
UK sparkling water plus brands --------------------------------------------------------- 31
9
UK flavoured water brands --------------------------------------------------------------- 33
10
UK functional water brands -------------------------------------------------------------- 35
11
UK juicy water brands ----------------------------------------------------------------------- 37
12
UK water plus retailer own label ------------------------------------------------------- 39
13
UK water plus consumer ------------------------------------------------------------------- 42
14
UK water plus value ------------------------------------------------------------------------- 45
15
Ethical waters / Ethical initiatives ------------------------------------------------------ 48
16
Ongoing challenges ------------------------------------------------------------------------- 49
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Zenith UK water plus drinks report 2019
16.1 Maintaining consumer interest ---------------------------------------------------------- 49 16.1.1 16.1.2
Key challenges ----------------------------------------------------------------------------- 49 Future trends ------------------------------------------------------------------------------- 49
16.2 Selling ‘hydration with flavour’ ---------------------------------------------------------- 49 16.2.1 16.2.2
Key challenges ----------------------------------------------------------------------------- 49 Future trends ------------------------------------------------------------------------------- 49
16.3 The sugar debate ----------------------------------------------------------------------------- 49 16.3.1 16.3.2
Key challenges ----------------------------------------------------------------------------- 49 Future trends ------------------------------------------------------------------------------- 49
16.4 Retailer perception -------------------------------------------------------------------------- 49 16.4.1 16.4.2
Key challenges ----------------------------------------------------------------------------- 49 Future trends ------------------------------------------------------------------------------- 49
16.5 Stock control & supply ---------------------------------------------------------------------- 49 16.5.1 16.5.2
Key challenges ----------------------------------------------------------------------------- 49 Future trends ------------------------------------------------------------------------------- 50
16.6 Price pressures -------------------------------------------------------------------------------- 50 16.6.1 16.6.2
Key challenges ----------------------------------------------------------------------------- 50 Future trends ------------------------------------------------------------------------------- 50
17
Water stewardship --------------------------------------------------------------------------- 51
18
Legislation --------------------------------------------------------------------------------------- 52
19
Forecast to 2023 ------------------------------------------------------------------------------ 53
Appendix 1- Legislation --------------------------------------------------------------------------- 56 Appendix 2 - definitions and symbols-------------------------------------------------------- 57 Definitions ---------------------------------------------------------------------------------------------- 57 Natural Mineral Water ----------------------------------------------------------------------------------- 57 Spring Water-------------------------------------------------------------------------------------------------- 57 Bottled Drinking Water ---------------------------------------------------------------------------------- 57 Flavoured Water -------------------------------------------------------------------------------------------- 58 Functional Water ------------------------------------------------------------------------------------------- 58 Juicy Water ---------------------------------------------------------------------------------------------------- 58 Water Plus ----------------------------------------------------------------------------------------------------- 58 Distribution channels ------------------------------------------------------------------------------------- 58 Retail ------------------------------------------------------------------------------------------------------------- 58 Supermarkets ------------------------------------------------------------------------------------------------- 58 Independent, others --------------------------------------------------------------------------------------- 59 Door-to-door -------------------------------------------------------------------------------------------------- 59
Away From Home------------------------------------------------------------------------------------------- 59 Offices ----------------------------------------------------------------------------------------------------------- 59 Horeca, pubs and clubs ----------------------------------------------------------------------------------- 59 Others ----------------------------------------------------------------------------------------------------------- 59
Symbols -------------------------------------------------------------------------------------------------- 60
Appendix 3- Target Group Index (TGI) ------------------------------------------------------- 61
© Zenith Global Ltd 2019
Zenith UK water plus drinks report 2019
Appendix 4- leading company profiles ------------------------------------------------------ 62 AG Barr Plc ---------------------------------------------------------------------------------------------- 62 Britvic Plc------------------------------------------------------------------------------------------------ 62 Clearly Drinks Ltd ------------------------------------------------------------------------------------ 62 Coca-Cola European Partners ------------------------------------------------------------------- 62 Coca-Cola HBC Northern Ireland --------------------------------------------------------------- 62 Cott Beverages Ltd ---------------------------------------------------------------------------------- 62 Danone Waters (UK & Ireland) ------------------------------------------------------------------ 62 Get More Vitamin Drinks -------------------------------------------------------------------------- 62 Highland Spring Group ----------------------------------------------------------------------------- 62 Innocent ------------------------------------------------------------------------------------------------- 62 Montgomery Natural Spring Water Company --------------------------------------------- 62 Nichols Plc ---------------------------------------------------------------------------------------------- 62 One Water ---------------------------------------------------------------------------------------------- 62 Princes Soft Drinks ---------------------------------------------------------------------------------- 62 Radnor Hills Mineral Water Company Ltd --------------------------------------------------- 62 Talking Rain Beverage Company --------------------------------------------------------------- 62 Trederwen Springs----------------------------------------------------------------------------------- 62
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Zenith UK water plus drinks report 2019
Tables Table 2.1 Table 2.2 Table 3.1 Table 4.1 Table 5.1 Table 6.1 Table 7.1 Table 8.1 Table 9.1 Table 11.1 Table 12.1 Table 12.2 Table 13.1 Table 13.2 Table 13.3 Table 14.1 Table 14.2 Table 19.1
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UK water plus market, 2013-18 -------------------------------------------------- 15 UK water plus types, 2013-18 ---------------------------------------------------- 15 UK water plus packaging, 2016-18 --------------------------------------------- 18 UK water plus distribution, 2016-2018---------------------------------------- 20 Top 15 companies in UK water plus market, 2017-2018---------------- 22 Top 10 UK water plus producers, 2017-2018 ------------------------------- 28 Top 5 UK still water plus brands, 2017-2018 -------------------------------- 30 UK top 5 sparkling water brands, 2017-2018 ------------------------------- 32 UK top 10 flavoured water brands, 2017-2018 ---------------------------- 34 UK top 5 juicy water brands, 2017-2018 -------------------------------------- 38 UK own label flavoured water production, 2016-2018------------------ 40 UK top 5 own label flavoured water producers, 2016-2018 ---------- 41 GB flavoured water, herbal and premium soft drinks consumer, 2016-2018 ------------------------------------------------------------------------------- 43 UK water plus per capita consumption, 2013-2018 ---------------------- 44 International flavoured water comparison, 2013-2023f---------------- 44 UK water plus value, 2016-2018 ------------------------------------------------- 46 UK branded vs private label retail value per litre, 2017-2018 -------- 47 UK forecast water plus consumption by segment, 2018-2023f ------ 54
Zenith UK water plus drinks report 2019
Figures Figure 1.1 Figure 1.2 Figure 2.1 Figure 2.2 Figure 3.1 Figure 4.1 Figure 6.1 Figure 7.1 Figure 8.1 Figure 9.1 Figure 10.1 Figure 11.1 Figure 12.1 Figure 12.2 Figure 13.1 Figure 14.1 Figure 19.1
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UK mean temperature, 2013-18 ------------------------------------------------- 12 UK sunshine hours, 2016-18 ------------------------------------------------------ 12 UK water plus market, 2013-18 -------------------------------------------------- 16 UK water plus consumption share, 2013-18 -------------------------------- 16 UK water plus packaging, 2018 -------------------------------------------------- 18 UK water plus distribution, 2018 ------------------------------------------------ 20 UK water plus producers, 2018 -------------------------------------------------- 28 UK still water plus brands, 2018 ------------------------------------------------- 30 UK sparkling water brands, 2018 ------------------------------------------------ 32 Leading UK flavoured water brands, 2018 ---------------------------------- 34 Leading UK functional water brands, 2018 ---------------------------------- 36 Leading UK juicy water brands, 2018 ------------------------------------------ 38 UK own label flavoured water consumption share, 2016-2018 ------ 40 UK own label flavoured water producers, 2018 --------------------------- 41 GB flavoured water, herbal and premium soft drinks consumer, 2016-2018 ------------------------------------------------------------------------------- 43 UK water plus market value, 2016-2018-------------------------------------- 47 UK water plus market forecast, 2013-2023f -------------------------------- 54
Zenith UK water plus drinks report 2019
UK water plus drinks report Brief summary 1. Commentary 2. Commentary 3. Commentary
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Zenith UK water plus drinks report 2019
Research overview
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In compiling its research, Zenith Global relies on the goodwill and co-operation of companies active in the marketplace. All information is cross-checked with other sources, such as trade associations and suppliers, to ensure as complete a picture as possible. Although we strive to provide data as accurate as possible, some figures presented are Zenith’s estimates.
Based on individual producer volumes for the year, market, sector and segment totals are calculated from the ‘bottom up’. At a sector and segment level, adjustments are then made for any double counting of contract and licensed bottling. Estimates for any unauthorised soft drink imports sold through the ‘grey market’ are also included. However, this is more pronounced in categories such as energy drinks rather than bottled water.
A complete picture of the UK bottled water drinks market is thus produced through Zenith’s extensive study of the largest importers and bottlers, alongside small to medium sized operators and own label specialists. The market figures presented therefore encompass all aspects of bottled water drinks including: take home, impulse and on-premise/foodservice; water cooler volumes for the office; and a small amount of home delivery water.
To this end, a considerable amount of time and effort is spent contacting industry players and striving to analyse the complexities of the UK bottled water drinks arena. We believe Zenith Global’s coverage of the total UK bottled water drinks market to be without equal and to have attained a consistently high level of accuracy. Zenith would like to express its sincere gratitude to the entire UK bottled water drinks industry for its continued help and assistance during the research process. Our gratitude also extends to UK industry associations for their support, including: BSDA (British Soft Drinks Association), BWCA (British Water Cooler Association), NHC (Natural Hydration Council) and BBWP (British Bottled Water Producers).
© Zenith Global Ltd 2019
Zenith UK water plus drinks report 2019
1
Market overview
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
1.1
Economy
Commentary
Commentary
Commentary
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1.2
Weather
Commentary
Commentary
Commentary
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Figure 1.1
UK mean temperature, 2013-18
5.5 5 5
5
5
5
5
5
2013
2014
2015
2016
2017
2018
degrees centigrade
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
Figure 1.2
UK sunshine hours, 2016-18
35 30
sunshine hours
25 20 15 10 5 0 Jan
Feb
Mar
Apr
May
2016
Figure 1.3
Jun
Jul
2017
Aug
Sep
Oct
Nov
Dec
Sep
Oct
Nov
Dec
2018
UK rainfall, 2016-18
40 35 30 rainfall
25 20 15 10 5 0 Jan
Feb
Mar
Apr 2016
Source: Met Office
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May
Jun
2017
Jul
Aug
2018
Zenith UK water plus drinks report 2019
1.3
Media
Commentary
Commentary
Commentary
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2
Sector performance
Commentary
Commentary
Commentary
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Table 2.1
Million litres Production Imports Consumption
UK water plus market, 2013-18
2013
2014
2015
2016
2017
2018
2017
2018
Production % change Imports as % consumption Consumption % change Per Capita Consumption Source: Zenith Global
Table 2.2
Million litres Total market Sparkling Still Sparkling % share Still % share Flavoured Functional Juicy Flavoured % share Functional % share Juicy % share Flavoured % change Functional % change Juicy % change Total market % change Source: Zenith Global
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UK water plus types, 2013-18
2013
2014
2015
2016
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Figure 2.1
UK water plus market, 2013-18
million litres
100
15
15
15
15
15
15
40
40
40
40
40
40
30
30
30
30
30
30
2013
2014
2015
2016
2017
2018
0 Flavoured
Functional
Juicy
Source: Zenith Global
Figure 2.2
UK water plus consumption share, 2013-18
60
% share
40
20
0 2013
2014
2015 Flavoured
Source: Zenith Global
Š Zenith Global Ltd 2019
2016 Functional
2017 Juicy
2018
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3
UK water plus packaging
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
Table 3.1
Million litres NR PET Other Total market
UK water plus packaging, 2016-18
2016
2017
2018
% share NR PET Other Source: Zenith Global
Figure 3.1
UK water plus packaging, 2018
NR PET 50.0%
50%
Others
total consumption: X million litres
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4
UK water plus distribution
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
Table 4.1
UK water plus distribution, 2016-2018
2016 volume
Million litres
2016 % share
2017 volume
2017 % share
2018 volume
Modern retail (includes discounters) Convenience / Impulse Retail Horeca; pubs, clubs Others Away from home Total market Source: Zenith Global
Figure 4.1
UK water plus distribution, 2018
25% 25.0%
Modern retail Convenience Horeca 25%
25%
total consumption: X million litres
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Others
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5
UK water plus companies and groups
5.1
UK water plus companies
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
Table 5.1
Top 15 companies in UK water plus market, 2017-2018
2017 volume
Million litres
2017 % share
2018 volume
2018 % share
Top 15 Others Total market Top 5 Top 10 Source: Zenith Global
Figure 5.1
Top UK water plus companies, 2018
10%
Company 10%
50%
10%
Company Company Company
10% 10%
Total consumption: X million litres
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Company Company
2018 rank
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Figure 5.2
UK water plus industry consolidation, 2016-2018
100
80
% share
60
60.0
60.0
60.0
40
40.0
40.0
40.0
20
0 2016
2017 Top 5
2018
Top 10
Source: Zenith Global
Figure 5.3
30.0
Company
10.0 30.0
Company
Company
Top 5 water plus companies, 2016 and 2018
10.0 30.0 10.0 30.0
Company
10.0 30.0
Company
10.0 0
50
100 2018
Source: Zenith Global
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2016
150 million litres
Zenith UK water plus drinks report 2019
5.2
UK water plus groups
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
5.3
UK water plus brands Table 5.4
Million litres
Top 20 Others (3) Total market Top 5 Top 10 (1) Includes retailer brands Source: Zenith Global
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Top 20 brands in UK water plus market, 2017-2018
2017 volume
2017 % share
2018 volume
2018 % share
Brand rank
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Zenith UK water plus drinks report 2019
Table 5.5
Million litres
Source: Zenith Global
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Top 20 brands in UK water plus market ranking, 2018
Flavoured
2018 ranking Functional Juicy
Total
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6
UK water plus producers
Commentary
Commentary
Commentary
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Table 6.1
Top 10 UK water plus producers, 2017-2018
Million litres
2017 volume
2017 % share
2018 volume
2018 % share
Top 10 Others Total UK production Source: Zenith Global
Figure 6.1
UK water plus producers, 2018
18%
19%
18%
Company
Company
Company
Company
Company
Company
18%
18%
9%
Total UK water plus production: X million litres
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Zenith UK water plus drinks report 2019
7
UK still water plus brands
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
Table 7.1
Top 5 UK still water plus brands, 2017-2018
2017 volume
Million litres
2017 % share
2018 volume
2018 % share
Top 5 Others (1) Total still water (1) Includes retailer own label numbers Source: Zenith Global
Figure 7.1
UK still water plus brands, 2018
20%
20%
10%
Company
Company
Company
Company
Company
Company
20% 10% 20%
Total UK still water plus consumption: X million litres
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8
UK sparkling water plus brands
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
Table 8.1
UK top 5 sparkling water brands, 2017-2018
2017 volume
Million litres
2017 % share
2018 volume
2018 % share
Top 5 Others (1) Total sparkling water (1) Includes retailer own label numbers Source: Zenith Global
Figure 8.1
UK sparkling water brands, 2018 10% 10%
Company Company 5%
50%
Company Company
5% Company Company 20%
Total UK sparkling water plus consumption: X million litres
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9
UK flavoured water brands
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
Table 9.1
UK top 10 flavoured water brands, 2017-2018
2017 volume
Million litres
2017 % share
2018 volume
2018 % share
Top 10 Others (1) Total flavoured water (1) Includes retailer own labels Source: Zenith Global
Figure 9.1
Leading UK flavoured water brands, 2018
15%
40%
Company
Company
Company
Company
Company
Company
10%
10%
10% 15%
Total UK flavoured water consumption: X million litres
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% change
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10
UK functional water brands
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
Table10.1
UK top 5 functional waters brands, 2017-2018
2017 volume
Million litres
2017 % share
2018 volume
2018 % share
Top 5 Others Total functional water Source: Zenith Global
Figure 10.1
Leading UK functional water brands, 2018
15% Company
Company
Company
Company
Company
Company
35% 10% 5% 5%
30%
Total UK functional water consumption: X million litres
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% change
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11
UK juicy water brands
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
Table 11.1
UK top 5 juicy water brands, 2017-2018
Million litres
2017 volume
2017 % share
2018 volume
2018 % share
Top 5 Others Total juicy water Source: Zenith Global
Figure 11.1
Leading UK juicy water brands, 2018
20%
45%
Company
Company
Company
Company
Company
Company
15%
10% 5% 5%
Total UK juicy water consumption: X million litres
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% change
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Zenith UK water plus drinks report 2019
12
UK water plus retailer own label
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
Table 12.1
UK own label flavoured water production, 2016-2018
Million litres
2016
2017
2018
Total market Flavoured water (1) Sparkling flavoured water Still flavoured water Flavoured water as a % of total market Sparkling flavoured % share Still flavoured % share Total own label Sparkling own label Still own label Own label as a % of flavoured water Own label sparkling flavoured % share Own label still flavoured % share (1) Excludes functional and juicy waters Source: Zenith Global
Figure 12.1
UK own label flavoured water consumption share, 2016-2018
% share of flavoured water
40
30 30.0
30.0
30.0
2016
2017
2018
20
10
0
Source: Zenith Global
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Zenith UK water plus drinks report 2019
Table 12.2
UK top 5 own label flavoured water producers, 2016-2018
Million litres
2017 volume
2017 % share
2018 volume
2018 % share
% change
Top 5 Others Total own label water Source: Zenith Global
Figure 12.2
UK own label flavoured water producers, 2018
8% 8%
Company
Company
Company
Company
Company
Company
8% 46% 7%
23%
Total UK own label flavoured water production: X million litres
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13
UK water plus consumer
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
Table 13.1
GB flavoured water, herbal and premium soft drinks consumer, 2016-2018
% of GB population (1) Consumers
2016
2017
2018
Regular' consumers (consume more than once a week) % of age group who 'ever drink' 15-24 25-34 35-44 45-54 55-64 65+ Index of consumers (100 = average) Male Female (1) For fieldwork period July 2017 - June 2018 Source: Target Group Index (TGI) - GB adults aged 15 and above
Figure 13.1
GB flavoured water, herbal and premium soft drinks consumer, 2016-2018 35 30 30
30
30
% of GB population
25 20 15 10 5 5
5
5
0 2016
2017 regular consumers all consumers
Source: Target Group Index (TGI) - GB adults aged 15 and above
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2018
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Table 13.2
Litres Per capita consumption Sparkling Still
UK water plus per capita consumption, 2013-2018
2013
2014
2015
2016
2017
2018
2013
2014
2015
2016
2017
2018
Per capita consumption Flavoured Functional Juicy
% change Per capita consumption Sparkling Still Per capita consumption Flavoured Functional Juicy Source: Zenith Global
Table 13.3
Litres per person
International flavoured water comparison, 2013-2023f
2013
2018
2023f
Global (1) (1) Includes only flavoured and flavoured functional waters Source: Zenith Global - globaldrinks.com
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CAGR (13-18) (18-23f)
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14
UK water plus value
Commentary
Commentary
Commentary
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Table 14.1
UK water plus value, 2016-2018
2016 Volume
Flavoured water % increase Modern retail (inc discounters) Convenience / Impulse, others Horeca; pubs, clubs Functional water % increase Modern retail (inc discounters) Convenience / Impulse, others Horeca; pubs, clubs Juicy water % increase Modern retail (inc discounters) Convenience / Impulse, others Horeca; pubs, clubs - Numbers may vary due to rounding Source: Zenith Global
© Zenith Global Ltd 2019
£ VPL
2017 Volume
£ VPL
Volume
2018 £ VPL
Volume
£ VPL
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Figure 14.1
UK water plus market value, 2016-2018
350 300 300
300
300
250 200 150 100 50 0 market value (£ mln)
value per litre (£)
Source: Zenith Global
Table 14.2
UK branded vs private label retail value per litre, 2017-2018
2017 Branded Private label Retail average Includes only flavoured and flavoured functional waters Source: Zenith Global
© Zenith Global Ltd 2019
2018
Zenith UK water plus drinks report 2019
15
Ethical waters / Ethical initiatives
Commentary
Commentary
Commentary
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16
Ongoing challenges
16.1
Maintaining consumer interest
16.1.1 Key challenges
Commentary Commentary
16.1.2 Future trends
16.2
Commentary
Commentary
Selling ‘hydration with flavour’
16.2.1 Key challenges
Commentary
Commentary
16.2.2 Future trends
16.3
Commentary
Commentary
The sugar debate
16.3.1 Key challenges
Commentary
Commentary
16.3.2 Future trends
16.4
Commentary
Commentary
Retailer perception
16.4.1 Key challenges
Commentary
Commentary
16.4.2 Future trends
16.5
Commentary
Commentary
Stock control & supply
16.5.1 Key challenges
Commentary
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16.5.2 Future trends
16.6
Commentary
Commentary
Price pressures
16.6.1 Key challenges
Commentary
Commentary
16.6.2 Future trends
Commentary
Commentary
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17
Water stewardship
Commentary
Commentary
Commentary
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18
Legislation
Commentary
Commentary
Commentary
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19
Forecast to 2023
Commentary
Commentary
Commentary
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Zenith UK water plus drinks report 2019
Figure 19.1
UK water plus market forecast, 2013-2023f
350 300
million litres
250 200 150 100 50 0 2013
2014
2015
2016
2017
2018
2019f
2020f
2021f
2022f
2023f
Source: Zenith Global
Table 19.1
Million litres Total market Sparkling Still Sparkling % share Still % share Flavoured Functional Juicy Flavoured % share Functional % share Juicy % share Flavoured % change Functional % change Juicy % change Total market % change Source: Zenith Global
Š Zenith Global Ltd 2019
UK forecast water plus consumption by segment, 2018-2023f
2018
2019f
2020f
2021f
2022f
2023f
Zenith UK water plus drinks report 2019
Appendix
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Appendix 1- Legislation
Commentary
Commentary
Commentary
© Zenith Global Ltd 2019
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Appendix 2 - definitions and symbols
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Definitions Natural Mineral Water
The basic requirements of the UK regulations are:
Must come from a recognised groundwater source. Recognition is granted by local authorities to meet EU standards and requires a lengthy testing process to ensure freedom from pollution and a consistent mineral composition.
Must be bottled at source unless the practise was to tanker to the bottling plan on or before 17th July 1980.
Cannot undergo treatment except for filtration of particles, except in exceptional circumstances.
Nothing can be added to water except carbon dioxide for carbonation.
The water can only be bottled under a single name, described as natural mineral water.
The water must meet strict requirements for microbiological and chemical purity.
Spring Water
The basic requirements of the UK regulations are:
Must come from a groundwater source.
Must be bottled at source (unless the practise was to tanker to the bottling plant on or before 23rd November 1996).
In the UK, spring water can currently undergo some forms of treatment.
The water can only be bottled under a single named Spring Water. However, additional Bottled Drinking Waters can be produced from the same source.
The water must meet requirements for microbiological and chemical quality.
Bottled Drinking Water
The basic requirements of the UK regulations are:
‘Bottled drinking water‘is a legal category of water and should not be confused with the general use of the term ‘bottled water’.
Can come from any source - groundwater, surface water (e.g. a lake or river), tap water or other (e.g. glacier, iceberg, rainwater)
Need not be bottled at source.
Can undergo any form of water treatment.
Water from a single source can be bottled under different names.
Can be bottled under any description except one that is misleading to consumers. Use of the description natural mineral water, spring water or mineral water is not permitted. Some commonly used descriptions are ‘Table Water’ and ‘Purified Water’.
The water must meet requirements for microbiological and chemical quality.
These definitions are a simple description of the requirements of the UK bottled water regulations. For a detailed definition please consult the Natural Mineral Water, Spring Water and Bottled Drinking Water Regulations, 1999 and any subsequent amendments. © Zenith Global Ltd 2019
Zenith UK water plus drinks report 2019
Flavoured Water Sweetened with sugar, sweetener or unsweetened with added fruit essence; sparkling natural mineral, spring or bottled drinking water with added flavourings.
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Includes:
Flavoured unsweetened bottled waters
Flavoured bottled waters with added sugar and/or sweetener
Not included are:
‘Schorle’ (sparkling water and fruit juice) and other soft drinks
‘Limonaden’ (water-based, flavoured carbonated soft drinks popular in Germany)
Pressé drinks (ready-to-drink cordial drinks)
Functional Water Functional waters have added functional ingredients, such as botanicals, vitamins, minerals, oxygen or others. Functional waters can be still or sparkling and can be flavoured or unflavoured. Such waters are marketed as having a functional positioning.
Juicy Water Defined as water with added juice, juice content ranges from 5% to 25-30%. However, the key attribute is consumer perception of such products as being water plus juice as opposed to a juice drink. These drinks are perceived by consumers to be closer to flavoured waters than juices/nectars. Includes:
Volvic Juiced
Drench Juicy
This Juicy Water
Excludes:
Sanpellegrino Aranciata/ Limonata
Capri Sun
Vimto
Water Plus Water plus includes flavoured waters, functional waters and juicy waters as defined above.
Distribution channels Retail Supermarkets
Multiples and other grocers - Tesco, Sainsbury, Asda, Waitrose, Morrisons, Somerfield, Coop, Marks & Spencer, Boots, Budgens, Iceland
Aldi, Lidl and other discounters
Smaller local supermarkets (e.g. Booths, Harry Tuffins)
Supermarket forecourts and smaller formats of the major multiples (e.g. Tesco Metro)
© Zenith Global Ltd 2019
Zenith UK water plus drinks report 2019
Independent, others
Confectioneries, tobacconists and newsagents (CTNs)
Convenience stores (e.g. Londis)
Small independent grocers
Other forecourts
Off licences
Other retail stockists/cash & carry
Door-to-door
Dairy deliveries
Direct mail orders
Door-to-door deliveries of water for coolers
Away From Home Offices
Water supplied in places of work such as offices, factories etc.
Horeca, pubs and clubs
HoReCa - hotel, restaurant and catering channels
Cafés, bars, pubs
Nightclubs
Food service
Vending machines
Others
All other away from home outlets
© Zenith Global Ltd 2019
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Symbols ...
Negligible, less than 0.05
e
Estimate
Foodservice Distribution to on-premise or horeca outlets Horeca
Hotels, restaurants and catering
na
Not available, not applicable
NR
Non returnable packaging
HDPE High Density Polyethylene HOD Home and Office Delivery PET
Polyethylene terephthalate
PLA Polylactide or polylactic acid POU Point of use (mains water) cooler PVC Polyvinyl chloride R
Returnable packaging
SC
Sports cap
VPL
Value per litre
Š Zenith Global Ltd 2019
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Appendix 3- Target Group Index (TGI)
Zenith uses Target Group Index (TGI) syndicated surveys to provide actionable on consumer behaviour, purchasing habits, attitudes and motivations. This compliments Zenith’s own data and research in this report.
Established in 1969 and originally focused on the British market, TGI has since expanded to cover more than 65 countries. In Britain TGI is representative of all adults aged 15+ and is used by over 300 companies, including brand owners, media owners and advertising agencies.
TGI enables
Awareness of market trends and dynamics
Identification of opportunities for new and existing brand development
Accurate description of target groups
Improved marketing strategies and advertising campaigns
TGI is
Insightful and actionable
Information on usage of over 4,000 brand across 500 product areas
Updated four times a year
Single source and independent of vested interest
www.kantarmedia.co.uk TGI’s consulting offer, TGI Insights and Integration, enables the breaking of new ground in consumer insight through the provision of the most suitable skills, tools, analysts and thinking. With genuine global reach (we are part of Kantar, WPP’s insights and consultancy arm) and unique access to raw TGI data in 65 countries we are a strategic partner to the world’s most demanding consumer-facing industries.
Anne Benoist- Director +44 (0)20 8433 4227 anne.benoist@kantarmedia.com www.tgi-insights.com
© Zenith Global Ltd 2019
Zenith UK water plus drinks report 2019
Appendix 4- Leading company profiles AG Barr Plc Britvic Plc Clearly Drinks Ltd Coca-Cola European Partners Coca-Cola HBC Northern Ireland Cott Beverages Ltd Danone Waters (UK & Ireland) Get More Vitamin Drinks Highland Spring Group Innocent Montgomery Natural Spring Water Company Nichols Plc One Water Princes Soft Drinks Radnor Hills Mineral Water Company Ltd Talking Rain Beverage Company Trederwen Springs
Š Zenith Global Ltd 2019
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A company PLC Address: Tel:
, Website:
Company Structure Ownership: Senior management:
Employees: Subsidiaries:
Company Finances ÂŁ Million, year to Sales Profit before tax
Water Production Location: Source: Lines: Investment:
Advertising
Product Range (water plus)
Š Zenith Global Ltd 2019
Fax: Email:
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Production & Sales Volume (water plus) Million litres Exports UK Sales - sparkling - still NR PET NR Glass
Brand
Retail
OOH
HODTotal 100%
Š Zenith Global Ltd 2019