a Zenith Insight report
November 2018
global premium bottled water report 2018 7th 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.
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contents section 1. project methodology & definitions 2. introduction & executive summary 3. global premium water overview 4. global brand profiles 5. market focus 5.1 market focus: USA 5.2 market focus: UK 5.3 market focus: Japan 5.4 market focus: China 5.5 market focus: UAE
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1. project methodology & definitions
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project methodology & definitions methodology Coverage
Considerations
This report covers premium water within the scope of plain packaged water (in pack formats of up to 10 litres).
The methodology used in this report is primarily quantification by overall value per litre. However, it is important to note that price is influenced by many factors including channel distribution, pack format (size and type), origin (imports) and water type.
In order to be able to quantify the premium water segment, Zenith’s analysis of ‘premium’ is based primarily on price and positioning. Within each individual market, Zenith has determined a ‘cut-off point’ whereby brands are classified as premium if their overall average value per litre (VPL) stands above the cut-off point. For international brands, Zenith applies its definition primarily based upon a brands’ global average value per litre. Therefore, a brand classified as premium remains so, throughout all markets where it is present. For example, Evian is considered premium in all markets, despite its more mainstream positioning in France. International brands classified as premium throughout this report include Evian, Perrier, San Pellegrino, Vittel and Volvic. Similarly, brands such as Dasani and Nestlé Pure Life are respectively considered mainstream and value globally. From within its global bottled water database, Zenith has identified a number of key markets where premium is understood to either; a) hold a significant share of the packaged water market, b) be of significant volume in million litre terms, or c) present a growth opportunity with the packaged water market.
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In some markets, the prevalence of sparkling water impacts the size of the premium segment.
Channel dynamics within the local market also play a factor, as generally packaged water sold through HoReCa commands a higher value per litre than sales through modern retail outlets.
project methodology & definitions premium water definitions Commentary Criteria
Criteria
Criteria
Criteria
Criteria
Criteria
Criteria
Criteria
Criteria
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project methodology & definitions general definitions Commentary
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project methodology & definitions water types Commentary
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2. introduction & executive summary
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introduction & executive summary introduction In undertaking its research for this report, Zenith has utilised its internal data library and global databases, alongside other third party sources. Throughout its ongoing research, Zenith also depends upon-the-goodwill and co-operation of operators active in the marketplace and, as such, seeks to achieve a high level of accuracy. Report content This report includes a global view of premium water, plus a premium water deep dive on five key countries. These are China, Japan, UAE, UK, and USA. Each has been selected due to Zenith’s belief that each one represents an opportunity for premium water. The nature of the five markets is quite different, thus seeking to present a broad range of the dynamics which may exist within a specific premium water market. Premium water definition One of the main challenges in compiling this report has been the varying definitions of premium understood within the industry. This subject is covered in detail in the report, and Zenith’s methodology for quantifying premium water worldwide has been specified. Liability Whilst every effort has been made to ensure that the information presented in this document is accurate and that the opinions expressed are sound, Zenith Global Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on its contents.
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introduction & executive summary executive summary •
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Commentary
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3. global premium water overview
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global premium water overview global volume Commentary
Total premium water volume and absolute volume increase in million litres from 2010 to 2017 200
180
2,500 5 year CAGR
160
2,000
140 120
1,500
100 80
1,000
60 40
500
20 0
2010
2011
2012
2013
2014
Absolute volume increase
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2015
2016
Total volume
2017
global premium water overview global value Commentary
Total premium water value in million US$ and absolute value increase in million US$ from 2010 to 2017 400
4,000 5 year CAGR
350
3,500
300
3,000
250
2,500
200
2,000
150
1,500
100
1,000
50
500
0
2010
2011
2012
2013
2014
Absolute value increase
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2015 Total value
2016
2017
global premium water overview regional volume and value breakdown Commentary
Total premium water volume in million litres and value in million US$ per region in 2017
West and East Europe
North America
Asia
Middle East and Africa
Central and Latin America
Total value
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500 Total volume
1,000
1,500
global premium water overview top five largest market for premium water in 2017 by volume Commentary
Top 5 markets for premium water in million litres in 2017
Market leader 1
Market leader 2
Market leader 3
Market leader 4
Market leader 5
-
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200
300
400
500
600
global premium water overview top five largest market for premium water in 2017 by value Commentary
Top 5 markets for premium water in US$ million in 2017
Market leader 1
Market leader 2
Market leader 3
Market leader 4
Market leader 5
-
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200
400
600
800
1,000 1,200
global premium water overview premium water volume share of total packaged water Commentary
Premium water share of total packaged water in million litres from 2013 to 2017 16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
2013
2014
2015
Mainstream and value water
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2016 Premium water
2017
global premium water overview premium water value share of total packaged water Commentary
Premium water share of total packaged water in US$ million from 2013 to 2017 30,000
25,000
20,000
15,000
10,000
5,000
2013
2014
2015
Mainstream and value water
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2016 Premium water
2017
global premium water overview premium water VPL compared to total packaged water VPL Commentary
Evolution of premium water VPL vs total packaged water VPL in US$ 1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00 2013
2014
Premium water
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2015
2016
2017
Mainstream and value water
global premium water overview volume share of premium still vs premium sparkling 2013 volume split between premium still and sparkling water
50%
50%
Still
Sparkling
2017 volume split between premium still and sparkling water
50%
50%
Still
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Sparkling
Commentary
global premium water overview forecasts Premium water forecasts volume in million litres and value in US$ million 7,000
6,000
5,000
4,000
3,000
2,000
1,000
2018f
2019f Volume
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2020f Value
2021f
2022f
Commentary
global premium water overview global trends Commentary
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global premium water overview variation in perception of premium water Perception of added value
Water provenance
Commentary
Commentary
Quality of water available in the market
Formats
Commentary
Commentary
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global premium water overview claims made by premium water Water purity
Mineral content
Commentary
Commentary
Health and wellness
Sustainability
Commentary
Commentary
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global premium water overview global premium water packaging types and sizes Glass
Cans and aluminium
Commentary
Commentary
Cartons Commentary
PET
Commentary
Limited editions Commentary
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4. global brand profiles
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Brand name Company name website Product description: Including details regarding production positioning, claims, recent marketing campaigns, geographic availability, history of the brand etc.
Launch date:
Variants: Recent developments:
Price: Product packaging: Water type: Water origin: Water composition:
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Mineral
Content
e.g. Calcium
mg/l
e.g. Magnesium
mg/l
e.g. Bicarbonate
mg/l
e.g. Sulphate
mg/l
5. market focus
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market focus premium water country deep dive Commentary
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market focus top 5 markets comparison Key markets volume and value evolution
2013 vs 2018 volume in million litres
Japan
200 150 100 50 -
Commentary
USA
UK
China
2013
Per capita consumption and per capita expenditure
2017
Commentary
UAE
Provenance
2013 vs 2018 value in million US$
Japan
200 150 100 50 -
USA
China
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Commentary
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UK
UAE
2013
Pricing
2017
Commentary
market focus top 5 markets comparison
USA
UK
Japan Largest market in volume, 2017
Fastest CAGR growth in volume over five years
Largest category in value (US$), 2017
Fastest CAGR growth in value (US$) over five years
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China
UAE
5.1 market focus: [COUNTRY] • PCC of X litres in 2017. • Increase of X litres per person since 2013.
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• Premium water volume of X million litres. • X million litres added 2013-2017.
• PCE of US$X in 2017.
• Premium water value of US$X million.
• PCE increase of US$X since 2013.
• US$X million gained since 2013.
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[COUNTRY] premium water overview Drinking occasion
Pricing
Commentary
Commentary
Packaging Commentary
Challenges and opportunities
Commentary
Consumer perception Commentary
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[COUNTRY] volume share of packaged water Commentary
Split between premium water and all other packaged water in million litres 1,600
1,400
1,200
1,000
800
600
400
200
2013
2014
2015
Mainstream and value water
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2016 Premium water
2017
[COUNTRY] value share of packaged water and premium water VPL comparison to mainstream and value Commentary
Split between premium water and all other packaged water in million US$ 3,000 2,500 2,000 1,500 1,000 500 2013
2014
2015
Mainstream and value water
2016
2017
Premium water
Premium value per litre vs all other packaged water in US$ 1.50 1.00 0.50 2013
2014
2015
Mainstream and value water
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2016
2017
Premium water
[COUNTRY] premium water market size in volume and value Commentary
Volume in million litres 250
200 150 100 50 2013
2014
2015
2016
2017
Value in million US$ and VPL in US$ 500
1.50
400 1.00
300 200
0.50
100 -
2013
2014
2015 Value
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2016 VPL
2017
[COUNTRY] brand share of the market Commentary
Top 5 brands market volume share evolution 2013
2017
Brand 1
Brand 2
Brand 3
Brand 4
Brand 5
Others
Top 5 brands market value share evolution 2013
2017
Brand 1
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Brand 2
Brand 3
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Brand 4
Brand 5
Others
[COUNTRY] premium sparkling and still compared to all other waters in volume Commentary
Premium sparkling water vs all other sparkling water in million litres 2017 2016 2015 2014 2013 -
50
100
150
200
250
300
Mainstream and value sparkling water volume Premium sparkling volume
Premium still water vs all other still water in million litres 2017 2016 2015 2014 2013 -
200
400
600
800
Mainstream and value still water volume
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1,000
1,200
Premium still volume
[COUNTRY] premium sparkling and still compared to all other waters in value Commentary
Premium sparkling water vs all other sparkling water in million US$ 2017 2016 2015 2014 2013 -
100
200
300
400
Mainstream and value sparkling water value
500
600
Premium sparkling value
Premium still water vs all other still water in million US$ 2017 2016 2015 2014 2013 -
500
1,000
1,500
Mainstream and value still water value
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2,000
2,500
Premium still value
[COUNTRY] still vs sparkling water in volume Commentary
Premium sparkling vs premium still waters in million litres 180 160 140 120 100 80 60 40 20 2013
2014
2015
Premium sparkling
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2016 Premium still
2017
[COUNTRY] still vs sparkling water in value Commentary
Premium sparkling vs premium still waters in million US$ and VPL in US$ 350
1.8 1.6
300
1.4 250 1.2 200
1.0
150
0.8 0.6
100 0.4 50
0.2
-
0.0 2013
2014 Sparkling
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2015 Still
Sparkling vpl
2016
2017 Still vpl
[COUNTRY] price positioning Average sparkling water VPL in US$ per unit size in litres
12
12
10
10
8
8
Brand
6
Brand
VPL in US$
VPL in US$
Average still water VPL in US$ per unit size in litres
Brand
Brand Brand Brand
4 Brand
Brand
Brand
2
Brand
Brand
6
Brand Brand Brand
4
Brand Brand
2
Brand Brand
Brand
Brand Brand Brand Brand Brand Brand Brand Brand Brand
Brand
Brand
Brand
Brand
Brand
0
Brand
Brand
0 0
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Brand
0.2
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0.6 0.8 Unit size in litres
1
Plastic
1.2
0
Glass
Can
0.5
1 Unit size in litres
1.5
2
[COUNTRY] price positioning Commentary Key brands Brand 1
Common themes / sub-headings:
Brand 2 Packaging
Brand 3
Commentary
Brand 4 Brand 5
Retail
Imported vs local
Commentary
Commentary
Pricing Commentary Sparkling vs still Commentary Water type Commentary
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Retail value per litre in local currency
[COUNTRY] claims and sub-segmentation Packaging
Claims
Commentary
Commentary
Water types
Commentary
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[COUNTRY] origin of imported premium water available in the market
Country: Brand Country: Brand
Country: Brand 1, Brand 2
Country: Brand 1, Brand 2
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[COUNTRY] origin of premium water available in the market Perception of various countries of origin
Brand use of origin in positioning
Commentary
Commentary
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[COUNTRY] swot analysis •
Commentary
•
Commentary
S t r e n g t h s
O p p o r t u n i t i e s
W e a k n e s s e s
T h r e a t s
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•
Commentary
•
Commentary
[COUNTRY] future outlook Commentary
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5.1.1 brand profiles: [COUNTRY]
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Brand name Company name website Product description: Including details regarding production positioning, claims, recent marketing campaigns, geographic availability, history of the brand etc.
Launch date:
Variants: Recent developments:
Price: Product packaging: Water type: Water origin: Water composition:
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Mineral
Content
e.g. Calcium
mg/l
e.g. Magnesium
mg/l
e.g. Bicarbonate
mg/l
e.g. Sulphate
mg/l
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