Zenith Global Water Plus Report 2022 by Zenith Global

UK Water Plus Report 2022

Zenith Global Report 2022

UK Water Plus Report

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.

UK Water Plus Report 2022

Introduction April 2022 This is the 31st year that Zenith Global has reported on the UK water drinks market, as one of the company’s flagship reports when it started in 1991. Back then, it was the UK Bottled Water Report, but as the UK water drinks market has continued to grow and evolve, so has our report. As in the last few years, this year we have again produced three reports on the sector in order to provide a complete review of this dynamic market. • The UK Plain Water Report • The UK Water Plus Report • The UK Water Drinks Summary Report As always, our aim is to contact every significant company active in the 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 water drinks companies we profile. The 2022 report contains text, charts and datasheets which analyse the industry’s leading packaged water companies and track recent developments in the UK market. These reports represent exceptional coverage of the UK water drinks market and we hope that you find them useful in your business planning. As our research is updated on a regular basis, we always welcome any comments or suggestions about possible improvements.

Duncan Lynch Senior Analyst

UK Water Plus Report 2022

Contents Section Research overview UK Water Plus Market executive summary 1. Marco overview 2. UK water plus market 3. UK water plus packaging 4. UK water plus distribution 5. UK water plus companies and groups 6. UK water plus producers 7. UK still water plus brands 8. UK sparkling water plus brands 9. UK flavoured water brands 10. UK functional water brands 11. UK juicy water brands 12. UK flavoured water retailer own label 13. UK water plus consumer 14. UK water plus value 4

Page

UK Water Plus Report 2022

Contents Section 15. Ethical incentives 16. Ongoing challenges 17. Innovation 18. Water stewardship 19. Legislation 20. Forecast to 2026 Appendix 1: Definitions Appendix 2: Target Group Index (TGI) Appendix 3: Profiles

Page

UK Water Plus Report 2022

Research overview • In compiling its research, Zenith Global relies on the goodwill and cooperation 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 water drinks. • A complete picture of the UK water drinks market is thus produced through Zenith Global’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 packaged water drinks including take home, impulse and on-premise/foodservice 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 water drinks arena. We believe Zenith’s coverage of the total UK water drinks market to be without equal and to have attained a consistently high level of accuracy. Zenith Global would like to express its sincere gratitude to the entire UK 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 the BSDA (British Soft Drinks Association) and the NSWA (Natural Source Waters Association).

UK Water Plus Report 2022

UK Water Plus Market Executive summary • Commentary

UK Water Plus Report 2022

1. Macro overview 1.1 Economy • Commentary .

UK Water Plus Report 2022

1. Macro overview 1.2 Weather • Commentary

UK Water Plus Report 2022

1.2 Weather Figure 1.1

Degrees centigrade

UK mean temperature, 2016-21

2016

2017

2018

2019

2020

2021 Source: Met Office 2022

UK Water Plus Report 2022

1.2 Weather Figure 1.2

Sunshine hours

UK sunshine hours, 2019-21

Jan

Feb

Mar

Apr

May

Jun

2019

Jul

2020

Aug

2021

Sep

Oct

Nov

Dec

Source: Met Office 2022

UK Water Plus Report 2022

1.2 Weather Figure 1.3

Rainfall (mm)

UK rainfall, 2019-21

Jan

Feb

Mar

Apr

May

Jun

2019 12

Jul

2020

Aug

2021

Sep

Oct

Nov

Dec

Source: Met Office 2022

UK Water Plus Report 2022

1. Macro overview 1.3 Media • Commentary

UK Water Plus Report 2022

2. UK water plus market • Commentary

UK Water Plus Report 2022

2. UK water plus market Figure 2.1

Million litres

UK water plus market, 2016-21

2016

2017

2018 Flavoured

2019 Functional

Juicy

2020

2021 Source: Zenith Global 2022

UK Water Plus Report 2022

2. UK water plus market Figure 2.2

% Share

UK water plus consumption share, 2016-21

2016

2017

2018 Flavoured % share

2019 Functional % share

2020 Juicy % share

2021 Source: Zenith Global 2022

UK Water Plus Report 2022

3. UK water plus packaging Figure 3.1 • Commentary

UK water plus packaging, 2021

50.0

PET

Others Source: Zenith Global 2022

UK Water Plus Report 2022

4. UK water plus distribution Figure 4.1 • Commentary

UK water plus distribution, 2021

25.0

Modern retail

Convenience

HoReCa

Others

Source: Zenith Global 2022 18

UK Water Plus Report 2022

5. UK water plus companies and groups • Commentary

UK Water Plus Report 2022

5.1 UK water plus companies Figure 5.1

% Share

UK water plus industry consolidation, 2016-21

2016

2017

2018

2019 Top 5

Top 10

2020

2021 Source: Zenith Global 2022

UK Water Plus Report 2022

5.1 UK water plus companies and groups Figure 5.2

Top 5 water plus companies, 2016 vs 2021 Company 1

Company 2

Company 3

Company 4

Company 5 Million litres 2016

2021

Source: Zenith Global 2022

UK Water Plus Report 2022

5.1 UK water plus companies and groups Figure 5.3

Leading UK water plus companies, 2021

Company 1 Company 2 Company 3 Company 4 Company 5 Others

Source: Zenith Global 2022 22

UK Water Plus Report 2022

6. UK water plus producers • Commentary

UK Water Plus Report 2022

6. UK water plus producers Figure 6.1

Leading UK water plus producers, 2021

Company 1 Company 2 Company 3 Company 4 Company 5 Others

Source: Zenith Global 2022 24

UK Water Plus Report 2022

7. UK still water plus brands • Commentary

UK Water Plus Report 2022

7. UK still water plus brands Figure 7.1

Leading UK still water plus brands, 2021

Company 1 Company 2 Company 3 Company 4 Company 5 Others

Source: Zenith Global 2022 26

UK Water Plus Report 2022

8. UK sparkling water plus brands • Commentary

UK Water Plus Report 2022

8. UK sparkling water plus brands Figure 8.1

Leading UK sparkling water plus brands, 2021

Company 1 Company 2 Company 3 Company 4 Company 5 Others

Source: Zenith Global 2022 28

UK Water Plus Report 2022

9. UK flavoured water brands • Commentary

UK Water Plus Report 2022

9. UK flavoured water brands Figure 9.1

Leading UK flavoured water brands, 2021

Company 1 Company 2 Company 3 Company 4 Company 5 Others

Source: Zenith Global 2022 30

UK Water Plus Report 2022

10. UK functional water brands • Commentary

UK Water Plus Report 2022

10. UK functional water brands Figure 10.1

Leading UK functional water brands, 2021

Company 1 Company 2 Company 3 Company 4 Others

Source: Zenith Global 2022 32

UK Water Plus Report 2022

11. UK juicy water brands • Commentary

UK Water Plus Report 2022

11. UK juicy water brands Figure 11.1

Leading UK juicy water brands, 2021

Company 1 Company 2 Company 3 Company 4 Company 5 Others

Source: Zenith Global 2022 34

UK Water Plus Report 2022

12. UK flavoured water retailer own label • Commentary

UK Water Plus Report 2022

12. UK flavoured water retailer own label Figure 12.1

Million litres

UK own label flavoured water consumption, 2016-21

2016

2017

2018

2019

2020

2021 Source: Zenith Global 2022

UK Water Plus Report 2022

12. UK flavoured water retailer own label Figure 12.2

Leading UK own label flavoured water producers, 2021

Company 1 Company 2 Company 3 Company 4 Others

Source: Zenith Global 2022 37

UK Water Plus Report 2022

13. UK water plus consumer • Commentary

UK Water Plus Report 2022

13. UK water plus consumer Figure 13.1

% of GB population

GB flavoured water, herbal & premium soft drinks consumption, 2016-21

2016

2017

2018 All consumers

2019 Regular consumers

2020

2021

Source: Kantar Media, Target Group Index 2022

UK Water Plus Report 2022

14. UK water plus value • Commentary

UK Water Plus Report 2022

14. UK water plus value Figure 14.1

VPL £

Market value £ mln

UK flavoured water market value, 2016-21

2016

2017

2018 Market value (£ mln)

2019 Value per litre (£)

2020

2021 Source: Zenith Global 2022

UK Water Plus Report 2022

15. Ethical initiatives • Commentary

UK Water Plus Report 2022

16. Ongoing challenges 16.1 Coronavirus pandemic Key challenges

Future trends

• Commentary

UK Water Plus Report 2022

17. Innovation • Commentary

UK Water Plus Report 2022

18. Water stewardship • Commentary

UK Water Plus Report 2022

19. Legislation • Commentary

UK Water Plus Report 2022

20. Forecast to 2026 • Commentary

UK Water Plus Report 2022

20. Forecast to 2026 Figure 20.1

Million litres

UK water plus market forecast, 2016-26f

2016

2017

2018

2019

2020

2021

2022f

2023f

2024f

2025f

2026f

Source: Zenith Global 2022 48

UK Water Plus Report 2022

Appendix

UK Water Plus Report 2022

Appendix Water 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 permitted treatment for filtration of particles. • 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 certain forms of permitted 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.

UK Water Plus Report 2022

Appendix Water definitions 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. 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. Section 18 - Legislation details the relevant regulations for England, Scotland, Wales and Northern Ireland and any subsequent amendments.

Flavoured water Sweetened with sugar, sweetener or unsweetened with added fruit essence; sparkling and still natural mineral, spring or bottled drinking water with added flavourings. Includes: • Flavoured unsweetened bottled waters • Flavoured bottled waters with added sugar and/or sweetener Excludes: • ‘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) 51

UK Water Plus Report 2022

Appendix Water definitions 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: • Drench Juicy • Volvic Juicy • This Juicy Water Excludes: • San Pellegrino Aranciata, Limonata etc. • Capri Sun • Vimto

Water plus Water plus includes flavoured waters, functional waters and juicy waters as defined above.

UK Water Plus Report 2022

Appendix Distribution channel definitions Retail Modern retail • Multiples and other grocers - Tesco, Sainsbury, Asda, Waitrose, Morrisons, Co-op, 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) Convenience/impulse • Confectioneries, tobacconists and newsagents (CTNs) • Convenience stores (e.g. Londis) • Small independent grocers • Other forecourts • Off licences • Other retail stockists Door to door • Dairy deliveries • Direct mail orders

UK Water Plus Report 2022

Appendix Distribution channel definitions Away from home

Symbols

HoReCa; pubs and clubs

• ...

Negligible, less than 0.05

HoReCa - hotel, restaurant and cafés

• CSD

Carbonated soft drink

• Bars, pubs and nightclubs

• e

Estimate

• Food service catering channels

• f

Forecast

• Vending machines

• Foodservice

Distribution to on-premise or HoReCa outlets

• PET

Polyethylene terephthalate

• rPET

Recycled polyethylene terephthalate

• R

Returnable packaging

• SC

Sports cap

• VPL

Value per litre

Offices • Water supplied in places of work such as offices, factories etc. Others • All other away from home outlets

UK Water Plus Report 2022

Appendix 2 Target Group Index (TGI) Zenith Global uses Target Group Index (TGI) syndicated surveys to provide actionable single-source data 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 brands 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 55

COMPANY Address: Tel: Website:

Fax: Email:

Company Structure Ownership: Senior management:

Employees: Subsiduaries: Related activities: Non-related activities:

Company Finances £ Million, year to UK Sales

Profit before tax

Water Production Location: Source: Lines: Investment:

Advertising

Commentary

2016

2017

2018

2019

2020

2021

COMPANY Product Range Brand name

Water type

Pack type

Sizes available (litre) size

x multipack

Product Range Million litres Production UK Sales

2016

2017

2018

2019

2020

2021

2018

2019

2020

2021

Exports

Imports

Packaging Split NR PET

Channel Split (by brand / type) Brand

Retail

OOH

eCommerce

Total

Zenith Global Ltd Tel +44 (0)1225 327934 dlynch@zenithglobal.com