Zenith Global Report 2020
UK Plain Water Report
UK Plain Water Report 2020
Zenith Global report on UK plain water March 2020 29th 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.
UK Plain Water Report 2020
Introduction This is the twenty-ninth Zenith report on the UK plain water market. As the UK water drinks market continues to grow and evolve, so does our report. 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 Market Report The UK Water Plus Market 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 2020 report contains text, charts and tables 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.
Robin Bell Senior Consultant Zenith Global
UK Plain Water Report 2020
Contents Brief summary ------------------------------------------------------------------------------------------ 1 Research overview ------------------------------------------------------------------------------------ 3 1
Macro overview --------------------------------------------------------------------------------- 4 1.1 Economy ------------------------------------------------------------------------------------------ 5 1.2 Weather ------------------------------------------------------------------------------------------- 7 1.3 Media ---------------------------------------------------------------------------------------------- 9
2
Sector performance ------------------------------------------------------------------------- 10
3
UK plain water market ---------------------------------------------------------------------- 12
4
UK plain water packaging ----------------------------------------------------------------- 13
5
UK plain water distribution --------------------------------------------------------------- 17
6
UK plain water companies and brands ----------------------------------------------- 19 6.1 UK plain water companies ----------------------------------------------------------------- 21 6.2 UK plain water brands ---------------------------------------------------------------------- 24
7
UK plain water producers ----------------------------------------------------------------- 25
8
UK plain water exports --------------------------------------------------------------------- 28
9
UK plain water imports --------------------------------------------------------------------- 31
10
UK plain still and sparkling water consumption ---------------------------------- 35
11
UK plain still water brands ---------------------------------------------------------------- 37
12
UK plain sparkling water brands -------------------------------------------------------- 39
13
UK plain retailer own label water ------------------------------------------------------ 41
14
UK mineral water consumption --------------------------------------------------------- 43
15
UK spring water consumption ----------------------------------------------------------- 46
16
UK glass packaged plain water ---------------------------------------------------------- 49
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UK Plain Water Report 2020
17
UK plastic packaged plain water -------------------------------------------------------- 51
18
UK plain water consumer ------------------------------------------------------------------ 53
19
UK plain water value ------------------------------------------------------------------------ 57
20
Ongoing challenges ------------------------------------------------------------------------- 60 20.1 Environmental --------------------------------------------------------------------------------- 60 20.1.1 20.1.2
Key challenges ----------------------------------------------------------------------------- 60 Future trends ------------------------------------------------------------------------------- 61
20.2 Carbon footprint ------------------------------------------------------------------------------ 62 20.2.1 20.2.2
Key challenges ----------------------------------------------------------------------------- 62 Future trends ------------------------------------------------------------------------------- 63
20.3 Water footprint ------------------------------------------------------------------------------- 63 20.3.1 20.3.2
Key challenges ----------------------------------------------------------------------------- 63 Future trends ------------------------------------------------------------------------------- 63
20.4 Lightweighting -------------------------------------------------------------------------------- 63 20.4.1 20.4.2
Key challenges ----------------------------------------------------------------------------- 63 Future trends ------------------------------------------------------------------------------- 64
20.5 Recycling----------------------------------------------------------------------------------------- 64 20.5.1 20.5.2
Key challenges ----------------------------------------------------------------------------- 64 Future trends ------------------------------------------------------------------------------- 65
20.6 Deposit return schemes-------------------------------------------------------------------- 66 20.6.1 20.6.2
Key challenges ----------------------------------------------------------------------------- 66 Future trends ------------------------------------------------------------------------------- 66
20.7 Tap water ---------------------------------------------------------------------------------------- 67 20.7.1 20.7.2
Key challenges ----------------------------------------------------------------------------- 67 Future trends ------------------------------------------------------------------------------- 67
20.8 Industry consolidation ---------------------------------------------------------------------- 68 20.8.1 20.8.2
Key challenges ----------------------------------------------------------------------------- 68 Future trends ------------------------------------------------------------------------------- 68
20.9 Portfolio diversity ---------------------------------------------------------------------------- 68 20.9.1 20.9.2
20.10
Consumer confidence and education ----------------------------------------- 69
20.10.1 20.10.2
20.11
Key challenges ----------------------------------------------------------------------------- 70 Future trends ------------------------------------------------------------------------------- 70
Price pressures------------------------------------------------------------------------- 71
20.13.1 20.13.2
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Key challenges ----------------------------------------------------------------------------- 70 Future trends ------------------------------------------------------------------------------- 70
Stock control and supply ----------------------------------------------------------- 70
20.12.1 20.12.2
20.13
Key challenges ----------------------------------------------------------------------------- 69 Future trends ------------------------------------------------------------------------------- 69
Retailer perception ------------------------------------------------------------------ 70
20.11.1 20.11.2
20.12
Key challenges ----------------------------------------------------------------------------- 68 Future trends ------------------------------------------------------------------------------- 68
Key challenges ----------------------------------------------------------------------------- 71 Future trends ------------------------------------------------------------------------------- 71
UK Plain Water Report 2020
21
Innovation --------------------------------------------------------------------------------------- 72
22
Water stewardship --------------------------------------------------------------------------- 73
23
Legislation--------------------------------------------------------------------------------------- 74 23.1 Natural mineral water, spring water and bottled drinking water - current situation (2015 onwards) ------------------------------------------------------------------ 74 23.2 Natural mineral water, spring water and bottled drinking water historical timeline (to 2015) -------------------------------------------------------------- 75 23.3 Abstraction licensing ------------------------------------------------------------------------ 76
24
Forecast to 2024 ------------------------------------------------------------------------------ 77
Appendix 1 - Definitions and symbols ------------------------------------------------------- 81 Water definitions------------------------------------------------------------------------------------- 81 Natural mineral water ------------------------------------------------------------------------------------ 81 Spring water -------------------------------------------------------------------------------------------------- 81 Bottled drinking water ----------------------------------------------------------------------------------- 81 Flavoured water --------------------------------------------------------------------------------------------- 82 Functional water -------------------------------------------------------------------------------------------- 82 Juicy water ---------------------------------------------------------------------------------------------------- 82 Water plus ----------------------------------------------------------------------------------------------------- 82
Distribution channel definitions ---------------------------------------------------------------- 83 Retail ------------------------------------------------------------------------------------------------------------- 83 Modern retail ------------------------------------------------------------------------------------------------- 83 Convenience / impulse ------------------------------------------------------------------------------------ 83 Door to door -------------------------------------------------------------------------------------------------- 83
Away from home-------------------------------------------------------------------------------------------- 83 HoReCa; pubs and clubs ---------------------------------------------------------------------------------- 83 Offices ----------------------------------------------------------------------------------------------------------- 83 Others ----------------------------------------------------------------------------------------------------------- 83
Symbols -------------------------------------------------------------------------------------------------- 84
Appendix 2 - Target Group Index (TGI) ------------------------------------------------------ 85 Appendix 3 - Leading company profiles----------------------------------------------------- 86
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UK Plain Water Report 2020
Tables Table 2.1 Table 2.2 Table 4.1 Table 4.2 Table 5.1 Table 6.1 Table 6.2 Table 7.1 Table 7.2 Table 8.1 Table 8.2 Table 9.1 Table 9.2 Table 10.1 Table 11.1 Table 12.1 Table 13.1 Table 14.1 Table 15.1 Table 16.1 Table 17.1 Table 18.1 Table 18.2 Table 18.3 Table 19.1 Table 19.2 Table 19.3 Table 19.4 Table 24.1
Š Zenith Global Ltd 2020
UK plain water market, 2014-2019 --------------------------------------------- 11 UK plain water types, 2014-2019------------------------------------------------ 11 UK plain water packaging, 2017-2019 ----------------------------------------- 15 UK plain water packaging, 2019 ------------------------------------------------ 16 UK plain water distribution, 2017-2019 -------------------------------------- 18 Top 25 companies in UK plain water market, 2018-2019--------------- 21 Top 25 brands in UK plain water market, 2018-2019 -------------------- 24 Top 10 UK domestic plain water producers, 2018-2019 ---------------- 26 Top 10 UK domestic produced plain brands, 2018-2019 --------------- 26 UK plain water exports by country, 2014-2019 ---------------------------- 29 Top 10 UK plain water export brands, 2014-2019 ------------------------ 29 UK plain water imports by country, 2014-2019 ---------------------------- 32 UK plain water imports by brand, 2014-2019 ------------------------------- 33 UK plain water consumption by type 2014-2019 -------------------------- 36 Top 10 UK plain still water brands, 2018-2019 ----------------------------- 38 Top 10 UK plain sparkling water brands, 2018-2019 --------------------- 40 Top 5 UK own label plain water producers, 2018-2019 ----------------- 42 Top 20 UK plain mineral water brands, 2018-2019 ----------------------- 44 Top 20 UK plain spring water brands, 2018-2019 ------------------------- 47 Top 10 UK plain water companies in glass packaging, 2018-2019 -- 50 Top 10 UK plain water companies in plastic packaging, 2018-2019 52 GB plain bottled water consumer, 2014-2019------------------------------ 55 UK plain water per capita consumption, 2014-2019 --------------------- 56 International plain water comparison, 2014-2024f----------------------- 56 UK plain water value, 2017-2019 ------------------------------------------------ 58 UK plain water value per litre by pack size, 2018-2019 ----------------- 59 UK plain premium vs private label value per litre, 2018-2019 -------- 59 International premium vs private label value per litre comparison, 2019---------------------------------------------------------------------------------------- 59 UK plain water consumption by segment forecast, 2019-2024f----- 79
UK Plain Water Report 2020
Figures Figure 1.1 Figure 1.2 Figure 1.3 Figure 4.1 Figure 5.1 Figure 6.1 Figure 6.2 Figure 6.3 Figure 7.1 Figure 8.1 Figure 8.2 Figure 9.1 Figure 9.2 Figure 10.1 Figure 11.1 Figure 12.1 Figure 13.1 Figure 13.2 Figure 14.1 Figure 14.2 Figure 15.1 Figure 15.2 Figure 16.1 Figure 17.1 Figure 18.1 Figure 19.1 Figure 24.1
Š Zenith Global Ltd 2020
UK mean temperature, 2014-19 -------------------------------------------------- 8 UK sunshine hours, 2017-19 ------------------------------------------------------- 8 UK rainfall, 2017-19 ------------------------------------------------------------------- 8 UK plain water packaging, 2019 ------------------------------------------------- 15 UK plain water distribution, 2019 ----------------------------------------------- 18 UK plain water industry consolidation, 2014-2019 ----------------------- 22 Top 5 UK plain water companies, 2014 vs 2019 --------------------------- 22 Leading UK plain water companies, 2019 ------------------------------------ 23 Leading UK plain water producers, 2019 ------------------------------------- 27 UK plain water exports, 2014-2019 -------------------------------------------- 30 Leading exported plain water brands, 2019 -------------------------------- 30 UK plain water imports, 2014-2019 -------------------------------------------- 34 Leading plain imported water brands, 2019 -------------------------------- 34 UK plain still water consumption share, 2014-2019 ---------------------- 36 Leading UK plain still water brands, 2019 ----------------------------------- 38 Leading UK plain sparkling water brands, 2019 --------------------------- 40 UK own label plain water consumption share, 2014-2019 ------------- 42 Leading UK own label plain water producers, 2019 ---------------------- 42 UK mineral water consumption share, 2014-2019 ------------------------ 45 Leading UK plain mineral water brands, 2019 ------------------------------ 45 UK spring water consumption share, 2014-2019 -------------------------- 48 Leading UK plain spring water brands, 2019 -------------------------------- 48 Leading UK plain water companies in glass, 2019 ------------------------ 50 Leading UK plain water companies in plastic, 2019 ---------------------- 52 GB plain bottled water consumption 2014-2019-------------------------- 55 UK plain water value, 2014-2019 ------------------------------------------------ 58 UK plain water market forecast, 2014-2024f ------------------------------- 79
UK Plain Water Report 2020
UK Plain Water Report 2020 Brief summary 1. Commentary 2. Commentary 3. Commentary
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UK Plain Water Report 2020
Research overview
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•
In compiling its research, Zenith 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 packaged water.
•
A complete picture of the UK 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 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 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, formerly Natural Hydration Council).
UK Plain Water Report 2020
1
1.1
1.2
Macro overview •
Commentary
•
Commentary
•
Commentary
Economy •
Commentary
•
Commentary
•
Commentary
Weather •
Commentary
•
Commentary
•
Commentary
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UK Plain Water Report 2020
Figure 1.1
UK mean temperature, 2014-19
16.0 14.0 Degrees centigrade
12.0 10.0 8.0 6.0 4.0 2.0 0.0 2014
2015
2016
Figure 1.2
2017
2018
2019
UK sunshine hours, 2017-19
50 45
Sunshine hours
40 35 30 25 20 15 10 5 0 Jan
Feb
Mar
Apr
May
2017
Figure 1.3
Jun
Jul
2018
Aug
Sep
Oct
Nov
Dec
Sep
Oct
Nov
Dec
2019
UK rainfall, 2017-19
80 70 60 Rainfall
50 40 30 20 10 0 Jan
Feb
Mar
Apr
May
2017 Source: Met Office
Jun 2018
Jul
Aug 2019
UK Plain Water Report 2020
1.3
Media •
Commentary
•
Commentary
•
Commentary
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UK Plain Water Report 2020
2
Sector performance •
Commentary
•
Commentary
•
Commentary Table 2.1
Million litres Production Exports Imports Consumption
2014
UK plain water market, 2014-2019 2015 2016 2017
2018
2019
2014
UK plain water types, 2014-2019 2015 2016 2017
2018
2019
Production % change Exports as % of production Imports as % consumption Consumption % change Litres per person Source: Zenith Global
Table 2.2 Million litres Sparkling Still Sparkling % share Still % share Mineral Spring Others Mineral % share Spring % share Total market Total market % change Source: Zenith Global
UK Plain Water Report 2020
3
UK plain water market •
Commentary
•
Commentary
•
Commentary
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UK Plain Water Report 2020
4
UK plain water packaging •
Commentary
•
Commentary
•
Commentary
Table 4.1 Million litres Can/bag in box Carton Glass PET rPET Total market
UK plain water packaging, 2017-19 2017 2018
% share Can/bag in box Carton Glass PET rPET Source: Zenith Global
2017
Figure 4.1
25%
2018
2019
2019
UK plain water packaging, 2019
25% PET rPET Glass Others
25%
25%
Total consumption: XX million litres
UK Plain Water Report 2020
Table 4.2 Pack type Can
UK plain water packaging, 2019 Sizes in litres
Million litres
Total 0.20/0.25 0.33/0.5
Bag in box Carton Glass
Total Total Total 0.20/0.25 0.33/0.375 0.5 0.75 1
PET
Total 0.085/0.2/0.25 0.3/0.33/0.37 0.5 0.7/0.75/0.85 1 1.5 2 5
rPET
Total 0.5 0.75 1 2 5
Total market Source: Zenith Global
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UK Plain Water Report 2020
5
UK plain water distribution •
Commentary
•
Commentary
•
Commentary
Table 5.1 Million litres
UK plain water distribution, 2017-2019 2017 2018 2017 2018 volume % share volume % share
2019 volume
Modern retail (includes discounters) Convenience / impulse Door to door Retail HoReCa; pubs, clubs Offices Others Away from home Total market Source: Zenith Global
Figure 5.1
UK plain water distribution, 2019
20%
20%
Modern retail Convenience 20%
20%
HoReCa Offices Others
20%
Total consumption: XX million litres
2019 % share
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UK Plain Water Report 2020
6
6.1
UK plain water companies and brands •
Commentary
•
Commentary
•
Commentary
UK plain water companies Table 6.1 Million litres
Top 25 companies in UK plain water market, 2018-2019 2018 2019 2018 2019 volume % share volume % share
Rank
Company 1
1
Company 2
2
Company 3
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Top 25 Others Total market Top 5 Top 10 Source: Zenith Global
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UK Plain Water Report 2020
Figure 6.1
UK plain water industry consolidation, 2014-2019
100 90 80 70 % share
60 50 40 30 20 10 0 2014
2015
2016 Top 5
2017
2018
2019
Top 10
Source: Zenith Global
Figure 6.2
Top 5 UK plain water companies, 2014 vs 2019
Company 1
Company 2
Company 3
Company 4
Company 5
0
20
40 2019
Source: Zenith Global
60 2014
80
100
120
Million litres
UK Plain Water Report 2020
Figure 6.3
Leading UK plain water companies, 2019
10%
Company 1 10%
50%
10%
Company 2 Company 3 Company 4
10% 10%
Total consumption: XX million litres
Company 5 Others
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UK Plain Water Report 2020
6.2
UK plain water brands Table 6.2 Million litres
Top 25 brands in UK plain water market, 2018-2019 2018 2019 2018 2019 volume % share volume % share
Brand rank
Brand 1
1
Brand 2
2
Brand 3
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Top 25 Others Total market Top 5 Top 10 Source: Zenith Global
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7
UK plain water producers •
Commentary
•
Commentary
•
Commentary
Table 7.1 Million litres
Top 10 UK domestic plain water producers, 2018-2019 2018 2018 % 2019 volume share volume
2019 % share
Top 10 UK domestic produced plain brands, 2018-2019 2018 2018 % 2019 volume share volume
2019 % share
Company 1 Company 2 Company 3
Top 10 Others Total UK production Source: Zenith Global
Table 7.2 Million litres Brand 1 Brand 2 Brand 3
Top 10 Others Total UK sales Source: Zenith Global
UK Plain Water Report 2020
Figure 7.1
Leading UK plain water producers, 2019
10% 25%
Company 1 10%
Company 2 Company 3
10%
Company 4 Company 5
10%
25% 10%
Next top 5 Others
Total UK bottled water production: XX million litres
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UK Plain Water Report 2020
8
UK plain water exports •
Commentary
•
Commentary
•
Commentary
Table 8.1 Million litres Country 1 Country 2 Country 3
UK plain water exports by country, 2014-2019 2014 2015 2016 2017 2018
2019
Others Total exports % change Source: Global Trade Information Services
Table 8.2 Million litres Brand 1 Brand 2 Brand 3
Top 10 UK plain water export brands, 2014-2019 2014 2015 2016 2017
Total exports (1) Brands Others/stock adjustment Total export sales (2) (1) UK Government figures (2) Zenith export figures calculated from brand export totals by country Source: Zenith Global
2018
2019
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UK Plain Water Report 2020
Figure 8.1
UK plain water exports, 2014-2019
120
100
Million litres
80
60
40
20
0 2014
2015
2016
2017
2018
2019
Source: Zenith Global
Figure 8.2
Leading exported plain water brands, 2019
10%
Brand 1 10%
Brand 2 Brand 3
50%
10%
Brand 4 Brand 5
10% Others 10%
Total UK bottled water exports: XX million litres
UK Plain Water Report 2020
9
UK plain water imports •
Commentary
•
Commentary
•
Commentary
Table 9.1 Million litres Country 1 Country 2 Country 3
UK plain water imports by country, 2014-2019 2014 2015 2016 2017 2018
Others Total imports % change Source: Global Trade Information Services
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2019
UK Plain Water Report 2020
Table 9.2 Million litres Country 1 (1) Brand 1 Brand 2 Brand 3 Others/stock adjustment/misrecording
UK plain water imports by brand, 2014-2019 2014 2015 2016 2017
2018
Country 2 (1) Brand 1 Brand 2 Brand 3 Others/stock adjustment/misrecording Country 3 (1) Brand 1 Brand 2 Brand 3 Others/stock adjustment/misrecording Other countries (1) Country 1 Country 2 Country 3 Total import sales (1) UK Government figures Source: Zenith Global Figure 9.1
UK plain water imports, 2014-2019
120
100
Million litres
80
60
40
20
0 2014
2015
Source: Global Trade Information Services
2016
2017
2018
2019
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UK Plain Water Report 2020
Figure 9.2
Leading plain imported water brands, 2019
10%
Brand 1 10%
Brand 2 Brand 3
50%
10%
Brand 4 Brand 5
10% Others 10%
Total UK bottled water imports: XX million litres
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UK plain still and sparkling water consumption •
Commentary
•
Commentary
•
Commentary
Table 10.1 Million litres Total consumption Sparkling Still
UK plain water consumption by type 2014-2019 2014 2015 2016 2017 2018
2019
Total consumption % change Sparkling % change Still % change Total consumption % share Sparkling % share Still % share Source: Zenith Global
Figure 10.1
UK plain still water consumption share, 2014-2019
60.0
50.0
40.0 % share
10
30.0
20.0
10.0
0.0 2014 Source: Zenith Global
2015
2016
2017
2018
2019
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UK Plain Water Report 2020
11
UK plain still water brands •
Commentary
•
Commentary
•
Commentary
Table 11.1 Million litres
Top 10 UK plain still water brands, 2018-2019 2018 2018 % 2019 2019 % volume share volume share
Brand rank
Brand 1
1
Brand 2
2
Brand 3
3 4 5 6 7 8 9 10
Top 10 Others (1) Total still water retailer own labels Source: Zenith Global (1) Includes
Figure 11.1
Leading UK plain still water brands, 2019
10%
Brand 1 10%
Brand 2 Brand 3
50%
10%
Brand 4 Brand 5
10% Others 10%
Total UK packaged still water: XX million litres
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12
UK plain sparkling water brands •
Commentary
•
Commentary
•
Commentary
Table 12.1 Million litres
Top 10 UK plain sparkling water brands, 2018-2019 2018 2018 % 2019 2019 % volume share volume share
Brand rank
Brand 1
1
Brand 2
2
Brand 3
3 4 5 6 7 8 9 10
Top 10 Others (1) Total still water retailer own labels Source: Zenith Global (1) Includes
Figure 12.1
Leading UK plain sparkling water brands, 2019
10%
Brand 1 10%
Brand 2 Brand 3
50%
10%
Brand 4 Brand 5
10% Others 10%
Total UK packaged sparkling water: XX million litres
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13
UK plain retailer own label water •
Commentary
•
Commentary
•
Commentary
Figure 13.1
UK own label plain water consumption share, 2014-2019
60
% share of packaged water
50
40
30
20
10
0 2014
2015
2016
2017
2018
2019
Source: Zenith Global
Table 13.1 Million litres
Top 5 UK own label plain water producers, 2018-2019 2018 2018 % 2019 2019 % volume share volume share
Rank
Company 1
1
Company 2
2
Company 3
3 4 5
Top 5 Others Total own label water Source: Zenith Global
Top 25 rank
UK Plain Water Report 2020
Figure 13.2
Leading UK own label plain water producers, 2019
10%
Company 1 10%
Company 2 Company 3
50%
10%
Company 4 Company 5
10% Others 10%
Total UK own label production: XX million litres
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UK Plain Water Report 2020
14
UK mineral water consumption •
Commentary
•
Commentary
•
Commentary
Table 14.1 Million litres (1)
Top 20 UK plain mineral water brands, 2018-2019 2018 2018 % 2019 2019 % Brand volume share volume share rank
Brand 1
1
Brand 2
2
Brand 3
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Top 20 Others (1) Total mineral water (1) Includes retailer own label volumes Source: Zenith Global
Top 25 rank
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UK Plain Water Report 2020
Figure 14.1
UK mineral water consumption share, 2014-2019
55 50
% share of bottled water
45 40 35 30 25 20 15 10 5 2014
2015
2016
2017
2018
Source: Zenith Global
Figure 14.2
Leading UK plain mineral water brands, 2019
10%
Brand 1 10%
Brand 2 Brand 3
50%
10%
Brand 4 Brand 5
10% Others 10%
Total UK mineral water: XX million litres
2019
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UK Plain Water Report 2020
15
UK spring water consumption •
Commentary
•
Commentary
•
Commentary
Table 15.1 Million litres (1)
Top 20 UK plain spring water brands, 2018-2019 2018 2018 % 2019 2019 % volume share volume share
Brand rank
Brand 1
1
Brand 2
2
Brand 3
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Top 20 Others (1) Total spring water (1)
Includes retailer own label volumes Source: Zenith Global
Top 25 rank
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UK Plain Water Report 2020
Figure 15.1
UK spring water consumption share, 2014-2019
55 50
% share of bottled water
45 40 35 30 25 20 15 10 5 0 2014
2015
2016
2017
2018
Source: Zenith Global
Figure 15.2
Leading UK plain spring water brands, 2019
10%
Brand 1 10%
Brand 2 Brand 3
50%
10%
Brand 4 Brand 5
10% Others 10%
Total UK spring water: XX million litres
2019
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16
UK glass packaged plain water •
Commentary
•
Commentary
•
Commentary
Table 16.1 Million litres
Top 10 UK plain water companies in glass packaging, 2018-2019 2018 2018 % 2019 2019 % Top 25 volume share volume share rank
Company 1 Company 2 Company 3
Top 10 Others Total in glass Source: Zenith Global
Figure 16.1
Leading UK plain water companies in glass, 2019
10%
Company 1 10%
Company 2 Company 3
50%
10%
Company 4 Company 5
10% Others 10%
Total UK packaged water in glass: XX million litres
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UK Plain Water Report 2020
17
UK plastic packaged plain water •
Commentary
•
Commentary
•
Commentary
Table 17.1 Million litres
Top 10 UK plain water companies in plastic packaging, 2018-2019 2018 2018 % 2019 2019 % Top 25 volume share volume share rank
Company 1 Company 2 Company 3
Top 10 Others Total in plastic (1) (1)
Packaged water in PET/recycled PET only Source: Zenith Global
Figure 17.1
Leading UK plain water companies in plastic, 2019
10%
Company 1 10%
Company 2 Company 3
50%
10%
Company 4 Company 5
10% Others 10%
Total UK packaged water in plastic: XX million litres
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UK Plain Water Report 2020
UK plain water consumer •
Commentary
•
Commentary
•
Commentary
Table 19.1 % of GB population (1) Bottled water consumers
GB plain bottled water consumer, 2014-2019 2014 2015 2016 2017
'Regular' bottled water 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 bottled water consumers (100 = average) Male Female (1) For fieldwork period July 2018 - June 2019 Source: Target Group Index (TGI) - GB adults aged 15 and above Figure 19.1
GB plain bottled water consumption 2014-2019
120
100
% of GB population
18
80
60
40
20
0 2014
2015 2016 Regular consumers
2017 2018 All consumers
Source: Target Group Index (TGI) - GB adults aged 15 and above
2019
2018
2019
UK Plain Water Report 2020
Table 19.2 Litres Per capita consumption Sparkling Still
UK plain water per capita consumption, 2014-2019 2014 2015 2016 2017 2018
Per capita consumption % change Sparkling % change Still % change Source: Zenith Global
Table 19.3 Litres per person
International plain water comparison, 2014-2024f CAGR 2014 2019 2024f (14-19) (19-24f)
United States France Germany Italy Spain United Kingdom West Europe Poland East Europe China Asia Pacific Global Source: Zenith Global - Globaldrinks.com
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19
UK plain water value •
Commentary
•
Commentary
•
Commentary
Table 20.1 2017 Volume
£ VPL
UK plain water value, 2017-2019 2018 £m £m Volume £ VPL Value Value
2019 Volume
£ VPL
Total market (1) Total market % change Modern retail (including discounters) Convenience / impulse HoReCa; pubs, clubs Others (1) retail
sales value - Numbers may vary due to rounding Source: Zenith Global
Figure 20.1
UK plain water value, 2014-2019
120
2.00
80
60
1.00 VPL £
Market value £ mln
100
40
20
0
0.00 2014
2015
2016
Market value (£ mln) Source: Zenith Global
2017
2018
Value per litre (£)
2019
£m Value
UK Plain Water Report 2020
Table 20.2 Pack size Sparkling to 2L Still to 2L Still 2.1 - 10L Total Source: Zenith Global
Table 20.3
UK plain water value per litre by pack size, 2018-2019 2018 2019 Growth
UK plain premium vs private label value per litre, 2018-2019 2018 2019
Premium Private label Plain water total Source: Zenith Global
Table 20.4 International premium vs private label value per litre comparison, 2019 Country Plain Premium Private label France Italy Germany USA UK Source: Zenith Global
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20
Ongoing challenges
20.1
Environmental
20.1.1 Key challenges •
Commentary
•
Commentary
20.1.2 Future trends
20.2
•
Commentary
•
Commentary
Carbon footprint
20.2.1 Key challenges •
Commentary
•
Commentary
20.2.2 Future trends
20.3
•
Commentary
•
Commentary
Water footprint
20.3.1 Key challenges •
Commentary
•
Commentary
20.3.2 Future trends •
Commentary
•
Commentary
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20.4
Lightweighting
20.4.1 Key challenges •
Commentary
•
Commentary
20.4.2 Future trends
20.5
•
Commentary
•
Commentary
Recycling
20.5.1 Key challenges •
Commentary
•
Commentary
20.5.2 Future trends
20.6
•
Commentary
•
Commentary
Deposit return schemes
20.6.1 Key challenges •
Commentary
•
Commentary
20.6.2 Future trends
20.7
•
Commentary
•
Commentary
Tap water
20.7.1 Key challenges •
Commentary
•
Commentary
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20.7.2 Future trends
20.8
•
Commentary
•
Commentary
Industry consolidation
20.8.1 Key challenges •
Commentary
•
Commentary
20.8.2 Future trends
20.9
•
Commentary
•
Commentary
Portfolio diversity
20.9.1 Key challenges •
Commentary
•
Commentary
20.9.2 Future trends •
Commentary
•
Commentary
20.10 Consumer confidence and education 20.10.1 Key challenges •
Commentary
•
Commentary
20.10.2 Future trends •
Commentary
•
Commentary
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20.11 Retailer perception 20.11.1 Key challenges •
Commentary
•
Commentary
20.11.2 Future trends •
Commentary
•
Commentary
20.12 Stock control and supply 20.12.1 Key challenges •
Commentary
•
Commentary
20.12.2 Future trends •
Commentary
•
Commentary
20.13 Price pressures 20.13.1 Key challenges •
Commentary
•
Commentary
20.13.2 Future trends •
Commentary
•
Commentary
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21
Innovation •
Commentary
•
Commentary
•
Commentary
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22
Water stewardship •
Commentary
•
Commentary
•
Commentary
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23
Legislation
23.1
Natural mineral water, spring water and bottled drinking water current situation (2015 onwards)
23.2
23.3
•
Commentary
•
Commentary
•
Commentary
Natural mineral water, spring water and bottled drinking water historical timeline (to 2015) •
Commentary
•
Commentary
•
Commentary
Abstraction licensing •
Commentary
•
Commentary
•
Commentary
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24
Forecast to 2024 •
Commentary
•
Commentary
•
Commentary
Table 25.1 Million litres Sparkling Still
UK plain water consumption by segment forecast, 2019-2024f 2019 2020f 2021f 2022f 2023f
2024f
Sparkling % share Still % share Total market Total market % change Source: Zenith Global
Figure 25.1
UK plain water market forecast, 2014-2024f
120
100
Million litres
80
60
40
20
2014
2015
Source: Zenith Global
2016
2017
2018
2019
2020f
2021f
2022f
2023f
2024f
UK Plain Water Report 2020
Appendix
Page 45
UK Plain Water Report 2020
Page 46
Appendix 1 - Definitions and symbols 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.
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.
UK Plain Water Report 2020
Page 47
•
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 24 - 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 waters Flavoured 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)
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: • • •
San Pellegrino Aranciata, Limonata etc. Capri Sun Vimto
Water plus Water plus includes flavoured waters, functional waters and juicy waters as defined above.
UK Plain Water Report 2020
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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
Away from home HoReCa; pubs and clubs •
HoReCa - hotel, restaurant and cafés
•
Bars, pubs and nightclubs
•
Food service catering channels
•
Vending machines
Offices •
Water supplied in places of work such as offices, factories etc.
Others •
All other away from home outlets
UK Plain Water Report 2020
Symbols ...
Negligible, less than 0.05
e
Estimate
f
Forecast
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
Page 49
UK Plain Water Report 2020
Page 50
Appendix 2 - Target Group Index (TGI) Zenith 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
UK Plain Water Report 2020
Appendix 3 - Leading company profiles AG Barr Plc Berrington Pure Spring Water Company Brecon Mineral Water Britvic Plc Coca-Cola European Partners Coca-Cola HBC Northern Ireland Danone Waters (UK & Ireland) Ltd Harrogate Water Brands Ltd Highland Spring Group Hildon Ltd Montgomery Spring Water Company NestlÊ Waters UK Ltd One Water - Global Ethics Ltd Prince’s Gate Spring Water Princes Soft Drinks Radnor Hills Mineral Water Company Ltd Refresco Beverages Roxane (UK) Shepley Spring Ltd
Page 51
COMPANY Address: Tel: Website:
Fax: Email:
Company Structure Ownership: Senior management:
Employees: Subsiduaries: Related activities:
Non-related activities:
Company Finances ÂŁ Million, year to Sales Profit before tax
Water Production Location: Source: Lines: Investment:
Advertising
Commentary
2011
2012
2013
2014
2015
2016
2017
COMPANY - Plain Water Product Range Brand name Brand A
Water type Still
Pack type
Spring
NR PET
Sizes available (litre) 0.5 0.75 (SC)
0.5 1.5
0.33
0.75
Glass
x10
Production & Sales Volume Million litres Production Exports UK Sales - still - sparkling - cooler Brand - still - sparkling - cooler
2011
2012
2013
2014
2015
2016
2017
2011
2012
2013
2014
2015
2016
2017
Cooler Analysis Unit Numbers Own POU units
Packaging Split NR GLASS 0.33 0.75 NR PET 0.5 0.75 1
10.0% 5.0% 5.0% 90.0% 50.0% 20.0% 20.0%
Channel Split (by brand / type) Brand Brand
Retail 100.0%
OOH 0.0%
HOD 0.0%
Total 100%
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