Zenith Global Report 2020
UK Water Plus Report
UK Water Plus Report 2020
Zenith Global report on UK water plus 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 Water Plus 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 Water Plus Report 2020
Contents Brief summary ------------------------------------------------------------------------------------------ 1 Research overview ------------------------------------------------------------------------------------ 2 1
Macro overview --------------------------------------------------------------------------------- 3 1.1 Economy ------------------------------------------------------------------------------------------ 4 1.2 Weather ------------------------------------------------------------------------------------------- 6 1.3 Media ---------------------------------------------------------------------------------------------- 8
2
UK water plus market ------------------------------------------------------------------------- 9
3
UK water plus packaging ------------------------------------------------------------------ 13
4
UK water plus distribution ---------------------------------------------------------------- 16
5
UK water plus companies and groups ------------------------------------------------ 18 5.1 UK water plus companies ------------------------------------------------------------------ 18 5.2 UK water plus groups ----------------------------------------------------------------------- 22
6
UK water plus producers ------------------------------------------------------------------ 25
7
UK still water plus brands ----------------------------------------------------------------- 27
8
UK sparkling water plus brands --------------------------------------------------------- 29
9
UK flavoured water brands --------------------------------------------------------------- 31
10
UK functional water brands -------------------------------------------------------------- 33
11
UK juicy water brands ----------------------------------------------------------------------- 36
12
UK flavoured water retailer own label ----------------------------------------------- 38
13
UK water plus consumer ------------------------------------------------------------------- 41
14
UK water plus value ------------------------------------------------------------------------- 44
15
Ethical initiatives ------------------------------------------------------------------------------ 47
Š Zenith Global Ltd 2020
UK Water Plus Report 2020
16
Ongoing challenges ------------------------------------------------------------------------- 48 16.1 Maintaining consumer interest ---------------------------------------------------------- 48 16.1.1 16.1.2
Key challenges ----------------------------------------------------------------------------- 48 Future trends ------------------------------------------------------------------------------- 49
16.2 Selling ‘hydration with flavour’ ---------------------------------------------------------- 50 16.2.1 16.2.2
Key challenges ----------------------------------------------------------------------------- 50 Future trends ------------------------------------------------------------------------------- 50
16.3 The sugar debate ----------------------------------------------------------------------------- 51 16.3.1 16.3.2
Key challenges ----------------------------------------------------------------------------- 51 Future trends ------------------------------------------------------------------------------- 51
16.4 Retailer perception -------------------------------------------------------------------------- 51 16.4.1 16.4.2
Key challenges ----------------------------------------------------------------------------- 51 Future trends ------------------------------------------------------------------------------- 52
16.5 Stock control and supply ------------------------------------------------------------------ 52 16.5.1 16.5.2
Key challenges ----------------------------------------------------------------------------- 52 Future trends ------------------------------------------------------------------------------- 52
16.6 Price pressures -------------------------------------------------------------------------------- 53 16.6.1 16.6.2
Key challenges ----------------------------------------------------------------------------- 53 Future trends ------------------------------------------------------------------------------- 53
17
Innovation --------------------------------------------------------------------------------------- 54
18
Water stewardship --------------------------------------------------------------------------- 55
19
Legislation --------------------------------------------------------------------------------------- 56 19.1 Natural mineral water, spring water and bottled drinking water - current situation (2015 onwards) ------------------------------------------------------------------ 56 19.2 Natural mineral water, spring water and bottled drinking water historical timeline (to 2015) -------------------------------------------------------------- 57 19.3 Abstraction licensing ------------------------------------------------------------------------ 58
20
Forecast to 2024 ------------------------------------------------------------------------------ 59
Š Zenith Global Ltd 2020
UK Water Plus Report 2020
Appendix 1 - Definitions and symbols ------------------------------------------------------- 63 Water definitions------------------------------------------------------------------------------------- 63 Natural mineral water ------------------------------------------------------------------------------------ 63 Spring water -------------------------------------------------------------------------------------------------- 63 Bottled drinking water ----------------------------------------------------------------------------------- 63 Flavoured water --------------------------------------------------------------------------------------------- 64 Functional water -------------------------------------------------------------------------------------------- 64 Juicy water ---------------------------------------------------------------------------------------------------- 64 Water plus ----------------------------------------------------------------------------------------------------- 64
Distribution channel definitions ---------------------------------------------------------------- 65 Retail ------------------------------------------------------------------------------------------------------------- 65 Modern retail ------------------------------------------------------------------------------------------------- 65 Convenience / impulse ------------------------------------------------------------------------------------ 65 Door to door -------------------------------------------------------------------------------------------------- 65
Away from home-------------------------------------------------------------------------------------------- 65 HoReCa; pubs and clubs ---------------------------------------------------------------------------------- 65 Offices ----------------------------------------------------------------------------------------------------------- 65 Others ----------------------------------------------------------------------------------------------------------- 65
Symbols -------------------------------------------------------------------------------------------------- 66
Appendix 2 - Target Group Index (TGI) ------------------------------------------------------ 67 Appendix 3 - Leading company profiles----------------------------------------------------- 68 AG Barr Plc ------------------------------------------------------------------------------------------------Britvic Plc--------------------------------------------------------------------------------------------------Clearly Drinks Ltd --------------------------------------------------------------------------------------Coca-Cola European Partners ---------------------------------------------------------------------Danone Waters (UK & Ireland) Ltd ---------------------------------------------------------------Get More Vitamin Drinks ----------------------------------------------------------------------------Highland Spring Group -------------------------------------------------------------------------------Innocent Drinks -----------------------------------------------------------------------------------------Montgomery Spring Water Company -----------------------------------------------------------NestlĂŠ Waters UK Ltd ---------------------------------------------------------------------------------Nichols Plc ------------------------------------------------------------------------------------------------Princes Limited------------------------------------------------------------------------------------------Radnor Hills Mineral Water Company Ltd -----------------------------------------------------Refresco Beverages -----------------------------------------------------------------------------------Talking Rain Beverage Company -----------------------------------------------------------------Trederwen Springs-------------------------------------------------------------------------------------Ugly Brands Ltd ------------------------------------------------------------------------------------------
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UK Water Plus Report 2020
Tables Table 2.1 Table 2.2 Table 3.1 Table 3.2 Table 4.1 Table 5.1 Table 5.2 Table 5.3 Table 6.1 Table 7.1 Table 8.1 Table 9.1 Table 10.1 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 20.1
Š Zenith Global Ltd 2020
UK water plus market, 2014-2019 ---------------------------------------------- 11 UK water plus types, 2014-2019 ------------------------------------------------- 11 UK water plus packaging, 2017-2019 ------------------------------------------ 15 UK water plus packaging, 2019 ------------------------------------------------- 17 UK water plus distribution, 2017-2019---------------------------------------- 17 Top 15 companies in UK water plus market, 2018-2019---------------- 19 Top 20 brands in UK water plus market, 2018-2019 --------------------- 23 Top 20 brands in UK water plus market ranking, 2019 ------------------ 24 Top 10 UK water plus producers, 2018-2019 ------------------------------- 26 Top 5 UK still water plus brands, 2018-2019 -------------------------------- 28 Top 5 UK sparkling water plus brands, 2018-2019------------------------ 30 Top 10 UK flavoured water brands 2018-2019 ----------------------------- 32 Top 5 UK functional water brands, 2018-2019 ----------------------------- 35 Top 5 UK juicy water brands, 2018-2019 ------------------------------------- 37 UK own label flavoured water production, 2017-2019------------------ 39 Top 5 UK own label water plus producers, 2018-2019 ------------------ 40 GB flavoured water, herbal and premium soft drinks consumer, 2014-2019 ------------------------------------------------------------------------------- 42 UK water plus per capita consumption, 2014-2019 ---------------------- 43 International flavoured water comparison, 2014-2024f---------------- 43 UK water plus value, 2017-2019 ------------------------------------------------- 45 UK branded vs private label value per litre, 2018-2019----------------- 46 UK water plus consumption by segment forecast, 2019-2024f ------ 61
UK Water Plus Report 2020
Figures Figure 1.1 Figure 1.2 Figure 1.3 Figure 2.1 Figure 2.2 Figure 3.1 Figure 4.1 Figure 5.1 Figure 5.2 Figure 5.3 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 20.1
Š Zenith Global Ltd 2020
UK mean temperature, 2014-19 -------------------------------------------------- 7 UK sunshine hours, 2017-19 ------------------------------------------------------- 7 UK rainfall, 2017-19-----------------------------------------------------------------------7 UK water plus market, 2014-19 -------------------------------------------------- 12 UK water plus consumption share, 2014-19 -------------------------------- 12 UK water plus packaging, 2019 -------------------------------------------------- 15 UK water plus distribution, 2019 ------------------------------------------------ 17 UK water plus industry consolidation, 2014-2019 ------------------------ 20 Top 5 water plus companies, 2014 vs 2019 --------------------------------- 20 Leading UK water plus companies, 2019 ------------------------------------- 21 Leading UK water plus producers, 2019 -------------------------------------- 26 Leading UK still water plus brands, 2019 ------------------------------------ 28 Leading UK sparkling water plus brands, 2019 ---------------------------- 30 Leading UK flavoured water brands, 2019 ---------------------------------- 32 Leading UK functional water brands, 2019 ---------------------------------- 35 Leading UK juicy water brands, 2019 ------------------------------------------ 37 UK own label flavoured water consumption share, 2014-2019 ------ 39 Leading UK own label flavoured water producers, 2019 --------------- 40 GB flavoured water, herbal and premium soft drinks consumption 2014-2019 ------------------------------------------------------------------------------- 42 UK water plus market value, 2014-2019-------------------------------------- 46 UK water plus market forecast, 2014-2024f -------------------------------- 61
UK Water Plus Report 2020
UK Water Plus Report 2020 Brief summary 1. Commentary 2. Commentary 3. Commentary
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UK Water Plus 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 Water Plus Report 2020
1
1.1
1.2
Macro overview •
Commentary
•
Commentary
•
Commentary
Economy •
Commentary
•
Commentary
•
Commentary
Weather •
Commentary
•
Commentary
•
Commentary
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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 Water Plus Report 2020
1.3
Media •
Commentary
•
Commentary
•
Commentary
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2
UK water plus market •
Commentary
•
Commentary
•
Commentary Table 2.1
Million litres Production Imports Consumption
2014
UK water plus market, 2014-2019 2015 2016 2017
2018
2019
2014
UK water plus types, 2014-2019 2015 2016 2017
2018
2019
Production % change Imports as % consumption Consumption % change Litres per person Source: Zenith Global Table 2.2 Million litres Sparkling Still Sparkling % share Still % share Flavoured Functional Juicy Flavoured % share Functional % share Juicy % share Flavoured % change Functional % change Juicy % change Total market Total market % change Source: Zenith Global
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UK Water Plus Report 2020
Figure 2.1
UK water plus market, 2014-19
120
100
Million litres
80
60
40
20
0 2014
2015
2016 Flavoured
2017 Functional
2018
2019
Juicy
Source: Zenith Global
Figure 2.2
UK water plus consumption share, 2014-19
60
% share
40
20
0 2014
2015
2016 Flavoured
Source: Zenith Global
2017 Functional
2018 Juicy
2019
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3
UK water plus packaging •
Commentary
•
Commentary
•
Commentary
Table 3.1 Million litres PET Others Total market
% share PET Others Source: Zenith Global
UK water plus packaging, 2017-19 2017 2018
2017
Figure 3.1
2019
2018
2019
UK water plus packaging, 2019
PET 50%
50% Others
Total consumption: XX million litres
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UK Water Plus Report 2020
4
UK water plus distribution •
Commentary
•
Commentary
•
Commentary
Table 4.1
UK water plus distribution, 2017-2019 2017 2018 2017 2018 volume % share volume % share
Million litres
2019 volume
Modern retail (includes discounters) Convenience / impulse Retail HoReCa; pubs, clubs Others Away from home Total market Source: Zenith Global
Figure 4.1
25%
UK water plus distribution, 2019
25%
Modern retail Convenience HoReCa 25%
25%
Total consumption: XX million litres
Others
2019 % share
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5
UK water plus companies and groups
5.1
UK water plus companies •
Commentary
•
Commentary
•
Commentary
Table 5.1 Million litres
Top 15 companies in UK water plus 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
Top 15 Others Total market Top 5 Top 10 Source: Zenith Global
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Figure 5.1
UK water plus 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 5.2
Top 5 water plus 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 Water Plus Report 2020
Figure 5.3
Leading UK water plus 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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5.2
UK water plus groups •
Commentary
•
Commentary
•
Commentary
Table 5.2 Million litres
Top 20 brands in UK water plus 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
Top 20 Others (3) Total market Top 5 Top 10 (1) (2) (3)
Includes retailer brands
Source: Zenith Global
UK Water Plus Report 2020
Table 5.3 Million litres Brand 1
Top 20 brands in UK water plus market ranking, 2019 Flavoured
Functional
Juicy
1
Brand 2
1
Brand 3
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2 1
3
Brand 4
2
4
Brand 5
3
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Source: Zenith Global
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6
UK water plus producers •
Commentary
•
Commentary
•
Commentary
Table 6.1
Top 10 UK water plus producers, 2018-2019 2018 2018 % 2019 volume share volume
Million litres Company 1 Company 2 Company 3
Top 10 Others Total UK production Source: Zenith Global
Figure 6.1
Leading UK water plus producers, 2019
10% Company 1 10%
Company 2 Company 3
50%
10% Company 4 10% 10%
Total UK water plus production: XX million litres
Company 5 Others
2019 % share
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7
UK still water plus brands •
Commentary
•
Commentary
•
Commentary
Table 7.1
Top 5 UK still water plus brands, 2018-2019 2018 2018 % 2019 volume share volume
Million litres Brand 1 Brand 2 Brand 3
Top 5 Others (1) Total still water plus (1)
Includes retailer own label numbers Source: Zenith Global
Figure 7.1
Leading UK still water plus brands, 2019
10% Brand 1 10%
Brand 2 Brand 3
50%
10% Brand 4 10% 10%
Total UK still water plus consumption: XX million litres
Brand 5 Others
2019 % share
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8
UK sparkling water plus brands •
Commentary
•
Commentary
•
Commentary
Table 8.1 Million litres
Top 5 UK sparkling water plus brands, 2018-2019 2018 2018 % 2019 volume share volume
Brand 1 Brand 2 Brand 3
Top 5 Others (1) Total sparkling water plus (1)
Includes retailer own label numbers Source: Zenith Global
Figure 8.1
Leading UK sparkling water plus brands, 2019
10% Brand 1 10%
Brand 2 Brand 3
50%
10% Brand 4 10% 10%
Brand 5 Others
Total UK sparkling water plus consumption: XX million litres
2019 % share
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9
UK flavoured water brands •
Commentary
•
Commentary
•
Commentary
Table 9.1 Million litres
Top 10 UK flavoured water brands, 2018-2019 2018 2018 % 2019 volume share volume
Brand 1 Brand 2 Brand 3
Top 10 Others (1) Total flavoured water (1)
Includes retailer own label numbers Source: Zenith Global
Figure 9.1
Leading UK flavoured water brands, 2019
10% Brand 1 10%
Brand 2 Brand 3
50%
10% Brand 4 10% 10%
Brand 5 Others
Total UK flavoured water consumption: XX million litres
2019 % share
% change
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10
UK functional water brands •
Commentary
•
Commentary
•
Commentary
Table 10.1 Million litres
Top 5 UK functional water brands, 2018-2019 2018 2018 % 2019 volume share volume
Brand 1 Brand 2 Brand 3
Top 5 Others (3) Total functional water (1) (2) (3)
Includes retailer own label numbers Source: Zenith Global
Figure 10.1
Leading UK functional water brands, 2019
10% Brand 1 10%
Brand 2 Brand 3
50%
10% Brand 4 10% 10%
Brand 5 Others
Total UK functional water consumption: XX million litres
2019 % share
% change
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11
UK juicy water brands •
Commentary
•
Commentary
•
Commentary
Table 11.1 Million litres
Top 5 UK juicy water brands, 2018-2019 2018 2018 % 2019 volume share volume
Brand 1 Brand 2 Brand 3
Top 5 Others (2) Total juicy water (1) (2)
Includes retailer own label numbers Source: Zenith Global
Figure 11.1
Leading UK juicy water brands, 2019
10% Brand 1 10%
Brand 2 Brand 3
50%
10% Brand 4 10% 10%
Total UK juicy water consumption: XX million litres
Brand 5 Others
2019 % share
% change
UK Water Plus Report 2020
12
UK flavoured water retailer own label •
Commentary
•
Commentary
•
Commentary
Table 12.1 Million litres
UK own label flavoured water production, 2017-2019 2017 2018 2019
Total water plus market Flavoured water (1) Flavoured water as a % of total market
Sparkling flavoured water Sparkling flavoured % share
Still flavoured water 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 Excludes functional and juicy waters Source: Zenith Global (1)
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Figure 12.1
UK own label flavoured water consumption share, 2014-2019
60
% share of flavoured water
50
40
30
20
10
0 2014
2015
2016
2017
2018
2019
Source: Zenith Global
Table 12.2 Million litres
Top 5 UK own label flavoured water producers, 2018-2019 2018 2018 % 2019 2019 % Rank volume share volume share
Company 1
1
Company 2
2
Company 3
3 4 5
Top 5 Others Total own label Source: Zenith Global
Figure 12.2
Leading UK own label flavoured water producers, 2019
10% Company 1 10%
Company 2 Company 3
50%
10% Company 4 10% 10%
Company 5 Others
Total UK own label flavoured water production: XX million litres
Top 20 rank
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UK water plus consumer •
Commentary
•
Commentary
•
Commentary
Table 13.1 GB flavoured water, herbal and premium soft drinks consumer, 2014-2019 % of GB population (1) 2014 2015 2016 2017 2018 2019 Consumers '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 2018 - June 2019 Source: Target Group Index (TGI) - GB adults aged 15 and above Figure 13.1
GB flavoured water, herbal and premium soft drinks consumption 2014-2019
120
100
% of GB population
13
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
UK Water Plus Report 2020
Table 13.2 Litres Per capita consumption Sparkling Still
UK water plus per capita consumption, 2014-2019 2014 2015 2016 2017 2018
Per capita consumption % change Sparkling % change Still % change Per capita consumption Flavoured Functional Juicy Per capita consumption % change Flavoured % change Functional % change Juicy % change Source: Zenith Global
Table 13.3 Litres per person
International flavoured 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 (1) Excludes functional and juicy waters Source: Zenith Global, globaldrinks.com (1)
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14
UK water plus value •
Commentary
•
Commentary
•
Commentary
Table 14.1 2017 Volume
£ VPL
Flavoured water (1) % change Modern retail (including discounters) Convenience / impulse HoReCa; pubs, clubs
Functional water (1) % change Modern retail (including discounters) Convenience / impulse HoReCa; pubs, clubs
Juicy water (1) % change Modern retail (including discounters) Convenience / impulse HoReCa; pubs, clubs (1) retail
sales value - Numbers may vary due to rounding Source: Zenith Global
UK water plus value, 2017-2019 2018 £m £m Volume £ VPL Value Value
2019 Volume
£ VPL
£m Value
UK Water Plus Report 2020
Figure 14.1
UK water plus market value, 2014-2019
120
2.00
100
80
60
1.00 VPL £
Market value £ mln
1.50
40
0.50 20
0
0.00 2014
2015
2016
Market value (£ mln)
2017
2018
2019
Value per litre (£)
Source: Zenith Global
Table 14.2 Branded Private label Retail average Source: Zenith Global
UK branded vs private label value per litre, 2018-2019 2018 2019
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15
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 •
Commentary
•
Commentary
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16.4
Retailer perception
16.4.1 Key challenges •
Commentary
•
Commentary
16.4.2 Future trends
16.5
•
Commentary
•
Commentary
Stock control and supply
16.5.1 Key challenges •
Commentary
•
Commentary
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
Innovation •
Commentary
•
Commentary
•
Commentary
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18
Water stewardship •
Commentary
•
Commentary
•
Commentary
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19
Legislation
19.1
Natural mineral water, spring water and bottled drinking water current situation (2015 onwards)
19.2
19.3
•
Commentary
•
Commentary
•
Commentary
Natural mineral water, spring water and bottled drinking water historical timeline (to 2015) •
Commentary
•
Commentary
•
Commentary
Abstraction licensing •
Commentary
•
Commentary
•
Commentary
•
This information was compiled by Zenith Global’s Water & Environment Department.
UK Water Plus Report 2020
20
Forecast to 2024 •
Commentary
•
Commentary
•
Commentary
Table 20.1 Million litres Sparkling Still Sparkling % share Still % share Flavoured Functional Juicy Flavoured % share Functional % share Juicy % share Flavoured % change Functional % change Juicy % change Total market Total market % change Source: Zenith Global
UK water plus consumption by segment forecast, 2019-2024f 2019 2020f 2021f 2022f 2023f
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2024f
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Figure 20.1
UK water plus market forecast, 2014-2024f
120
100
Million litres
80
60
40
20
0 2014
2015
Source: Zenith Global
2016
2017
2018
2019
2020f
2021f
2022f
2023f
2024f
UK Water Plus Report 2020
Appendix
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UK Water Plus Report 2020
Appendix 1 - Definitions and symbols Water definitions
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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.
Page1 37 7 / 0 4 Can be bottled under any description except one that is misleading to consumers. Use of/ the 2 description natural mineral water, spring water or mineral water is not permitted. Some 0 commonly used descriptions are ‘table water’ and ‘purified water’. 2 0 UK Water Plus Report 2020
•
• •
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)
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 2020
Distribution channel definitions Retail
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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 Water Plus Report 2020
Symbols ...
Negligible, less than 0.05
CSD
Carbonated soft drink
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
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UK Water Plus Report 2020
Appendix 2 - Target Group Index (TGI)
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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 Water Plus Report 2020
Appendix 3 - Leading company profiles AG Barr Plc Britvic Plc Clearly Drinks Ltd Coca-Cola European Partners Danone Waters (UK & Ireland) Ltd Get More Vitamin Drinks Highland Spring Group Innocent Drinks Montgomery Spring Water Company NestlĂŠ Waters UK Ltd Nichols Plc Princes Limited Radnor Hills Mineral Water Company Ltd Refresco Beverages Talking Rain Beverage Company Trederwen Springs Ugly Brands Ltd
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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 - Water Plus 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 (Water Plus) Million litres Production Exports UK Sales - still - sparkling Brand A - still - sparkling
2011
2012
2013
2014
2015
2016
2017
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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