Bottled Water Extends Lead on CSDs
By Steve Holtz on Jun. 05, 2018ALEXANDRIA, Va. -- Bottled water remained the No. 1 beverage product in the United States by volume for a second year in a row, according to the International Bottled Water Association (IBWA) and the Beverage Marketing Corp. (BMC).
Bottled-water volume grew to 13.7 billion gallons in 2017, a 7% increase over the previous year.
The distance between bottled water and carbonated soft drinks (CSDs) continues to widen as consumers increasingly choose bottled water instead of soda, the groups said. CSD sales decreased for the 13th consecutive year, according to the most recent numbers from consulting and research firm BMC, New York.
Here's a look at consumer trends in bottled water and how sales in convenience stores vary from the total market ...
Photo courtesy of Steven Dipolo.
C-store comparison
In the convenience-store channel, bottled water still lags behind both CSDs and energy drinks in both unit and dollar sales. Nielsen data shows bottled-water unit sales in c-stores declined 2.5% in 2017, compared to a 5.7% decline for CSDs. Energy-drink unit sales grew 3.1% in 2017, according to Nielsen.
In all channels, however, bottled water sales total $18.5 billion, an increase of 8.8% according to BMC's data, which includes all channels of retail. Per-capita consumption exceeds 42 gallons of bottled water per year, a 6.2% increase. Meanwhile, the average annual intake of CSDs has slipped to 37.5 gallons, BMC reported. Beverage Marketing Corp. predicts bottled water will climb higher than 50 gallons per capita within just a few more years.
Photo courtesy of Mattero Paciotti.
Segment breakout
Within the bottled-water category, all segments grew in 2017, according to BMC:
- Domestic nonsparkling increased 5.5%.
- Domestic sparkling increased 27.5%.
- Imported water increased 9.2%.
- Home and office delivery (3- and 5-gallon bottles) increased 1.3%.
“Bottled water’s rocket-like rise in popularity coincides with pronounced shifts in consumer preferences for refreshment and rehydration, ” said Michael Bellas, BMC chairman and CEO. “As the quintessential portable and affordable beverage, bottled water introduces new usage occasions and habits. Suitable for consumption at any time of the day or night, and not necessarily in need of being kept ice cold, bottled water simply is the preferred beverage not only for consumers aiming to reduce caloric intake or lessen artificial sweetener usage but also for consumers of all kinds.”
Photo courtesy of monticello.
Consumer trends
“Healthy, convenient and safe, bottled water is America’s favorite packaged water for many reasons,” said Joe Doss, IBWA president and CEO. “Research and polling indicate people are continuing to make the switch from other packaged drinks to bottled water. ”
Some of these reasons, according to IBWA, include:
- Bottled water is a healthy choice.
- Bottled water tastes great and is refreshing.
- Bottled water is convenient for on-the-go lifestyles.
- Bottled water has trusted safety and quality and is comprehensively regulated by the U.S. Food and Drug Administration (FDA).
- Bottled water packaging has a proven record of safety.
- Bottled water is sold in containers that are 100% recyclable.
- Bottled water has the lowest water and energy use ratio of all packaged beverages.
- Bottled water has a tiny water-use footprint. The entire industry uses less than 0.011% of all water used in the United States each year.
- Bottled water containers use much less PET plastic than soft drink containers (9.89 grams vs. 23.9 grams, on average for 16.9-ounce containers). Soda needs a thicker plastic container due to its carbonation.
BMC is a research, consulting, and financial services firm dedicated to the global beverage industry.
The International Bottled Water Association, Alexandria, Va., is an association representing U.S. and international bottlers, distributors and suppliers of bottled water.
Photo courtesy of TeerawayWinyarat.