"In the decade up to 2008, the [image-nocss] U.S. bottled water market accounted for 20% of the growth in global PET demand in beverages," said Emily Neill, business development director at Canadean. "This growth driver has been switched off, and the momentum in bottled water demand is now firmly focused in the dynamic Asian markets."
High-profile tap water campaigns across many U.S. states, and bottled water bans by public institutions have resulted in consumers reverting to tap and filtered water. This is being mirrored in some major European markets such as France and the U.K., with the economic conditions reinforcing this trend.
On a broader note, the prognosis for global commercial beverage consumption is relatively healthy. Beverage demand is forecast to weather the economic storm, growing by 2% in 2009 and 2.6% per annum in the longer term. The more buoyant categories include still drinks, nectars (juice drinks) as well as bulk and bottled water, where growth in countries such as China, India and Indonesia will compensate for the stagnation in western economies. After a near flat performance in 2009, carbonates are expected to return to a growth rate of 2% annually. Those companies with strong international exposure will benefit from rising demand in Asia to offset the tougher markets in North America and Europe.
Alcoholic drinks are likely to show a mixed picture, with beer, wines and spirits in gradual decline in Europe, where health and legislative issues are hitting traditional alcohol consumption. The pattern is clear: beer and spirits are in decline in their key markets such as Germany, the U.K. and Scandinavia, while wine is under pressure in France, Italy and Spain. Meanwhile, Asia will continue to be the engine for beer demand, with a projected annual growth rate of around 5%.
The energy drinks category grew at double-digit rates across a large number of countries in 2008, and is predicted to rise by nearly 10% globally in 2009. Upsizing in serving volume, the entry of more private-label and B brand products, plus strong support from the multinational players, are all factors pushing up consumption. In tough times, consumers are prepared to pay for that extra boost, the firm said.
Canadean is the leading supplier of information, market research and consultancy services to the global beverage and beverage packaging industries.
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