Zenith Global Premium Bottled Water Report 2018

a Zenith Insight report

November 2018

global premium bottled water report 2018 7th 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.

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contents section 1. project methodology & definitions 2. introduction & executive summary 3. global premium water overview 4. global brand profiles 5. market focus 5.1 market focus: USA 5.2 market focus: UK 5.3 market focus: Japan 5.4 market focus: China 5.5 market focus: UAE

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1. project methodology & definitions

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project methodology & definitions methodology Coverage

Considerations

This report covers premium water within the scope of plain packaged water (in pack formats of up to 10 litres).

The methodology used in this report is primarily quantification by overall value per litre. However, it is important to note that price is influenced by many factors including channel distribution, pack format (size and type), origin (imports) and water type.

In order to be able to quantify the premium water segment, Zenith’s analysis of ‘premium’ is based primarily on price and positioning.

Within each individual market, Zenith has determined a ‘cut-off point’ whereby brands are classified as premium if their overall average value per litre (VPL) stands above the cut-off point.

For international brands, Zenith applies its definition primarily based upon a brands’ global average value per litre. Therefore, a brand classified as premium remains so, throughout all markets where it is present. For example, Evian is considered premium in all markets, despite its more mainstream positioning in France. International brands classified as premium throughout this report include Evian, Perrier, San Pellegrino, Vittel and Volvic. Similarly, brands such as Dasani and Nestlé Pure Life are respectively considered mainstream and value globally.

From within its global bottled water database, Zenith has identified a number of key markets where premium is understood to either; a) hold a significant share of the packaged water market, b) be of significant volume in million litre terms, or c) present a growth opportunity with the packaged water market.

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In some markets, the prevalence of sparkling water impacts the size of the premium segment.

Channel dynamics within the local market also play a factor, as generally packaged water sold through HoReCa commands a higher value per litre than sales through modern retail outlets.

project methodology & definitions premium water definitions Commentary Criteria

Criteria

Criteria

Criteria

Criteria

Criteria

Criteria

Criteria

Criteria

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project methodology & definitions general definitions Commentary

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project methodology & definitions water types Commentary

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2. introduction & executive summary

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introduction & executive summary introduction In undertaking its research for this report, Zenith has utilised its internal data library and global databases, alongside other third party sources.

Throughout its ongoing research, Zenith also depends upon-the-goodwill and co-operation of operators active in the marketplace and, as such, seeks to achieve a high level of accuracy.

Report content This report includes a global view of premium water, plus a premium water deep dive on five key countries. These are China, Japan, UAE, UK, and USA. Each has been selected due to Zenith’s belief that each one represents an opportunity for premium water. The nature of the five markets is quite different, thus seeking to present a broad range of the dynamics which may exist within a specific premium water market.

Premium water definition One of the main challenges in compiling this report has been the varying definitions of premium understood within the industry. This subject is covered in detail in the report, and Zenith’s methodology for quantifying premium water worldwide has been specified.

Liability Whilst every effort has been made to ensure that the information presented in this document is accurate and that the opinions expressed are sound, Zenith Global Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on its contents.

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introduction & executive summary executive summary •

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Commentary

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3. global premium water overview

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global premium water overview global volume Commentary

Total premium water volume and absolute volume increase in million litres from 2010 to 2017 200

180

2,500 5 year CAGR

160

2,000

140 120

1,500

100 80

1,000

60 40

500

20 0

2010

2011

2012

2013

2014

Absolute volume increase

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2015

2016

Total volume

2017

global premium water overview global value Commentary

Total premium water value in million US$ and absolute value increase in million US$ from 2010 to 2017 400

4,000 5 year CAGR

350

3,500

300

3,000

250

2,500

200

2,000

150

1,500

100

1,000

50

500

0

2010

2011

2012

2013

2014

Absolute value increase

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2015 Total value

2016

2017

global premium water overview regional volume and value breakdown Commentary

Total premium water volume in million litres and value in million US$ per region in 2017

West and East Europe

North America

Asia

Middle East and Africa

Central and Latin America

Total value

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500 Total volume

1,000

1,500

global premium water overview top five largest market for premium water in 2017 by volume Commentary

Top 5 markets for premium water in million litres in 2017

Market leader 1

Market leader 2

Market leader 3

Market leader 4

Market leader 5

-

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200

300

400

500

600

global premium water overview top five largest market for premium water in 2017 by value Commentary

Top 5 markets for premium water in US$ million in 2017

Market leader 1

Market leader 2

Market leader 3

Market leader 4

Market leader 5

-

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200

400

600

800

1,000 1,200

global premium water overview premium water volume share of total packaged water Commentary

Premium water share of total packaged water in million litres from 2013 to 2017 16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

2013

2014

2015

Mainstream and value water

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2016 Premium water

2017

global premium water overview premium water value share of total packaged water Commentary

Premium water share of total packaged water in US$ million from 2013 to 2017 30,000

25,000

20,000

15,000

10,000

5,000

2013

2014

2015

Mainstream and value water

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2016 Premium water

2017

global premium water overview premium water VPL compared to total packaged water VPL Commentary

Evolution of premium water VPL vs total packaged water VPL in US$ 1.60

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00 2013

2014

Premium water

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2015

2016

2017

Mainstream and value water

global premium water overview volume share of premium still vs premium sparkling 2013 volume split between premium still and sparkling water

50%

50%

Still

Sparkling

2017 volume split between premium still and sparkling water

50%

50%

Still

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Sparkling

Commentary

global premium water overview forecasts Premium water forecasts volume in million litres and value in US$ million 7,000

6,000

5,000

4,000

3,000

2,000

1,000

2018f

2019f Volume

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2020f Value

2021f

2022f

Commentary

global premium water overview global trends Commentary

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global premium water overview variation in perception of premium water Perception of added value

Water provenance

Commentary

Commentary

Quality of water available in the market

Formats

Commentary

Commentary

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global premium water overview claims made by premium water Water purity

Mineral content

Commentary

Commentary

Health and wellness

Sustainability

Commentary

Commentary

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global premium water overview global premium water packaging types and sizes Glass

Cans and aluminium

Commentary

Commentary

Cartons Commentary

PET

Commentary

Limited editions Commentary

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4. global brand profiles

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Brand name Company name website Product description: Including details regarding production positioning, claims, recent marketing campaigns, geographic availability, history of the brand etc.

Launch date:

Variants: Recent developments:

Price: Product packaging: Water type: Water origin: Water composition:

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Mineral

Content

e.g. Calcium

mg/l

e.g. Magnesium

mg/l

e.g. Bicarbonate

mg/l

e.g. Sulphate

mg/l

5. market focus

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market focus premium water country deep dive Commentary

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market focus top 5 markets comparison Key markets volume and value evolution

2013 vs 2018 volume in million litres

Japan

200 150 100 50 -

Commentary

USA

UK

China

2013

Per capita consumption and per capita expenditure

2017

Commentary

UAE

Provenance

2013 vs 2018 value in million US$

Japan

200 150 100 50 -

USA

China

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Commentary

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UK

UAE

2013

Pricing

2017

Commentary

market focus top 5 markets comparison

USA

UK

Japan Largest market in volume, 2017

Fastest CAGR growth in volume over five years

Largest category in value (US$), 2017

Fastest CAGR growth in value (US$) over five years

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China

UAE

5.1 market focus: [COUNTRY] • PCC of X litres in 2017.

• Increase of X litres per person since 2013.

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• Premium water volume of X million litres.

• X million litres added 2013-2017.

• PCE of US$X in 2017.

• Premium water value of US$X million.

• PCE increase of US$X since 2013.

• US$X million gained since 2013.

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[COUNTRY] premium water overview Drinking occasion

Pricing

Commentary

Commentary

Packaging Commentary

Challenges and opportunities

Commentary

Consumer perception Commentary

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[COUNTRY] volume share of packaged water Commentary

Split between premium water and all other packaged water in million litres 1,600

1,400

1,200

1,000

800

600

400

200

2013

2014

2015

Mainstream and value water

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2016 Premium water

2017

[COUNTRY] value share of packaged water and premium water VPL comparison to mainstream and value Commentary

Split between premium water and all other packaged water in million US$ 3,000 2,500 2,000 1,500 1,000 500 2013

2014

2015

Mainstream and value water

2016

2017

Premium water

Premium value per litre vs all other packaged water in US$ 1.50 1.00 0.50 2013

2014

2015

Mainstream and value water

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2016

2017

Premium water

[COUNTRY] premium water market size in volume and value Commentary

Volume in million litres 250

200 150 100 50 2013

2014

2015

2016

2017

Value in million US$ and VPL in US$ 500

1.50

400 1.00

300 200

0.50

100 -

2013

2014

2015 Value

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2016 VPL

2017

[COUNTRY] brand share of the market Commentary

Top 5 brands market volume share evolution 2013

2017

Brand 1

Brand 2

Brand 3

Brand 4

Brand 5

Others

Top 5 brands market value share evolution 2013

2017

Brand 1

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Brand 2

Brand 3

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Brand 4

Brand 5

Others

[COUNTRY] premium sparkling and still compared to all other waters in volume Commentary

Premium sparkling water vs all other sparkling water in million litres 2017 2016 2015 2014 2013 -

50

100

150

200

250

300

Mainstream and value sparkling water volume Premium sparkling volume

Premium still water vs all other still water in million litres 2017 2016 2015 2014 2013 -

200

400

600

800

Mainstream and value still water volume

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1,000

1,200

Premium still volume

[COUNTRY] premium sparkling and still compared to all other waters in value Commentary

Premium sparkling water vs all other sparkling water in million US$ 2017 2016 2015 2014 2013 -

100

200

300

400

Mainstream and value sparkling water value

500

600

Premium sparkling value

Premium still water vs all other still water in million US$ 2017 2016 2015 2014 2013 -

500

1,000

1,500

Mainstream and value still water value

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2,000

2,500

Premium still value

[COUNTRY] still vs sparkling water in volume Commentary

Premium sparkling vs premium still waters in million litres 180 160 140 120 100 80 60 40 20 2013

2014

2015

Premium sparkling

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2016 Premium still

2017

[COUNTRY] still vs sparkling water in value Commentary

Premium sparkling vs premium still waters in million US$ and VPL in US$ 350

1.8 1.6

300

1.4 250 1.2 200

1.0

150

0.8 0.6

100 0.4 50

0.2

-

0.0 2013

2014 Sparkling

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2015 Still

Sparkling vpl

2016

2017 Still vpl

[COUNTRY] price positioning Average sparkling water VPL in US$ per unit size in litres

12

12

10

10

8

8

Brand

6

Brand

VPL in US$

VPL in US$

Average still water VPL in US$ per unit size in litres

Brand

Brand Brand Brand

4 Brand

Brand

Brand

2

Brand

Brand

6

Brand Brand Brand

4

Brand Brand

2

Brand Brand

Brand

Brand Brand Brand Brand Brand Brand Brand Brand Brand

Brand

Brand

Brand

Brand

Brand

0

Brand

Brand

0 0

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Brand

0.2

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0.6 0.8 Unit size in litres

1

Plastic

1.2

0

Glass

Can

0.5

1 Unit size in litres

1.5

2

[COUNTRY] price positioning Commentary Key brands Brand 1

Common themes / sub-headings:

Brand 2 Packaging

Brand 3

Commentary

Brand 4 Brand 5

Retail

Imported vs local

Commentary

Commentary

Pricing Commentary Sparkling vs still Commentary Water type Commentary

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Retail value per litre in local currency

[COUNTRY] claims and sub-segmentation Packaging

Claims

Commentary

Commentary

Water types

Commentary

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[COUNTRY] origin of imported premium water available in the market

Country: Brand Country: Brand

Country: Brand 1, Brand 2

Country: Brand 1, Brand 2

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[COUNTRY] origin of premium water available in the market Perception of various countries of origin

Brand use of origin in positioning

Commentary

Commentary

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[COUNTRY] swot analysis •

Commentary

•

Commentary

S t r e n g t h s

O p p o r t u n i t i e s

W e a k n e s s e s

T h r e a t s

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•

Commentary

•

Commentary

[COUNTRY] future outlook Commentary

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5.1.1 brand profiles: [COUNTRY]

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Brand name Company name website Product description: Including details regarding production positioning, claims, recent marketing campaigns, geographic availability, history of the brand etc.

Launch date:

Variants: Recent developments:

Price: Product packaging: Water type: Water origin: Water composition:

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Mineral

Content

e.g. Calcium

mg/l

e.g. Magnesium

mg/l

e.g. Bicarbonate

mg/l

e.g. Sulphate

mg/l

contact us We hope you have found this report insightful. Please help us improve our reports further by providing your feedback here To subscribe to FREE daily industry news from Zenith, please click here For further information regarding this report, or for a tailor made study specific to your requirements please contact:

Juliette de Nettancourt, Consultant jdenettancourt@zenithglobal.com

Zenith Global Ltd, UK Tel: +44 (0)1225 327900 insight@zenithglobal.com www.zenithglobal.com

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