Demand for Bottled Water On The RiseOctober 14, 2015
Bottled water is good! That’s the message U.S. consumers are taking to heart as trends indicate bottled water sales continue to rise – and at surprising rates.
Data from the Beverage Marketing Corporation show that total bottled water consumption in the United States rose to 10.1 billion gallons in 2013, a 4.3 percent increase from the previous year, according to www.foodmanufacturing.com.
Per capita water consumption also increased by 3.3 percent from the previous year. The average American reportedly consumed more than 31 gallons of bottled water that year. Food Manufacturing stated that bottled water sales rose by 4.1 percent during that period. Total bottled water sales hit $12.3 billion.
We at Azure Water frequently monitor industry trends and marketing news that shape consumers’ water consumption.
Michael Bellas, CEO of Beverage Marketing Corporation, told Food Manufacturing that the market’s “shift-in-consumption” trend – from soda to water – may make bottled water the most popular packaged beverage in the next ten years.. Soda’s hold as the top beverage in the United States has been slipping for the past eight years.
“All signs point to U.S. consumers’ already displayed thirst for bottled water continuing in the years ahead. Changes in per capita consumption indicate persistent interest in a product that consumers embrace as a healthful alternative to other beverages,” Gary Hemphill said in Food Manufacturing. Hemphill is Beverage Marketing Corporation’s senior vice president of information services.
Drink Water, Get Healthy
The shift from soda to bottled water, the nation’s second most popular beverage, may stem from Americans’ focus on making more healthy choices and the battle against obesity, according to www.marketresearch.com.
Marketing researchers are pointing to some stark numbers showing the pendulum moving swiftly away from soda and to water consumption – with several particular spikes in water demand in the last few years. Statistics show that the number of adults who drank five or more bottles of water daily grew by more than 20 percent while the number of people who drank five or more carbonated drinks per day fell at nearly the same percentage rate.
While it is difficult to forecast the continued trajectory of trends, some analysts are predicting consumption of bottled water overtaking soda sooner than later.
Bottled water may take the top spot globally by the end of 2015, researchers with the marketing research firm Canadean predict. While bottled water consumption continues to rise, the sharp spike in 2014 has some researchers baffled. If trends continue at this rate, water may top soda as early as the end of 2016, according the International Bottled Water Association in an analysis from www.beverageworld.com.
“And that projection has accelerated in the past two years. Only two years ago, it was projected that bottled water would overtake (soda and carbonated drinks) by 2020,”Chris Hogan told Beverage World. “What we’re seeing is a consumer base that wants to make healthier choices when it comes to packaged beverages and bottled water really is the healthiest option.” Hogan is vice president of communications at IBWA.
Can the Market Manage Demand?
The only missing cog in this marketing machine is the ability of merchants and manufacturers to keep pace with the rising demand.
Soda “consumption is down 13 gallons over the last 10 years and that’s a huge number, but has the retailer really shifted space to accommodate the slowing velocity of (soda) and the growth of bottled water? We’re predicting another 1 billion cases through the supply chain—are they ready for that? So it’s a big challenge and we’re working with our customers to make sure that they are ready for this continued trend in the U.S.,” said Mike Pengue, president of Nestlé Waters North America Brands, the largest bottled water company.
Azure Water’s facility uses state-of-the-art equipment that can generate 5,000 cases of water a day, including alkaline spring water and artesian mineral water. We can produce custom-bottle shapes, and fill, seal and label your bottles. If you’re looking to expand your business or have questions about co-packing or our capabilities, contact us.