The U.S. Market for Bottled Water and Related Water Products

 
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Published Nov 1, 2001 | 220 Pages | Pub ID: LA444613

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This Packaged Facts study analyzes the dynamic $6 billion U.S. market for bottled water, which starts the new millennium as the fastest growing sector of the overall U.S. beverage market. This comprehensive report covers both trends and sales data for distilled, carbonated, and non-carbonated water, as well as commercial and home delivery of bottled water; and such related products as water filtration devices, water softeners, and germicidal tablets. Coverage includes marketer and brand shares based on Information Resources, Inc.'s InfoScan sales-tracking data. The report profiles leading marketers, and dissects the competitive situation, provides product descriptions, and details new product trends, advertising and promotional activities, and projects segment sales to the year 2006. The report also includes detailed consumer demographic profiles based on Simmons Market Research Bureau data.

  1. Executive Summary
    The Products
    • Code of Federal Regulation Definitions
    • Nutrition Labeling and Education Act (NLEA)
    • FDA Descriptors
    • Methods Used to Ensure Bottled Water Quality
    • History of Bottled Water
    • Bottled Water in the United States
    • Total Water Product Market Has Three Components
    • Bottled Water Product Categories
    • Noncarbonated Bottled Water
    • Carbonated Water/Seltzer/Club Soda
    • Distilled Water
    • Commercial and Home-Delivered Bottled Water
    • Related Water Products
    • Water Filtration Devices
    • Water Softeners
    • Germicidal Tablets

    The Market
    • Total Water Products Market Size and Growth
    • Table 1-1: U.S. Total Water Products Dollar Sales, 1997-2001 (dollars, percent)
    • Retail Bottled Water is Largest Component
    • Table 1-2: U.S. Total Water Products Dollar Sales by Market Segment, 2001 (dollars, percent)
    • Bottled and Enhanced Water Market Size and Growth
    • Table 1-3: U.S. Retail Sales and Share of Bottled and Enhanced Water: By Market Segment, 2001 (dollars, percent)
    • Noncarbonated Bottled Water
    • Carbonated Water/Seltzer/Club Soda
    • Distilled Water
    • Table 1-4: U.S. Retail Sales of Bottled Water by Segment, 1997-2001 (dollars): noncarbonated, carbonated, distilled
    • Commercial and Home-Delivered Water Market Size and Growth
    • Table 1-5: U.S. Dollar Sales of Commercial/ Home-Delivered Water, 1997-2001 (dollars, percent)
    • Related Water Products
    • Water Filtration Devices
    • Water Softeners
    • Germicidal Tablets
    • Table 1-6: Dollar Sales of Related Water Products, 1999-2001 (dollars; percent):
    • Domestic Waters Dominate Imports
    • Per Capita Growth Has Been Extraordinary
    • Strong Economy a Key to Future Growth

    The Marketers
    • Marketer Overview
    • Coke and Pepsi Shape New Market
    • Other Marketers React By Consolidating
    • Number of Marketers Expected to Shrink
    • New Entrants Find Niches
    • Big Role for Private Label
    • Perrier Group Leads Overall Retail Market
    • Perrier Group of America Leads Noncarbonated Bottled Water Segment
    • Aquafina is Noncarbonated Bottled Water Brand Leader
    • Cadbury Leads Carbonated Water/Seltzer/Club Soda
    • Canada Dry is Top Brand
    • Perrier Group of America is Leader in Distilled Bottled Water Market
    • Private Label Holds Largest Share
    • Perrier Group of America Leader in Commercial/Home-Delivered Category
    • Brita Dominates Water Filtration Devices Category
    • Morton Dominates Water Softener Market
    • WPC Leader in Germicidal Tablets
    • Coke and Pepsi Lift Category Ad Spending
    • Product Introductions Increase
    • Preference for Purity
    • Nutraceutical Waters
    • Energy Waters
    • Oxygenated Waters
    • Flavored Waters

    Distribution & Retail
    • A Priority for Success
    • Soft Drink Companies Use Their Strengths
    • Two Principal Delivery Methods
    • Supermarkets Dominate Retail Sales
    • Ordering Via The Internet
    • Commercial-Delivered Water
    • Home-Delivered Waters
    • No Clear Logic to Pricing
    • Private Labels Hold Price Line
    • Mass Merchandisers Leading Outlet for Filtration Devices
    • Supermarkets Lead in Water Softener Sales
    • Mass Merchandisers Top Channel for Tablets

    The Consumer
    • Motivating Factors
    • A Young, Affluent, Well-Educated Audience
    • About One in Three Households Use Water Filtration Devices

    Scope and Methodology
  2. The Products
    • Classification of Bottled Water
    • Code of Federal Regulation Definitions
    • 1974 Safe Drinking Water Act (SWDA)
    • Nutrition Labeling and Education Act (NLEA)
    • FDA Descriptors
    • Mineral Water
    • Purified Water
    • Spring Water
    • Well Water
    • Artesian Water
    • Sparkling Water
    • Carbonated Water a Separate Product

    History of Bottled Water
    • Overview
    • Bottled Water Develops at Spas
    • Shift to Cities Spurs Growth
    • History of Bottled Water in the United States
    • Small Bottled Water Market Before Perrier Launch
    • Perrier and After
    • Another Yuppie Success Story
    • Perrier Recall
    • Bottled Water Booms with 1990s Economy

    Bottled Water Sources
    • Overview
    • Domestic vs. Imported
    • Springs, Taps, Glaciers, and Icebergs
    • From Source to Consumer
    • Source Protection and Source Monitoring
    • Reverse Osmosis
    • Ozonation
    • Micron Filtration
    • Distillation
    • Testing
    • Bottlers and Distributors

    Bottled Water Categories
    • Special Note
    • Noncarbonated Bottled Water
    • Carbonated Water
    • Seltzer
    • Club Soda
    • Tonic Water
    • Distilled Water

    Commercial and Home-Delivered Bottled Water
    • Overview
    • Three- to Five-Gallon Containers
    • The Office Water Cooler
    • Water Cooler Industry Grew in the 1980s
    • Commercial and Home-Delivered Water Products Today
    • Automatic-Fill Water Coolers

    Added Ingredients
    • Beyond Purity
    • Flavorings and Sweeteners
    • Blurring Line Between Waters and Soft Drinks
    • Artificial Sweeteners
    • Nutraceuticals
    • Oxygen
    • Alcohol

    Related Product Categories
    • Overview
    • Water Filtration Devices
    • Granular Active Carbon
    • Reverse Osmosis Systems
    • Ultraviolet Light
    • Distillation
    • Water Filtration Bottles and Pitchers
    • Water Softeners and Treatments
    • Germicidal Tablets
    • Water Testing Kits

    Regulatory Environment
    • A Highly Regulated Market
    • Government Regulation: Federal
    • Quality Standards
    • Good Manufacturing Practices
    • Standards of Identity
    • EPA Monitors Public Water Supplies
    • New FDA Labeling Proposals in Development
    • Government Regulation: State
    • International Standards
    • Industry Self-Regulation
    • Production Facilities Audits

    Packaging
    • Important for Positioning
    • Packaging Materials
    • PET Bottles
    • Packaging Trends
    • Cans
    • Water in Tetrapack
    • Retail Container Sizes
    • Table 2-1: Various Bottled Water Container Sizes (ounces, milliliters)
    • Different Shapes, Colors, and Textures Featured
    • More Cap Variations
    • More Multipacks
  3. The Market
    Market Size, Growth, and Composition
    • Total Water Products Market Has Three Components
    • Total Water Product Sales Estimated at $6 Billion
    • Table 3-1: U.S. Total Water Products Dollar Sales, 1997-2001 (dollars, percent)
    • Retail Bottled Water is Largest Component
    • Figure 3-1: U.S. Total Water Products Dollar Sales, 1997-2001 (dollars, percent)
    • Table 3-2: U.S. Total Water Products Dollar Sales by Market Segment, 2001 (dollars, percent)
    • Sales of All Bottled Water Estimated at $5.7 Billion
    • Table 3-3: U.S. Dollar Sales of Bottled and Enhanced Water, 1997-2001 (dollars, percent)
    • Bottled Water Share: Retail vs. Commercial/Home-Delivered
    • Figure 3-2: U.S. Sales of Bottled Water: Dollar Share of Retail vs. Commercial/Home-Delivered, 2001 (percent)
    • The Retail Category: Noncarbonated Water the Dominant Segment
    • Overall Good Growth Since 1997
    • Noncarbonated Outpaces Other Segments
    • Sales Fluctuate for Carbonated Water
    • Figure 3-3: Dollar Sales of Retail Bottled Water by Segment, 2001 (percent)
    • Distilled Water Sales Are Down
    • Table 3-4: U.S. Retail Sales of Bottled Water by Segment, 1997-2001 (dollars): noncarbonated, carbonated, distilled
    • Supermarkets Main Distribution Channel
    • Mass Merchandiser Sales Growing Fastest
    • Table 3-5: Bottled and Enhanced Water Dollar Sales and Share by Distribution Channel, 2001 (dollars, percent)
    • Single-Serve vs. Multipacks
    • Bottled Water Sales through Other Channels
    • Bottled Water in Foodservice
    • The Commercial Category: Good Growth but Rate Down Slightly
    • Table 3-6: U.S. Dollar Sales of Commercial/ Home-Delivered Water, 1997-2001 (dollars, percent)
    • Related Water Product Sales: Filtration Devices
    • Sales: Water Softeners/Treatments
    • Sales: Germicidal Tablets
    • Table 3-7: Dollar Sales of Related Water Products, 1999-2001 (dollars; percent)
    • Related Products: Sales by Distribution Channel
    • Table 3-8: Dollar Sales and Share of Related Water Products by Distribution Channel, 2001 (dollars, percent): Supermarkets, Mass Merchandisers, Drugstores, Other

    Imports and Exports
    • Domestic Waters Dominate Imports
    • Leading Sources of Imports
    • Domestic Domination Will Continue
    • Table 3-9: U.S. Imports of Mineral and Aerated Waters, without Sugar, Sweetening, or Flavoring, 1995-2001 (dollars, percent)
    • Table 3-10: U.S. Imports of Mineral and Aerated Water, without Sugar, Sweetening, or Flavoring: By Country of Origin, 1999 (dollars): 9 Countries
    • Exports Are Minor Aspect of Business
    • Japan Major Export Destination
    • Table 3-11: Value of U.S. Exports of Mineral and Aerated Waters, without Sugar, Sweetening, or Flavoring, 1995-2001 (dollars, percent)
    • Table 3-12: U.S. Exports of Mineral and Aerated Water, without Sugar, Sweetening, or Flavoring: By Country of Destination, 1999 (dollars): 10 Countries

    Per Capita Consumption
    • Per Capita Growth Has Been Extraordinary
    • Table 3-13: U.S. Per Capita Consumption of Bottled Water, 1997-2001 (gallons, percent)
    • Figure 3-4: U.S. Per Capita Consumption of Bottled Water, 1990-2001 (gallons)

    Factors in Future Growth
    • Overview
    • Strong Economy a Key to Future Growth
    • Water Filtration Devices Could Benefit From Downturn
    • The Private-Label Alternative
    • Demographics Favor Increased Consumption
    • Multipacks Support Category Growth
    • More Sizes Appeal to Consumers‘ Varied Needs
    • Flavor Enhancements Also Appeal to Consumers
    • Health Concerns Important Factor
    • Concerns About Municipal Water Supplies Will Continue to Drive Sales
    • World Wildlife Fund Study Fuels Controversy
    • Bottled Water Association Fires Back
    • Fluoridation Still an Issue
    • Fluoride Added to Bottled Water
    • Bottled Water Part of Active Lifestyle
    • Water vs. Other Beverages
    • Hydrating vs. Dehydrating Beverage Consumption
    • Table 3-14: Hydrating vs. Dehydrating Beverage Consumption (dollars): daily servings, 11 beverages
    • Convenience Key For Filtration Device Sales

    Projected Market Growth
    • Total Water Products Market Will Surpass $7.9 Billion by 2006
    • Table 3-15: Projected U.S. Total Water Products Dollar Sales, 2001-2006 (dollars, percent)
    • Bottled Water Market Will Top $7.6 Billion by 2006
    • Table 3-16: Projected U.S. Dollar Sales of Bottled and Enhanced Water, 2001-2006 (dollars, percent)
    • Noncarbonated Segment Will Continue to Lead Growth
    • Table 3-17: Projected Retail Sales of Bottled and Enhanced Water: By Market Segment, 2001-2006 (dollars): noncarbonated, carbonated, distilled
    • Figure 3-5: Projected U.S. Total Water Products‘ Dollar Sales, 2001-2006 (dollars)
    • Commercial/Home-Delivered Water Sales Will Top $3.3 Billion
    • Table 3-18: Projected U.S. Sales of Commercial/ Home-Delivered Water, 2001-2006 (dollars, percent)
    • Sales of Related Water Products Will Grow
    • Table 3-19: Projected Dollar Sales of Related Water Products, 2001-2006 (dollars): Water Filtration Devices, Water Softeners, Germicidal Tablets
  4. The Marketers
    The Marketers
    • Number and Type of Marketers
    • Marketers: Bottled Water Products
    • Marketers: Related Water Products
    • Table 4-1: Selected Marketers and Brands of Bottled and Enhanced Water Products, 2001 (listing): 45 marketers
    • Table 4-2: Selected Marketers and Brands of Related Water Products, 2001 (listing): 13 marketers

    Marketer and Brand Shares: Bottled Water
    • Note on Sources
    • Perrier Group the Market Leader
    • Danone Waters Ranks Second
    • Three Soft Drink Majors Follow
    • Suntory and Concord Head Significant Minors
    • Note on Aberfoyle
    • Private Labels Play Substantial Role
    • Table 4-3: Bottled Water: Overall Leading Marketers, 2001 (percent): 7 marketers, private label
    • Noncarbonated Water: Marketer Share
    • Table 4-4: Noncarbonated Bottled Water: Marketer Shares, 2001 (percent): 5 marketers, private label
    • Noncarbonated Water: Brand Share
    • Table 4-5: Noncarbonated Bottled Water: Brand Shares, 2001 (percent): 12 brands, private label
    • Carbonated Water: Marketer Share
    • Table 4-6: Carbonated Bottled Water: Marketer Shares, 2001 (percent): 8 marketers, private label
    • Carbonated Water: Brand Share
    • Table 4-7: Carbonated Bottled Water: Brand Shares, 2001 (percent): 13 brands, private label
    • Distilled Water: Marketer Shares
    • Significant Minors and Private Label
    • Table 4-8: Distilled Bottled Water: Marketer Shares, 2001 (percent): 5 marketers, private label
    • Distilled Water: Brand Shares
    • Table 4-9: Distilled Bottled Water: Brand Shares, 2001 (percent): 10 brands, private label

    Marketer/Brand Shares: Related Water Products
    • Water Filtration Devices: Brita Leads
    • Table 4-10: Water Filtration Devices: Marketer/Brand Shares, 2001 (percent): 6 marketers, private label
    • Water Softeners: Morton Salt Dominates
    • Table 4-11: Water Softeners: Marketer/Brand Shares, 2001 (percent): 6 marketers, private label
    • Germicidal Tablets: WPC Brands Rules
    • Table 4-12: Water Softeners: Marketer/Brand Shares, 2001 (percent): 6 marketers, private label

    The Competitive Situation
    • Coke and Pepsi Shape New Market
    • Pepsi Soars with Aquafina
    • Coke Comes on Strong with Dasani
    • Coke Entry Upsets Naya
    • Other Marketers React By Consolidating
    • Marketers Go, Brands Remain
    • Number of Marketers Expected to Shrink
    • New Entrants Find Niches
    • Big Role for Private Label
    • Perrier and Danone Follow Multibrand Strategies

    Competitive Profile: Cadbury Beverages, Inc.
    • Company Overview
    • Cadbury Leads the Carbonated Water Segment
    • Testing Snapple Brand in Bottled Water Category

    Competitive Profile: Clorox Company
    • Company Overview
    • Brita Dominates Category
    • Brita Supports Clean Coasts

    Competitive Profile: Coca-Cola Company
    • Company Overview
    • Dasani Launched in 1999
    • Beverage Leverage Lifts Dasani
    • Dasani Promises ”Life Simplified“

    Competitive Profile: Danone Waters of North America
    • Company Overview
    • Consolidating under One Name
    • McKesson Is Important Acquisition
    • Struggling Naya Acquired
    • Meeting the Fluoridation Issue

    Competitive Profile: Morton Salt
    • Company Overview
    • Morton Dominates Water Softener Market
    • Several Varieties Offered

    Competitive Profile: PepsiCo, Inc.
    • Company Overview
    • PepsiCo Leaps Forward with Aquafina
    • Millions in Advertising
    • Aquafina Ads Take Total Health Position
    • New Campaign Stresses ”Nothing“
    • Sport Tie-In for Aquafina

    Competitive Profile: Perrier Group of America
    • Company Overview
    • Regional Branding an Ongoing Strategy with Cameron Springs
    • Rising Demand Leads to New Plant Construction
    • Perrier Ties with Six Flags

    Competitive Profile: Procter & Gamble
    • Company Overview
    • P&G Pushes PUR

    Competitive Profile: Suntory Water Group, Inc
    • Company Overview
    • Acquisitions Abound in U.S. Market
    • Suntory Goes Online
    • Suntory Partners With PepsiCo

    Competitive Profile: WPC Brands
    • Company Overview
    • Choice of Outdoorsman and Relief Organizations
    • WPC Becoming More Active in Promotion
    • WPC Scores Coup with ”Survivor“

    Brief Competitive Profiles
    • Aqua Vie
    • Energy Brands
    • Fiji Water
    • Hawaii Water

    Advertising and Promotion
    • Coke and Pepsi Lift Category Ad Spending
    • Danone and Perrier Other Major Ad Spenders
    • Advertising Media Employed
    • Advertising Themes
    • Advertising Targeting

    New Product Trends
    • Overview
    • Product Introductions Increase
    • Noncarbonated Waters Outpace Other Types
    • Preference for Purity
    • Nutraceutical Waters
    • Energy Waters
    • Oxygenated Waters
    • Soy Waters
    • Water for Children
    • Water for Women
    • Flavored Waters
    • Diet Waters
    • Waters with Alcohol

    Selected Bottled Water Product Introductions
    • Recent Entries Expand Category
    • Afya One Taste Africa Organic Recovery Drink
    • American Fare Natural Spring Water
    • Aquess Water Soluble Fiber Beverage
    • ArcticSquirt
    • Australiana Taste Australia Organic Carbonated Drinks
    • Borealis Iceberg Water
    • Clearly Canadian Diet Sparkling Flavored Water
    • Crystal Springs Fluoridated Spring Water
    • Dasani Purified Water
    • DNA
    • Echo Springs Spring Water
    • Get Your Phyll! H2O Plus Dietary Supplement Drink
    • Glaceau FruitWater
    • Glaceau SmartWater
    • Glaceau SoyWater
    • Glaceau VitaminWater
    • Glaceau Wellness Water in Orange Carambola
    • H2Wow Bottled Water
    • Healthy California Mind, Body & Spirit Waters
    • Heaven‘s Rain Natural Spring Water
    • Hinckley Springs Fluoridated Spring Water
    • Kero-Coco All Natural Coconut Water
    • Le-Nature‘s Ice Water
    • Looney Tunes Spring Water
    • Meridian Clear Non-Carbonated Spring Water
    • Mojo H20
    • Mountain Valley Spring Half-Pint Power Pack Water
    • O2 Aqua Super Oxygenated Pure Water
    • O2 Go Aqua
    • Original 420 Chronic Tonic Bong Water Carbonated Nutraceutical Energy Drink
    • Oxy-Up Stable Oxygenated Water Dietary Supplement
    • Peace Mountain Mineral Water
    • Peace Mountain Skinny Water
    • Phuse Vitamin Enriched Water
    • PoucH2Oasis Water Pouch Purified Drinking Water
    • Pure Oxygen Water Natural Air Bottled Water
    • Reebok Fitness Water
    • SaddleSprings Naturelle Spring Water
    • Santa Fe Desert Rain Pure Spring Water
    • Selmag Selen Enriched Water
    • Shareables
    • Snapple Snap2O Flavored Water
    • Takionic High-Energy Purified Water
    • Trinity Natural Spring Water
    • Veryfine Fruit2O Plus Spring Water
    • Virgin Fusion Enhanced Water
    • Voss Natural Artesian Water
    • WaterBox Spring Water
    • XS O2 Extreme

    Distribution
    • A Priority for Success
    • Soft Drink Companies Use Their Strengths
  5. Distribution and Retail
    • Water is Everywhere
    • New Marketers Need Distributors
    • New Partnerships Could Emerge
    • Multiple Distributors Used
    • Expanded Distribution Requires Expanded Marketing Support
    • Two Principal Delivery Methods
    • Warehouse Delivery
    • Direct Store Delivery

    Retail Outlets
    • Supermarkets Dominate Retail Sales
    • Table 5-1: Bottled and Enhanced Water Sales by Distribution Channel, 1999-2001 (percent)
    • Retailers Devoting More Space to Bottled Waters
    • Mass Merchandisers
    • Drug Stores
    • Other Channels
    • Table 5-2: Bottled and Enhanced Water Volume Sales by Distribution Channel, 2001 (dollars, percent)
    • Health Clubs
    • Ordering via the Internet
    • Water Stores
    • Vending Outlets
    • Foodservice Sales

    Distribution/Retail: Commercial/Home-Delivered Water
    • Commercial-Delivered Water
    • Home-Delivered Water
    • Mexican Market Draws Interest
    • Home Delivery of Smaller Bottles
    • Tanker Delivery
    • Internet Presence

    Retail: Related Water Products
    • Mass Merchandisers Leading Outlet for Filtration Devices
    • Mass Merchandisers Top Channel for Tablets
    • Supermarkets Lead in Water Softener Sales
  6. The consumer
    The Consumer: Overview
    • Motivating Factors in Bottled Water Consumption
    • Rising Incomes A Factor
    • Marketing As a Factor in Success
    • The Exercise Factor
    • Consumer Concerns About Tap Water
    • Foodservice Supports Increased Consumption
    • Awareness of Need for Water
    • But Consumption Falls Short of Recommendations

    The Consumer: User Profiles
    • Note on Simmons Market Research Bureau Data
    • Factors Favoring Use: Noncarbonated Bottled Water
    • Asians and Consumers Besides Whites Have Highest Indices
    • Users Tend to Be Rich, Young, and Female
    • Educational Divide Among Users
    • West Is Strongest Region
    • Factors Favoring use of Aquafina
    • South Top Region for Aquafina
    • Factors Favoring Use: Sparkling Water/Seltzer
    • Factors Favoring Use: Unflavored Sparkling Water/Seltzer
    • Factors Favoring Use: Lightly Flavored Sparkling Water/Seltzer
    • Consumer Use: Water Filtration Devices
    • Cost a Key Factor
    • Education Also a Factor in Consumer Acceptance
    • Table 6-1: Demographic Characteristics Favoring Use of Noncarbonated Bottled Spring Water, 2000
    • Table 6-2: Demographic Characteristics Favoring Use of Aquafina Noncarbonated Bottled Water, 2000
    • Table 6-3: Demographic Characteristics Favoring Use of Sparkling Water/Seltzer, 2000
    • Table 6-4: Demographic Characteristics Favoring Use of Unflavored Sparkling Water/Seltzer, 2000
    • Table 6-5: Demographic Characteristics Favoring Use of Lightly Flavored Sparkling Water/Seltzer, 2000

    Appendix I: Examples of consumer and trade advertising and promotions
    Appendix II: Addresses of selected marketers