The US is predicted to have one of the highest growth rates of 12 percent in carbonated packaged water consumption in 2014, compared to an average global growth of 1 percent. Data from Canadean reveals that carbonates could lose as much as five litres per person in the US in 2014 compared to 2013, whereas packaged water, both still and carbonated, is expected to gain over three litres per person. This increased demand is being driven by the steady consumer shift from carbonated soft drinks to packaged water.
Americans are becoming increasingly aware of the negative health implications of drinking large quantities of ‘sugary’ carbonated soft drinks, but are still looking for the specific attributes and mouth feel of carbonation. Rakhee Sturgess, analyst at Canadean, comments: “Carbonated packaged water fills this void and appeals to consumers as a healthier alternative to traditional carbonates. As it is sugar-free and has no additives, the growing demand for carbonated water has started taking share from the carbonated soft drinks market.”
On a similar note, flavoured carbonated water is also seeing strong progress on the back of solid distribution gains and increasing brand activity. It is also seen as a healthier alternative to carbonated soft drinks as it offers a vast selection of fruity flavours. For example, Coca-Cola’s Dasani brand successfully expanded into the carbonated flavoured packaged water market by introducing naturally flavoured sparkling water, with flavours such as lemon, apple and berry.
The most popular carbonated packaged water brand in the USA is Crystal Geyser by Otsaka Group and ranks as the twelfth most consumed carbonated packaged water brand globally. Other key brands contributing towards the growth of the US carbonated packaged water market include Nestlé’s Poland Spring, Perrier and San Pellegrino brands. According to Sturgess: “Carbonated packaged water is gaining traction in the US and its continued success will grow its share of the packaged water market. Since local manufacturers are offering lower prices, it is domestic rather than imported brands that are increasingly expected to drive this growth. Furthermore, wider distribution will also help US manufacturers to capitalise on the growing demand for carbonated packaged water.”
Canadean provides in-depth market research across the fast-moving consumer goods (FMCG) sector, including food, packaging, ingredients, soft drinks, beer, retail, foodservice, wines & spirits and cosmetics & toiletries. Canadean specialises in conducting online survey panels, producing in-depth market insight country reports through qualitative and quantitative research. For updates, please follow us on twitter or visit www.canadean.com.
These findings are based on the Canadean report: Soft Drinks Market Insights 2014 United States of America.