Market Trends of Europe Bottled Water Industry
This section covers the major market trends shaping the Europe Bottled Water Market according to our research experts:
Premiumization with the Growth of Fortified and Flavored Water
Premium bottled water is showing strong value growth across Europe, especially in Western Europe, wherein premium bottled waters have distinctly established themselves from the mainstream by setting up a unique selling point, attracting a target group of high-income consumers, and commanding a higher value than the mainstream market. The purity of the water is often highlighted as a unique selling proposition by the market players, while some brands add functionality, which boosts the value. Additionally, the branding, positioning, and packaging of the product, such as glass packaging, are also helping manufacturers to create a more premium image. Thus, with the rapid premiumization and growth of fortified and flavored water, the bottled water market is expected to grow. Meanwhile, premium water brands are moving beyond plain bottled water and into flavored water bottles too. San Pellegrino, Evian, Volvic, and Perrier expanded their ranges from pure water to flavors and infusions. Furthermore, due to consumers' growing preference for health and wellness trends, many companies are entering the market with new products. For instance, in May 2021, Pepsi Co., launched Soulboost, a functional sparkling water brand infused with ingredients L-theanine and Panax ginseng while targeting wellness-conscious consumers across the globe, including the European region.
Germany is the Largest Market
Germany forms one of the largest bottled water markets in the world. Plastic packaging is preferred over the glass in almost every country. Even in Germany, where glass has a strong presence, PET is the most dynamic and rapidly growing segment. Consequently, brands like Volvic Germany completed their switch to 100% rPET for its full range of water bottles as of 2021. In Germany, sparkling water is often served with meals, and thus, it holds a prominent share in the market. However, Germans are trying to live healthier lifestyles and have replaced sweetened drinks with water, especially functional water. The growing demand for functional water is boosting the market growth. As to the Beverage Marketing Corporation, Germany consumed more bottled water in 2019 than it had in the last five years, with about 168 liters of bottled water consumed per person in the year 2019. Thus, the increasing usage of bottled water in the country is expected to strengthen the market growth in the forecast period. Gerolsteiner Brunnen continued to lead the competitive and fragmented bottled water category in Germany. It remained the leading player in off-trade sales through foodservice channels. However, the sales are mainly driven by its sparkling mineral bottled water.
