Market Trends of South America Bottled Water Industry
Increasing Consumer Spending Towards Bottled Water
Bottled water is increasingly being preferred over less healthy packaged drinks by consumers. Its sales have steadily increased year after year, while consumption of carbonated soft drinks has decreased. The consumption increases for bottled water increased due to consumer switching from less-healthy packaged drinks to bottled water owing to the negative health effects of other carbonated drinks.
In Brazil, the idea of premium bottled water is steadily gaining more acceptance. Brazilian customers were only concerned if the water was still or sparkling; they weren't concerned with what sort of water was offered in restaurants. However, some individuals are started paying attention to the brands of beverages they consume. Premium bottled water is now being purchased by consumers for consumption at home. Since tap water is not commonly served in Brazilian restaurants, which strongly encourages the consumption of premium bottled water. The movement of Brazilian bottled water companies toward developing their own premium lines was crucial to the market's growth. Customers began to consider premium bottled waters on special occasions as the prices established for Brazilian brands were not as high as imported brands.
Brazil held a Major Market Share
Brazil is one of the largest economies in South America. Water Pollution is one of the major environmental concerns faced by the residents of the country. Poor water purification practices have put thousands of people at risk of contracting water-borne diseases. This is the reason which has led consumers to purchase bottled water. Overweight and obesity are on the continuous rise in the country, which has made it mandatory for consumers to shift their preferences toward something free from calories. The demand has therefore shifted from soft drinks and alcoholic beverages to functional, flavored, and mineral water. This has boosted the sales and margins of companies operating within the industry and raised the overall production volume.
Consumers are increasingly aware of the importance of being hydrated, and rising average temperatures. Along with hydration consumers also get an additional nutritional boost which they may not get otherwise from normal water. Functional water boosts the immune response of the body as it contains vitamins, minerals, herbs, and other essential elements needed by the body. The broken water molecules clusters make the boiling point higher which improves the hydration and nutritional capabilities of the water. This also has a positive health impact on diabetic and chronic diarrhea patients.
