US consumers embrace carbonated water as soft drink sales drop, Canadean
Growth in the consumption of carbonated packaged water in the US is expected to be much higher than the global average, with consumers moving away from soft drinks, according to new findings from global market research organisation Canadean.
Growth driven by shift away from soft drinks
The US is predicted to have one of the highest growth rates of 12 per cent in carbonated packaged water consumption in 2014, compared to an average global growth of 1 per cent. Data from Canadean reveals that soft drinks 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.
“Carbonated packaged water fills this void and appeals to consumers as a healthier alternative to traditional carbonates,” said Rakhee Sturgess, analyst at Canadean. “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,” she said.
Flavoured fizzy water also growing
Canadean found that flavoured carbonated water was also seeing strong progress on the back of solid distribution gains and increasing brand activity.
According to Canadean, the growth in flavoured carbonated water is comes because 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, according to Canadean. Other key brands contributing towards the growth of the US carbonated packaged water market include Nestlé’s Poland Spring, Perrier and San Pellegrino brands.
“Carbonated packaged water is gaining traction in the US and its continued success will grow its share of the packaged water market,” Ms Sturgess said. “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,” she said.
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