June 27, 2024 – The European bottled water market is rife with innovation, driven by consumer demand for healthier, more sustainable, and exciting hydration options. Here we take a look at the key trends shaping the market.
Quenching Thirst for Health and Flavor
Consumers are increasingly prioritizing health and wellness, and bottled water is riding this wave. After declining during Covid-19, bottle water launches have caught up with pre-pandemic levels suggesting further growth with a quarter of European consumers increasing consumption over the past year.
While quenching thirst remains the primary reason for consumption, bottled water trend research shows that health is quickly becoming a close second. This shift is evident in the growing popularity of functional waters, fortified with vitamins, minerals, and even probiotics.
26% of European consumers say they have increased their consumption of bottled water, and the main reasons are health (53%), changing lifestyles or needs (32%), changing taste preferences (20%) and more variety and novelty (16%). Health-conscious consumers are seeking out water with added health benefits, such as immune support, digestive health, and energy boosting properties. Flavored water is appealing to consumers with changing taste preferences, and is experiencing rapid growth, with citrus, lemon, and watermelon flavors leading the pack. However, consumers are interested in clean labels on their bottled water products, demanding transparency and natural ingredients, and thus are shunning artificial flavors, colors, and sweeteners.
Bottled water trend analysis demonstrates that over the past four years, low/no/reduced calorie, sugar free and no additives/preservative claims have dominated the category. However, there is rapid growth in more specific health claims such as vitamin/mineral fortified, immune health, energy/alertness and brain health. Vitamin/mineral fortified claims now appear on just under 10% of launches and have a CAGR of 30% over the past four years.
Top Brands in the Bottled Water Market
Many functional water brands utilize their social media to increase their consumer reach and influence bottled water trends. One such brand is Vitamin Aqua, a leading brand in sports hydration, offering energy and alertness benefits. Another is M&S’s Juicy Vitamin Water, a revitalizing drink with real fruit juice and added vitamins and minerals for focus and radiance. Another still is Get More Vits, a raspberry pomegranate drink with Vitamin D that claims to support healthy bones and immunity. Finally, Dr Funk is a brand that produces sparkling drinks packed with essential nutrients, featuring a lemon elderflower flavor for immune and mood enhancement.
Purchase Drivers in Bottled Water Trends
Half of European consumers cite cost as the most important factor when asked what most influences their purchase decisions, followed by taste/flavor (32%) and brand. Flavored waters seem to now be a substitute for providing great taste without the calories of other beverages. 58% of total bottled water launches in 2023 are flavored. With no artificial flavors or colors and made with real ingredients/natural among the most influential claims, flavor infusions from natural produce may well be a key factor in flavored bottled water. The claims that most influence purchasing decisions are no artificial flavors or colors, product safety, low/no sugar, locally sourced and made with real/natural ingredients.
Sustainability Plays a Role in Bottled Water Trends
Sustainability is no longer a niche concern; it’s increasingly becoming more important for consumers and brands alike. Bottled water companies are responding with initiatives to reduce their environmental footprint, focusing on matters like recyclable packaging, reduced carbon footprint, and ocean-bound plastic initiatives.
Dash, a UK-based beverage company, is making waves with its fruit-infused sparkling water. They use “wonky” misshapen produce that would otherwise be wasted, creating a unique selling point (USP) focused on sustainability and reducing food waste. Their water is made with real fruit, sugar, sweeteners, and calories, and packaged in fully recyclable aluminum cans. They are leveraging media marketing to engage health-conscious consumers and promote their mission.
What’s Next in Bottled Water Market Trends?
Premiumization is on the rise in the bottled water market, with consumers saying that they are willing to pay a premium for high-quality, sustainably produced water with unique flavors and functional benefits.
Cross-category innovation is also growing in bottled water trends. Expect to see more cross-category collaborations, with water brands venturing into unexpected categories like sparkling beverages.
Finally, personalized hydration is emerging. The future of hydration may involve personalized water solutions tailored to individual needs and preferences.
The European bottled water market is evolving rapidly, driven by consumer demand for healthier, more sustainable, and exciting hydration options. By understanding the key bottled water trends and opportunities, brands can uniquely position themselves for success in this dynamic and growing market.
This article is based on our report, “Trending in Bottled Water in Europe.” If you are interested in reading this report, feel free to request a demo.
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