Historically carbonated soft drinks have led global soft drinks consumption, but 2015 will see packaged water overtake carbonated drinks, according to the latest findings from market research organisation Canadean.
A new Canadean report has predicted that packaged water will overtake global carbonates consumption, reaching over 233 billion litres in 2015, while carbonates are expected to grow at a slower pace to around 227 billion litres. Back in 2010 the global population consumed only 170 billion litres of packaged water, compared to 215 billion litres of carbonates.
“The speed at which packaged water is growing is evident,” said Fiona Baillie, analyst at Canadean. “Asia and West Europe already have packaged water consumption levels above those of carbonates and this year East Europe is set to join them,” she said.
Emerging countries will be driving global growth
Canadean said its research also showed that it will be emerging countries that drive this trend in the future, while western countries with traditionally high packaged water consumption will be slipping down the growth rankings.
Germany, Italy, France and Spain are forecast to see a compound annual growth rate (CAGR) of merely 1 per cent between 2015 and 2020, compared to 21 per cent in India, 12 per cent in China and 8 per cent in Brazil.
However, the US is predicted to keep its second place ranking in terms of volume, as consumers continue to shift to packaged water consumption due to health concerns.
China and India will consume half of additional packaged water
According to the report, China and India are predicted to account for around 50 per cent of the world’s additional packaged water consumption in 2020, consuming a total of around 45 billion litres more than in 2015.
“With nearly one-third of the world’s population residing in these countries the impact is significant. Packaged water is often necessary in areas susceptible to flooding or other natural occurrences, as these often lead to water contamination and the spread of diseases,” Ms Baillie said.
Due to higher temperatures and poor piped water infrastructure, ‘on the go’ hydration is becoming a key part of daily life in Asia, according to Canadean, with many consumers taking bottles of water with them on their everyday business and travels.
“India has seen a strong growth in 100cl bottles in rural markets, as locals perceive them as having good value per serving and being easy to transport,” Ms Baillie said.
The expansion of retail in bus terminals and train stations is the key to India’s strong ‘on the go’ consumption.
“It assimilates packaged water, namely 100cl bottles, into the process of travelling and establishes it as the norm for all types of consumers,” Ms Baillie said.