Zenith Consulting 2013 bottled water Review

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zenithinternational specialist consultants to the food and drink industries worldwide STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION 2013 Global Bottled Water Congress and market trends Richard Hall Chairman Matt Wilton Commercial Consulting Director Webinar Wednesday 25 September 2013

description

A look at global bottled water market

Transcript of Zenith Consulting 2013 bottled water Review

Page 1: Zenith Consulting 2013 bottled water Review

zenithinternationalspecialist consultants to the food and drink industries worldwide

STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION

2013 Global Bottled Water

Congress and market trends

Richard Hall

Chairman

Matt Wilton

Commercial Consulting Director

Webinar

Wednesday 25 September 2013

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zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

2013 Global Bottled Water Congress

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Richard Hall

Chairman, Zenith International

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zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

Event outline

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• 10th Global Bottled Water Congress

• 12-14 November 2013, Nashville, USA

• In association with FoodBev Media

• Alongside the IBWA Annual Business Conference & Trade Show and the

NAMA CoffeeTea&Water Show

• Around 150 delegates each year from top global and regional producers

• Sponsored by leading industry suppliers Aptar, Bericap and NSF

• Full programme and online booking at www.zenithinternational.com/events

• Discounted rates available until 4 October 2013

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zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 20134

Previous Congresses

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zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

2013 programme

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• Alongside IBWA Annual Business

Conference & Trade Show and NAMA

CoffeeTea&Water Show

• Conference: Force of nature

• Day of detailed market briefings

• Gala Dinner

• Global Bottled Water Awards

• Sponsored by leading suppliers Aptar,

Bericap and NSF

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Force of nature

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• Premium water case studies

• US market opportunities

• North America regional overview

• World view of water

• Attracting new consumers

• Innovation and investment

• Innovation presentations

• Market data briefings

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Conference speakers

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International producers

Regional leaders and innovators

Industry representatives and advisers

Industry suppliers

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zenithinternationalspecialist consultants to the food and drink industries worldwide

STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION

Global bottled water

Latest trends and analysis

Matt Wilton

Commercial Consulting Director, Zenith International

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212 223 234250

269288

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012

Global bottled water volume 2007-12

000 million litres

+6.7% +7.5% +7.1%

90 countries

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zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

49.9%

38.6%

11.4%

Global bottled water types 2007-12Still bulk water continues to gain market share

212 billion litres 288 billion litres

90 countries

2007 2012

50.3%

34.9%

14.8%Still to 10 litres

Still bulk over 10 litres

Sparkling

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zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

Global trends 2012/13• Global volume of bottled water has surpassed

carbonates and it is a volume driven category. Prices

remain low and private label is a pressure in

developed markets.

• Global market is still fragmented with big four

international players commanding approximately a

quarter of volume. There are some established

regional players, notably Wahaha and Suntory in Asia

Pacific plus San Benedetto in Europe..

• Environmental concerns remain, although affordability

remains the key driver of purchase.

• Core messages of health and hydration are still

relevant, but challenged by innovation in other

‘healthy’ soft drinks.

• Still, bulk water over 10 litres remains a driver,

reflecting the importance of markets where such

products are in greater demand and where water

supply remains inadequate

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zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

36.4%

16.6%15.5%

13.0%

8.3%

6.1%4.2%

Global bottled water regions 2007-12Asia Pacific and Africa gain share but the latter remains small

212 billion litres 288 billion litres

2007 2012

26.2%

22.4%

16.5%

16.2%

8.1%

7.4%

3.2%

Asia Pacific

West Europe

North America

Central & LatinAmericaMiddle East

East Europe

Africa

90 countries

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zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

Region trends 2008-12

North America

West EuropeEast Europe

Latin America

Asia Pacific

Africa

Middle East

-2

0

2

4

6

8

10

12

14

16

18

0 20 40 60 80 100 120

Bubble size shows 2012 volume

An

nu

alvo

lum

e g

row

th2

00

8-1

2

Litres per person in 2012

High potential. Explore

opportunity

Growth and

consumption. Invest

High consumption, low

growth. Hold/acquire

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zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

USA bottled water volume 2007-12

32.0 31.730.8 31.4

32.434.1

0

5

10

15

20

25

30

35

2007 2008 2009 2010 2011 2012

+8.0% -1.0%- 2.9%

+2.0%+3.2%

+5.4%000 million litres

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zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

69.2%

14.3%

2.4%

14.1%

Still to 2 litresStill 2-10 litresSparklingStill over 10 litres

USA bottled water segments 2012

Total 34 billion litres

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zenithinternationalspecialist consultants to the food and drink industries worldwide© Zenith International Ltd 2013

Summary and future evolution

• The developing regions of Asia Pacific, Africa and

Middle East will continue to drive growth due to

increasing urbanisation and economic stability.

• Growing awareness of water safety and lack of

mains water a key driver for growth in these

markets.

• The bulk water segment is expected to grow at the

fastest pace over the next 5 years, mainly driven

by the Asia Pacific region.

• Small pack sizes of still bottled water continue to

benefit from health consciousness and on-the-go

convenience.

• Innovation in packaging is key to ensure the

category retains momentum in more developed

markets.

• Further industry consolidation is expected as the

larger companies acquire small/niche players to

increase capacity and product portfolio and gain a

foothold in the less developed regions.

0

100

200

300

400

500

2012 2014 2016 2018 2020

Forecast to 2020billion litres

Page 17: Zenith Consulting 2013 bottled water Review

zenithinternationalspecialist consultants to the food and drink industries worldwide

STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION

For more information about the Global Bottled Water Congress, please

contact:

Nick Crossland

Marketing & Events Consultant

[email protected]

t +44 1225 327941

Or visit www.zenithinternational.com/events

For more information about this presentation, please contact:

Matt Wilton

Commercial Consulting Director

[email protected]

t +44 (0)1225 327931