Key Market Trends
Premiumization with the Growth of Fortified and Flavored Water
Premium bottled water is showing strong value growth across Europe, especially in Western Europe, wherein premium bottled waters have distinctly established themselves from the mainstream by setting up a unique selling point, attracting a target group of high-income consumers and commanding a higher value than the mainstream market. The purity of the water is often highlighted as a unique selling proposition by the market players, while some brands add functionality, which boosts the value.
The value of the functional water market in Europe grew by 5.4% in 2019, compared to that in 2018, thereby reflecting a sharp rise in the market demand. Additionally, the branding, positioning, and packaging of the product, such as glass packaging, are also helping manufacturers to create a more premium image. Thus, with the rapid premiumization and growth of fortified and flavored water, the bottled water market is expected to grow.
Germany is the Largest Market in Europe Bottled Water Market
Sparkled water dominates the Germany bottled water market. The growth rates of the segments are quite low, as the markets are well-established. The market for plastic bottle and cans is increasing, however glass bottles dominate the packaging segment. A trend toward healthier living habits is also been seen in Germany, accounting for the growth of the functional water segment. Gerolsteiner Brunnen continued to lead the competitive and fragmented bottled water market in Germany.
Europe bottled water market is fragmented and highly competitive. Danone, Coca-Cola, Nestle, and PepsiCo are the major players leading the market. Major players and small players are trying to capture the market share by introducing new variants of products, as well as new differentiations in the existing products. Different countries are captured by different players, mainly the local players respective to the country. Players have their own strong distribution channels to improve their product availability, and to maintain the merchant relationship.
(Source: PR Newswire)