Premiumization
In 2015, premium water took a 5% volume share of the small-pack bottled water market; but a 12% value share, according to Zenith Global. While Western Europe took the biggest share of the premium water market by volume, North America showed the most impressive growth rate, posting a 10.8% CAGR between 2010-2015.
Coca-Cola’s Glacéau smartwater is made by vapour distilling water, ‘making every drop as pure as the very first drop of rain’, adding in electrolytes for a ‘clean, crisp taste’. PepsiCo, meanwhile, launched its premium LIFEWTR brand this year: a ‘purified water, pH balanced with electrolytes added for taste’.
Emphasising the source has been a particularly important part of the brand story for many premium bottled waters as they expand to new markets. Icelandic Glacial, for example, is a super-premium natural spring water, bottled at source from Iceland’s Ölfus Spring; while New Zealand Pure, a premium water from Kauri Springs in the far north of New Zealand, was launched in June.
Meanwhile, Nestle’s international premium sparkling water brands Perrier and S.Pellegrino grew twice as fast as its mainstream waters portfolio in 2016, illustrating the consumer demand in this category.