Opportunity for growth will need to be driven by savvy marketing with an emphasis on health and convenience
London, United Kingdom (PRWEB) October 18, 2012
After more than a decade of strong growth stemming from rising health awareness, societal trends and more buoyant economic conditions, the Bottled Water Production industry has been in decline since 2006-07. According to IBISWorld industry analyst Steven Connell, “this was caused by unfavourable climatic conditions, a mounting community backlash against the environmental impact of bottled water and the most savage recession in the United Kingdom for half a century”. All of these factors took their toll on industry revenue and profitability.
Conditions are expected to improve over 2012-13 due to the London Olympics but growth will remain relatively muted, with industry revenue expected to grow by 1.9%. In the five years through 2012-13, industry revenue is expected to decline at a compound annual rate of 1.0% to total £539.9 million.
The industry is expected to fare better during the next five years as the economy slowly recovers from the recession. However, a return to the favourable days of the early 2000s is unlikely, with opposition to bottled water on environmental grounds expected to intensify and consumer spending to remain constrained for some time. Climatic conditions will continue to have a major influence on industry performance. Per capita consumption of bottled water in the United Kingdom is still low by international standards. Connell adds, “there is still opportunity for growth but this will need to be driven by savvy marketing, an ongoing emphasis on health and convenience and further innovation in products and packaging”. Industry revenue is forecast to return to growth over next five years to 2017-18.
The Bottled Water Production industry displays a medium level of market share concentration, with the top four producers accounting for about 50% of industry revenue. Concentration increased following Highland Spring's acquisition of Greencore's bottled water segment in 2009, and Powwow's exit from the industry. Consolidation is likely to continue during the next five years as producers look for ways to cut costs and boost profit margins after years of declining revenue. Companies are also expected to target ethical water brands and other niche producers as a means of countering the negative publicity bottled water has received in recent years. Major companies include Highland Spring, Nestle Waters UK, Princes Limited and Eden Springs UK.
For more information on the Bottled Water Production industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Firms in this industry produce bottled water by filling drinking water into plastic or glass containers. Bottled water comes in both still and sparkling form. Also included in this industry are firms producing bulk water distributed in water coolers to homes and offices. Excluded from the industry are those beverages containing certain ingredients or additives, such as sugar and artificial colouring, that cause the product to be classified as a soft drink.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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