1. Consumer and Innovation
Trends in Bottled Water 2014
The latest trends in still, sparkling, flavored, and unflavored
water
Category series. Published April 2014
Consumer Insight

2. Contents
1. Executive Summary
2. The Market: Where the Opportunities Lie
• Market snapshot
• Innovation snapshot
• Consumer snapshot
• Opportunities
3. The Trends: Consumer and Innovation Insight
• Eco-Warriors
• Fresh Functionality
• Turning Water into Wine
• Deeper-Dive Nutraceuticals
• Blurred Lines
• A New Flavor Focus
• The Threat of Filtration
4. The Future: What's Next in Bottled Water?
5. Appendix
Click on the title to go directly to the relevant section
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3. Eco-Warriors
The bottled water industry continues to face ecological and ethical challenges
Source: Datamonitor Consumer Survey 20133
Insight On-trend innovation Case study Take-outs
Looking
ahead...
Producers will become more focused on packaging innovation or marketing efforts in still, unflavored water
as traditional PET bottles face restrictions.
Producers are working to combat environmental issues
Multinational producers are investing in recycling, reusability, and social responsibilities to bolster their image, while smaller companies
use their eco-credentials as a selling point. Recycling is becoming more of a habit globally, and the industry is well-placed to capitalize
on this awareness, improving its image.
Consumers who actively recycle "all" or "most"
of the time, 2013
61%
Global
70% 63%
59%
40%
63%
Europe
Asia Pacific
Middle-East
and Africa
North
America
South and
Central America
Packaging bans
Bottled water has been banned from several towns globally, and
national parks in the US. While this is not an option in many
areas of the world where municipal water is of poor quality, it
suggests that the industry will need to continue to develop pack
reusability in the Western world.
Carbon neutrality
Consumers are aware of what being "carbon neutral" means and
producers are levying this accolade in their marketing
propositions. From companies like the UK's bottled water
company Belu to locations like Croatian firm Jamnica's factory in
North America, carbon neutrality is becoming more common.
Datamonitor's 2013 Consumer Survey showed, however, that
32% of consumers only look for on-pack ethical/sustainability
logos "occasionally" and only 22% do so "most of the time": a
product will need to have other features to appeal to the majority.
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4. Fresh Functionality
Examples we like: sensationalizing functionality
Source: Datamonitor's Product Launch Analytics; [1] Streamdrinks.com/about-stream-drink, accessed Jan 2014; Additional images: Newyorkspringwater.com,
accessed Jan 2014, Streamdrinks.com4
Insight On-trend innovation Case study Take-outs
VBlast, US
The brand uses a liquid concentrate that
is released into the water when the top
cap is twisted. The brand has diversified
from its core Vitamins & Spring Water
range to now include Energy Formula"
and the functional options Immunity
Formula, Refresh Formula, and
Antioxidant Formula.
Stream, South Africa
Stream releases a powder of vitamins
and supplements into water when the
cap is pushed. The company claims that
this packaging requires fewer
preservatives and negates the need for
hot filling.
Consumers can "enjoy a beverage at its
maximum potency and see the power
being activated."1
4C Cap-It, US
4C has launched a range of water-
enhancer-filled sports caps designed to
fit on the majority of water bottles. Taking
heed of other innovations in this field, the
company has introduced energy and
flavor variants, enabling consumers to
customize their bottled water.
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5. Bottled water designed by a water sommelierWHAT?
• The world's first water designed for taste using California spring
water and selected natural minerals.
• Designed to be paired with fine foods, wine, and spirits.
• Produced in limited editions of 10,000 and packaged in diamond-
like glass bottles with art-deco-style graphics.
Appeals to consumers' search for status and
new experiencesWHY?
• As the more adventurous consumer group becomes increasingly
financially well-off, they are willing to try products that suggest
status and luxury.
• The idea of water being "designed" suggests an element of
connoisseurism and novelty, which consumers are now able to buy
into.
With glacial water becoming more visible,
wine-ification adds a super-premium feelTAKE-OUT
• 9OH2O is only positioned towards an audience that is willing to
experiment and can afford to do so.
• As extreme purity becomes more visible, the idea of purity
designed for taste emerges.
• The idea of a team crafting a beverage makes it seem handmade
and expert, while positioning the water as something to be tasted,
not just for refreshment, adds a luxury and exclusive image.
Turning Water into Wine
Case study: 9OH2O Master Crafted Water
Source: Datamonitor analysis; Beverlywater.com; [1] Quoted in Vice.com, Nov 2013; Images: Facebook.com/beverlywater, accessed Jan 20145
Insight On-trend innovation Case study Take-outs
"Water is odorless, but that doesn't
mean that it's flavorless."1
Martin Riese,
Water Sommelier
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report

6. Deeper-Dive Nutraceuticals
Younger consumers are far more open to tailored beverages
Source: Datamonitor Consumer Survey 2013; [1] Online.wsj.com, Jan 2014; [2] Nestle.com, Jan 2014; Images: Nestle.com, Cellulardynamics.com, both accessed
Jan 20136
Insight On-trend innovation Case study Take-outs
Looking
ahead...
Younger consumers will be directly targeted, and the presence of food and beverage companies in the stem
cell research sector will mean that preventative products are more relevant.
Younger consumers will expect tailored functionality
Consumers are less likely to believe specific product claims
than they are general nutritional claims, with more 18–34 year
olds trusting specificity than any other age group. This
audience should be targeted directly as they will grow up with
the idea of tailored functionality and increasingly see it as the
norm.
Nestlé's foray into stem cell research
In early January 2014, Nestlé announced that it had signed a
stem cell agreement with Cellular Dynamics International. The
company hopes that this partnership will allow it to further its
research on health maintenance and chronic disease prevention
by producing "nutritionally enhanced drinks"1.
The future of medical beverages
As the Nestlé Institute of Health Sciences steps up its research
into "nutritional solutions"2, it seems that the way forward for
tailored functionality has been determined.
By the time that any breakthroughs can be implemented in
beverage production, younger consumers will have grown up
with increasingly specific functional products and will be ready to
trust a drink that says it can, for example, prevent diabetes.
Specific functional
claims
General health and
nutritional claims
18–24 years 46% 54%
25–34 years 46% 53%
35–44 years 43% 48%
45–54 years 40% 45%
55–64 years 33% 39%
65+ years 31% 39%
Global: consumers who consider these manufacturer
claims to be "somewhat" or "completely" trustworthy, 2013
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