Bottled Water in Algeria

PROSPECTS

Growth is set to continue as consumers mistrust tap water, and rate bottled water for its health and wellness benefits

Bottled water recorded sustainable off-trade value growth in 2019, due to the various positive trends that are encouraging heightened consumption. These trends include the population growth, which boost value sales for bottled water along with the expansion of modern retailing and the healthy development of the consumer foodservice industry in Algeria.

A decrease in disposable income and the growing maturity of bottled water threatens future growth

Although there will be growth over the forecast period, it will be at a slower rate compared to 2019, and the review period. This slowdown is attributed to growing maturity partnered with an expected decline in purchasing power, driven by growing inflation.

The growing health and wellness trend boosts water consumption amongst Algerians, in turn increasing value sales of bottled water

The rise in the health and wellness trend should positively increase sales and growth for bottled water over the forecast period. Consumers awareness of the content of food and drink and nutritional benefits is growing in Algeria, and consumers are increasingly paying attention to labelling.

COMPETITIVE LANDSCAPE

Ibrahim & Fils Ifri leads the fragmented landscape, benefiting from its longstanding presence and high level of consumer loyalty

The bottled water competitive landscape remained stable with no significant increase or decrease in terms of value or volume sales, due in part to it being highly fragmented. Ibrahim & Fils Ifri is retained its lead in 2019, thanks to its longstanding presence with its Ifri brand and stronger production capabilities than other players.

Local players dominate sales due to the government’s protectionist policies and consumer loyalty

The highly fragmented landscape of bottled water is due to a legislation that grants concessions for the use of spring water and mineral water. This concession is controlled jointly by the Algerian central government and various regional and local authorities.

Competition is high in Algeria, with players competing through pricing strategies and new product developments

Competition in Algeria remains high, and as such, players will frequently launch new offerings to keep ahead of the competition and stay relevant in the landscape. For example, recent to 2019 Aghbalou by Sarl Agham was launched, as was Daouia by SBC Setif, and Milok by Agrodic.

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