Bottled Water in Algeria

PROSPECTS

Bottled water growth set to continue to be supported by several positive trends

The main factor driving growth is expected to remain consumers’ increasing mistrust of tap water, the quality of which is not anticipated to improve, particularly given the issue of further water shortages predicted in the country over the forecast period. Thus, consumers will likely continue to pay more attention to the quality of the water they drink.

Category growth expected to be threatened by the economic downturn

Overall sales of bottled water are set to grow over the forecast period, although growth is set to be slower than that of the review period in both volume terms and value terms at constant 2018 prices. This slowdown will be due to the increasing maturity of the category and an anticipated decline in the purchasing power of Algerian consumers as a result of economic hardship and rising inflation.

Growing health and wellness trend expected to drive further growth

Bottled water is expected to continue to register healthy growth in both volume and value terms thanks to the rising health and wellness trend. Consumer health awareness is on the rise and Algerians are increasingly paying more attention to labels, especially the source of water and its composition.

COMPETITIVE LANDSCAPE

Ibrahim & Fils Ifri remains the leading player thanks to its longstanding presence

Ibrahim & Fils Ifri continued to lead the highly fragmented bottled water category in 2018 thanks to its longstanding presence in the marketplace through its Ifri brand and stronger production capabilities than other players. SGEM Société Guedila des Eaux Minérales ranked second thanks to the popularity of its Guedila brand, with the remaining sales split between several players which account for small shares due to mainly operating at a regional level.

Bottled water competitive landscape remains unchanged

The bottled water competitive landscape remained largely unchanged in 2018, with no manufacturer recording a significant increase or decrease in either value or volume share. This can be attributed to the fragmentation of the Algerian bottled water category and the limited production capacity of most players, especially those offering natural mineral water.

Local products dominate sales due to the government’s protectionist policies

In 2018, there remained little competition between domestic and international manufacturers of bottled water. Indeed, with the exception of Nestlé, almost all demand for bottled water continued to be met by domestic players as the Algerian government maintained a protectionist trade strategy, which does not permit international companies having full ownership of Algerian subsidiaries, while a strong domestic shareholding is compulsory for companies registered in the country.

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