Bottled Water in Argentina

PROSPECTS

Consumption of bottled water continues to decline due to the weak economic situation

Consumption of bottled water continued to decline in 2019 as high inflation and declining consumer purchasing power led to lower spending on fmcg in general. These factors led many Argentinians to switch to tap water for their hydration needs.

Still purified bottled water the only format to grow in 2019

Still purified bottled water outperformed the category as a whole, being the only format to achieve retail volume growth in 2019, driven by home delivery soda siphon players which also deliver bulk water at a low cost per litre in returnable value-priced bubble top packs. Indeed, still purified bottled water has the lowest cost per litre within bottled water, encouraging greater consumption in periods of economic hardship, whilst also providing the health benefits of bottled water as a daily beverage.

Flavoured bottled water is increasingly unpopular due to its high sugar levels

Flavoured bottled water was initially positioned as a healthier alternative to carbonates, a message which resonated among consumers for many years. However, with the rise of the health trend in the early part of the review period, consumers started to notice the high sugar levels in this format of bottled water and began to avoid these products, leading to steep declines in consumption.

COMPETITIVE LANDSCAPE

Aguas Danone de Argentina maintains its lead but with a diminishing retail value share

Aguas Danone de Argentina continued to lead bottled water in off trade value terms in 2019. The company continued to develop its portfolio of brands, including Villa del Sur, Villavicencio, Villa del Sur Levite´, Ser, and We by Ser, investing in innovation, with the aim of creating different moments of consumption through the introduction of new packaging sizes, as well the expansion of the flavour range with Villa del Sur Levité.

IVESS and Cimes continue to strengthen their positions during the economic crisis

There is a strong tradition of carbonated water consumption in Argentina, comprising mainly of home delivery of refillable soda siphons.

Coco-Cola Argentina’s retail value share declines

Coca-Cola Argentina recorded a decline in its retail value share of bottled water in 2019. Its portfolio of bottled water brands includes Bonaqua mineral water, Aquarius, Kin table water and Aybal soda siphon, a diverse range which allowed the company to avoid steeper declines in the period of economic turmoil.

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