Bottled Water in Australia

PROSPECTS

Growing presence of private label products reflected in sluggish unit price growth

Private label continued to grow in 2019 and is posing a greater challenge for branded players in their bid to maintain strong revenue growth. Growth of private label stems from constrained disposable incomes, which make consumers more price conscious.

Consumers move away from sugar laden drinks towards premium bottled water brands

Consumers are moving away from high sugar colas and other carbonated high sugar soft drinks and substituting these for waters, in particular flavoured water and carbonated water. An example of this is seen in the growing popularity of the StrangeLove Brand, which caters to health-conscious consumers, especially millennials and connoisseurs of beverages.

Flavoured bottled water remains a key growth driver in bottled water

Flavoured bottled water is a key growth driver of bottled water given the range of multiple options available to small and large brands that enable them to differentiate. New flavours offer novelty and sustain consumer interest, whilst being appealing to consumers who are interested in shifting to healthier beverage alternatives, whilst still enjoying beverages that are flavoursome.

COMPETITIVE LANDSCAPE

Despite Coca-Cola’s lead, private label achieves strong and rising share

While Coca-Cola Amatil led bottled water in 2019, the company’s share declined steadily over the review period. The company has suffered growing competition from private label, which comprised one-quarter of off-trade value sales of bottled water in 2019.

Schweppes Australia increases its share within bottled water

Schweppes Australia experienced growth in its sales share in bottled water over the review period. Frantelle was the company’s leading bottled water brand in off-trade value sales in 2019, followed closely by Schweppes Soda Water.

Category benefits from numerous new product launches in 2019

There were several new product launches in bottled water in 2019 including an eco-friendly brand convenience World by rapper Jaden Smith. This is packaged in environmentally friendly and fully recyclable Tetra Pak carton made of 82% renewable sources, as claimed by the Forest Stewardship Counsel.

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