Bottled Water in Austria

2020 IMPACT

Consumers stockpiling behaviour boosts sales of bottled water during lockdown periods

Bottled water is the area within soft drinks that is set to record the highest uplift in off-trade growth in 2020, having seen sales rise during lockdown periods. This was due to stockpiling behaviour noted in Austria, with consumers stockpiling essential items for the household, including bottled water.

The closures of foodservice outlets leads to a double-digit decline in on-trade growth

On-trade disruption due to the lockdowns is set to have a negative impact on sales of bottled water, moving on-trade volume growth from 2% in 2019, to a decline of 30% in 2020. However, this decline was not as significant as some other areas of soft drinks, due to the healthier perception of the product, while supply issues also remained strong.

Regional brands dominate in their home regions in bottled water

In Austria, regionally sourced water is mostly successful in its own region. For example, water that comes from a Western region in Austria will not sell very well in the Eastern parts of the country.

RECOVERY AND OPPORTUNITIES

Off-trade value sales benefit from rising prices, while volume sales remain positive

The average unit price of bottled water in the off-trade is set to increase from 2021, and this will continue across the forecast period, leading to solid off-trade value sales across the next five years. While some areas in soft drinks are set to record a decline in off-trade sales in 2021, bottled water will record positive volume and value growth across the full forecast period.

On-the-go consumption returns, boosting sales across the forecast period

Demand for out-of-home consumption will return in Austria, aligned to the successful roll-out of the COVID-19 vaccine, or a time when consumers feel confident to socialise in public. As such, demand will increase for bottled water on-trade, with on-trade set to record double-digit growth across the early forecast period.

The health and wellness trend boosts sales of flavoured bottled water and functional bottled water

Across the review period, thanks to the growing health trend, to premiumisation and innovation, flavoured bottled water emerged as one of the most dynamic categories in soft drinks. As these three trends are set to remain relevant over the forecast period, flavoured bottled water will continue to drive growth, particularly in the on-trade where a CAGR of 9% is predicted for flavoured bottled water.