Bottled Water in Azerbaijan

PROSPECTS

The low quality of tap water in the country drives bottled water homeshopping sales

During the review period, publicity about the hazards of using tap water continued to grow, resulting in higher sales of water in large containers, such as 3-, 5- or 10-litre PET bottles, to households. Being conscious about the quality of tap water, local consumers use bottled water not only for drinking, but also for cooking.

Health and wellness trend expected to drive bottled water sales over the forecast period

The drift of Azerbaijanis towards health and wellness increased over the review period, reflecting global health trends. As a result, local consumers have increased their water consumption and have developed the habit of drinking a lot of water during the day.

Modern retailers show immense share growth in the distribution of bottled water

During the review period, the retailing landscape changed dramatically in Azerbaijan in favour of modern grocery retailers, such as supermarkets, convenience stores and hypermarkets, which took share from traditional grocery retailers. Modern retailing expanded during the review period due to new modern outlets growing swiftly in the country and local consumers shifting towards shopping at supermarkets and hypermarkets which provide a wide variety of brands and products and offer lower unit prices compared to traditional outlets.

COMPETITIVE LANDSCAPE

Bottled water becomes more saturated with an increased number of brands

Growing saturation resulted in toughened competition among bottled water manufacturers in 2018. However, the leadership of bottled water, in volume terms, remained unchanged in 2018.

Local brands take over due to their affordable prices and wider availability

In 2018, local manufacturers performed well, increasing the availability of their products on traditional and modern grocery retailers’ shelves. With growing substitution of tap water with water in PET bottles, manufacturers show greater interest in the production of still water in 3-, 5-, 10- and 20-litre bottles.

Companies reinforce their advertising activities in summer

Seasonality continues to play an important role in bottled water for the physical reason of the increased need for water during the hot summer in Azerbaijan. Bottled water suppliers intensify their promotional activities from May to October, the period which sees the highest demand for bottled water in the country.

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