Bottled Water in Azerbaijan

PROSPECTS

The health and wellness trend has driven sales of bottled water, which is expected to continue over the forecast period

The rise of the health and wellness trend in Azerbaijan increased over the review period, reflecting global health trends. As a result, local consumers have increased their water consumption.

Low-quality tap water encourages sale of bottled water that is used both for cooking and drinking

The development of bottled water in 2019, is booted by consumers looking for a replacement to poor quality tap water that is apparent in Azerbaijan. During the review period, there was growing publicity around the dangers of consuming tap water, resulting in higher sales of water in large containers - such as 3, 5 or 10-litre PET bottles.

Modern retailers, tourism and foodservice outlets boost value sales 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. Local consumers shifted 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

Baku Coca-Cola Bottlers Ltd retains its lead in the saturated landscape, through well-established offering Bonaqua

Growing saturation resulted in toughened competition among bottled water manufacturers in 2019. However, Baku Coca-Cola Bottlers Ltd retained its led in brand share through offering Bonaqua, distributed through both on-trade and off-trade channels.

The affordable price-points of their bottled water offerings boosts value sales for local players

In Azerbaijan, bottled water offers a broad range of manufacturers and a wide host of different players. Local players provide bottled water at lower price-points and do not have substantial finances to support their offerings with marketing campaigns.

There is growth potential for private label offerings over the forecast period

Within the bottled water landscape, there is an opportunity for private label to expand across the forecast period. Private label recorded a low level of growth in 2019, and over the forecast period, there is an opportunity for local players to expand their presence by working in this field.

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