Bottled Water in Brazil

PROSPECTS

Foodservice fuels sales of carbonated bottled water

For most Brazilians, carbonated water is not characterised by the same consumption occasions as still water: the main purpose is to accompany a meal, commonly mixed with lemon or orange in the on-trade - a typical occasion that has always been occupied by carbonates. This is in line with consumers’ desire to reduce sugar intake and replace carbonates with beverages that they perceive as healthier.

Consumers’ perceptions of bottled water unlikely to fuel future sales

In Brazil, it is extremely common to find drinking fountains in public locations (malls, hotels, commercial buildings, etc), not only due to the high penetration of drinkable water throughout the whole country, but also due to high availability of mineral water. Consumers tend to see no difference between mineral and drinkable water, claiming that all waters are equal and focusing on the common function of quenching thirst, deciding mainly based on price.

Bottle vs bulk packaging

Historically, mineral water sold in bulk used to grow year on year. In the last few years, however, such large packaging types have continuously lost share, with decelerating volume sales growth since 2014 and decline registered in 2019.

COMPETITIVE LANDSCAPE

Coca-Cola Indústrias Ltda’s Smart Water comes strong

Coca-Cola Indústrias Ltda recently brought its new water brand to Brazil: Smart Water. Unlike most brands in Brazil, however, it is not mineral water, but purified water, with added minerals.

High expectations for Will Smith’s Just Water

The actor Will Smith announced the launch of Just Water, a water brand sold in liquid carton packaging which claims to be beneficial to the environment by avoiding plastic bottles. The announcement encouraged consumers to try it, making clear that consumers see it as an alternative to plastic bottles.

Extremely fragmented scenario not expected

Bottled water is extremely fragmented in Brazil, with many small and regional players competing in terms of price with little space for differentiation. Regional brands are extensively consumed, and this situation reinforces the perception that all water brands deliver the same value.

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