Bottled Water in Brazil

PROSPECTS

Still bottled water continues to drive category growth

Bottled water volume growth rates decelerated in the latter part of the review period, but a consistent positive perspective is expected for the forecast period. Consumers are increasingly aware of the importance of being hydrated, and rising average temperatures – especially during summer – will drive future demand, particularly for bottles of up to 500ml for individual and on-the-go consumption.

Bulk water sales forecast to decline

The water shortage crisis which occurred in 2014 led to increased demand for bulk water in containers of eight litres or more, usually through direct selling. The public drinkable water supply has improved in the main cities, and in the absence of any further water shortages, sales of bulk water are predicted to fall slightly over the forecast period.

Carbonated bottled water grows by replacing carbonates

As Brazilians discover the importance of drinking water and are increasingly worried about the volume of sugar they consume (especially through carbonates and packaged juices), carbonated bottled water has gained share as a substitute. This movement, which started in the on-trade channel is now becoming more popular at home.

COMPETITIVE LANDSCAPE

Coca-Cola diversifies its bottled water portfolio in Brazil

In line with Coca-Cola’s strategy of catering to all consumption occasions, the company increased investment in bottled water in the latter part of the review period. The company extended the Crystal brand – present in mineral still and carbonated water – with Crystal Sparkling, a flavoured bottled water with no sugar or calories.

Grupo Edson de Queiróz acquires Nestlé Brasil Waters brands

Grupo Edson de Queiróz owns two of the most important bottled water brands in Brazil – Minalba and Indaiá – and has strengthened its position through the acquisition of Nestlé Brasil’s water brands: Petrópolis and São Lourenço, as well as Nestlé Pureza Vital (through a licensing agreement). It will also have the distribution concessions for Acqua Panna, San Pellegrino and Perrier.

Differentiation still depends significantly on packaging innovation

There is little scope for differentiation by bottled water brands in terms of the actual product, as consumers have little awareness of, or interest in pH levels or water sources. Much of the diversity perceived by consumers relies on prices or the visual aspect, including the label, packaging design and closures.

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