Bottled Water in Canada

PROSPECTS

Carbonated flavoured bottled water offers healthier alternative to carbonates

Bottled water continued to record steady growth in 2019, supported by the dominance of still spring bottled water, while greater dynamism was evident amongst smaller categories such as flavoured bottled water and functional bottled water, which offer more exciting options. The image of flavoured bottled water has improved over the review period compared to earlier years when consumers had a negative perception linked to the use of artificial flavours and ingredients.

Further growth predicted for functional bottled water, driven by health and wellness trend and fashionable millennials

The niche of functional bottled water is predicted to record a stronger performance over the forecast period in both current value and volume terms, as the health and wellness trend further develops in Canada. This is leading to producers adding various functional qualities and benefits to their brands within this area, and are attempting to ease consumer concerns over unnatural ingredients by reformulating existing products.

Potential ban on single-use plastic among a number of factors that could influence direction taken by bottled water moving forward

A range of different factors have influenced the development of bottled water in Canada and will continue to impact the category over the forecast period. Prior to reaching the CUSMA deal in 2019, Canada had imposed a tariff on a range of consumer packaged food products, including bottled mineral water and carbonated water that contained added sugar or other sweeteners including artificial flavours, although the impact on retail has been limited, as producers moved towards offering healthier positioned products that include natural flavours and other elements.

COMPETITIVE LANDSCAPE

Nestlé Waters retains leadership with wide product portfolio in increasingly competitive landscape

Nestlé Waters of Canada Ltd retained its convincing leadership of bottled water in 2019, with a wide product portfolio that ranges from the economy-positioned Nestlé Pure Life, which leads overall bottled water, to a premium range that appeals to an affluent consumer base, with brands such as Perrier, S Pellegrino and Montclair. The player continues to look to interesting new flavour launches using natural fruits to retain consumer interest in an increasingly competitive landscape, which includes a strong representation by private label, while it is addressing environmental concerns through the use of aluminium cans within flavoured bottled water.

Players benefit from expanding into bottled water from negatively impacted soft drinks categories

Carbonates producer PepsiCo Beverages Canada, which previously held a marginal presence in bottled water, and juice player A Lassonde Inc, have both invested in bottled water as another growth avenue as consumers increasingly move towards healthier soft drinks. PepsiCo experienced impressive growth after its first full year in carbonated flavoured bottled water with its brand Bubly offering a range of interesting flavours including lime, grapefruit or mango, which are all packaged in aluminium cans that are colour coordinated with the fruit flavours they represent.

Agropur’s biPro records impressive growth in first full year

Agropur Cooperative, one of the three major dairy producers in Canada, which has diversified into ice cream and frozen desserts towards the end of the review period, has expanded into functional bottled water, by launching its brand biPro in the summer of 2018. The brand, which markets the fact that it contains 20g of protein per 500ml bottle but only 90 calories compared to high protein dairy products, was initially launched in Quebec and made available in the Atlantic provinces, but the company is aiming for a national roll-out over the forecast period.

Files are delivered directly into your account within a few minutes of purchase.