Bottled Water in Canada

2020 IMPACT

Still bottled water remains category driver as growth for flavoured slows

Bottled water will see slowed growth in 2020, despite the increased growth rate of the two main category drivers, still bottled water and still spring bottled water. This is largely down to the strongly decreased growth of flavoured water, which was rapidly becoming more popular over the review period but received limited interest in 2020.

Large formats and bulk water replace impulse options

Canadian consumers have historically preferred value for money in bottled water brands and this behaviour has only been further reinforced by the economic instability of the pandemic. Consumers are increasingly moving towards brands that are affordable to buy in large quantities, aiming both to get value for money and to reduce the number of shopping trips they need to make.

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

Nestlé Waters of Canada will retain its convincing lead of bottled water in 2020, with a wide product portfolio that ranges from the economy-positioned Nestlé Pure Life, (which leads overall bottled water), to a premium range including Perrier, S Pellegrino and Montclair, which appeal to an affluent consumer base. Having both ranges will have strongly benefitted the player during the pandemic, as those who were hit financially will opt for the economy range whilst the affluent who are unaffected will continue purchasing their brand of choice and maintain current value sales.

RECOVERY AND OPPORTUNITIES

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

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. Given the COVID-19 health crisis in 2020, many more consumers will be health-conscious, which will particularly affect fortified water due to the added vitamins and mineral which are good for boosting immunity to disease.

Potential ban on single-use plastic among several 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 contains added sugar, other sweeteners, or artificial flavours.

Local brands to benefit from consumer supporting domestic businesses; premium to struggle the most

The desire among Canadian consumers to buy domestic products increased in 2020 and is likely to continue into the forecast period as Canadian consumers are reasonably brand loyal. Eska from Laval, which is a Quebec-based company focusing on 100% Canadian water and 100% recycled plastic bottles, is one such brand that can focus its marketing efforts on appealing to the domestic instincts of its consumers.