Bottled Water in Guatemala

2020 IMPACT

Closures of workplaces impact sales of bottled water and at-home consumption does not sufficiently offset the reduction

The closures of workplaces as a result of COVID-19 have reduced the consumption of bottled water in 2020, and at-home consumption has not increased sufficiently in order to offset the reduction. Furthermore, in addition to consumers purchasing personal bottles of water to drink at work, many offices also had large water filters/coolers for employees’ use.

Home delivery of bottled water sees challenges due to supply issues with “garrafones” (bottles)

Leading player Fábrica de Bebidas Gaseosas Salvavidas SA benefited from being the only player offering home delivery of “garrafones” (bottles) in 2020, which lent itself very well to the period of lockdown. However, the player ran into supply issues of its bottles due to higher demand and supply issues related to COVID-19.

Fábrica de Bebidas Gaseosas Salvavidas maintains its lead, thanks to longevity in the country and varied portfolio of bottled waters

Fábrica de Bebidas Gaseosas Salvavidas SA maintains its strong lead in bottled water in 2020, thanks to its leading Salvavidas brand. This is thanks to the strength and longevity of the brand, which is the most trusted in Guatemala and has over 80-years’ history.

RECOVERY AND OPPORTUNITIES

Stronger sales in bottled water directly linked to rate at which businesses re-open

Stronger sales in bottled water are directly linked to the rate at which businesses and activities reopen, due to the fact that the highest consumption is typically seen in workplaces (both personal purchases and water filters/coolers in offices for employees’ use). There are no notable drivers to boost increased at-home consumption, as bottled water tends to lend itself more to higher-income consumers and therefore this limits the consumer audience overall.

Innovation in flavoured, functional and carbonated waters to return over forecast period

As bottled water recovers over the forecast period, it is likely there will be a return to new value-added products, such as flavoured, functional and carbonated bottled waters. This will continue the growth and gains which were being seen from juice drinks and other categories deemed less healthy than bottled water.

Affordable price points necessary, as bottled water is seen as a discretionary purchase as opposed to a necessity

It will, however, be crucial for players to maintain affordable prices, as bottled water is seen as a discretionary purchase or luxury, as opposed to a necessity. Lower disposable incomes as a result of COVID-19 will continue to limit growth in particularly vulnerable regions in the country, whereas urban areas are expected to fare better with the aforementioned return to work.