Bottled Water in Italy

2020 IMPACT

COVID-19 negatively impacts foodservice sales of bottled water

The impact of the complete shutdown of the Italian consumer foodservice industry during the initial nationwide quarantine lockdown that was in effect between 10 March and 8 May 2020 placed enormous pressure on foodservice sales of bottled water during the year. Moreover, the on-trade volume sales lost due to the shutdown of the consumer foodservice industry were not outbalanced by any major increases in retail sales of bottled water.

Stockpiling ensures stable retail sales of bottled water despite impact of COVID-19

Retail sales of bottled water remained static in 2020 despite the negative impact of the COVID-19 virus on consumer demand generally. Indeed, the negative impact of the COVID-19 pandemic did not significantly disrupt the category.

Increasing focus on functional bottled water provides hope of strong value growth

As mentioned above, demand for bottled water in Italy is already quite saturated, with per capita consumption in the country among the highest in the world. In terms of retail sales for off-trade consumption, even the COVID-19 pandemic and the quarantine lockdowns that were implemented in response to did not have any major impact in terms of a channel shift away from the on-trade to the off-trade, primarily because of saturation of demand.

RECOVERY AND OPPORTUNITIES

Recovery in foodservice sales of bottled water slated for 2023

The full recovery of foodservice sales of bottled water is expected to take until 2023. The main reason for the situation is that Italian consumers are expected to be going out to eat and drink in pubs, cafés, bars and restaurants less often during the first half of the forecast period and there are several reasons for this situation.

E-commerce to become a key channel for bottled water

Sales of bottled water via e-commerce were very limited before the arrival of the COVID-19 pandemic in Italy. However, the quarantine lockdown has strengthened demand for e-commerce among a population who are elected to go shopping in stores out of a desire to limit exposure to the COVID-19 virus.

Shift away from carbonated to still mineral bottled water likely to be seen

Despite the impact of the ongoing post-COVID-19 economic recession, the health and wellness trend is likely to remain a strong influence on sales of bottled water in Italy during the forecast period. This is mainly because younger consumers, especially those from the Millennials and Generation Z age brackets, are increasingly paid attention to the impact of their food and beverage intake on their overall health.