Bottled Water in Japan

PROSPECTS

Bottled water well-placed to meet health-focused demand

Bottled water is a notable beneficiary of the health and wellness trend. Increasing consumer awareness of the need to keep hydrated in order to maintain health and growing concerns about the harmful impact of sugar and artificial ingredients on health are combining to support demand for bottled water.

Carbonated bottled water sees strong growth underpinned by key trends

Carbonated water saw strong growth in both volume and current value terms in 2019 as it resonated with two key trends in soft drinks: “health and wellness”, and “refreshment”. The category’s lack of sugar, calories or artificial additives placed it in a strong position to meet demand amongst health-conscious consumers.

Flavoured bottled water experiences downturn

Having grown strongly in the early part of the review period, flavoured bottled water witnessed marked declines in both volume and current value terms in 2018 and 2019. Japanese consumers seem to have grown weary of the category, which has seen the launch of numerous new products from a variety of companies in recent years.

COMPETITIVE LANDSCAPE

Domestic brands dominate

The natural positioning of water is compatible with a strong demand for locally-sourced products, especially as Japanese consumers generally display more faith in domestic brands than foreign rivals. Moreover, consumers are further deterred from purchasing the international brands that are present in retail channels by the fact that they generally command higher unit prices.

Suntory Beverage & Food Ltd retains lead despite share erosion

Suntory Beverage & Food Ltd remained the largest player in bottled water in both volume and value terms in 2019 despite seeing its share fall in both metrics. The company’s strength is founded on the market-leading Tennensui brand, though its bottled water portfolio also contains the Suntory Vitamin Water and Dakara brands.

Asahi Soft Drinks increases its dominance in growth category

Asahi Soft Drinks Co Ltd’s Wilkinson remained the dominant brand in carbonated bottled water at the end of the review period. Indeed, the brand tightened its grip on carbonated bottled water over the course of the review period and witnessed a significant rise in both volume and value share in 2019 despite intensifying competition in the expanding category.

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