Bottled Water in Kazakhstan

PROSPECTS

Poor tap water quality and health and wellness trend drive demand for bottled water

Many regions in Kazakhstan continue to suffer from low-quality tap water, which continued to push consumers towards purchasing bottled water in 2019. There are two government programmes, “Drinking Water” and “Akbulak”, the main goal of which is to solve the issue of poor water quality in Kazakhstan.

Changes to packaging law and premiumisation in 2019

On 1 January 2019, changes to the law regulating the packaging of bottled water were introduced, reducing the requirements for the quality and safety of bottled water, and excluding the requirement of labelling about the beneficial properties. This in turn contributed to manufacturers’ increased spending on new packaging designs, advertising and promotions.

Still bottled water continues to outperform carbonated due to changing consumption patterns

Carbonated bottled water remains the core product in Kazakhstan bottled water because local consumers perceive carbonisation as offering specific value, for which they are willing to pay extra. Changing consumption patterns, along with growing awareness of the “healthy” demand for hydrating and still products has transformed the category and encouraged consumers to switch to still bottled water.

COMPETITIVE LANDSCAPE

Strong presence of local companies due to their affordable prices and well-known brands

In Kazakhstan, bottled water offers a broad range of manufacturers and brands. However, one noticeable feature is that in each region of the country there is a domestic company that has significant sales and brand awareness, but which is characterised by a limited distribution chain.

Manufacturers focus on flavoured bottled water and marketing in 2019

Bottled water is a category characterised by strong competition amongst players, requiring new product development and innovation. In 2019, consumers were interested in new flavours therefore there was a clear manufacturer focus on flavoured bottled water, with the Vita, ASU and Nabeglavi brands all presenting products with lemon and grapefruit.

Opportunity for the development of private label

Private label in Kazakhstan recorded a low level of development. Therefore, over the forecast period there is an opportunity for local companies to expand their presence by working in this field.

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