Bottled Water in Norway

PROSPECTS

Disappointing performance for bottled water following impressive growth during 2018’s hot weather

Following an impressive performance in 2018, when bottled water recorded strong off-trade and on-trade demand due to the exceptionally warm weather during the summer months in Norway, the category experienced a notable decline in 2019, with a colder summer and rising unit prices discouraging sales. However, the health trend will remain a strong driver of growth for bottled water moving into the forecast period, as it remains a popular alternative to other soft drinks.

Private label offers affordable purified option

The niche area of purified bottled water in both still and carbonated categories recorded strong demand over the review period with a dip in 2019 in line with the overall trend for bottled water. These areas of the category are dominated by private label and therefore offer an affordable option and maintain the low prices of this option compared to the average price of still or carbonated bottled water.

Flavoured and functional offer interesting growth options over the forecast period

Flavoured and functional bottled water offers the most interesting opportunities for growth as Norwegians increasingly move towards healthier options of soft drinks. Demand for carbonated, flavoured and the niche of functional bottled water will record stronger performances over the forecast period, as consumers are able to justify the cost as they are deemed to offer specific value in terms of flavour or functionality compared to simple hydration purposes of the still format.

COMPETITIVE LANDSCAPE

Ringnes retains dominance of bottled water with strong growth for its flavoured format

Ringnes AS retained its dominance of bottled water in 2019 with its two brands Farris and Imsdal, despite competition from private label. Ringnes benefits from strong distribution through key channels such as modern grocery retailers including convenience stores and forecourt retailers, due to demand for on-the-go formats.

Limited competition for Vitamin Well in evolving category ensures dominance of functional bottled water

Vitamin Well consolidated its dominance of functional bottled water in 2019 in the absence of any significant competition, as the category is still evolving in Norway. The 2017 launch of Vitamin Well Awake, a variant containing caffeine and fortified with vitamins and minerals, has also contributed to its ongoing growth, expanding its distribution in 2018 from convenience stores to reach a wider audience in larger modern grocery retailers.

Private label continues to gain momentum, driven by dynamic Rema 1000

Private label continued to gain share of bottled water in 2019, particularly in areas in which it has not traditionally held a significant presence such as flavoured bottled water, while it continued to dominate both still and carbonated purified bottled water. Discounter chain Rema 1000 Norge was a strong contributor to this performance by private label, gaining share through its Taffel line across carbonated, still and flavoured bottled water variants, due to frequently running price promotions such as four 1.

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