Bottled Water in Pakistan

2020 IMPACT

Sales shift from impulse and on-trade to off-trade purchases for consumption at home

On-the go consumption and bulk pack sales to foodservice of bottled water fell during the first half of the year during the COVID-19 pandemic peak, when movement was restricted and many on-trade outlets dropped. On-trade sales thus declined sharply for the year as a whole.

Consumers seek bulk when buying bottled water for household use

When buying bottled water, consumers moved from PET bottles to larger family size and refill packs for consumption at home. This was due to consumers purchasing bottled water more for family consumption.

Home delivery appeals as consumers seek to stay at home

Home delivery became increasingly popular for bottled water in 2020, with a growing number of households opting for bulk deliveries. Many consumers were keen to minimise the number of shopping trips, with bulk home delivery not only offering convenience but also the opportunity to reduce exposure to the virus.

RECOVERY AND OPPORTUNITIES

Urbanisation, income growth and health concerns to drive forecast period growth

Bottled water is expected to see strong off-trade volume and current value growth in the forecast period, benefiting from ongoing urbanisation, rising disposable income levels and also a growing focus on health. Not only will a growing number view mineral water as inherently healthy but water in general will be seen as a healthier alternative to sugary drinks such as carbonates.

PET bottles to benefit from recovery in impulse sales

There is expected to be a rapid recovery in sales of PET bottles at the start of the forecast period. This pack type will benefit from a return to stronger impulse sales, as educational institutions, shopping malls, recreational areas and workplaces resume operations.

Bulk packs and home delivery to benefit from growing demand for convenience

Riding on the growing trend of healthy living, the leading bottled water brands are expected to increase their use of promotions on bulk packs as they seek to encourage more households to opt for bulk purchases. As a growing number of households become permanent users of refill and bulk packs and brand loyalty increases, shopping patterns are expected to shift away from store-based retailing from to weekly bottled water delivery services, as consumers opt for convenience.