Bottled Water in Portugal

2020 IMPACT

Carbonated bottled water suffers more due to high share on-trade

Bottled water has suffered a significant decline in on-trade value sales in 2020, due to the impact of COVID-19. The temporary closure of foodservice establishments negatively impacted sales of both still and carbonated bottled water, with these closures sometimes becoming permanent.

Sustainable innovations and increases for flavoured and functional bottled water

Sustainability has been trending in bottled water in Portugal. Consumers have been giving preference to products and brands which are aligned with sustainable practices and are in favour of an environmental cause.

Rise in e-commerce and prioritisation of cheaper options

With the emergence of COVID-19, consumers started to exercise more at home to maintain their health and fitness, and were more aware of the impact of certain ingredients contained in other soft drinks on their health and wellbeing. In this context, consumers have moved towards more natural products, and this boosted the at-home consumption of specific categories within bottled water, such as flavoured, functional and still bottled water, a these are considered healthy and pure beverages by consumers, especially good for when exercising.

RECOVERY AND OPPORTUNITIES

Bounce-back to growth for on-trade sales in 2021, but full recovery to take longer

In 2021, bottled water is forecast to see a year of adjustment after COVID-19. As foodservice outlets reopen, many consumers are likely to return to eating and drinking outside of the home.

Faster growth for still bottled water due to health awareness

The return to consumption outside of the home is forecast to lead to a decline in off-trade volume sales in 2021. However, whilst still bottled water is set to see a year of decline, carbonated bottled water is expected to maintain growth in 2021, before both categories return to solid growth for the rest of the forecast period.

Flavoured and functional bottled water will be substitutes for other soft drinks

Although growing from a low base and remaining niche categories, flavoured and functional bottled water are also expected to see growth in the forecast period. The consumption of flavoured bottled water was already increasing in the last years of the review period as these products gained more shelf space and generated more private label attention, and after COVID-19 this trend is expected to continue.