Bottled Water in Portugal

PROSPECTS

Bottled water retains growth momentum with ongoing boost from health and wellness trend and interest generated by flavoured/functional water

Bottled water continued to show momentum in 2019, although volume growth decelerated in 2019 compared to the previous year. Value growth of bottled water overall was also slightly lower than growth in 2018; however, it continued to be very strong, with functional and flavoured bottled water showing particularly strong growth as players in those categories responded to the demand for differentiation and premiumisation by offering more new launches.

New launches and marketing promotion reinvigorate functional bottled water, as demand for flavoured/functional products flourishes

For the first time in nine years, functional bottled water saw positive volume growth in 2019. Moreover, its double-digit value growth was more than twice that of flavoured bottled water, which had benefited more from new product launches and marketing promotion in recent years.

Hot weather and high tourist numbers continue to help the category command high growth despite the season

Hot weather and high tourist numbers continued to support sales of bottled water during Portugal’s hotter and longer summers. Bottle water remains the preferred beverage to mitigate thirst, and the long hot periods that the country has seen in recent years – notably, for example, in 2018 – are playing a role in the category’s growth.

COMPETITIVE LANDSCAPE

SCC’s acquisition of Castello bottled water brand should help solidify its current leading position

SCC – Sociedade Central de Cervejas e Bebidas (SCC), the long-time leading, local player in bottled water, recently acquired the Castello bottled water brand from Mineraqua Portugal - Exploração e Comercialização de Águas. With this acquisition, the Heineken group subsidiary is reinforcing its positioning in the dynamic bottled water category, gaining exposure particularly for its carbonated bottled water, flavoured bottled water and tonic water.

Trend towards premiumisation is reflected in branded as well as in private label bottled water

The Portuguese market is moving towards premiumisation and differentiation. In bottled water, an example of this is Healsi brand, from Outeirinho - Turismo e Indústria.

Earth Water Project promotes use of carton packaging to support more sustainable production and consumption of bottled water

Earth Water Project, a United Nations project for selling still bottled water to fund the United Nations World Food Programme, has launched the first still bottled water in carton packaging to be offered on the Portuguese soft drinks market. The aim of promoting water using this packaging, made by Tetra Pak, is to support and achieve more sustainable production and consumption.

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