Bottled Water in Russia

PROSPECTS

While long-term benefits underpin continued growth, 2019 sees weaker performance due to absence of other factors

After a healthy performance in 2018, with significant growth arising from the combination of hot weather, the FIFA World Cup football tournament, along with discounts and promotions, 2019 saw more modest growth as these factors were absent. However, the long-term drivers of bottled water consumption remain in place: the healthy lifestyle trend among consumers, and growing awareness of the importance of consuming a certain amount of water each day, reduced trust in the quality of tap water, and the greater quality and convenience offered by bottled water.

Still water dominates, flavoured and functional remain niche, but may benefit from consumer shift away from carbonates

Still bottled water continued to represent the major category and contributor to the growth of bottled water in Russia in 2019. The performance of carbonated water is more dependent on the weather conditions, but mineral water is also preferred, especially in regions with a warm climate.

Government implements new labelling requirements to tackle counterfeiting

The Technical Regulation 044/2017 “On the safety of packaged drinking water, including natural mineral water” came into force on 1 January 2019. Manufacturers are required to tighten product controls and change the labels on bottles.

COMPETITIVE LANDSCAPE

Aqua Star consolidates leading position

The bottled water category in Russia is highly fragmented. Aqua Star OOO (IDS Borjomi International) remained the leader in 2019, and also saw a value share gain to enter double-digit territory.

IDS Borjomi extends Svyatoy Istochnik brand into flavoured water

Although flavoured water remained niche and fragmented in 2019 in Russia due to low awareness, manufacturers are looking for new opportunities in this category. IDS Borjomi launched an extension of its leading brand Svyatoy Istochnik with the novelty in flavoured water with juice.

Entry of major multinationals may stimulate development of functional water

Functional water in Russia also remains a niche category. The main barrier to the development of this category is the low level of consumer awareness.

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