Bottled Water in South Africa

2020 IMPACT

Limited stockpiling trend but demand for larger pack sizes grows

Some stockpiling of bottled water was noticed in South Africa in spring 2020 at the start of the initial lockdown. However, there were few issues in terms of limited stock and these were addressed quickly so did not positively impact volume sales.

Coca-Cola South Africa maintains its lead in bottled water, but smaller players and private label gain share

Coca-Cola South Africa (Pty) Ltd retained its strong lead in bottled water in 2020, consolidating share but facing increasing competition from smaller dynamic players and private label lines such as Woolworths. Second-ranked Ekhamanzi Springs (Pty) Ltd continued to gain momentum with AQuelle, the leading bottled water brand in off-trade volume terms.

Refill initiatives offer South Africans safe, affordable drinking water

Demand for and the offer of refill water continued to rise in South Africa. The availability of water on tap enables consumers to refill water locally, offering a sustainable alternative to single-use plastic bottled water.

RECOVERY AND OPPORTUNITIES

Gradual move away from carbonates supports demand for flavoured bottled water

The rising health trend and the sugar tax on sweetened soft drinks will lead to increasing popularity of carbonated and flavoured bottled water in South Africa. These formats offer convincing alternatives to carbonates in particular, as they are refreshing and appetising beverages with reduced sugar content.

Still spring bottled water has a bright future, but growth in functional bottled water will rely on innovation and clever marketing strategies

The largest sub-category within bottled water, still spring bottled water is expected to register the fastest growth in off-trade volume terms across the forecast period, thanks to its popularity among local consumers who regard it as a substitute for tap water. Still spring bottled water is also expected to attract consumers away from more expensive categories, such as functional bottled water as the local economy struggles to recover.

On-trade sales will continue to decline in 2021 until foodservice establishments resume normal business

On-trade volume sales are expected to recover more slowly than off-trade sales over the forecast period, with an anticipated decline in 2021 before some recovery thereafter. This is due to anticipated continued restrictions on foodservice establishments, with further lockdowns and limits on numbers of patrons limiting on-trade consumption in the short to mid-term.