Bottled Water in Spain

PROSPECTS

Sales supported by the economic recovery and health and wellness trend

In 2018, bottled water benefited from the ongoing economic recovery in Spain and its positive effects on consumer confidence. Increasing consumer demand for healthier soft drinks will also continue to drive sales of bottled water in the coming years.

Growth in the on-trade

The improving economic climate also contributed to stronger sales of bottled water in the on-trade channel. With the bar culture strongly rooted in Spaniards’ daily lives, rising disposable incomes and consumer confidence resulted in many returning to bars and restaurants, leading to an increase in out-of-home spending.

Growth of carbonated and flavoured water driven by the health trend

While still bottled water remained the preferred type in 2018, consumers are increasingly warming to the idea of carbonated and flavoured bottled waters. A growing consumer preference for healthier and more natural soft drinks with a lower sugar content, together with the ongoing shift away from carbonates, benefited the performance of these two categories, which both continued to outperform bottled water as a whole.

COMPETITIVE LANDSCAPE

Aguas Font Vella y Lanjaron remains the leading brand manufacturer

Even though international manufacturers have a significant presence in bottled water, for example companies such as Aguas Font Vella y Lanjaron and Nestlé Waters España, the category is led by local players, such as the retailers Mercadona and Carrefour as well as domestic operators like Calidad Pascual, Vichy Catalan and Balneario y Aguas de Solán de Cabras.

Bottled water remains highly fragmented and regionalised

Although a small number of companies have a strong presence in bottled water given their wide distribution networks throughout the country and strong brand names, bottled water in Spain is very fragmented and regionalised, with many small players commanding strong sales in a particular region. As Spain benefits from mineral springs across the country, there is an abundance of local (mineral) bottled water manufacturers with strong distribution networks and which enjoy solid brand reputations on a local/regional basis.

New investment and acquisitions

The positive performance of the category led to new investment and acquisitions from the main players in 2018. Grupo Mahou acquired a 75% stake in Aguas del Valle de La Orotava, the manufacturer of the domestic mineral bottled water brand Fonteide.

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