Bottled Water in Turkey

2021 DEVELOPMENTS

The health and wellness trend stimulates the consumption of flavoured and carbonated bottled water

Following the onset of the pandemic, consumer awareness for immunity and health became strengthened as consumers sought to avoid the most severe effects of the COVID-19 virus. As such, demand for carbonated and sparkling flavoured bottled water (which benefit from their healthy mineral content) strongly increased, leading to double-digit off-trade volume and value growth for both categories in both years of the pandemic.

Increased household penetration of water purifiers and filters negatively affects off-trade sales of still bottled water

Given the increased home consumption of bottled water for both drinking and cooking purposes during the pandemic, more consumers sought to purchase household water purifiers and filter systems. Such devices allow consumers to improve the quality of their tap water and thus they have little need to purchase bottled water.

Companies vie for consumer attention by introducing alternative pack sizes

With consumer needs seeing rapid changes during the pandemic, bottled water companies have sought to capture consumer attention by introducing different formats of packaging. Consumers who could not afford or were not interested in water filter systems continued to buy in bulk, particularly via modern grocery retailers.

PROSPECTS AND OPPORTUNITIES

Increasing on-the-go consumption is set to drive growth of solo packs

Off-trade volume sales of still bottled water are expected to increase over the forecast period in line with the expected reopening of schools, workplaces, and leisure outlets. With consumers starting to travel and commute to these venues again, on-the-go consumption of bottled water will increase leading to purchases of small or single-format bottles.

On-trade expected to recover as foodservice outlet traffic increases

From the middle of 2021 onwards, on-trade volume sales of bottled water are projected to recover, leading to an overall single digit CAGR over the forecast period. The reduced effect of COVID-19 is predicted to lead to the re-opening of foodservice outlets, a greater number of people eating and drinking out, and a boost in the number of both domestic and international tourists in the country.

Greater investment anticipated thanks to healthy category perception and popularity

Carbonated bottled water and flavoured bottled water both have a good potential for growth in the forecast period due to their natural and healthy content. They are particularly enjoying rising popularity amongst the younger generation.