Bottled Water in Turkey

2020 IMPACT

Stockpiling leads to double-digit off-trade volume and value growth for bottled water

In 2020, off-trade volume sales of bottled water is set to record double-digit growth, with sales in the on-trade channel shifting towards the off-trade, after the closure of foodservice outlets in March 2020. The bulk of this growth is coming from still bottled water, with consumers stockpiling goods during the lockdown period when many were working from home, and children were out of school.

Discounters and e-commerce are set to increase their share, with price-sensitivity and social distancing boosting sales

Price-sensitivity is increasing in the country during 2020, with COVID-19 leading to job losses and consumers working from home, rising financial insecurity and worry for many. As such, sales from discounters is set to increase in 2020, with consumers wanting affordable price-points on purchases of bottled water.

Consumers favour Sirma due to its low price-point, and private label gains ground

In 2020, Sirmagrup Içecek and Nestlé Waters are both set to strengthen their strong leading positions in bottled water, with each player seeing an increase in value and volume share, boosted by stockpiling behaviour in the country. These two companies are locked in fierce rivalry, with Nestlé Waters’ brand Erikli and Sirma from Sirmagrup Içecek both very well-known and well-established in still bottled water.

RECOVERY AND OPPORTUNITIES

The on-trade records double-digit volume growth across the forecast period

In 2021, on-trade volume sales of bottled water is set to start recovering, recording 6% volume growth. This positive growth will be driven by consumers feeling confident to visit on-trade establishments once more, including cinemas, bars and restaurants.

Flavoured bottled water drives off-trade growth, with sales boosted by the health and wellness trend

Flavoured bottled water is set to record the highest volume growth over the forecast period, boosted by the growing health and wellness trend which will see consumers switching towards healthier, natural products, that also offer flavour. In the last two years of the review period, manufacturers launched a series of still flavoured bottled water options, with different tastes and health benefits, including ones marketed to aid digestion and detox the body.

Private label gains share, as branded players promote their added-value to compete

The impact of job losses and lower disposable incomes due to the COVID-19 pandemic is expected to lead to the growth of private label products across the forecast period. The rising demand for private label products will also translate into the growing share of discounters and supermarkets, with most retailers offering and promoting their own private label lines.