Bottled Water in Ukraine

2020 IMPACT

COVID-19 lockdowns and quarantine periods resulting in lower demand for bottled water in small containers for on the go results in stronger volume decline in 2020

Although it performed better than other categories such as juice, bottled water saw a decrease in both on- and off-trade volume sales in 2020 as result of COVID-19’s impact on consumer behaviour. One of the main impacts of the pandemic on the bottled water category over the year was the reduced consumption on the go.

Ukrainian consumption of bottled water is lower than the regional average, as many consumers cannot afford to purchase bottled products on a regular basis

Total consumption of bottled water per capita in Ukraine remained relatively low in 2020, reaching only 46 litres compared to the regional average of 66 litres. Bottled water continues to be perceived as a more premium category rather than a product of primary consumption.

For many Ukrainians with lower disposable incomes in an unstable economy, tap water is a more feasible option than bottled water

An unstable economic environment and low disposable incomes frequently turn Ukrainian consumers’ attention away from bottled water and make them opt for cheaper substitutes. One such alternative is tap water, which many Ukrainians still consume due to budget restrictions and despite the fact that its quality is rather poor.

RECOVERY AND OPPORTUNITIES

While bottled water will see higher volume and value growth rates over the forecast period, negative economic impacts of COVID-19 will limit more rapid development

Over the forecast period, volume and value sales are expected to see higher growth than they did over the forecast period, with on-trade sales exceeding that of off-trade sales. Off-trade value sales are set to post a slower CAGR than what was seen over the review period, resulting in only a slight value gain for the category overall despite gains made on-trade.

Per capita consumption is set to increase, but grey market presence may impede the ability to gain an accurate picture of real per capita levels over the forecast period

Per capita consumption is going to post moderate or low double-digit growth over the forecast period. There is still significant room for growth as currently the base is far below the regional average.

Despite higher health awareness and closer attention to the quality of water they consume, many consumers will likely stay with tap water and other cheaper options

COVID-19 is going to have a long-lasting effect on consumer attitudes towards their health and will make them reflect on what kind of water they drink, in particular. Therefore, over the forecast period water consumption culture is going to further develop in Ukraine as people are going to pay closer attention to water quality when making purchasing decisions.