Bottled Water sales reach new heights in East Europe
Bottled water sales in East Europe increased by 9% in 2005, with consumption surging past the 10,000 million litre level for the first time. An average summer across Europe, following the poor weather of 2004, reinvigorated demand in what is one of the world's fastest growing bottled water markets.
"East European growth promises to remain strong for a number of years to come," commented Zenith Research Director Gary Roethenbaugh. "We certainly expect volumes to exceed 11,000 million litres in 2006, particularly after an excellent summer. Annual rises are forecast at around 7% over the next five years. With sustained marketing investment and favourable weather conditions, these estimates could prove conservative. In contrast, sales in West Europe will look relatively flat, despite a boost from a hot early summer this year."
With average bottled water consumption per person at 33 litres in East Europe, compared with 108 litres in West Europe, the potential for growth is clear to see. "Rising standards of living, together with a growing appreciation of health and hydration, should provide great opportunities for water bottlers," Gary Roethenbaugh added. "Aggressive pricing to gain market share, advances by own label and discount brands, alongside substantial advertising budgets from multinationals and local players alike, will also drive volume sales."
Poland was the largest consumer of bottled water in 2005, accounting for 23% of total volume. Russia was second at an advancing 21% and Romania was third with a 10% share. In terms of growth rates, Bulgaria led the way with a 22% increase, followed by Hungary, Estonia and Russia. 11 of the 15 countries analysed experienced growth rates in excess of 5%.
The global big four bottled water companies – Nestlé Waters, Danone, Coca-Cola and PepsiCo – have actively strengthened their positions in East Europe. "Zenith anticipates further acquisitions in the region by the top four bottlers, given this climate of relatively high growth and a plethora of local bottlers," Gary Roethenbaugh concluded. "However, national operators have strong positions and a loyal customer base. They include: Karlovarske in the Czech Republic and Slovakia; European Drinks in Romania; Jamnica in Croatia; Knjaz Milos in Serbia & Montenegro; Romaqua in Romania; and Myrhorod in the Ukraine."
The 2006 Zenith Report on East Europe Bottled Water contains 120 pages with 23 overview tables and charts, 15 detailed country profiles, full market analysis and commentary. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com
For further information, please contact:
Stuart Foxon or Gary Roethenbaugh, Zenith International Ltd
7 Kingsmead Square w Bath BA1 2AB w United Kingdom
t +44 (0)1225 327900 w f +44 (0)1225 327901
zenithinternational.com