Spain leads West European bottled water market uplift in 2006

West Europe's bottled water market returned to growth in 2005, with a 1.5% increase of 643 million litres to reach 42.7 billion litres, according to leading drinks consultancy and bottled water specialists Zenith International. Sales were assisted by average summer weather after the downpours of 2004. Spain accounted for most of the advance, with Germany and the United Kingdom also seeing solid progress.

"The West European bottled water market in 2005 was conspicuously affected by a 164 million litre sales drop in Italy, historically the highest consuming nation in the region, coupled with a decline in third placed France," commented Zenith Research Director Gary Roethenbaugh. "The situation was salvaged by a massive 477 million litre boost in Spain. Germany recorded a rise of 136 million litres, taking it above Italy for the first time, and the United Kingdom gained an extra 110 million litres.

"Rising standards of living in Spain, together with a growing appreciation of health and hydration, have led to a surge in consumption per person from around 100 litres per year in 2000 to 135 litres in 2005," Gary Roethenbaugh added. "Over the next five years, growth should continue to be strong, accounting for as much as 35% of future West European market growth. Other southern European countries such as Portugal and Greece should also perform well."

Across the region, especially in the northern countries, a good early summer in 2006 has further lifted bottled water sales, with many companies reporting record or near record volumes. In the longer term, the Zenith report concludes, bottled water should remain a robust growth market, driven by an increasing awareness of hydration and wellbeing. Looking to the next five years, Zenith expects average annual growth of 2.6% across West Europe. Volumes are anticipated to rise by 13.5% to pass 48 billion litres by 2010.

Other key findings of Zenith's 2006 West Europe Bottled Water report include:

• Nestlé and Danone were the two leading companies, followed by Coca-Cola and its bottlers, then Castel and Hansa/Heemann.
• 13 of the 16 countries reported growth, with six countries (Spain, Norway, Portugal, Sweden, Greece and the United Kingdom) showing growth above 5%.
• The top five countries (Germany, Italy, France, Spain and the UK) held a combined share of 86%.
• Average consumption rose to 107.7 litres per person, below the 2003 heatwave peak of 111.6 litres.

The 2006 Zenith Report on West Europe Bottled Water contains 147 pages including 21 market and industry overview charts and tables, 16 detailed country profiles, ranking of the top 50 national operators and a full market analysis. 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