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New report by Global Industry Analysts, Inc. attributes growth to growing population and lifestyle trends
The world bottled water market is expected to reach $65.9 billion by 2012, stimulated by rising population, consumer spending patterns, lifestyle trends and growing levels of health consciousness, according to a report from Global Industry Analysts, Inc. The market is expected to grow rapidly in the coming years due to growing consumer concerns about fitness, water quality and health.
In the refreshing drinks market, bottled water is the most vibrant segment with a market share of about 38%. Several bottled water companies are looking to enter developing markets with immense growth potential such as Asia and the Middle East. China is one such market where sales of bottled water are rapidly increasing. Companies are trying to capitalize on weather changes and the increase in health consciousness among consumers. The bottled water industry is expected to witness greater participation from soft drink and dairy processing companies, fostered by economies offered by existing international distribution network, and processing equipment.
As stated by the recent report, the global bottled water market is dominated by Europe and the U.S., which together account for about 55% of the market value estimated in 2008. Bottled water will continue to fare well in the global beverage marketplace as a healthy alternative to carbonated soft drinks. Gains in the bottled water market will also come from flavored varieties and convenient packaged formats, especially single-serve packs.
The bottled water industry is in a continuous state of flux. Entry barriers are low and decreasing by the day. Large companies are consolidating by acquiring local/small/niche players to increase capacity as well as product portfolio. Consolidation in the industry is expected to accelerate, resulting in a higher degree of concentration, with the leading players strengthening their global presence. The bottled water industry in the Asia-Pacific region is expected to experience a major boost, as more companies venture into the market to capitalize on the latent demand potential.
Product, marketing/promotion, packaging, distribution, price and technology would be the key factors in garnering market share in the industry. With the ever-increasing presence of soft drink majors, such as Coca-Cola, and PepsiCo, and established leaders Nestle and Danone, the market is expected to become a cauldron of action in the future.