East Europe bottled water market passes €5 billion
Bottled water sales in East Europe increased by more than 10% during 2007 to 13.2 billion litres, according to the latest report from global drinks consultancy Zenith International. The market's value rose an even faster 17% to €5 billion, nearly twice the level of 2000. Continued growth is expected, as many countries still have consumption rates well below West Europe.
"Countries with the lowest uptake include Russia on 19 litres per person, Belarus on 23 litres and Ukraine on 27 litres," commented Zenith Market Intelligence Director Gary Roethenbaugh. "This represents an attractive opportunity for new market entrants as well as existing players"
Other characteristics of the region that reinforce this growth potential are generally strengthening economic conditions and falling unemployment, leading to higher disposable incomes. There has also been greater recent investment in modernising operations and in raising awareness of the benefits of hydration.
In 2007, the highest growth rate was achieved by Serbia, where bottled water volumes increased by 22%. Since 2002, Bulgaria, Estonia and Hungary have generated the greatest volume increases, by 158%, 107% and 93% respectively.
"Growth has been particularly strong in countries where people already display a cultural acceptance of bottled water and in some cases also a fierce sense of brand loyalty," continued Gary Roethenbaugh. "The more traditional offerings of sparkling and natural source waters have a majority market share in nine of the 15 markets studied."
There is evidence that some East European consumers have a preference for local companies and brands. Despite the active presence of global soft drinks heavyweights Coca-Cola Hellenic, Pepsi Bottling Group, Danone and Nestlé, it is interesting to note that they lead just three of the national markets between them.
In the years to come, Zenith expects continued development of production efficiencies, product portfolios and national distribution structures. This would in turn facilitate further robust growth for both local and multinational players.
East Europe Bottled Water 2008 contains over 120 pages of commentary, charts and tables on the plain bottled water markets of Belarus, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Ukraine. Contact Zenith International on tel +44 (0)1225 327900 or e-mail info@zenithinternational.com
Notes for Editors
1. Zenith International's definition of plain bottled water covers still and sparkling water (natural mineral, spring and processed) in a packaged format (both small pack and water for coolers).
2. For further information, please contact:
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