Thirst for bottled water unquenched in East Europe
Bottled water sales in East Europe have seen double digit growth every year since 1998 to approach 8,800 million litres in 2003, according to the 2004 East Europe Bottled Water report from leading drinks consultancy Zenith International. None of the 15 countries covered has recorded volume decreases in any of the past five years. Average consumption of 27.3 litres per person is now close to double the level witnessed in 1998.
“Boosted by a warm summer for most countries, an increasing reliance on bottles in place of poor quality mains supplies and a growing appreciation of health and hydration, East European bottled water demand climbed by another 12% in 2003," commented Zenith Research Director Gary Roethenbaugh. “Although well behind the more mature West European market, East Europe has adopted many western trends. Still water has gained share from sparkling. Larger retail sizes and water cooler activity have strengthened. And industry consolidation has become a regular feature across the region.”
With its strong heritage, sparkling water continues to dominate, taking 61% of total volume in 2003. Still water, however, has virtually doubled its share from 20% in 1998 to 39% in 2003. Providing an added dimension to still water, all of the 15 East European countries now field water cooler operations. “With coolers emerging and still water in PET becoming increasingly fashionable, East Europe’s tradition of sparkling and highly mineralised water is steadily being overtaken,” added Gary Roethenbaugh.
Poland and Russia were the two leading countries in 2003, achieving a combined 44% share. Russia was the region’s fastest growing market, up 18% in 2003. Indicating further growth opportunities ahead, Russia has the lowest consumption per person in East Europe, less than half the regional average. With much smaller populations and more developed industries, Croatia and Slovenia had the highest consumption levels at over 70 litres per person.
"The global ‘big four’ in bottled water – Coca-Cola, Danone, Nestlé Waters and PepsiCo – have all stepped up their commitment to East Europe. With Nestlé Waters in the lead, these four companies accounted for one quarter of overall volume in 2003," Gary Roethenbaugh continued. "However, many successful local players remain a force to be reckoned with – such as Jamnica in Croatia, Karlovarske in the Czech Republic and Slovakia or European Drinks in Romania.”
With sustained acquisition interest and aggressive price discounting, the East European bottled water market looks set for a period of continuing change. The advent of retailer brands is already making an impact in certain countries. Substantial advertising budgets, from multinationals and local players alike, should enable brands to grow strongly too. Furthermore, EU enlargement in May 2004 will open up even further the markets of the Baltic States, Czech Republic, Hungary, Poland, Slovakia and Slovenia. In such an environment of open competition and market opportunity, Zenith projects East Europe bottled water sales in excess of 13,000 million litres by 2008.
The 2004 Zenith Report on East Europe Bottled Water contains 121 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:
Gary Roethenbaugh or Agnieszka Banham, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
t +44 (0)1225 327900 f +44 (0)1225 327901
zenithinternational.com
“Boosted by a warm summer for most countries, an increasing reliance on bottles in place of poor quality mains supplies and a growing appreciation of health and hydration, East European bottled water demand climbed by another 12% in 2003," commented Zenith Research Director Gary Roethenbaugh. “Although well behind the more mature West European market, East Europe has adopted many western trends. Still water has gained share from sparkling. Larger retail sizes and water cooler activity have strengthened. And industry consolidation has become a regular feature across the region.”
With its strong heritage, sparkling water continues to dominate, taking 61% of total volume in 2003. Still water, however, has virtually doubled its share from 20% in 1998 to 39% in 2003. Providing an added dimension to still water, all of the 15 East European countries now field water cooler operations. “With coolers emerging and still water in PET becoming increasingly fashionable, East Europe’s tradition of sparkling and highly mineralised water is steadily being overtaken,” added Gary Roethenbaugh.
Poland and Russia were the two leading countries in 2003, achieving a combined 44% share. Russia was the region’s fastest growing market, up 18% in 2003. Indicating further growth opportunities ahead, Russia has the lowest consumption per person in East Europe, less than half the regional average. With much smaller populations and more developed industries, Croatia and Slovenia had the highest consumption levels at over 70 litres per person.
"The global ‘big four’ in bottled water – Coca-Cola, Danone, Nestlé Waters and PepsiCo – have all stepped up their commitment to East Europe. With Nestlé Waters in the lead, these four companies accounted for one quarter of overall volume in 2003," Gary Roethenbaugh continued. "However, many successful local players remain a force to be reckoned with – such as Jamnica in Croatia, Karlovarske in the Czech Republic and Slovakia or European Drinks in Romania.”
With sustained acquisition interest and aggressive price discounting, the East European bottled water market looks set for a period of continuing change. The advent of retailer brands is already making an impact in certain countries. Substantial advertising budgets, from multinationals and local players alike, should enable brands to grow strongly too. Furthermore, EU enlargement in May 2004 will open up even further the markets of the Baltic States, Czech Republic, Hungary, Poland, Slovakia and Slovenia. In such an environment of open competition and market opportunity, Zenith projects East Europe bottled water sales in excess of 13,000 million litres by 2008.
The 2004 Zenith Report on East Europe Bottled Water contains 121 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:
Gary Roethenbaugh or Agnieszka Banham, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
t +44 (0)1225 327900 f +44 (0)1225 327901
zenithinternational.com