An increase in health consciousness has driven the growth of still mineral water, with consumers switching generally from fizzy soft drinks to healthier water. The total mineral water market has grown 5.6% to £282m as a result of new buyers entering the market, consumers purchasing more per trip and more frequently, possibly as a result of a slight decrease in price over the year.
The main area of growth is in still mineral water, up 18.1% year-on-year. New shoppers are coming in and consumers are buying more per trip and more often, as well as willingly paying slightly higher prices.
In non-alcoholic beverages generally, there has been a movement from hot and fizzy drinks to cold and still, giving a great opportunity for mineral water to capitalise.
Sparkling water is struggling, down 18.3% as a result of a decline in price as well as a loss of purchasers. In-home consumption is key to sparkling water, with 88% of consumption in the home and 31% at the evening meal.
Flavoured water has grown 2.4%, but is losing share to still varieties. Again, shopper numbers are down and prices have fallen, but those consumers who are purchasing flavoured waters are buying more per shopping trip and more frequently. Children aged 11-16 are an important consumer group.
Mineral water has the highest consumption out of home, with 12% consumed while travelling or working, and still is drunk more out of the home than flavoured or sparkling.
Still mineral water has a bias towards women and young children, who show a very strong out-of-home consumption of 43%, with 63% of that taking place at work.
A new year means detox for many shoppers and a drive by suppliers in the early months of the year to increase sales in the light of this may well have boosted sales further.
The soft drinks market is growing at 4.7% overall compared with 0.7% in 2004. Growth is being driven by still mineral water, fruit juice and one-shot drinks.
Healthy drinks account for 20% of the soft drinks market, compared with 9% in 1984.
Sapna Sejpal, TNS Worldpanel
Produced for The Grocer by TNS Worldpanel TNS Worldpanel monitors the grocery retailer take-home purchasing habits of 20,000 demographically representative British households. Call 020 8967 4521