Bottled Water - Bhutan

The Bottled Water market in Bhutan has been experiencing significant growth in recent years.

Customer preferences: Bhutanese consumers have shown a growing preference for bottled water over other beverages. This can be attributed to several factors, including increasing health consciousness among consumers and the convenience of bottled water. With rising concerns about water pollution and the quality of tap water, many consumers are opting for bottled water as a safer and more reliable alternative. Additionally, the convenience of bottled water, especially in a country where access to clean drinking water may be limited, has contributed to its popularity among Bhutanese consumers.

Trends in the market: One of the key trends in the bottled water market in Bhutan is the increasing demand for premium and flavored bottled water. As consumers become more health-conscious, they are willing to pay a premium for bottled water that is infused with natural flavors or has added health benefits. This trend is driven by the perception that flavored bottled water is a healthier alternative to sugary beverages. Additionally, the demand for premium bottled water is also influenced by changing lifestyles and the desire for a more luxurious drinking experience. Another trend in the market is the growing popularity of eco-friendly packaging options. As environmental concerns become more prevalent, consumers are seeking out bottled water brands that use sustainable packaging materials, such as biodegradable or recyclable bottles. This trend is in line with global efforts to reduce plastic waste and promote sustainability.

Local special circumstances: Bhutan's unique geography and cultural values also play a role in the development of the bottled water market. With its mountainous terrain and limited access to clean water sources, bottled water provides a convenient and reliable solution for Bhutanese consumers. Additionally, Bhutan's commitment to environmental conservation aligns with the growing demand for eco-friendly packaging options in the bottled water market.

Underlying macroeconomic factors: The growth of the bottled water market in Bhutan can also be attributed to favorable macroeconomic factors. Bhutan has experienced steady economic growth in recent years, leading to an increase in disposable income among consumers. This has allowed consumers to spend more on discretionary items, including bottled water. Furthermore, the tourism industry in Bhutan has been booming, with an increasing number of international visitors. This has created a demand for bottled water as tourists seek a safe and reliable source of drinking water during their travels. In conclusion, the bottled water market in Bhutan is experiencing significant growth due to changing customer preferences, including a growing preference for healthier beverages and eco-friendly packaging options. Additionally, Bhutan's unique geography and cultural values contribute to the popularity of bottled water. Favorable macroeconomic factors, such as economic growth and a thriving tourism industry, also drive the growth of the market.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.