Bottled Water - South Africa

The Bottled Water market in South Africa has experienced significant growth in recent years, driven by changing consumer preferences and increasing health consciousness. Customer preferences have shifted towards healthier beverage options, leading to a rise in demand for bottled water. Additionally, the local special circumstances in South Africa have also contributed to the development of the market.

Customer preferences: In South Africa, there has been a notable shift in customer preferences towards healthier beverage options. Bottled water is perceived as a healthier alternative to sugary drinks and carbonated beverages, which has led to an increase in its consumption. Consumers are becoming more health-conscious and are actively seeking out products that promote hydration and well-being. The convenience and portability of bottled water also appeal to busy urban consumers who are constantly on the go.

Trends in the market: One of the key trends in the bottled water market in South Africa is the growing popularity of flavored and functional waters. Consumers are looking for more variety and unique flavors in their bottled water options. As a result, companies have introduced flavored and infused waters, such as fruit-infused and vitamin-enhanced waters, to cater to this demand. These products offer a refreshing and healthier alternative to traditional bottled water. Another trend in the market is the increasing focus on sustainability. Consumers are becoming more conscious of the environmental impact of single-use plastic bottles. As a result, there is a growing demand for eco-friendly packaging options, such as biodegradable or recyclable bottles. Companies are responding to this trend by introducing sustainable packaging solutions, which not only appeal to environmentally-conscious consumers but also help reduce the overall carbon footprint of the bottled water industry.

Local special circumstances: South Africa has a unique set of circumstances that have contributed to the development of the bottled water market. The country experiences frequent water shortages and unreliable water infrastructure in certain regions. This has led to a lack of access to clean and safe drinking water for many South Africans. As a result, bottled water has become a necessity for those who cannot rely on tap water. This has created a steady demand for bottled water in the country.

Underlying macroeconomic factors: The growing middle class in South Africa has also played a role in the development of the bottled water market. As disposable incomes increase, consumers are able to afford premium bottled water brands and are willing to pay a premium for higher-quality products. This has led to the introduction of a wide range of premium and luxury bottled water brands in the market. Furthermore, urbanization and changing lifestyles have also contributed to the growth of the bottled water market. As more people move to cities and adopt fast-paced lifestyles, the demand for convenient and portable beverage options has increased. Bottled water provides a convenient and healthy hydration solution for busy urban dwellers. In conclusion, the Bottled Water market in South Africa has experienced significant growth due to changing customer preferences, including a shift towards healthier beverage options. The market has also been influenced by local special circumstances, such as water shortages and unreliable infrastructure. Additionally, underlying macroeconomic factors, such as the growing middle class and urbanization, have contributed to the development 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.