BOTTLED
WATER:
MORE THAN JUST A STORY ABOUT SALES GROWTH
Stringent
Federal, State and Industry Standards Help Ensure Safety,
Quality and Good Taste
ALEXANDRIA, VA - Newly-released statistics
by Beverage Marketing Corporation (www.beveragemarketing.com)
show that U.S. bottled water sales and consumption continue
to rise, as consumers increasingly choose bottled water
over other commercial beverages. This upward trend was reflected
in 2005 when total bottled water volume exceeded 7.5 billion
gallons, a 10.7 percent increase over 2004; and the 2005
bottled water per capita consumption level of 26.1 gallons
increased by over two gallons, from the 23.8 gallons per
capita the previous year. Additionally, the wholesale dollar
sales for bottled water exceeded $10 billion in 2005, a
9.2 percent increase over the $9.2 billion in 2004. These
statistics demonstrate continued consumer demand and appreciation
for the convenience and good taste of bottled water brands
consumed on-the-go, during exercise, at restaurants or meetings,
and at home or the office. However, consumers should also
know that bottled water safety and quality result from multiple
layers of regulation and standards at the federal, state
and industry levels.
The U.S. Food and Drug Administration (FDA)
fully regulates bottled water as a packaged food product
with stringent standards for safety, quality, production,
labeling, and identity. State governments also regulate
bottled water and members of the International Bottled Water
Association (IBWA) are required to comply with additional
standards which are verified through annual, unannounced
plant inspections by an independent, third-party organization.
Along with FDA's general Good Manufacturing
Practices (GMPs), which are required of all foods, bottled
water must further comply with other applicable FDA regulations,
including Standards of Identity, Standards of Quality and
additional, specific bottled water GMPs. Being a packaged
food product, bottled water is also bound by the Nutrition
Labeling Education Act (NLEA) and the full range of FDA
protective measures designed to help ensure product safety
and protect consumers. States also have authority to regulate
bottled water and also serve to inspect, sample, analyze
and approve bottled water sources. Testing laboratory certification
is another area where states may regulate bottled water.
As part of the IBWA Bottled Water Code of Practice, IBWA
members voluntarily utilize the principles of HACCP (Hazard
Analysis and Critical Control Point) for a science-based
approach to bottled water production and safety. FDA recognizes
HACCP as a key component of food safety and consumer protection.
"While all beverages have their role
in a marketplace with an abundance of drink choices,"
says Stephen R. Kay, IBWA Vice President of Communications,
"consumers are choosing bottled water as a refreshing,
hydrating beverage and as an alternative to drinks that
may contain calories, caffeine, sugar, artificial colors,
alcohol or other ingredients, which they may wish to moderate
or avoid. For instance, during 2005, bottled water containers
of 1.5 liters (50 oz) and smaller, accounted for 52.8% of
the volume of bottled water sold, indicating that consumers
are choosing bottled water in lieu of other packaged beverages."
For an overview of bottled water regulations
and standards and other bottled water information, visit
the IBWA web site at www.bottledwater.org.
- # # # -
The International Bottled Water Association
(IBWA) is the authoritative source of information about
all types of bottled waters. Founded in 1958, IBWA's membership
includes U.S. and international bottlers, distributors and
suppliers. IBWA is committed to working with the U.S. Food
and Drug Administration (FDA), which regulates bottled water
as a packaged food product, and state governments to set
stringent standards for safe, high quality bottled water
products. Additionally, IBWA requires member bottlers to
adhere to the IBWA Bottled Water Code of Practice, which
mandates additional standards and practices, that in some
cases, are more stringent than federal and state regulations.
A key feature of the IBWA Model Code is an annual unannounced
plant inspection by an independent, third party organization.
For more information about IBWA, bottled water and a list
of member's brands, please contact IBWA Manager of Communications
Tom Gardner at 703-647-4607 or tgardner@bottledwater.org.
Below is the corresponding press release from Beverage Marketing
For further information, call Gary A. Hemphill
(212) 688-7640
www.beveragemarketing.com
For Immediate Release
BOTTLED WATER CONTINUES TRADITION OF STRONG GROWTH IN 2005,
BEVERAGE MARKETING CORPORATION REPORTS
***
Second Largest Category Leads Major Beverage Categories
in Volume Growth
NEW YORK, NY, April 2006: Bottled water -
already the second largest commercial beverage category
by volume in the United States - continues to get bigger.
Volume growth has accelerated for several years in a row,
and per capita consumption has enlarged significantly. In
recent years, U.S. volume has been increasing more rapidly
than dollar sales, but in both respects, the industry's
performance is unrivaled.
In 2005, total U.S. bottled water volume exceeded
7.5 billion gallons, a 10.7% advance over 2004's volume
level, according to the forthcoming edition of Bottled Water
in the U.S., the comprehensive study of the market published
annually by Beverage Marketing Corporation (BMC). That translates
into 26.1 gallons per person.
U.S. residents now drink more bottled water
annually than any other beverage other than carbonated soft
drinks (CSDs). The gap between the two top categories is
narrowing as bottled water ceaselessly advances and CSDs
either barely grow, as had been happening in recent years,
or decline, as was the case in 2005. Average intake of bottled
water has been growing by at least one gallon annually,
thereby more than doubling in a decade. Per capita consumption
of CSDs has dipped slightly for several consecutive years.
Bottled water's share of the U.S. beverage
market is poised to grow, while CSDs' will continue to lose
ground. According to The Future of Liquid Refreshment Beverages
in the U.S., a new report by BMC's senior editor, Roger
Dilworth, bottled water's share of the non-alcoholic beverage
market could advance from less than 22% in 2005 to nearly
29% in 2010. The CSD market would remain larger, with a
38% share (down from 43% in 2005), but bottled water will
have made major gains on the largest beverage category.
The U.S. bottled water market reached new
highs not only in volume but also in wholesale dollar sales,
which surpassed $10 billion in 2005. Sales grew more quickly
than they did in the previous two years, but did not advance
at as fast a rate as volume. This reflects the impact of
price promotions, especially on PET multipacks, which are
increasingly the focus of such promotions as well as central
to volume growth.
Domestic non-sparkling water's 7.2 billion
gallons represented 95% of total volume in 2005. The segment,
which comprises diverse components with very different performances,
grew at a faster rate than the overall market in 2005.
The most vital piece of the non-sparkling
segment is the retail PET segment. PET volume increased
from 1.4 billion gallons in 2000 to almost 4 billion gallons
in 2005, boosting its share of volume from 29% to 53%. The
segment is on track to increase share again in 2006.
Nestlé Waters North America remained
the largest bottled water company in the country, with $3.1
billion in wholesale dollar sales. The purveyor of major
regional brands such as Poland Spring, Arrowhead and Zephyrhills
accounted for more than 31% of total bottled water sales
in 2005.
Pepsi-Cola's Aquafina, which has reigned as
the number-one brand for several years, became the U.S.
bottled water business's first billion-dollar brand in 2004,
and the brand sustained strong growth in 2005, when wholesale
dollar sales neared $1.3 billion.
In 2005, Coca-Cola's retail PET brand, Dasani,
joined Aquafina with sales greater than $1 billion (although
Aquafina remained the leading brand). Both companies now
offer flavored iterations of their brands. Currently, these
account for a small part of their sales.
A detailed analysis of the 2005 bottled water
market by Beverage Marketing's editorial director, John
Rodwan, will appear in the April/May edition of Bottled
Water Reporter, a publication of the International Bottled
Water Association (IBWA).
U.S. BOTTLED WATER MARKET
Volume and Producer Revenues
2001 - 2005
| Year |
Millions of Gallons |
Annual % Change |
Millions of Dollars |
Annual % Change |
| 2001 |
5,185.3 |
-- |
$6,880.6 |
-- |
| 2002 |
5,795.7 |
11.8% |
$7,901.4 |
14.8% |
| 2003 |
6,269.8 |
8.2% |
$8,526.4 |
7.9% |
| 2004 |
6,806.7 |
8.6% |
$9,169.5 |
7.5% |
| 2005 |
7,537.1 |
10.7% |
$10,012.5 |
9.2% |
Source: Beverage Marketing Corporation
U.S. BOTTLED WATER MARKET
Per Capita Consumption
2001 - 2005
| Year |
Gallons Per Capita |
Annual Change |
| 2001 |
18.7 |
-- |
| 2002 |
20.7 |
10.8% |
| 2003 |
22.1 |
7.0% |
| 2004 |
23.8 |
7.6% |
| 2005 |
26.1 |
9.6% |
Source: Beverage Marketing Corporation
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