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THE U.S. LIQUID REFRESHMENT BEVERAGE MARKET GREW BY 2.8% IN 2006

THE LIQUID REFRESHMENT BEVERAGE MARKET ENLARGED BY 3.2% IN 2005

BOTTLED WATER CONTINUES TRADITION OF STRONG GROWTH IN 2005

CARBONATED SOFT DRINKS SUFFER SETBACK IN 2005

NEW BEVERAGE MARKETING QUARTERLY REPORT SERIES

More Releases

 
 

News Release

For further information, call Gary A. Hemphill or Charlene Harvey (formerly Salito) (212) 688-7640

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

 

 

 

 

 

 

Millions of

Annual

Millions of

Annual

Year

Gallons

% Change

Dollars

% 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

 

 

 

 

Gallons

Annual

Year

Per Capita

% 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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Beverage Marketing Corporation of New York
850 Third Avenue, New York, NY 10022
Tel: 800-275-4630 | Outside U.S.: 212-688-7640 | Fax: 212-826-1255