Member Article

Olympics could stoke bottled water industry

The UK bottled water industry is expected to pick up over the next five years, but not to point it was at in the early 2000s.

A report by industry researcher IBISWorld, shows that the London Olympic Games will prompt a profitable spell for producers.

Environmental concerns and constrained consumer spending have both impacted on the industry, which experienced a period of stellar growth during the late 1990s and early 2000s, before declining in 2006 and 2007.

IBISWorld analyst, Naren Sivasailam indicates conditions are likely to improve over 2012-13.

Naren said: “The London Olympic Games will be a boon for industry operators and any increase in average temperatures will stimulate sales, although stable growth will be hard to achieve.”

Raising interest rates, weaker public spending, higher taxes and the resurfacing of environmental opposition could impact on demand.

According to IBISWorld, future growth will need to be driven by savvy marketing and further innovation in products and packaging.

In addition to this, efforts to improve environmental image with the launch of ‘ethical’ brands, and communication of the health benefits, natural sources and convenience of bottled water to consumers will also be important.

Overall the UK bottled water industry displays a medium level of concentration, with the top four producers accounting for the majority of industry revenue in 2011-12.

Top companies in the UK include Highland Spring, Nestle Waters UK, Princes Limited and Eden Springs UK Ltd. Danone Waters are the largest producer of water sold in the UK, although all of its water is sourced in France and Italy.

This was posted in Bdaily's Members' News section by Tom Keighley .