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BOTTLED WATER IN INDIA

Euromonitor International
March 2018
BOTTLED WATER IN INDIA Passport I

LIST OF CONTENTS AND TABLES


Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Bottled Water Performs Well As Focus Shifts From Hydration To Functional Benefits............. 1
Rise in Adoption of Bulk Packaged Water by Indians ............................................................... 1
Entry of New Premium Water Players With Focus on Metro Cities .......................................... 1
Competitive Landscape ................................................................................................................ 2
Key Bottled Water Manufacturers Report Robust Growth in Highly Fragmented Category ...... 2
Increasing Players in Functional Water .................................................................................... 2
Category Data .............................................................................................................................. 2
Table 1 Off-trade Sales of Bottled Water by Category: Volume 2012-2017 .............. 2
Table 2 Off-trade Sales of Bottled Water by Category: Value 2012-2017 ................. 2
Table 3 Off-trade Sales of Bottled Water by Category: % Volume Growth
2012-2017 .................................................................................................... 3
Table 4 Off-trade Sales of Bottled Water by Category: % Value Growth 2012-
2017 ............................................................................................................. 3
Table 5 NBO Company Shares of Off-trade Bottled Water: % Volume 2013-
2017 ............................................................................................................. 3
Table 6 LBN Brand Shares of Off-trade Bottled Water: % Volume 2014-2017 ......... 4
Table 7 NBO Company Shares of Off-trade Bottled Water: % Value 2013-
2017 ............................................................................................................. 4
Table 8 LBN Brand Shares of Off-trade Bottled Water: % Value 2014-2017 ............ 4
Table 9 Forecast Off-trade Sales of Bottled Water by Category: Volume 2017-
2022 ............................................................................................................. 5
Table 10 Forecast Off-trade Sales of Bottled Water by Category: Value 2017-
2022 ............................................................................................................. 5
Table 11 Forecast Off-trade Sales of Bottled Water by Category: % Volume
Growth 2017-2022 ....................................................................................... 5
Table 12 Forecast Off-trade Sales of Bottled Water by Category: % Value
Growth 2017-2022 ....................................................................................... 6

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BOTTLED WATER IN INDIA Passport 1

BOTTLED WATER IN INDIA


HEADLINES
 Bottled water registers 19% off-trade value in 2017 to reach INR90.1 billion
 Vitamin water and hydration products introduced by multiple companies to cater to the needs
of growing health-conscious consumers
 On-trade volume registers higher growth than off-trade, at 22% in 2017
 Industry is highly fragmented and key players include Bisleri, PepsiCo and Coca-Cola
 Bottled water is expected to post an off-trade value CAGR of 16% at constant 2017 prices
over the forecast period, to reach INR192.6 billion in 2022

PROSPECTS

Bottled Water Performs Well As Focus Shifts From Hydration To


Functional Benefits
Bottled water has performed well in terms of volume and value as consumers look for clean
and pure water. Furthermore, millennials do not live in the same place for long periods of time
and prefer consuming bottled water rather than installing water purifiers in every residence.
Consumer now see bottled water as more than quenching thirst and expect functional benefits
including hydration, detox and a source of minerals, electrolytes and vitamins. Fast-paced
lifestyles and rising health awareness have led to demand for grab-and-go products that allow
consumers to cover their vitamin deficiencies.
This category is expected to grow over the next five years; with entry level products from
PepsiCo and Coca-Cola more consumers will be able to afford such drinks and product
awareness is also expected to grow.

Rise in Adoption of Bulk Packaged Water by Indians


Consumers in India especially in metro and first-tier cities are shifting from traditional sourcing
of drinking water from tap using water purifiers to 20-litre bulk packaging. The shift to bulk water
is driven by limited supply of drinking water by municipalities and large floating populations in
urban centres preferring to purchase bulk water rather than installing water purifiers, as these
have to be serviced and filters have to be changed on a regular basis.
Since the supply of bulk water requires round-the-clock availability and rapid delivery of water
cans, multiple companies saw an opportunity and introduced bulk water supply. Large
companies including Bisleri, Aquasure and Kingfisher are selling bulk water across India;
however, they are still developing their logistics.

Entry of New Premium Water Players With Focus on Metro Cities


Rising disposable incomes and changing lifestyles in metro cities of India have created new
opportunities for bottled water players to introduce premium water brands in metro cities. People
in these cities are brand conscious, sophisticated and prefer premium products. Companies are
focusing on select channels to introduce these bottled water products. Premium water
companies have partnered with fine dining restaurants and hotels to sell their products. Some of
these products are also available in supermarkets and hypermarkets in selected localities.

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BOTTLED WATER IN INDIA Passport 2

Consumption of premium water is expected to grow in India as awareness of these products


increases and growth in premium restaurants and hotels is also expected to drive growth over
the forecast period.

COMPETITIVE LANDSCAPE

Key Bottled Water Manufacturers Report Robust Growth in Highly


Fragmented Category
Bottled water in India is highly fragmented with only eight key players with pan-India
distribution namely Bisleri, Coca-Cola India, PepsiCo India, Dharibal Group, Narang Beverages,
Aquasure, Himalayan and Kingfisher. These players and their brands have been able to gain
the trust of consumers and have been able to outperform regional players. People in India are
aware of the quality of branded bottled water as many regional players operate without proper
licences and regulations.
The premium water segment is limited to three players with pan-India presence namely
Narang Beverages, Tata Global Beverage (Himalayan), and Bisleri (Vedica). The companies
are increasing their distribution networks and incentivising retailers to stock their products. The
on-trade, however, is dominated by PepsiCo India, Coca-Cola India and Bisleri.

Increasing Players in Functional Water


Functional water in India is expected to grow and more companies are also entering this
space; up to 2015, only one player operated in functional water. In 2016, the segment witnessed
entry of multiple players including PepsiCo, Narang, Tata Global Beverages, Coca-Cola,
Jeevika, Beltek Canadian, Volvic and Danone. Consumers with fast-paced lifestyles are ready
to accept products that provide health benefits and help them maintain healthy lifestyles with
minimum effort. Prominent regional bottled water, juice and carbonates companies including SG
Group and Kalimark are planning to introduce functional water in the next two years.

CATEGORY DATA
Table 1 Off-trade Sales of Bottled Water by Category: Volume 2012-2017

million litres
2012 2013 2014 2015 2016 2017

Carbonated Bottled Water 174.6 179.3 187.8 195.1 200.0 204.9


Flavoured Bottled Water - - - - - -
Functional Bottled Water - - - - - -
Still Bottled Water 3,142.2 3,862.3 4,664.4 5,544.1 6,616.3 7,814.6
Bottled Water 3,316.8 4,041.6 4,852.2 5,739.2 6,816.3 8,019.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Off-trade Sales of Bottled Water by Category: Value 2012-2017

INR bn
2012 2013 2014 2015 2016 2017

Carbonated Bottled Water 3.9 4.1 4.4 4.7 5.0 5.0

© Euromonitor International
BOTTLED WATER IN INDIA Passport 3

Flavoured Bottled Water - - - - - -


Functional Bottled Water - - - - - -
Still Bottled Water 28.5 37.3 48.1 58.2 70.7 85.1
Bottled Water 32.4 41.4 52.5 62.9 75.7 90.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Off-trade Sales of Bottled Water by Category: % Volume Growth 2012-2017

% volume growth
2016/17 2012-17 CAGR 2012/17 Total

Carbonated Bottled Water 2.5 3.3 17.4


Flavoured Bottled Water - - -
Functional Bottled Water - - -
Still Bottled Water 18.1 20.0 148.7
Bottled Water 17.7 19.3 141.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Off-trade Sales of Bottled Water by Category: % Value Growth 2012-2017

% current value growth


2016/17 2012-17 CAGR 2012/17 Total

Carbonated Bottled Water 0.3 5.3 29.2


Flavoured Bottled Water - - -
Functional Bottled Water - - -
Still Bottled Water 20.4 24.5 198.7
Bottled Water 19.0 22.7 178.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 NBO Company Shares of Off-trade Bottled Water: % Volume 2013-2017

% off-trade volume
Company 2013 2014 2015 2016 2017

Coca-Cola India Pvt Ltd 11.1 10.7 10.7 9.5 9.7


Parle Bisleri Ltd 9.4 8.7 8.2 8.1 8.7
PepsiCo India Holdings 7.3 6.3 5.8 5.7 5.9
Pvt Ltd
Dhariwal Industries Ltd 2.6 2.6 2.5 2.5 2.5
UB Group 1.6 1.5 1.4 1.4 1.5
Mount Everest Mineral 0.1 0.1 0.0 0.0 0.0
Water Ltd
Dharmapal Satyapal Ltd 0.0 0.0 0.0 0.0 0.0
Parle Agro Pvt Ltd 0.3 0.2 0.0 0.0 0.0
Others 67.8 70.0 71.2 72.8 71.6
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

© Euromonitor International
BOTTLED WATER IN INDIA Passport 4

Table 6 LBN Brand Shares of Off-trade Bottled Water: % Volume 2014-2017

% off-trade volume
Brand (GBO) Company (NBO) 2014 2015 2016 2017

Kinley (Coca-Cola Coca-Cola India Pvt Ltd 10.7 10.7 9.5 9.7
Co, The)
Bisleri Parle Bisleri Ltd 8.7 8.2 8.1 8.7
Aquafina (PepsiCo PepsiCo India Holdings 4.9 4.6 4.7 5.0
Inc) Pvt Ltd
Oxyrich (Manikchand Dhariwal Industries Ltd 2.6 2.5 2.5 2.5
Group)
Kingfisher UB Group 1.5 1.4 1.4 1.5
Evervess (PepsiCo PepsiCo India Holdings 1.1 1.0 0.8 0.7
Inc) Pvt Ltd
Duke's (PepsiCo Inc) PepsiCo India Holdings 0.3 0.2 0.2 0.2
Pvt Ltd
Himalayan (Tata Mount Everest Mineral 0.1 0.0 0.0 0.0
Global Beverages Ltd) Water Ltd
Catch Natural Dharmapal Satyapal Ltd 0.0 0.0 0.0 0.0
Mineral Water
Bailley Parle Agro Pvt Ltd 0.2 0.0 0.0 0.0
Himalayan (Tata Tea Mount Everest Mineral - - - -
Ltd) Water Ltd
Others Others 70.0 71.2 72.8 71.6
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 NBO Company Shares of Off-trade Bottled Water: % Value 2013-2017

% off-trade value rsp


Company 2013 2014 2015 2016 2017

Coca-Cola India Pvt Ltd 11.5 10.9 11.1 9.9 10.0


Parle Bisleri Ltd 8.3 7.7 7.7 7.6 8.3
PepsiCo India Holdings 8.3 7.1 6.7 6.4 6.6
Pvt Ltd
Dhariwal Industries Ltd 2.3 2.3 2.3 2.3 2.4
UB Group 1.4 1.3 1.3 1.3 1.4
Mount Everest Mineral 0.3 0.2 0.2 0.2 0.2
Water Ltd
Dharmapal Satyapal Ltd 0.1 0.1 0.1 0.1 0.1
Parle Agro Pvt Ltd 0.3 0.2 0.0 0.0 0.0
Others 67.7 70.1 70.5 72.2 71.1
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 LBN Brand Shares of Off-trade Bottled Water: % Value 2014-2017

% off-trade value rsp


Brand (GBO) Company (NBO) 2014 2015 2016 2017

Kinley (Coca-Cola Coca-Cola India Pvt Ltd 10.9 11.1 9.9 10.0
Co, The)
Bisleri Parle Bisleri Ltd 7.7 7.7 7.6 8.3

© Euromonitor International
BOTTLED WATER IN INDIA Passport 5

Aquafina (PepsiCo PepsiCo India Holdings 4.4 4.3 4.4 4.8


Inc) Pvt Ltd
Oxyrich (Manikchand Dhariwal Industries Ltd 2.3 2.3 2.3 2.4
Group)
Evervess (PepsiCo PepsiCo India Holdings 2.3 1.9 1.6 1.4
Inc) Pvt Ltd
Kingfisher UB Group 1.3 1.3 1.3 1.4
Duke's (PepsiCo Inc) PepsiCo India Holdings 0.5 0.4 0.4 0.3
Pvt Ltd
Himalayan (Tata Mount Everest Mineral 0.2 0.2 0.2 0.2
Global Beverages Ltd) Water Ltd
Catch Natural Dharmapal Satyapal Ltd 0.1 0.1 0.1 0.1
Mineral Water
Bailley Parle Agro Pvt Ltd 0.2 0.0 0.0 0.0
Himalayan (Tata Tea Mount Everest Mineral - - - -
Ltd) Water Ltd
Others Others 70.1 70.5 72.2 71.1
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 9 Forecast Off-trade Sales of Bottled Water by Category: Volume 2017-2022

million litres
2017 2018 2019 2020 2021 2022

Carbonated Bottled Water 204.9 210.1 215.7 221.5 227.7 234.6


Flavoured Bottled Water - - - - - -
Functional Bottled Water - - - - - -
Still Bottled Water 7,814.6 9,377.2 11,301.1 13,640.5 16,479.6 19,921.3
Bottled Water 8,019.5 9,587.3 11,516.8 13,862.0 16,707.3 20,155.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Off-trade Sales of Bottled Water by Category: Value 2017-2022

INR bn
2017 2018 2019 2020 2021 2022

Carbonated Bottled Water 5.0 5.0 5.1 5.1 5.2 5.2


Flavoured Bottled Water - - - - - -
Functional Bottled Water - - - - - -
Still Bottled Water 85.1 99.0 116.0 135.7 159.3 187.4
Bottled Water 90.1 104.1 121.1 140.9 164.6 192.6
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Off-trade Sales of Bottled Water by Category: % Volume Growth


2017-2022

% volume growth
2017/18 2017-22 CAGR 2017/22 Total

Carbonated Bottled Water 2.6 2.7 14.5


Flavoured Bottled Water - - -

© Euromonitor International
BOTTLED WATER IN INDIA Passport 6

Functional Bottled Water - - -


Still Bottled Water 20.0 20.6 154.9
Bottled Water 19.6 20.2 151.3
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 12 Forecast Off-trade Sales of Bottled Water by Category: % Value Growth


2017-2022

% constant value growth


2017/2018 2017-22 CAGR 2017/22 Total

Carbonated Bottled Water 0.7 0.9 4.6


Flavoured Bottled Water - - -
Functional Bottled Water - - -
Still Bottled Water 16.4 17.1 120.2
Bottled Water 15.5 16.4 113.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

© Euromonitor International

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