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June 25, 2018 by bill Leave a Comment

Is the Water Category Saturated?

The other day my son asked if the consumer packaged goods water category was saturated. After a good laugh I thought about the question and the short answer was No.

We all know that water is the sustenance of life and without it we would die. According to Mintel, the specialty water category grew nearly 36% in 2016 and the projected three year CAGR for 2017 to 2020 is 27%. Though this is a minimal slow down, projected sales growth are double digits for the next 5 years.

The primary reason for volume growth can most likely be attributed to consumers switching into the category from base water, carbonated drinks, shelf stable juice and sports drinks.  Furthermore, consumers who drink specialty / premium waters do so as part of a health & wellness routine and for the great taste.

At the recent 2017 Summer Fancy Food Show, I came across several premium / functional water brands that I found interesting:

  • H Factor
  • Jackson Springs
  • Mediterranea SeaWater
  • Oxigen Water

All brands have their own unique attributes that differentiate them from the competition. It’s important for manufacturers to truly understand these differences and to capitalize on them. It also important for manufacturers not just to better understand the mind of your consumer but also to validate your product with the consumer’s input.  For a consumer product to be successful, the efforts to sell the product are just as important as the product itself.

Once you understand your consumer and what motivates them, make sure you use simple but effective marketing tools and always remember the 4 marketing P’s: Place, Price, Product and Promotion.

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