The bottled water market - Brazil

1.1 Market presentation

Bottled water activities include still water (spring water, mineral water and water made drinkable by treatment), sparkling water and flavored water. Bottled water benefits from an image of quality and safety that guarantees its popularity with the public. In addition, the rise of flavored drinks to replace soft drinks allows players to reinvent themselves.

The global market is experiencing sustained growth, driven by population growth and the development of developing countries, which are consuming more and more bottled water. Sales grew at a CAGR of 9.99% between 2017 and 2021.

However, there are two major obstacles: the ecological argument and the price argument. Without recycling, bottled water has a considerable environmental footprint due to its plastic container. Market players therefore have to faceincreasing competition from tap water, which is more environmentally responsible and much cheaper.

The bottled water sector in Brazil, which covers a variety of products such as natural mineral water, sparkling water and flavored water, is marked by the presence of several brands. According to the Brazilian Mineral Water Industry Association (ABINAM), this market generated a turnover of approximately R$8 billion in 2019, before the start of the pandemic.

The COVID-19 pandemic has had a complex impact on the bottled water market in Brazil. There has been an increase in demand for bottled water due to growing awareness of the importance of hydration and personal hygiene. However, mobility restrictions and changes in consumption patterns have resulted in a drop in sales in certain channels, such as restaurants and hotels.

In addition to the impacts caused by the pandemic, there is a growing trend among consumers, who are showing a preference for more sustainable bottled water. This phenomenon is particularly noticeable among Brazilian consumers, who are showing growing concern about the environmental impact of plastic packaging. This concern is driving demand for greener packaging options, such as recyclable bottles and other more sustainable packaging alternatives.

Consequently, numerous innovations are being developed to reduce the carbon footprint of bottled water and encourage its growth. Marketing efforts to promote the nutritional qualities of these products are also constant, with the aim of justifying their higher price.