The bottled water market - Italy (2024)

1.2 The global market

The size of the bottled water market is estimated at $*** billion in **** and is expected to reach $***.* billion by ****, growing at a compound annual growth rate (***). People nowadays have become more aware of the potential risks of contaminated tap water. According to WHO, at least *.* billion people worldwide used feces-contaminated drinking water sources in ****. Therefore, consumers are attracted to bottled water because of its easy portability, convenience, and safety guarantee. In addition, due to the increase in tourism globally, food service channels, such as hotels and restaurants, offer quality service to their tourists. These channels contribute to the high share of sales in the bottled water category, mainly from the natural bottled water segment. For example, according to the Ministry of Tourism and India's Bureau of Immigration, the number of foreign tourist arrivals in India has increased from *.** million in **** to *.** million in ****. As a result, the number of water bottles produced by the Indian Railway Catering and Tourism Corporation Limited has increased to ***.* million in fiscal year **** from *** million in fiscal year ****. In addition, companies are adopting various strategies to market their products, such as sponsorships and advertising. For example, in January ****, Danone SA launched its new bottled sparkling water ...

1.3 The European market

The European bottled water market is estimated at $**.** billion in **** and is expected to reach $**.** billion by ****, with a compound annual growth rate (***). In response to the COVID-** crisis, on March **, ****, the European Commission closed the borders of the European Union for ** member states to all nonessential travel for a minimum of ** days, which severely impacted the travel and tourism sector, resulting in a decrease in spending on bottled water and, consequently, in bottled water sales in Europe. Bottled water sales faced difficulties in Europe as some major markets were subject to lockdown and social distancing. As a result, many companies began moving to online channels to gain traction in the market. Almost all companies have taken appropriate measures to return to their daily operations.

European bottled water market value Europe, ****-****, in US$ billion MondorIntelligence

Over the period, the bottled water market in Europe is growing as sales in the sparkling and natural water categories increase through both retail (***) channels. Bottled water sales are also increasing from online stores in areas where home delivery is an important sales channel. Growing consumer concerns about the consumption of contaminated tap water is a major factor contributing to the growth of the market. In ...

1.4 The Italian market

Forecasts on the value of the Italian bottled water market from **** to **** indicate an overall growth of **.* percent. It is expected to register steady growth thanks to the restaurant and tourism industries. The natural water segment is expected to register strong sales growth in volume, while sparkling and functional features are expected to register high growth in value. This can be attributed to growing consumer demand for high-quality, premium and enriched waters, especially in the restaurant industry. Bottled water is usually sold at much higher prices than in retail channels. In recent years, the increase in tourism in Italy has facilitated the growth of spending in the restaurant sector, propelling the development of the bottled water market. Currently, the bottled water market offers a wide range of products with different characteristics and costs. Therefore, extrinsic qualities, such as brand, packaging, origin, etc., and intrinsic qualities, such as the mineral composition of bottled water, influence its price. The growing restaurant channel is also a major driver for the value of bottled water sales, as restaurants occupy more than ** percent of the market share due to high product prices in this channel. In addition, bottled water in Italian restaurants is associated with premiumization ...

1.5 Imports and Exports

Under HS code ****.** (***), between **** and ****, Italy's exports of bottled water grew significantly from $***.* million in **** to $***.* million in ****, peaking at $***.* million in ****. Imports, on the other hand, remained rather stable and contained, increasing slightly from $*.** million in **** to $**.* million in ****. The coverage rate, which measures the ratio of exports to imports, showed significant changes. After an initial increase from **.* in **** to **.* in ****, it declined in **** to **.*, then reached a remarkable ***.* in ****, and finally dropped to **.* in ****. This rate indicates that in **** Italy exported far more than it imported, while in other years the ratio was more balanced.

Imports, exports, and bottled water coverage rate Italy, ****-****, in millions of US$ UNComtrade

In ****, the United States was the main recipient of Italian bottled water exports, accounting for **.** percent of the total. France followed with **.** percent, while Germany and Switzerland received *.** percent and *.** percent, respectively. The United Kingdom, Canada and Australia imported smaller quantities, *.**%, *.**% and *.**%, respectively. The "Other" category comprises the remaining **.**%, indicating a fairly diverse distribution to numerous other countries. The United States clearly emerges as the most significant market for Italian exports, with a considerably higher share than other countries. Main destination countries for bottled water exports Italy, ****, in % UNComtrade

In ...

1.6 Inflation suffered by the sector

The bottled water industry in Italy has experienced a period of significant challenges due to inflation. Rising production costs, mainly due to higher prices of raw materials such as plastic and glass, have had a direct impact on companies' budgets. Energy and transportation costs have also risen, making it more expensive to take bottles from the production plant to retail outlets. To cope with these increases, many companies decided to pass on some of the additional costs to consumers by raising the prices of water bottles. This, in turn, has led to reduced demand, with some consumers choosing cheaper alternatives such as tap water or home filtration systems. Faced with these difficulties, companies in the industry have adopted several strategies to adapt. A first approach has been product innovation. Many companies have invested in more sustainable and economical packaging materials, such as recycled plastic or lightweight glass. In addition, new bottle formats, such as family packs, were introduced to provide more convenient options for consumers. Another significant response has been operational optimization. Companies have sought to make their supply chains more efficient by improving logistics or using local suppliers to reduce costs. The adoption of automation technologies in manufacturing processes has ...

2.1 Overview of demand

the Italian packaged water market is ** percent composed of mineral waters. The other categories of packaged waters (***), account for just *% of the total water consumed.

Data on national consumption of mineral and packaged waters in Italy show an increasing trend from **** to ****. In ****, consumption was **,*** million liters, decreasing slightly in **** to **,*** million liters. In ****, there is a slight recovery to **,*** million liters. However, in ****, there is a decrease to **,*** million liters, probably due to the COVID-** pandemic. Consumption rises again in **** to **,*** million liters, continuing to grow to **,*** million liters in ****. During ****-****, there was an overall increase of **.** percent.

National consumption of mineral and packaged water Italy, ****-****, in millions of liters Beverfood

In ****, national consumption of packaged waters in Italy shows a clear preference for plain or flat waters, accounting for **.* percent of the total. Natural effervescent waters follow with **.* percent, while classic sparkling waters make up **.* percent. Mildly sparkling waters have the smallest share, with only *.* percent of total consumption. National consumption of packaged waters by type Italy, ****, in % Beverfood

Per capita consumption of mineral and packaged water in Italy from **** to **** shows a clear upward trend. In ****, consumption was *** liters per person, decreasing slightly to *** liters in ...

2.2 Geographical distribution of demand

In ****, average monthly household spending on water in Italy shows significant geographic variation. Households in the South and Islands spend the most, with an average of **.* euros per month. In the Center, spending drops to **.** euros, while in the Northeast and Northwest it is the lowest, with an average of **.** euros per month. These data indicate a difference in water spending between different areas of the country, with southern and island regions facing higher costs than the rest of Italy.

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In ****, consumption of packaged water in Italy shows a varied distribution among different geographical areas. The South leads with ** percent of total consumption, followed by the Northwest with ** percent. The Central and Sardinia area accounts for ** percent of consumption, while the Northeast has the lowest share at ** percent. These data indicate that the southern and northwestern regions have a higher demand for packaged water than other areas of the country.

Consumption by geographical areas in quantity Italy, ****, in % Beverfood

2.3 Demand drivers

In ****, the national breakdown of beverage spending in Italy shows a relatively balanced distribution among several categories. Water accounts for ** percent of total spending, followed by wine and soft drinks, both at ** percent. Beer makes up ** percent of spending, while other alcoholic beverages account for ** percent. Sparkling wines have the lowest share, at * percent. These data indicate that Italians distribute their beverage spending among water, wine, and soft drinks almost evenly, with a minor preference for beer and sparkling wines.

National distribution of beverage spending Italy, ****, in % ISMEA

In ****, demand trends for different beverage categories in Italy show interesting trends in prices, spending and volumes. Prices increased for all categories except sparkling wines, which saw a slight decline of *.* percent. The most significant increase was for soft drinks (***). Demand trends by breakdown Italy, ****, in % ISMEA

In ****, consumption of packaged water in Italy is dominated by PET bottles, which account for **.* percent of the total. Glass bottles make up **.* percent, while other types of packaging, such as flasks, cartons, and cans, account for only *.* percent. These figures indicate a clear preference for plastic bottles, probably because of their light weight and convenience, while glass maintains a significant presence. Other forms of packaging ...

2.4 Trends in demand for bottled water

The trend of online searches for bottled water in Italy between **** and **** shows significant fluctuations. In July ****, the index was at **.*, but fell sharply in August and September of that year, reaching **.* and then **.*. From October **** to December ****, the index remained relatively stable, fluctuating between **.* and **.*, with a peak in July **** of **.*. In January ****, the index fell again to **.*, remaining around this value until June ****, with a slight increase in May and June (***). In July ****, a new peak is observed at **.*. These data suggest a seasonality in searches, with increases during the summer months and decreases in the fall and winter months.

The numbers represent search interest relative to the highest point on the graph in relation to the region and period indicated. A value of *** indicates the highest frequency of search for the term; ** indicates half as many searches. A score of *, on the other hand, indicates that not enough data were found for the term.

Trend of online searches for bottled water Italy, ****-****, index Google Trends, Businesscoot elaboration

The geographic distribution of online searches for bottled water in Italy shows strong variation across regions. Sicily records the highest value of ***, closely followed by Marche with ** and Lazio with ...

2.5 New trends in demand

In recent years, the bottled water market has seen a number of significant changes, influenced by various social, economic, and environmental factors. These trends reflect an evolving bottled water market, driven by growing environmental awareness, an increased focus on health and wellness, and a preference for authentic and transparent products. Here is a detailed description of the new trends in demand for bottled water:

Sustainability and eco-friendly packaging: Environmental awareness is growing, leading consumers to prefer bottled water with sustainable packaging. Companies are investing in recyclable, biodegradable or reusable materials. For example, recycled plastic bottles (***), tetrapaks and glass bottles are becoming more common. Some companies are also experimenting with innovative packaging such as paper bottles or compostable materials. Functional and enriched waters: There is an increasing demand for functional waters, that is, those enriched with minerals, vitamins, electrolytes, and other nutrients. These waters are often marketed as beverages for fitness, post-workout recovery, or to improve overall health and well-being. Examples include alkaline waters, waters with added vitamins and minerals, and waters infused with natural extracts. Flavored waters: Flavored waters are gaining popularity, especially among consumers seeking healthy alternatives to sugar-sweetened beverages. These waters are often sugar-free or low-calorie and offer a ...

3.1 Italian market structure

The number of enterprises active in the soft drink, mineral water and other bottled water industry in Italy showed a downward trend between **** and ****. In ****, there were *** enterprises, but this number steadily decreased to *** in ****. In ****, there was a slight increase to *** enterprises, followed by a slight decrease in ****, with *** active enterprises. Overall, the number of enterprises decreased by *.** percent from **** to ****, indicating a contraction of the industry during this period.

Number of active enterprises in the soft drinks, mineral water and other bottled water industry [***] Italy, ****-****, in number Istat

In ****, enterprises active in the soft drinks, mineral water and other bottled water industry in Italy show a significant distribution of legal forms. The majority of enterprises are limited liability companies (***). Sole proprietors, freelancers and the self-employed account for *.** percent of the total, while limited partnerships make up *.** percent and general partnerships *.** percent. Only *.** percent of businesses fall under other legal forms. These data show a clear preference for more complex corporate structures, such as limited liability companies, in the soft drinks and bottled water industries. Legal form of companies active in the soft drinks, mineral water and other bottled water industry Italy, ****, in % Istat

The number of employees working ...

3.2 Value Chain

*. Extraction and Harvesting:

Acquiring water from natural sources such as springs, deep wells, or treating drinking water. Obtaining necessary licenses and permits for the use of water resources.

*. Treatment and Purification:

Filtration to remove physical impurities. Disinfection through techniques such as ozonation or UV. Addition of minerals, if necessary, to improve flavor and nutritional value.

*. Packaging:

Production of plastic (***) or glass bottles. Filling the bottles with treated water and sealing to ensure hygiene.

*. Labeling and Packaging:

Labeling of bottles with mandatory information. Packaging in packages to facilitate transportation and distribution.

*. Distribution:

Transportation of bottled water from production centers to warehouses and retail outlets. Involvement of wholesalers and retailers for retail distribution.

*. Retailing:

Display of bottles in retail outlets. Marketing activities and promotions to encourage purchase.

*. Consumption and Waste Management:

Purchase and consumption of water by consumers. Collection and recycling of used bottles, with sustainability initiatives by companies.

3.3 Distribution channels

Analyzing packaged water sales by channel between **** and ****, Modern Retail shows steady growth, with a **.*% increase from *,*** to **,*** million liters. The Traditional Retail + Door to Door sector experienced a slight initial decline in ****, but recovered, with an overall increase of *.* percent from *,*** to *,*** million liters. Horeca + Catering + Vending suffered a significant decline in **** due to the pandemic, but showed a good recovery in the following two years, growing **.* percent from *,*** to *,*** million liters. Overall, total sales increased by **.* percent from **,*** to **,*** million liters, with annual changes indicating a seesaw trend, but a clear recovery in ****.

In ****, the breakdown of bottled water sales in Italy shows a clear dominance of the Hyper, Super, Superettes & Discount channels, which account for **% of the total. Traditional Retail + Door to Door covers only *%, while HoReca, Catering and Vending stands at **%. These data highlight the predominant importance of large retailers in the packaged water market, with a significantly larger share than other sales channels.

Breakdown by bottled water sales channels Italy, ****, in % Beverfood

3.4 The main players in the market

The main companies producing bottled water are as follows:

Sanpellegrino : The Sanpellegrino SpA group (***).

San Benedetto: It is controlled by the Zoppas family and ranks at the top of the industry in quantity production of mineral water and second in value production. the group now has * production units. the brands with national distribution are San Benedetto, with a more qualitative and image positioning, and Guizza, which instead goes to preside over the cheaper price ranges. San Benedetto is a leading brand with a wide range of formats to meet all consumer needs, including the special Ecogreen ***ECO line, ***% RPET and ***% carbon neutral. then there are the brands with regional or multi-regional distribution: such as Acqua di Nepi, a natural effervescent water with a large diffusion in Lazio, and Cutolo Rionero, also a natural effervescent, well known and widespread in the south.

Sant'Anna: This is one of the youngest companies in the world of Italian mineral water, but it is also the company with one of the most extraordinary growth rates. Founded in **** by Alberto Bertone, it has been able to quickly climb the top ranks and today the Piedmont-based company ranks third among Italian mineral water producers. The successful brand is ...

4.1 Supply analysis

the bottled water market is very diverse and includes several types of products, each with specific characteristics and market segments. Here is a detailed description of the main categories:

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As for the bottles, the main ones are as follows:

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4.2 Price analysis

In ****, average market prices of bottled water in Italy show significant variations among different types. Natural effervescent water is the most expensive, with an average price of *.*** €/L. It is followed by carbonated water at *.*** €/L, while non-carbonated natural water has an average price of *.*** €/L. Mildly carbonated water is the least expensive, with an average cost of *.*** €/L. These data indicate that carbonation affects price, with natural effervescent water and carbonated water being more expensive than non-carbonated or mildly carbonated variants.

Average bottled water market prices Italy, ****, in €/L Beverfood

The Consumer Price Index for the whole community of mineral water in Italy showed an upward trend from June **** to June ****. Starting from a value of ***.* in June ****, the index reached ***.* in June ****, an overall increase of **.* percent. The increase was especially substantial between the summer of **** and the summer of ****, rising from ***.* to ***.*, an increase of **.*%. From June **** to June ****, the increase was more moderate, with the index rising from ***.* to ***.*, registering an increase of *.* percent. This trend suggests a steady growth of mineral water prices in Italy over the two-year period, with a slight deceleration in growth in the last year.

Consumer price index for the entire community ...

4.3 New supply trends

The bottled water market is constantly evolving, and several new trends have emerged in recent years that respond to consumer needs and environmental, economic, and social dynamics. Here is a detailed description of the main current trends:

*. Sustainability and Ecological Packaging:

Recycled Plastic Bottles: Many brands are switching to bottles made from recycled plastic (***), thereby reducing demand for new plastic and promoting a circular economy. Alternatives to Plastic: Bottles made of alternative materials such as glass, aluminum, and even biodegradable or compostable materials are on the rise to reduce environmental impact. Reducing the Weightof Bottles: Manufacturers are trying to reduce the weight of bottles to decrease plastic consumption and lower carbon emissions during transportation.

*. Product Innovation:

Functional Waters: Beyond simple hydration, there are waters enriched with vitamins, minerals, antioxidants, electrolytes, and other nutrients to provide additional benefits, such as improving energy, concentration, or recovery after physical activity. Natural Flavored Waters: There is a growing demand for flavored waters with natural ingredients, such as fruits and herbs, without added sugars or artificial sweeteners. Premium Mineral Waters: The origin and purity of the water is valued, with increased attention to provenance and organoleptic characteristics, often with a history of prestige and ...

5.1 Regulatory Context

In the European Union, all food companies producing bottled water must comply with Regulation ***/****/EC on the hygiene of foodstuffs.* In addition, bottled water must follow other regulations that include definitions of the different categories of bottled water, the type of extraction, treatments, safety requirements, sales, labeling and packaging.

We find three types of bottled water: natural mineral water, spring water, and all other potable water.

Natural mineral water is protected from pollution and is microbiologically pure. It is distinguished from other potable waters by its balanced mineral content and trace elements. In the EU, permitted treatments on drinking water are very limited; the one most commonly used is the addition of carbon dioxide to make the water "fizzy".* Before water is officially recognized as natural mineral water, certain information must be provided to the competent authority about the source of the water and information about the water itself

The term "spring water" refers to water that comes from an underground spring and is microbiologically pure without any treatment. Source: ****

Other drinking water is the label for bottled water that is neither spring water nor natural mineral water. This type of drinking water comes from various sources including surface water and ...

6.1 Market segmentation

• San Pellegrino
• Ferrarelle
• Sant'Anna
• Lete
• San Benedetto
• Uliveto e Rocchetta
• Refresco
• Acqua Vera
• Acque Minerali D'Italia
• San Bernardo