Bottled water sales in Germany are projected to grow by 9% in the next five years due to rising demand, growing health awareness and mature carbonated soft drink market.
The German Association of Alcohol-Free Beverages (WafG) said, bottled water sales in the country are expected to grow by 9% in the next five years, as reported by watertechonline.
The bottled water sales in Germany during 2002-2006 surged 17% in terms of volume, growing at a CAGR of 4%. Sales of ready-to-drink tea and coffee grew by 28% in volume at a CAGR of 6.4%. Ready-to-drink beverage market is also predicted to grow 14% by the end of 2012.
High prospective growth in these segments of the German beverage market is based on perceived health benefits and mature carbonated soft drink market. The German carbonated soft dink market has not seen any change in its value, whereas other developed nations experienced decline in their carbonated soft drink market. Besides, the soft drink market is expected to undergo huge transformation in the next five years to 2012.
In addition, the soft drink market in Germany is very large and mature. Some segments like fruit juice drinks and carbonated soft drinks have not shown any substantial growth in last five years. The carbonated soft drink market is believed to remain stagnant in terms of value in the next five years, implying neither growth nor reduction.
However, changing climate conditions, manifested in the form of drought that is creating problems for farmer organizations, have created a need to focus more on conservation, long-term management and supply of water. The crisis in international financial markets and fear of going into recession has also created problems for the bottled water industry.
According to a Research Analyst at RNCOS, “The bottled water sector in Germany is expected to grow significantly in the next five years due to increasing demand of pure water. There are some segments like RTD (Ready-To-Drink) tea and coffee, and bottled water where opportunities for growth still exist. Thus, the food and beverage sector should set its priorities and limits on the usage of water and check sustainable management practices.”
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