Canadean predicts US fizzy water sales will soar at expense of CSDs
The company bases its claim on a new report ‘Soft Drinks Market Insights 2014: United States of America’, which tips the category for impressive US growth compared with a mere 1% increase on a global basis.
Canadean predicts sales of CSDs could decline by as much as five liters per person in 2014, whereas packaged water (both still and carbonated) is expected to gain over three liters per person.
Rakhee Sturgess, insight analyst at Canadean, said Americans were increasingly aware of the negative health implications of drinking large quantities of ‘sugary’ CSDs but still wanted the mouth feel that carbonation brought.
'A healthier alternative to traditional carbonates': Rakhee Sturgess, Canadean
“Carbonated packaged water fills this void and appeals to consumers as a healthier alternative to traditional carbonates. As it is sugar-free and has no additives, the growing demand for carbonated water has started taking share from the carbonated soft drinks market,” she said.
Similarly, Canadean said that flavored carbonated water was growing strongly on the back of distributions gains and increased brand activity.
Coca-Cola’s Dasani brand is cited as one successful example – expanding into carbonated flavored packaged waters by introducing sparkling waters with fruity flavors such as lemon, apple and berry.
Who is set to profit from the upsurge in interest in carbonated water?
Canadean says Crystal Geyser is the most popular carbonated packaged water brand in the US while other growth brands who are, by extension, helping to grow the category include Nestle Waters' Poland Spring, Perrier and San Pellegrino.
Sparkling water soars, CSDs struggle...
But Sturgess said Canadean expected local manufacturers to drive growth increasingly going forward, since they are able to offer lower prices than imported brands
“Furthermore, wider distribution will also help US manufacturers to capitalise on the growing demand for carbonated packaged water,” she said.
