The flavoured water market | france - France

The global flavored water market has been experiencing robust growth since 2020, with increasing consumer demand for healthier and natural beverage options as an alternative to sugary sodas. As of 2021, the market was valued at $23.47 billion, with projections indicating a rise to $34.97 billion by 2026, reflecting a compound annual growth rate (CAGR) of 8.3%. The North American region holds the largest market share and is anticipated to remain the fastest-growing segment within the forecast period.

Major industry players, including non-alcoholic refreshment beverage leaders like Coca-Cola, alongside key bottled water companies such as Danone, are entering and expanding in this market to align with the growing trend. Despite this progress, the French market, specifically in the bottled water segment, faced challenges due to the pandemic, which affected consumer purchasing behaviors, especially concerning pleasure buys like flavored water. Nonetheless, in 2020, 16.2 million French consumers used bottled flavored water, indicating substantial market presence.

Additionally, the French market is responding to rising ecological consciousness with innovations aimed at reducing plastic waste and promoting recycling—efforts which may shape future market dynamics.

Navigating the Fluctuating Tides of the French

Flavored Water Market In recent years, the French flavored water market has experienced a complex journey. Initially, this market segment enjoyed strong growth, appealing to consumers with its promise of a healthy, flavorful alternative to traditional soft drinks. However, the pandemic significantly stymied the industry's progress, with flavored water purchases taking a hit as more discretionary, pleasure-oriented categories were sidelined. Despite the challenges, by mid-year, there was a notable recovery within the broader bottled water category, propelled in part by unusually high temperatures which contributed to a surge in demand for refreshing beverages. This resurgence was particularly pronounced for plain still waters, which dominate the market, while sparkling waters and the more niche flavored segment also enjoyed growth.

The French bottled water industry is characterized by a concentrated market structure, with major international players such as Danone Eaux France, Nestlé Waters France, and Neptune leading the charge—Neptune being particularly noteworthy with its Cristaline brand. These companies are continually innovating, particularly in response to the increased consumer emphasis on ecological concerns, as they strive to mitigate the environmental impact of plastic bottles through enhanced recycling and alternative product designs.

Demand for flavored waters primarily draws from health-conscious consumers, who favor natural and less sugary alternatives to traditional refreshments. Rising temperatures due to global warming have also influenced sales, with consumers seeking out hydrating solutions during hotter periods. In France alone, between 15 and 20 million people consumed bottled flavored water, and this market is guided by a variety of factors. Among them, the focus on health and naturalness stands out, with heightened competition from substitutes shaping consumer preferences.

The state of the on-trade network and global warming are additional contributors to demand. Infused flavors which add nutrients to water without high levels of sugar align with the wellness trend that engulfs more than half of all consumers, who are now more concerned with the nutritional benefits of their food and beverage choices compared to a decade ago. The ecological awareness among the French is reshaping the industry as well, as a majority show support for recycling schemes and demonstrate a growing inclination towards environmentally responsible consumption habits. This has triggered product innovations such as recyclable packaging and refill stations.

French trade dynamics in flavored waters have fluctuated, with the nation transitioning from a net exporter to a net importer, with neighboring countries such as the UK, Belgium, Germany, Austria, and the Netherlands playing significant roles in this exchange. The expectations for the global flavored water market remain optimistic.

Key Players Shaping the Flavored Water Landscape

As the flavored water market continues to grow, there's a discernible shift in consumer preferences from sugary sodas to healthier alternatives. Leading the charge are several established companies that are not only dominating the market share but also driving innovation to meet the evolving demands of health-conscious consumers.

• Danone Eaux France stands as a historic leader in the industry with its notable brands like Volvic. The brand has effectively capitalized on the trend by introducing flavors that appeal to the palate without compromising on health benefits. The success of products such as Volvic Fraise signifies Danone's ability to stay ahead of the curve by offering consumers a tasty yet healthier beverage choice.
  
  
• Nestlé Waters, another major player, has an extensive portfolio with brands such as Perrier and S. Pellegrino, known for their premium carbonated mineral waters. The company has introduced flavored offerings that have been well received in the marketplace, leveraging the strength of their core brands to appeal to customers looking for a touch of flavor in their sparkling water.
  
  
• Neptune (part of the Alma Group) has made a significant mark in the market through its Cristaline brand. As a market leader, Cristaline's flavored water variants have witnessed substantial growth, indicating a successful strategy of refreshing their traditional offerings.
  
  
• Sources Alma brings forward a strong presence with a focus on local preferences while maintaining a commitment to quality and health. Their continued investment in research and development has led to the emergence of new flavor profiles that resonate with local tastes and trends.

Apart from these giants, there are also other water specialists and innovative companies that are contributing to the market's diversity and competitiveness:

• Sources du Pestrin distinguishes itself with a focus on enhanced waters that provide extra nutrients and benefits beyond hydration. This strategic focus taps into the growing segment of consumers looking for functional beverages that contribute more to their overall wellness.
  
  
• Eloa harnesses the potential of organic and natural ingredients by launching unique products such as Eloa Waters, which feature flavorful infusions offering the dual benefits of hydration and natural nutrients.
  
  
• In the arena of innovation, companies such as Air'Up and Waterdrop are transforming the way consumers think about flavored water. Air'Up's pioneering technology provides taste through scent, redefining flavor without additives, while Waterdrop offers compact, convenient flavor capsules that add a splash of zest to plain water. 

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 21/11/2022

Summary and extracts

List of charts

• Sales volume growth rates for soft drinks and water
• Flavored water sales trend
• French trade balance for flavored waters
• France's main customer countries
• Main countries supplying France with flavored waters
• Number of people using flavored water, by brand
• Recycling plastic packaging
• Sales trends in the most weather-sensitive categories
• Annual alcohol consumption
• Consumer price index for mineral and spring waters
• Table water industry sales index
• Market share of leading water brands
• The table water industry: employees and employers
• Trends in the global flavored water market