BMi Research's 2013 Annual Quantification Reports

2013 Annual Quantification Report on Bottled Water/Drinking Water

Water that meets all the applicable government standards sealed in a sanitary container and sold for human consumption. Bottled water cannot contain sweeteners or chemical additives (other than flavours, extracts or essences) and must be calorie and sugar free. Flavours derived from spices or fruits can be added to bottled water, but these additions must comprise <1% by weight of the final product. Beverages containing >1% by weight flavour limit are classified as soft drinks. Bottled water may be sodium free or contain very low amounts of sodium, and can contain natural or added carbonation.

Bottled Water/Spring Water

This has become the generic term used in relation to all bottled waters. However, true bottled waters are obtained from a natural or drilled spring.
The mineral salt content gives it specific properties that may be beneficial to health, containing not less than 250 parts per million total dissolved solids. These waters can have a salty, soapy or earthy taste depending on their mineral content. They are distinguished from other types of bottled water by its constant level and relative proportions of mineral and trace elements at the point of emergence from source. No minerals can be added to this product.

Natural Water

This is regarded as spring, mineral artesian or well water and is derived from an underground formation and not from a municipal system or public water supply.

Market Trends

Bottled water market has increased from 2011 - 2012 in volume. Players in the market feel that the rise in bottled water has to do with consumers believing that bottled water is healthier than tap water. Category value growth was driven jointly by the price per litre increase as well as by the volume growth. The prices increased due to natural inflationary pressures.

In terms of packaging demand, glass usage declined during 2012, while PET demand strengthened. There has been a shift from glass into PET making this pack type dominant in the bottled water industry. Functional breakdown flavour increased in volume and in share, which shows that there has been a shift from sparkling and still product flavours as those have decreased in volume and share.

Still unflavoured water continues to dominate and the functional breakdown flavour is developing and maturing as players believe that functional waters have been enhanced with specific ingredients which deliver health and wellbeing benefits.

Top-end retail channel continues to dominate in distribution. Bottom-end retail, garage forecourts, wholesale and on-consumption channel do show growth in distribution. Players believe that the consumption of bottled water continues to increase at home and away from home.

All regions experienced growth in volume distribution, except for Western Cape, with a slight decline. Players believe that there is an increasing demand of bottled water. Northern Cape is growing in share and Free State increased in volume and in share. Limpopo region increased in volume and in share while the North West region decreased in volume but gained share.
Bottled water industry is encountering new opportunities and challenges with health threat due to lack of recycling tap water regulations and increasing water filtration systems becoming more popular.

2013 Annual Quantification Report on Flavoured Alcoholic Beverages (FABS)

The flavoured alcoholic beverage (FAB) market consists of traditional alcoholic fruit beverages, like ciders and wine-based fruit ales, as well as spirit coolers or premixed products.

Market Trends

Flavoured Alcohol Beverages market has increased from 2011 - 2012 in volume. Players in the market feel that the market predominantly has impulse buyers that are not afraid of trying new products that they find novelty appealing. It is believed that the market will experience growth next year.

Category value growth was driven jointly by the price per litre increase as well as by the volume growth. The prices increased due to natural inflationary pressures and a rise in excise levies across all alcohol products.

In terms of packaging demand, the 330ml/340ml sizes experienced growth. With competition in this industry, players in the market feel that packaging provides a competitive edge by adding value to the consumer.

Western Cape increased its volume share this year in distribution whilst Eastern Cape, Free State/Northern Cape and KwaZulu-Natal regions experienced a decrease in share and the Gauteng region remained static.

Flavoured Alcohol Beverages industry is encountering new opportunities and challenges. Growth is being driven by demand for organic products and drinks with low alcohol content in this industry. There are consumers changing preferences, featuring a shift toward health-oriented wellness drinks.

2013 Annual Quantification Report on Fruit Drinks
This category should have a minimum pure fruit juice content of 6%.

Carbonated Fruit Drinks

Carbonated fruit based drinks is a concept which provides nutritional elements of the fruit along with natural pigments and flavour in addition to carbonation effects.

Nectar

It is stipulated that this category should include a minimum of 12.5% to 50% pure fruit juice content, depending on the type of fruit used. For instance, orange nectar requires a minimum of 50% pure orange juice, and lemon nectar a minimum of 12.5% pure juice.

Pure Fruit Juice

Pure fruit juice may be classified into two sub-categories, namely:

Unsweetened fruit juice

This category includes 100% pure fruit juice.

Sweetened Fruit Juice

This product comprises 70-90% pure juice depending on the type of fruit used in the juice. (Example Lemon - 70% minimum pure lemon juice, Orange - 90% pure orange juice).

Market Trends Fruit Juice