324072741-Bottled-Water-in-Peru Euromonitor PDF

 

 

BOTTLED WATER IN PERU Euromonitor International February 2016

 

BOTTLED WATER IN PERU

LIST OF CONTENTS AND TABLES Headlines ..................................................................................................................................... 1  .......................................................................................................................... .............................................................................. ................ 1  Trends ............................................................ Competitive Landscape ..................................................... ................................................................................................................ ........................................................... 1  ..................................................................................................................................... ................ 2  Prospects ..................................................................................................................... ......................................................................................................................... ...................................................................... ..... 3  Category Data ........................................................ Table 1  Off-trade Sales of Bottled Water by Category: Volume 2010-2015 .............. 3  Table 2  Off-trade Sales of Bottled Water by Category: Value 2010-2015 ................. 3  Off-trade Sales of Bottled Water by Category: % Volume Table 3  Vo lume Growth 2010-2015 ............................................................... .................................................................................................... ..................................... 3  Table 4  Off-trade Sales of Bottled Water by Category: % Value Growth 20102015 ............................................................. ............................................................................................................. ................................................ 3  Table 5  NBO Company Shares of Off-trade Bottled Water: % Volume 20112015 ............................................................. ............................................................................................................. ................................................ 4  Table 6  LBN Brand Shares of Off-trade Bottled Water: % Volume 2012-2015 ......... 4    NBO Company Shares of Off-trade Bottled Water: % Value 2011Table 7 2015 ............................................................. ............................................................................................................. ................................................ 5  Table 8  LBN Brand Shares of Off-trade Bottled Water: % Value 2012-2015 ............ 5  Table 9  Forecast Off-trade Sales of Bottled Water by Category: Volume 20152015 2020 ............................................................. ............................................................................................................. ................................................ 6  Table 10  Table 11  Table 12 

Forecast Off-trade Sales of Bottled Water by Category: Value 2015 2015-2020 ............................................................. ............................................................................................................. ................................................ 6  Forecast Off-trade Sales of Bottled Water by Category: % Volume Growth 2015-2020 ....................................................................................... .................................................................................. ..... 7  Forecast Off-trade Sales of Bottled Water by Category: % Value Growth 2015-2020 ....................................................................................... .................................................................................. ..... 7 

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BOTTLED WATER IN PERU

BOTTLED WATER IN PERU HEADLINES   Off-trade volume and value sales of bottled water grow by 11% and 14%, reaching 598 million litres and n/s1.1 billion, respectively in 2015 

  Bottled water is one of fastest-growing categories in soft drinks due to the healthy trend adopted by Peruvian consumers and aggressive advertising campaigns



  On-trade bottled value and volume sales of bottled water rise by 9% and 6% in 2015, showing strength but at a slower pace than that of off-trade sales



  Still bottled water sees fastest off-trade volume and value growth of 12% and 14%, respectively in 2015

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  Average unit price growth growth of bottled water is slightly slower slower in 2015 than growth in previous previous year, due mostly to the economic deceleration and high competition

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  Corp Lindley continues to lead bottled water with a 45% retail value share, followed by Ajeper with 40%

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  Bottled water is expected to record a CAGR of 9% in off-trade volume and value sales at constant 2015 prices over the forecast period

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TRENDS   Peruvians are looking to take better care of their health, and that involves making a change in their food and beverages intake; therefore, consumption of fast food and carbonates is decreasing, whilst categories such as bottled water, juice and sports drinks dri nks are having a very positive performance. 

  Governmental promotion of healthier habits through the Ministry of Health and also by municipalities is creating greater consciousness amongst amongst Peruvians about their wellbeing and health. As the most natural and a nd healthiest beverage available is bottled water, consumers have been increasing their consumption of it considerably in the last few years and this trend is expected to continue over time.

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  Day-to-day workers who do not bring a lunch box from home h ome will eat out, and not always at places where bottled water is always offered; therefore, the consumer needs to ask for it as an alternative to other soft drinks on offer.

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  Unit price movement of bottled water rose by a slightly slower 2% in 2015 compared to the



previous year due mainly to promotions in the face of intense competition in the category.   Regarding the formats found in the category, bulk water in the country is mostly sold in 20-litre carton dispensers that can easily be stored at home and even can come with a convenient little plastic tap on the side for easier consumption.

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COMPETITIVE LANDSCAPE   Corp Lindley continued to lead in bottled water, accounting for 45% of the retail value sales in 2015. San Luis is the th e most important bottled water from Corp Lind ley’s portfolio, ranking 

second after Ajeper’s Cielo. Its brand Aquarius is the leading flavoured bottle water on the market by far, holding an 84% value share in 2015. Corp Lindley’s success is based on its long history on the market as well as on its ability abi lity to connect to consumers through different

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BOTTLED WATER IN PERU

marketing campaigns that target young adults looking to take care of o f their health by consuming San Luis bottled water.   In 2015, Ajeper recorded the biggest increase in value sales, up by 16% compared to the previous year. The company is very dynamically promotes its brand Cielo, with important advertising campaigns, such as billboards, magazine and newspaper advertisements and television commercials.



  Domestic companies continued to dominate bottled water in 2015 with brands such as San Luis, Cielo, San Mateo and Vida, amongst others. Although there are several international brands present, such as Perrier, VOSS, Evian and others, most of them are a re positioned as premium brands and directed only to high-income high -income consumers and their distribution is limited to some supermarkets.



  Some domestic companies are looking to get into premium bottled water, which is well known for high quality and outstanding prices compared to that of still regular bottled water, and this segment is mostly led by international companies. Standard brands normally compete more aggressively, using multimedia marketing campaigns involving television, radio, and internet commercials, billboards, magazine and newspaper advertisements, and in-store in -store promotions, amongst many others.

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PROSPECTS   Bottled water is predicted to record a CAGR of 9% in off-trade volume and value sales at 

constant 2015 prices over the forecast period. The category is expected to continue growing more rapidly than the economy, because consumers will continue to migrate from artificial  juice and carbonates to healthier alternatives alternatives such as bottled bottled water. It is expected that in the coming years consumers will be increasingly conscious about their health and healthy eating and drinking.   Forecast data is not being significantly restated since the Peruvian economy is expected to be stable in the coming years; no sudden changes are a re expected in the economy and political matters, ensuring stability.

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  The volume and constant value CAGRs of 14% and 13%, respectively over the review period were much higher than the average growth rates predicted for the forecast period. The growth registered over the review period was very aggressive because it included many years of economic growth in the country, where many categories began to develop promoted by increased disposable incomes. For the coming years, positive growth is expected, but showing moderate rates, because the country has already gone through many years of economic growth.

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  Sudden political and economic turmoil in the country could affect the country’s stability, and any changes in economic stability will affect growth of bottled water because consumers will need to return to being more cautious about the products they consume and how the y spend money. Many products such as bottled water that could be “easily” replaceable could be importantly affected should there be an onset of turmoil.

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  Carbonated bottled water and still bottled water are expected to produce strong performances during the forecast period, registering total volume CAGRs of 8-9%. Both are considered to be the healthy and this will be highly promoted over the coming years.

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  In 1914 Ajeper launched the bottled water Cielo Q10, enriched with coenzymes Q10; it has a positive impact on health, is free of calories and has a light orange flavour. The performance of Cielo Q10 is still not confirmed; however, it is still on the market, which means it is attending to its target consumers.

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BOTTLED WATER IN PERU

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  Functional bottled water has growth potential be cause consumers are always looking to find new products with more added value. Vivant dominated functional bottled water with a 95% retail value share in 2015, 2 015, so the competition is still low and consumers are eager to have more options.

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CATEGORY DAT DATA A Table 1

Off-trade Sales of Bottled Water by Category: Volume 2010-2015

million litres

Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source:

2010

2011

2012

2013

2014

2015

100.0 17.2 3.2 185.1 305.5

123.5 20.9 3.4 227.8 375.6

162.7 25.0 4.0 302.8 494.5

168.5 25.5 4.1 308.5 506.7

181.0 26.6 4.4 325.6 537.6

201.4 28.6 4.7 364.1 598.8

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Table 2

Off-trade Sales of Bottled Water by Category: Value 2010-2015

PEN million

Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source:

2010

2011

2012

2013

2014

2015

176.2 35.3 13.2 308.6 533.2

219.0 48.8 14.6 382.6 665.0

292.3 59.9 17.4 522.4 892.0

307.9 62.9 19.6 533.8 924.1

334.4 67.6 21.3 579.2 1,002.5

382.3 75.2 23.4 658.9 1,139.8

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Table 3

Off-trade Sales of Bottled Water by Category: % Volume Growth 2010-2015

% volume growth

Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source:

Table 4

2014/15

2010-15 CAGR

2010/15 Total

11.3 7.3 8.8 11.8 11.4

15.0 10.6 8.5 14.5 14.4

101.3 65.8 50.5 96.7 96.0

Euromonitor International International from official official statistics, statistics, trade associations, trade press, company research, research, store checks, trade interviews, trade sources

Off-trade Sales of Bottled Water by Category: % Value Growth 2010-2015

% current value growth

Carbonated Bottled Water

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2014/15

2010-15 CAGR

2010/15 Total

14.3

16.8

117.0

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BOTTLED WATER IN PERU

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Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source:

Table 5

11.4 9.7 13.8 13.7

NBO Company Shares of Off-trade Bottled Water: % Volume 2011-2015

Corp Lindley SA  Ajeper SA Coca-Cola Co, The Embotelladora Don Jorge SA Inversiones Rind SAC San Miguel Industrias PET SA Cia Cervecera Ambev Perú SAC Embotelladora Demesa SA Unión de Cervecerías Peruanas Backus & Johnston SAA Pepsi-Cola Panamericana Perú SRL Corp José R Lindley SA Others Total

Table 6

113.2 77.5 113.5 113.8

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% off-trade volume Company

Source:

16.3 12.2 16.4 16.4

2011

2012

2013

2014

2015

42.3 39.1 2.5

42.9 39.3 2.2

43.6 40.2 2.2

44.2 40.8 2.2

44.2 41.5 2.9 2.1

0.4 0.1

0.8 0.3

0.8 0.3

0.8 0.3

0.7 0.3

0.3

0.3

0.2

0.2

0.2

0.7 3.0

0.7 3.0

3.0

3.0

0.2 -

0.4

-

-

-

-

11.2 100.0

10.6 100.0

9.6 100.0

8.5 100.0

7.8 100.0

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LBN Brand Shares of Off-trade Bottled Water: % Volume 2012-2015

% off-trade volume Brand (GBO)

Company (NBO)

2012

2013

2014

2015

Cielo (Aje Group) San Luis (Coca-Cola

Ajeper SA Corp Lindley SA

39.3 38.5

40.2 39.3

40.8 39.9

41.5 40.1

Corp Lindley SA

4.4

4.4

4.3

4.1

Coca-Cola Co, The Embotelladora Don Jorge SA Inversiones Rind SAC

2.2 0.8

2.2 0.8

2.2 0.8

2.8 2.1 0.7

San Miguel Industrias PET SA Cia Cervecera Ambev Perú SAC Embotelladora Demesa SA Coca-Cola Co, The Unión de Cervecerías Peruanas Backus &

0.3

0.3

0.3

0.3

0.3

0.2

0.2

0.2

2.8

2.8

2.7

0.2 0.2 -

Co, The)  Aquarius (Coca-Cola (Coca-Cola Co, The) San Mateo Vida Vivant con LCarnitina (Azende Corp Cía Ltda) Slinea (Industrias San Miguel) San Carlos (PepsiCo Inc) DiPremium Cristalina Backus San Mateo (SABMiller Plc)

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Cristalina Backus (SABMiller Plc)  Agua Demesa Free Light (Aje Group)  Aquarius (Coca-Cola (Coca-Cola Co, The) Dasani (Coca-Cola Co, The) San Luis (Coca-Cola Co, The) San Carlos (PepsiCo Inc) SoBe (PepsiCo Inc) Others Total Source:

Table 7

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Johnston SAA Unión de Cervecerías Peruanas Backus & Johnston SAA Embotelladora Demesa SA Ajeper SA

0.2

0.2

0.2

-

0.7 -

-

-

-

Corp José R Lindley SA

-

-

-

-

Corp José R Lindley SA

-

-

-

-

Corp José R Lindley SA

-

-

-

-

Pepsi-Cola Panamericana Perú SRL Pepsi-Cola Panamericana Perú SRL Others Total

-

-

-

-

-

-

-

-

10.6 100.0

9.6 100.0

8.5 100.0

7.8 100.0

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NBO Company Shares of Off-trade Bottled Water: % Value 2011-2015

% off-trade value rsp Company Corp Lindley SA  Ajeper SA Coca-Cola Co, The Inversiones Rind SAC Embotelladora Don Jorge SA San Miguel Industrias PET SA Cia Cervecera Ambev Perú SAC Embotelladora Demesa SA Unión de Cervecerías Peruanas Backus & Johnston SAA Pepsi-Cola Panamericana Perú SRL Corp José R Lindley SA Others Total Source:

Table 8

2011

2012

2013

2014

2015

43.1 37.6 0.9 2.2

43.4 37.8 1.8 2.0

44.2 38.5 2.0 2.0

44.6 39.1 2.0 2.0

44.5 40.0 3.5 1.9 1.9

0.2

0.4

0.4

0.4

0.4

0.2

0.2

0.2

0.2

0.2

0.7 3.5

0.6 3.5

3.5

3.5

0.2 -

1.1

-

-

-

-

10.6 100.0

10.2 100.0

9.3 100.0

8.2 100.0

7.4 100.0

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LBN Brand Shares of Off-trade Bottled Water: % Value 2012-2015

% off-trade value rsp Brand (GBO) Cielo (Aje Group) San Luis (Coca-Cola Co, The)

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Company (NBO)

2012

2013

2014

2015

Ajeper SA Corp Lindley SA

37.8 37.7

38.5 38.4

39.1 38.9

40.0 38.9

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 Aquarius (Coca-Cola (Coca-Cola Co, The) San Mateo Vivant con LCarnitina (Azende Corp Cía Ltda) Vida Slinea (Industrias San Miguel) San Carlos (PepsiCo Inc) DiPremium Cristalina Backus San Mateo (SABMiller Plc) Cristalina Backus (SABMiller Plc)  Agua Demesa Free Light (Aje Group)  Aquarius (Coca-Cola (Coca-Cola Co, The) Dasani (Coca-Cola Co, The) San Luis (Coca-Cola Co, The) San Carlos (PepsiCo Inc) SoBe (PepsiCo Inc) Others Total Source:

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Corp Lindley SA

5.7

5.7

5.7

5.6

Coca-Cola Co, The Inversiones Rind SAC

1.8

2.0

2.0

3.3 1.9

Embotelladora Don Jorge SA San Miguel Industrias PET SA Cia Cervecera Ambev Perú SAC Embotelladora Demesa SA Coca-Cola Co, The Unión de Cervecerías Peruanas Backus & Johnston SAA Unión de Cervecerías Peruanas Backus & Johnston SAA Embotelladora Demesa SA Ajeper SA

2.0 0.4

2.0 0.4

2.0 0.4

1.9 0.4

0.2

0.2

0.2

0.2

3.3

3.3

3.3

0.2 0.1 -

0.2

0.2

0.2

-

0.6 -

-

-

-

Corp José R Lindley SA

-

-

-

-

Corp José R Lindley SA

-

-

-

-

Corp José R Lindley SA

-

-

-

-

Pepsi-Cola Panamericana Perú SRL Pepsi-Cola Panamericana Perú SRL Others Total

-

-

-

-

-

-

-

-

10.2 100.0

9.3 100.0

8.2 100.0

7.4 100.0

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Table 9

Forecast Off-trade Sales of Bottled Water by Category: Volume 2015-2020

million litres

Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source:

2015

2016

2017

2018

2019

2020

201.4 28.6 4.7 364.1 598.8

221.1 30.6 5.1 400.7 657.5

240.4 32.7 5.4 436.6 715.1

260.7 34.7 5.7 473.5 774.5

282.1 36.7 5.9 511.8 836.5

304.8 38.6 6.2 552.0 901.7

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Table 10

Forecast Off-trade Sales of Bottled Water by Category: Value 2015-2020

PEN million

Carbonated Bottled Water Flavoured Bottled Water

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2015

2016

2017

2018

2019

2020

382.3 75.2

420.4 81.0

457.9 87.0

497.4 92.8

539.2 98.5

583.6 104.1

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BOTTLED WATER IN PERU

Functional Bottled Water Still Bottled Water Bottled Water Source:

Passport

23.4 658.9 1,139.8

25.0 725.5 1,252.0

26.5 790.9 1,362.4

28.0 858.3 1,476.6

29.5 928.6 1,595.8

31.1 1,002.5 1,721.3

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Table 11

Forecast Off-trade Sales of Bottled Water by Category: % Volume Growth 2015-2020

% volume growth

Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source:

Table 12

2015-20 CAGR

2015/20 Total

9.8 7.0 7.0 10.1 9.8

8.6 6.2 5.6 8.7 8.5

51.3 35.2 31.4 51.6 50.6

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Forecast Off-trade Sales of Bottled Water by Category: % Value Growth 2015-2020

% constant value growth Carbonated Bottled Water Flavoured Bottled Water Functional Bottled Water Still Bottled Water Bottled Water Source:

2015/16

2015/2016

2015-20 CAGR

2015/20 TOTAL

10.0 7.7 7.2 10.1 9.8

8.8 6.7 5.9 8.8 8.6

52.7 38.4 33.0 52.1 51.0

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