Premium Water Insights

MAY 2024

Why is Premium Water rising in popularity?

Premium Water is Soaring

Premium Water is outpacing Total Water and increasing its share at a rapid rate. Total Water is comprised of five categories: Flavored, Bulk, Premium, Sparkling, and Base.

Infographic showing a breakdown of the Dollar Share of Total Water, and the Dollar Share of Premium Water. In the Dollar Share of Total Water, premium water has made up around 14% from 2019 to 2023. TTL water is up 33% in dollars from 2019-2022. In the Dollar Share of Premium Water, future premium water has made up between 23 and 28%, gradually increasing since 2019. Immediate consumption is up 44% in 2023.

Where is the growth?

Looking at the building interest in Premium Water, the most consistent growth has been within the Convenience and Dollar Store Channels³. Total Premium Water trips are outpacing Total Water by 8pts.⁴ Premium Water has a moderate skew towards the West region, while the South has seen the most growth.

Infographic showing the premium water region share of retail dollars in the United States, as follows: the % share of AMC sales is 15.2% in the North, 36.2% in the South, 24.3% in Central, and 24.5% in the West. The percent dollar change is 6.4% in the North, 10.3% in the South, 8.2% in Central, and 1.6% in the West.

*Map refers to Coca‑Cola zones.

demographic and trip numbers

The highest indexing demographic is urban multicultural females ages 25-34.

Grab & Go Home is a key trip mission at 30% followed closely by On-the-Go at 19%.

2/3 of trips are driven by the need for specific items (36%) or getting a quick drink or snack (29%).

67% of trips are done alone.⁵

4 colorful icons: one upward facing arrow, one lotus blossom, one compass, and one adjustment slider.

The Effect of Macrotrends

Inflation

Consumers are looking for lower price points within all of their purchase behaviors.

The significance: Premium Water has withstood the pressures of inflation so far, but the tipping point may be approaching.

Wellness

Consumers are looking for lower price points within all of their purchase behaviors.

The significance: Premium Water has withstood the pressures of inflation so far, but the tipping point may be approaching.

Exploration

Consumers are looking for lower price points within all of their purchase behaviors.

The significance: Premium Water has withstood the pressures of inflation so far, but the tipping point may be approaching.

Customization

Consumers are looking for lower price points within all of their purchase behaviors.

The significance: Premium Water has withstood the pressures of inflation so far, but the tipping point may be approaching.

Healthier Consumers

Trending consumer beverage aspirations reflect a higher interest in water—highlighting key attributes that consumers are looking for in premium water. Beverages that offer a lower price, exploration, and convenience align with younger generations’ aspirations.

“[My kids] see what I drink, and I tell them why I drink this … I’ve taught them ideas of always looking at labels, checking out packaging, making sure that it’s environmentally friendly.”

-Audie, Male, Gen X

Infographic showing Beverage Aspirations (Among Total), as follows: Drink more water (60%), Get kids to drink healthier (34%), Drink less soda (33%), Drink less sugar (30%), Set better example for kids with beverages (28%), Drink more nutritious (26%), Drink less caffeine (23%), Drink more natural/less processed (21%), Drink less alcohol (20%), Spend less on beverages (20%), Supplement kids’ nutrition (17%), Make more beverages at home vs buying (15%), Drink more new, interesting beverages (14%), Drink more premium beverages (9%), and There is nothing I would change (15%).

Wellness Forward

Beverage aspirations support a case for increased water consumption, with 60% of consumers trying to drink more water.
Premium Water is gaining relevance, up +48% over the last 5 years, growing at a faster rate than Total Water, along with a shift to larger pack sizes.
Wellness is a key macro trend that has become pertinent for a wide variety of demographics—water, and especially water with added benefits, will accelerate relevance to consumers overall wellness journey. ■

Sources: 1) Nielsen Connect l AMC l TTL Water l 52 WE 09/30/2023. 2) Nielsen Connect l AMC l TTL Water l 52 WE 09/30/2023. 3) Numerator, Total US FMCG +ECommerce, 12 m/e 8/31/23. 4) Nielsen Connect, AMC Premium Water, 52 w/e 9/30/23. 5) iShop, 12MMT June 2023. 6) Modern Beverage Culture 2023 ©The Hartman Group, Inc. 7) Modern Beverage Culture 2023 | © 2023 The Hartman Group, Inc

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