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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.
Two bar charts showing the dollar share of Total Water growth and dollar share of Premium Water. The chart reflecting dollar share of Total Water shows Premium Water growth as follows: 2019 (14%), 2020 (13%), 2021 (15%), 2022 (15%), and 52 w/e 9/30/23 (15%). Overall this chart shows Total Water is up 33% in Dollars 2019-2022. The chart showing dollar share of Premium Water shows future growth as follows: 2019 (23%), 2020 (27%), 2021 (28%), 2022 (29%), and 52 w/e 9/30/23 (28%). Immediate Consumption is up 44% by 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 of the United States showing the Premium Water region share of retail dollars, as following: North (15.2% share of AMC sales, and +6.4% dollar change), South ( 36.2% share of AMC sales, and +10.3% dollar change), Central (24.3% share of AMC sales, and +8.2% dollar change), and West (24.5% share of AMC sales, and +1.6% dollar change).
*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
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
Chart showing the beverage aspirations among total beverage consumers and their point change vs. 2018. The leading aspirations are as follows: drink more water (60% and +7 point change), get kids to drink healthier (34% and +7 point change), drink less soda (33%), drink less sugar (30% and +5 point change), set better example for kids with beverages (28%), drink more nutritious (26% and +8 point change), drink less caffeine (23%), drink more natural/less processed (21% and +5 point change), drink less alcohol for 21+ (20% and +7 point change), spend less on beverages (20%), supplement kids’ nutrition (17%), make more beverages at home vs. buying (15% and +3 point change), 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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