Seltzer Water Sparkles in Packaged Beverages Category

Health-conscious consumers have created a sweet spot for carbonated waters.

July 20, 2015

WASHINGTON – Sparkling water is quickly becoming one of the fastest growing carbonated beverages in the United States, writes the Washington Post, with sales of brands such as Perrier and San Pellegrino more than doubling in the past five years to about $1.5 million – “far outpacing the growth of bottled and ‘functional’ water,” according to Euromonitor data.

The Washington Post continues that the “shifting tides” among carbonated soft drinks are evident among brands such as LaCroix Sparkling Water, which has enjoyed a nearly tripling of sales since 2009, to $175 million. “Free of calories, sodium and fake sweeteners, the sparkling waters seem to have struck a sweet spot with health-conscious buyers eager to swap out syrupy sodas for the benefits of water but nevertheless bored by the most abundant liquid on earth,” writes the newspaper.

Gary Hemphill, managing director of research at Beverage Marketing Corp., commented that consumers “still like bubbles, they want carbonation, but they want it in a healthier product. …Those products really fit where the consumer wants to be."

Americans love their Cokes and Pepsis, but cola consumption has been declining for the past 10 years. According to Beverage Digest, cola consumption is at its lowest level since 1986. The Post adds that Diet Coke and Diet Pepsi sales dropped 5% to 6% last year, while sales of vitamin-enhanced water brand Vitaminwater have fallen 4% since 2010 and down 17% since its 2008 peak. Consumers are also able to carbonate their own fizzy water and soft drinks with the at-home SodaStream machine.

Nestlé, with its brands Perrier and San Pellegrino said this year it would launch more flavors of sparkling waters, including a green apple Perrier, slim down its cans to boost the brand, and build seven new U.S. production lines this year, notes the newspaper.

"We find that, in terms of consumption and palate education, younger people are not ready to switch to Perrier," Muriel Koch, marketing manager of Nestlé Waters, told Beverage Daily. "We know that we have much more chance of attracting people in their 30s.These people are more aware of sugar intake, naturalness, and (are) keener to discover new tastes."

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