Olympics expected to increase UK bottled water industry sales

December 20, 2011

A report by industry researcher IBISWorld states that the UK Bottled Water Industry is expected to fare better over the next five years, while a return to the favorable days of the early 2000s is unlikely. The 2012 Olympic Games in London are expected to provide a boon  to the producers.

Unfavorable climatic conditions  and restrained consumer spending  among other  had an impact on the industry, which experienced a period  of spectacular growth in the late 1990s and early 2000s, before facing  a  decline in  2006-2007. 

Naren Sivasailam, IBISWorld analyst, forecasts  conditions to improve  over 2012-13 as the economy slowly recovers from the recession.  ‘The London Olympic Games will be a boon for industry operators and any increase in average temperatures will  stimulate sales, although stable growth will be difficult to achieve’

According to IBISWorld, future growth will need to be driven by savvy marketing  and further innovation in  products and packaging. The report also states that efforts to improve environmental performance and the launch of new “ethical” brands will be crucial to industry growth, as will better communicating the health benefits, natural sources and convenience of bottled water to consumers.

The UK bottled water industry shows  a medium level of concentration according to IBISWorld, with the top four producers  - Highland Spring, Nestle Waters UK, Princes Limited and Eden Springs UK Ltd - accounting for the majority of the industry revenue in 2011-12.

Photo credits London 2012