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A growing market
As little as 20 years ago the market share of bottled water in Australia was almost zero. Save for a few imported high-end European brands and some sales of sparkling mineral water, Australian consumers purchased very little bottled water. This was in stark contrast to the high-consuming Europeans and even US water consumers.
However a fundamental lifestyle shift has occurred over this time which has seen this product category grow tremendously. The main reasons for this change can be summarised as:
A shift towards a healthier lifestyle including a move away from carbonated, sugared-drinks
A growing demand for kilojoule-free beverage options, especially when accompanying lighter meals such as bought lunches
The willingness of consumers to pay for the convenience of cleaner, more natural and ready-to-drink chilled water
The convenience offered by innovative packaging options such as squirt and pump-tops and bottle designs.
There is a general feeling within the community that drinking water can be a positive act both for oneself and for the community. Traditionally the carbonated, sugared, beverage market was dominated by children and teenagers. Females dominated the sugar-free or diet categories while males favoured carbonated, sugared drinks and flavoured milks. According to the Australasian Bottled Water Institute, bottled water is consumed by people across all demographics and occupations but the large majority tend to be young singles and couples, in particular females aged between 14-35 years. Generally bottled water consumers can be described as being more health conscious, contemporary and socially aware.(See note 1)
Australians now consume more than 20 litres of bottled water per person each year and the market is growing more than 10 percent a year. However local market consumption is still well below many European countries, with many consuming more than 100 litres annually per capita, such as Italy which consumed 184 litres per capita. The US consumed over 90 litres per capita.(See note 2)
Ongoing growth in health and wellbeing products has impacted on Coca-Cola's revenue sources. In 2001, CCA earned 95 percent of its revenue from carbonated beverages and only 5 percent from noncarbonated sources. By 2007, this had changed to 67 percent and 23 percent respectively, (the other 10 percent now coming from food products following the acquisition of SPC Ardmona).(See note 3)
(Source: The Australian Bottled Water Institute 2004, Bottled Water, http://www.bottledwater.org.au/scripts/cgiip.exe/WService=ASP0003/ccms.r?PageId=5002 , viewed 28/March, 2008).
(Source: Beverage Marketing Corporation, cited in John G. Rodwan, Jr., "Bottled Water 2004: U.S. and International Statistics and Developments,' Bottled Water Reporter, April/May 2005.)
(Source: Coca-Cola Amatil Fact Book, 2007).