Bottled water in South Africa

Demands are low

Demand for bottled water in South Africa remains fairly low, as the country’s tap water remains fairly clean and safe to drink for local citizens. Volume sales continue to grow year-on-year but the market remains highly compressed in terms of expansion. Per capita consumption has grown at a slower rate from 2008, when an average person would consume just over six litres of bottled water per year, whilst an average person now only consumes eight litres of water per year. Bottled water consumption is considered a luxury in South Africa, particularly in lower LSM societies where people drink tap water.

Dominant

Coca-Cola South Africa remained highly dominant in bottled water during 2013. The company’s broad product range made it highly possible to consolidate the market in terms of volume share. Coca-Cola brands are dominant in all bottled water categories, including functional bottled water where the company is the sole player. Top Coca-Cola brands include Valpre and Bonaqua, which are highly visible in most retail outlets in South Africa in both still and carbonated bottled water.

Growth restricted

Demand for bottled water in South Africa is expected to remain fairly stable over the forecast period; volume growth is expected to be restricted by the fact that consumers will always have an option to consume tap water if the overall price of water goes beyond their reach. Demand is expected to rise in summer periods over the forecast period as higher temperatures often push up demand for water.