The Italian Bottled Water Market is projected to grow at a CAGR of 2.18% during the forecast period 2020-2025.
The bottled water market in Italy is well established, yet growing at a slow pace. High volume sales growth is expected from the still water segment, whereas high-value growth is expected from sparkling and functional water segments. This can be attributed to high consumer demand for high-quality premium sparkling and fortified drinking water, especially from the foodservice sector, wherein bottled water is usually charged at much higher prices than that in off-trade retail distribution channels. Increasing tourism to Italy has facilitated the growth in foodservice expenditure in recent years, which in turn has propelled the growth of the bottled water market. Key Market Trends
Growth in Foodservice Expenditure and Tourism Growth
The growth of the foodservice channel is a major driving factor for the value sales of bottled water as food service occupies more than 60% of the market share due to high product prices in this channel. Additionally, bottled water in Italian restaurants is associated with premiumization and is known to often carry 5 times the price in foodservice outlets compared to that in supermarkets, thereby effecting its value consumption to a large extent.
Furthermore, with 62.15 million tourist arrivals in 2018, Italy was ranked fifth in the global list of countries with the largest number of international tourist arrivals and tenth in the largest international tourism expenditure. It is one of the most popular tourist destinations in Europe as well as globally, recording increasing tourist arrivals since the past few years, which is driving foodservice expenditure and the consumption of premium bottled water, an inherent part of food service spending in the country.
Still Water Holds the Largest Market Share
Still water benefitted the most from the general increase in demand for healthy drinks as it is perceived as a healthy alternative to other soft drinks and more thirst-quenching than sparkling water. There is also a tendency for Italian consumers to use still water for cooking at home. Still spring water is another bright spot in the Italian water industry, although the segment is still very small. Springwater is increasingly employed in the water cooler segment.
Moreover, mineral water is also a major part of the still water segment in the country. Italy is a country rich in mineral waters and, considered its orographic constitution, it can rely on natural mineral waters of different origin and composition as a result of its granite rocks, dolomites calcareous and volcanic rocks. It is one of the major exporters of mineral water to The United States.
The major companies of the market are indulging in mergers and acquisitions, geographical expansions, product innovations, and partnerships in order to establish a wider consumer base for bottled water and strengthen the overall sales of the company. Some of the major players in Italy bottled water market are Acqua Minerale San Benedetto SpA, Ferrarelle SpA, Refresco Group BV (Spumador SpA), Lauretana SpA among others.
Key Topics Covered
1 INTRODUCTION 1.1 Study Deliverables 1.2 Study Assumptions 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS 4.1 Market Drivers 4.2 Market Restraints 4.3 Porter's Five Forces Analysis 4.3.1 Threat of New Entrants 4.3.2 Bargaining Power of Buyers/Consumers 4.3.3 Bargaining Power of Suppliers 4.3.4 Threat of Substitute Products 4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION 5.1 By Type 5.1.1 Still Water 5.1.2 Sparkling Water 5.1.3 Functional Water 5.2 By Distribution Channel 5.2.1 Supermarkets/Hypermarkets 5.2.2 Convenience Stores 5.2.3 Home and Office Delivery 5.2.4 On-Trade 5.2.5 Other Distribution Channels
6 COMPETITIVE LANDSCAPE 6.1 Most Active Companies 6.2 Most Adopted Strategies 6.3 Market Share Analysis 6.4 Company Profiles 6.4.1 Acqua Minerale San Benedetto SpA 6.4.2 Nestle SA (Sanpellegrino SpA) 6.4.3 Fonti di Vinadio SpA 6.4.4 Ferrarelle SpA 6.4.5 CoGeDi International SpA 6.4.6 Acqua Lete 6.4.7 Lauretana SpA 6.4.8 Refresco Group BV (Spumador SpA) 6.4.9 Maniva SpA