Research by independent specialist food and beverage research house, BMI, shows that the South African bottled water market grew by an estimated 33.0% during 2005 and an additional 27.6% in 2006 - following on a consistent annual growth trend in excess of 20% since 2001. These figures reflect total South African consumption through all channels (retail, wholesale, on-consumption and cafes / forecourts) and include imports.

Shawn Henning, senior research analyst at BMI, says that the bottled water industry’s growth rate “surpasses that of other beverages, clearly indicating a more health conscious market preferring bottled water to other beverage alternatives.

“Also, as the bottled water market matures and develops, we are seeing retailers growing in popularity as a distribution outlet - contributing nearly half of the total volume consumed. This indicates that more people are consuming bottled water at home and not just as a convenience when they are away from home.”

Sanbwa chairman, John Weaver, says that although levels of disposable income in South Africa are rising now, the growth trend in the bottled water industry started eight years ago and the rate of growth has been consistent. “Which means that people aren’t buying bottled water because they have more money than before. They’re buying it because they believe it contributes to their wellbeing – and, if you want to drink water rather than any other beverage, it’s more convenient to have a bottle of water with you than have to look for a tap.

“Also, although tap water is perfectly safe, bottled water can have a more appealing taste. So it’s not healthy in a boring way – it’s fun. And these days, people want health to be fun and not all hard work.

”In other words, bottled water is about choice rather than economics.”
Sanbwa figures show that more than 260 million litres of bottled water were sold during 2006 at an average retail sales price of R7.19 per litre – a turnover of almost R2 billion for the industry. “We’re expecting an increase of 34% on that turnover for 2007,” Weaver says.

Thanks in large measure to lobbying and input from Sanbwa, the bottled water industry became subject to new, more stringent regulation in July this year. The new regulations ensure that water is bottled to internationally accepted quality and safety specifications. Sanbwa’s specifications for its member producers are even more stringent. “Our members represent more than 80% of all the bottled water produced in South Africa, so when consumers see the Sanbwa logo on bottles they have the confidence of knowing they’re making a clear choice for quality,” Weaver says.