Demand for Safe and Clean Water Will Augment the Bottled Water Market in South Africa Through 2020, Reports Technavio

-(BUSINESS WIRE)–Technavio analysts forecast the bottled water market in South Africa to grow at a CAGR of more than 7% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the bottled water market in South Africa for 2016-2020. To calculate the market size, the report considers the revenue generated through sales of bottled water by vendors in the market.

Technavio food and beverage analysts highlight the following four factors that are contributing to the growth of the bottled water market in South Africa:

South Africa is a dry country, with 464 millimeters of yearly rainfall, which is half of global average of 860 millimeters. People are facing a challenge of scarcity of water in the country. Long-term measures are being taken such as the construction of more water storage facilities and another dam in Lesotho. In parts of KwaZulu-Natal, water shedding is taking place due to drought. Also, there is shortage of electricity in the country. The water shortage is also affecting the quality of water, leading to the outbreak of diseases, mostly in rural areas compared to urban areas.

Limited availability of resources, population growth of 1.3% a year, and negligence of infrastructure for over 20 years (which requires a large amount of money to correct) are the major issues being faced in the country.

“Thus, the growing water crisis in many parts of South Africa are leading consumers to shift toward bottled water, as it is clean and hygienic, microbe-free, and safe,” says Vijay Sarathi, a lead analyst at Technavio for non-alcoholic beverages research.

Rampant water contamination

South Africa is facing problems in ensuring that water resources are clean and safe for human consumption. There is growing concern regarding the toxicity of water in South Africa, which is leading to increased bacterial growth such as Pseudomonas, Escherichia coli, and Salmonella. This can lead to health problems such as severe kidney disease, bacterial diarrhea, intestinal deterioration, and arthritis.

The excessive utilization and exploitation of water bodies in South Africa have depleted drinking water sources. Many large industries pollute water bodies by dumping toxic and unrecyclable waste, leading to water contamination. However, as most bottled water brands try to meet the standards imposed by the government and regulatory bodies, consumers are increasingly switching to bottled water, which is clean, purified, bacteria-free, and safe.

Changes in consumer lifestyle

Economic development in South Africa and the subsequent increase in income and changing lifestyles have a correlation with bottled water consumption. Consumers prefer bottled water not only for hydration but also as a functional beverage.

Many people lead an “on-the-go” lifestyle, and the convenience of bottled water makes it a healthy and convenient option. They also seek varieties of flavored and sparkling bottled water as substitutes for carbonated beverages. Marketing and promotions by companies also influence the growth of the market. Vendors represent their brands as “status beverages” and market their products using celebrities, portraying bottled drinking water as a glamorous option. Bottled water is also viewed as an alternative to alcohol or carbonated beverages in social settings.

Demand for safe and clean water

The prevalence of waterborne diseases and scarcity of tap water create a high demand for bottled water. Bottled water is also convenient as boiling water at home is time-consuming and not energy-efficient. Bottled mineral water is purified and fortified with dissolved minerals, which provides an added health benefit for consumers. The need to provide safe drinking water and the growing population in South Africa make it a favorable destination for multinational bottled water manufacturers.

“Many companies offer products in small-sized packages at low cost to increase distribution among consumers with low disposable incomes. The market is fragmented, with the presence of many vendors providing bottled water at different prices. The demand for affordable and small-sized products is expected to contribute to the revenue of the bottled water market in South Africa during the forecast period,” says Vijay.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

Source: Business Wire