Healthy and cool? Packaged water sales in China driven by new consumer preferences
China has overtaken Japan as the largest market in Asia for Perrier, as brand-conscious consumers embrace healthier options
Premium mineral waters have enjoyed continuing sales growth in mainland China, benefiting from rising awareness of health and a growing appetite for branded drinks among newly affluent urban consumers.
In the first half of this year, sales of packaged water grew 14 per cent by value, well ahead of a 2 per cent rise of all types of fast-moving consumer goods, according to data from market research firm Kantar Worldpanel.
Chinese consumers have been embracing health and wellness, shying away from products considered less healthy such as chewing gum and confectionery. The growth also goes against trend, as sales of consumer goods have been relatively sluggish amid a rising appetite for travel, dining and entertainment.
“Water is a vibrant category as Chinese shoppers pursue a ‘go healthy path’,” said Jason Yu, general manager at Kantar Worldpanel in Greater China. “Overall, local brands take dominance in the mass market, with the top five local brands accounting for 70 per cent of market share. But in the upscale segment, imported brands have an upper hand.”
The trend bodes well for Swiss food and beverage giant Nestle.
The company has already seen “higher than expected” double-digit growth for sales of its premium sparkling mineral water brands Perrier and San Pellegrino.