The consumption of bottled water in India has shown a jump of 21 per cent in last fiscal but still India is far behind as compared to global average,according to a research recently conducted by leading marketing firm IKON.
The per capita consumption of bottled water in India was at 16.20 litres during 2010-11 and jumped by almost 21 percent to 19.60 litres in 2011-12,IKON said in its report ‘The Indian bottled water market,unveiling its thirst’.
South India is the biggest consumer of bottled water representing more than 50 per cent the total market in India followed by Western India,which is the home ground of major national brands,it said.
However,comparing it with global market,India is far behind the global average of around 30 litres,the report said.
“Globally,the western countries are having the highest per capita consumption of bottled water with Mexico being on top having highest per capita consumption of more than 250 litres,followed by Italy at around 190,” IKON’s founder and principal consultant,Azaz Motiwala,said here today.
“The Asian countries are far behind in terms of per capita consumption of bottled water with only Thailand (115 litres) and China-Hong Kong (95 litres) representing in top 20 countries with highest per capita consumption,” Motiwala said.
But,by the end of 2020,consumption in India will reach around 30 litres but at the same time global average of consumption of bottled water would be around 40 litres,Motiwala said.
“India is way behind,but gradually unlocking its potential,” he said.
Ample availability at every nook and corner,changing life style and rise in spending capacity of consumers are the key factors behind the rising per capita consumption,the report said. Besides,Indian consumers becoming more health conscious and changing consumer attitude are also key factors behind the rising per capita consumption,the report said adding that youth and working population avoiding carry water with them from home,rather they prefer to buy bottled water from convenient sales points.
Currently,the Indian bottled water market (including organised and unorganised players) is estimated at Rs 8,000 crore and is expected to be Rs 10,000 crore by 2013,the report said.
The bottled water market is growing at 19 per cent CAGR (compound annual growth rate) and likely to reach Rs 15,000 crore by 2015 and over four-folds to Rs 36,000 crore by 2020,the report said.
“The increasing scarcity of safe drinking water,changing life styles and aggressive expansion by market players may lead this industry to be the next oil industry in coming decade,” Motiwala,expressing optimism about the future of Indian bottled water market,said.
“Rising trend of bulk water consumption in homes and institutional segments will pave way for bulk water packs to acquire half of the total bottled water market within next 4-5 years,” IKON senior consultant Taruna Sondarva said.
“The major growth contributors will be the mushrooming of bulk water pack suppliers duo to less entry barriers to the industry,” she said.