By Dominique Patton EVIAN-LES-BAINS, France, April 2 (Reuters) - Danone said on Thursday rising health awareness among consumers in Britain and France is driving a shift from sugary drinks to bottled
Danone Sees Bottled Water Surge as Health-Conscious Consumers Shift Away from Sugary Drinks
Health Trends Drive Growth in Bottled Water Market
By Dominique Patton
EVIAN-LES-BAINS, France, April 2 (Reuters) - Danone said on Thursday rising health awareness among consumers in Britain and France is driving a shift from sugary drinks to bottled water, boosting sales of the French consumer goods giant's brands like Evian.
Food companies from Nestle to Unilever have spent the past decade grappling with a shift by health-conscious consumers towards fresher, less sweet products.
Impact of Health Awareness and Weight Loss Drugs
This trend has been amplified by the rise of GLP-1 weight loss drugs in Europe and the United States.
Bottled Water Market Growth Statistics
Europe's 18 billion euro ($21 billion) bottled-water market grew 5% in value and 3% in volume last year, its fastest pace in recent years, said Antoine Portmann, managing director of Danone Waters Europe. That was led by 7% growth in value in France and 9% in Britain.
"What is driving this, I think, is more and more consciousness from consumers about the importance of healthy hydration," he told Reuters in an interview in Evian-Les-Bains at the foot of the French Alps.
"So I think that's why, structurally, we believe that this growth will continue."
Regional Differences in Beverage Preferences
Portmann acknowledged that in some markets, sugary drinks still dominated. Water sales of some 4.85 billion euros last year - under a fifth of Danone's total - were up 1.9% globally, and 3.3% in Europe.
Busy Lifestyles and On-the-Go Consumption
Changing Consumer Habits
BUSY CONSUMERS HELP ON-THE-GO WATER SALES
Portmann said busy consumers with little time for sit-down meals were helping sales, too.
"They go for options that they can eat on-the-go, and each time they will need to carry some water with them," he said.
Danone’s Investment and Competitive Landscape
Danone is stepping up investment in its water brands, committing 20 million euros to upgrade its Evian bottling facility, and 8 million euros to preserve its Evian, Volvic, Badoit and La Salvetat sites.
The push comes as rival Nestle seeks to sell a 50% stake in its water unit, which includes Perrier and San Pellegrino.
($1 = 0.8678 euros)
(Reporting by Dominique PattonEditing by Bernadette Baum)
