The Spain bottled water market reached a value of around EUR1.7 billion by the end of 2012, growing at a CAGR growth rate of 1% between 2008 and 2012. It is forecast that the industry will see a decline between the years 2012 and 2016, due to the ongoing economic recession in the country.
The demand for bottled water in Spain in the off-trade channel saw improvement in 2012, after years of poor value sales performance, especially after the start of the 2008 economic crisis. Volume sales fell in both 2008 and 2009, while remaining flat in 2010. As a result, Spain's bottled water market saw a slight growth during 2012. Although bottled water is not an essential product for consumers in Spain, the industry is driven by the low quality and taste of tap water is certain geographic regions of Spain. The market witnessed slower growth performance for value sales rather than volume sales due to the preference of Spanish consumers to purchase larger pack sizes and family formats, as well as the ongoing price was between manufacturers.
The leading player in Spain's bottled water market continued to be Aguas Font Vella y Lanjaron SA, leading with an off-trade value share of 16% in 2012. The company benefits from strong popularity and brand image among consumers in Spain, and a large distribution network across the country. Despite being the largest player, the company is suffering from the development of private label brands and consumers switching to higher value of money products. Due to this trend Aguas Font Vella y Lanjaron has seen its share of the industry slip since to onset of the 2008 economic crisis.
The bottled water market is Spain is expected to be the mercy of the economic recession, which is forecast to last until at least 2014. With consumers cutting down on leisure activities in order to save money, sales in the general foodservice industry will suffer. Between 2012 and 2016 it is expected that the Spain bottled water market will decline at a CAGR rate of -4%.
For more information on the Spain bottled water market, see the latest research: Spain bottled water market
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