Mintel: Bottled Water Second Most Popular Beverage, SoyProducts Market Losing Momentum

Mintel: Bottled Water Second Most Popular Beverage, SoyProducts Market Losing Momentum

CHICAGOTwo-thirds of Americanconsumers drink bottled water, making it the second most popular beverage choicein the United States, and the market for soy products may be waning, accordingto consumer research conducted by Mintel.

While carbonated drinks still dominate the overall beveragemarket in terms of sales and have a 90-percent consumption rate, bottled waterhas become the second most consumed beverage in the United States based onvolume, and sales of soy food and soy drink products rose just 6 percent between2003 and 2004, although they increased 17 percent between 2001 and 2002,according to Mintel.

Mintel (www.mintel.com) also reported bottled water issignificantly more popular with women than men, and teens than adults; approximately 43 percent perceive a significant differencebetween brands of bottled water and two-thirds are brand loyal; and mid-pricedbrands are used by 70 percent of consumers, value brands are chosen by 60percent, and only 13 percent drink premium brands such as Perrier or Fiji.

According to Mintels Global New Products Database, morethan 120 new bottled water introductions entered the U.S. market in 2004, anincrease over 114 new introductions in 2003 and 92 in 2002; and more than 435new products with soy as a key ingredient entered as of December, 2004, up from329 products reported for 2003.

In spite of bottled waters apparent popularity, Mintelpredicted steady deceleration in the market for the beverage.

Even with increased innovation and branding, the days ofdoubledigit growth in the bottled water market are likely over as the marketcontinues to mature, said Tamu Johnson, market analyst for Mintel, in astatement. While significant growth is still expected through 2008, per annumgrowth will likely settle to 5 percent to 10 percent per annum.

Mintel reported soy products have moved beyond meatalternatives and soy milk to a host of segments including frozen desserts, saladdressings and snacks, and the proliferation of new delivery systems for soy hasincreased the possibility that consumers will find new ways to add soy to theirdiets. The soy market will move into a more stable, mature phase, with specificsegments continuing to show growth, according to Mintel.