• October 14, 2011

Bottled water sales are starting to show signs of rebound, driven largely by sparkling waters, reports Beverage Industry.

The overall category’s sales increased by 2%, to $7.8 billion, for the 52 weeks ending Aug. 7 in supermarkets, drug stores, gas and convenience stores and mass merchandise outlets, excluding Wal-Mart, according to SymphonyIRI Group.

Still bottled water saw 1.7% growth (to $6.5 billion) during the period, bulk water sales were flat (at  $853.3 million), the researcher reported. Meanwhile, sparkling bottled waters saw an 11.8% leap, to $437.7 million.

The overall category’s sales were flat in 2010, reflecting private label’s high share in the category and promotional pricing by national brands, as well as the economy, Mintel International senior analyst Garima Goel Lal told BI.

SymphonyIRI reported that private-label sales gained nearly 4% during the 52-week period ending Aug. 7, to $1 billion, and now have a 15.5% market share.

Young (18 to 24) Hispanics and African-Americans are the key demographic for sparkling water, said Goel Lal, and premium brands have seen the greatest sales growth. Nine of the top 10 sparkling brands saw moderate to significant growth in the 52-week period (including nearly 40% and 16% growth for Nestle Waters’s Arrowhead and San Pellegrino, respectively), per SymphonyIRI.

Within the still water segment, growth has been driven by waters enhanced with new flavors and nutrients and vitamins, as well as by calorie reductions, according to Goel Lal.

Standouts include Coca-Cola’s Glaceau Vitaminwater Zero (sales up 160% during the 52-week period), PepsiCo North America’s SoBe Lifewater Zero (not in the top 10, but sales up 18%).