Bottled Water - Sri Lanka

The Bottled Water market in Sri Lanka has been experiencing significant growth in recent years.

Customer preferences: Customers in Sri Lanka have shown a growing preference for bottled water due to concerns about the quality and safety of tap water. This trend is driven by the desire for clean and safe drinking water, particularly in urban areas where water pollution and contamination are more prevalent. Additionally, the convenience and portability of bottled water make it a popular choice for consumers on the go.

Trends in the market: One of the key trends in the bottled water market in Sri Lanka is the increasing demand for flavored and functional waters. Consumers are looking for more variety and options in their bottled water choices, and companies have responded by introducing a wide range of flavored waters with added vitamins, minerals, and other functional ingredients. This trend is driven by the growing health consciousness among consumers and their desire for beverages that offer additional health benefits. Another trend in the market is the rise of premium and luxury bottled water brands. These brands cater to consumers who are willing to pay a premium for high-quality and unique bottled water products. The packaging and branding of these premium brands are also an important factor in their success, as they are often positioned as luxury lifestyle products.

Local special circumstances: Sri Lanka's warm and tropical climate is a major factor driving the demand for bottled water. The hot weather and high humidity levels make it essential for people to stay hydrated, and bottled water provides a convenient and easily accessible source of hydration. Additionally, Sri Lanka's tourism industry is a significant contributor to the demand for bottled water, as tourists often prefer to drink bottled water to avoid any potential health risks.

Underlying macroeconomic factors: The growing middle class in Sri Lanka has contributed to the increasing demand for bottled water. As disposable incomes rise, more consumers are able to afford bottled water as a daily staple. Additionally, urbanization and the increasing number of people living in cities have led to a higher demand for packaged water, as access to clean and safe drinking water may be limited in some areas. In conclusion, the Bottled Water market in Sri Lanka is growing due to customer preferences for clean and safe drinking water, the introduction of flavored and functional waters, the rise of premium and luxury brands, the warm climate, the tourism industry, the growing middle class, and urbanization.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.