Although they have a purchasing power 18% lower than the European average, Romanians buy more than 70% more bottled water than the average of residents of Eastern European countries.

Romania is in an extremely interesting moment for the bottled water category, being in a process of expansion and diversification of the offer, of growing demand from consumers and, at the same time, of increasing awareness of the impact on which packaging has on the environment. The analysts of the specialized consulting company Growth Leadership Consulting reveal a series of interesting information regarding the categories and consumption habits of bottled water manifested among Romanians. Bottled water exceeds the standard of a necessity product among the Romanian consumer and, by diversifying the categories and ways of presentation, changes their consumption habits. The consumption vectors of bottled water were the need to make up for the lack of drinking water on the one hand and the Romanian tradition of mineral water on the other.

Higher net consumption values and continuously increasing

The drinking water deficit affects 11% of the population of the European Union, a large part of Romania falling into this category and, implicitly, this leads to an increased consumption of bottled water. Although Romanians have a purchasing power 18% lower than the European average, as indicated by the Eurostat study from 2021, the habits related to the consumption of bottled water are at the opposite pole of their neighbors in countries that exceed the purchasing power of the European average (France, Finland, Sweden, Belgium, Austria, Holland, Germany, Denmark, Luxembourg).

According to a study carried out by Euromonitor International, the consumption of bottled water in Romania stood at 115.3 l/person/year, a value that is 72% higher than the average recorded for countries in the Eastern European region which is 69 l/person/ year. "Even under these conditions, the consumption of bottled water follows an upward trend, with an estimated increase of up to 15 l/person/year until 2026. If we talk about Romania, regarding market dynamics and consumer behavior, we expect that this growth to be 20-25 l/year/person," declares Lucian Marin, Managing Partner Growth Leadership Consulting.

During the pandemic, there was an increase in pet bottled water consumption both because people stayed at home more and because they started using bottled water for more purposes. The trend continues today, being fueled by the expansion of the home office practice and the latency that habits acquired during the pandemic have. An example of this is given by the fact that now bottled water is used much more for cooking.

Although the consumption of filtered tap water is also increasing due to the abandonment of bulky transport and concern for recycling, this does not become a significant trend from a volume perspective due to the reluctance of the population regarding the efficiency of the filters used, the frequency of their change and of the system itself.

European trends for the Romanian consumer

Although, paradoxically, water consumption in Romania is far below the European average, the macroeconomic trends that determine the behavior of both consumers and large producers and bottlers are the same. Thus, we are witnessing much more education on the topic of sugar consumption (for augmented water) and on mineral concentrations, and the focus of consumers is on an immediate proximity, a super-localization, the consumer wanting to consume the water produced right next to him, and in Romania is all the more possible as we have many local sources.
At the same time, there is a hyper-focus on health translated into a focus on the consumption of natural food, natural drinks and the most natural water intended to generate energy. There is also an increased interest in sensory experiences, where consumers are looking for premium quality and variety, while having an increased interest in safety, traditionalism, simplicity as a result of global situations (such as the pandemic) or in their proximity (such as war from Ukraine).
As in any market, price is the deciding factor and dictates the course of the market. In this regard, there is a focus on low costs, with consumers looking for ways to maximize their income through smart shopping, turning to bundle deals or brands with special offers.
At the same time, there is a real interest in sustainability and ethical ways of doing things. A high degree of attention is paid to the way in which a product or packaging is produced, consumed, recycled, reused and extended its life.

Local market development directions identified by Growth Leadership Consulting

Following and analyzing the trends manifested in the local market, Growth Leadership Consulting analysts have identified four significant directions of evolution:
1. Migration of consumption towards premium product categories
2. Increasing the variety of packaging presented, especially in the premium segment – sport type or non-returnable glass
3. Accelerating the presence of private brands in packages intended for "on the go"
4. Accelerated penetration of global brands in the Horeca sales channel.
“The growth forecast is still <> and we believe that in the non-alcoholic drinks category, where water today holds 45% of the total, water will be a key contributor to growth in the coming year, providing an important source of profit for the retailer and for suppliers," emphasized Lucian Marin, Managing Partner Growth Leadership Consulting.

From the perspective of consumers, the available products fall into the following categories:
– Basic – water for hydration
– Lifestyle – water as a symbol of lifestyle
– Flavored water – preferred by young people, most often by “millennials”
– Augmented/functional water (water with vitamins and minerals) – preferred by people with a very conscious and health-focused lifestyle
Flavored water and augmented water often come in disruptive packaging, designed to banish monotony, challenging the norms of the water category (metal cans or non-conformist bottles). The most profitable segments now in Romania are the premium ones, flavored water and functional/augmented water, although they are the smallest in terms of volume.

A category that is gaining more and more ground and interest, but insufficiently exploited by any producer/bottler, is that of alkaline water, bought especially by those who show an increasing interest in a healthy lifestyle .
The aging population generates a change in consumption habits translated by a more meaningful orientation towards healthier alternatives, the preference of this demographic category in terms of packaging method being 5 liter cans. From the perspective of the brands they consume, two options are differentiated: those that directly communicate health benefits and those that offer the lowest cost alternative.
All brands are adapting their product portfolios to expand as much as possible in the Horeca area, seen as the most profitable category for bottlers.

Environmental impact concerns

Aware of the impact that the consumption of bottled water and the packaging used have on the environment, the European Union is making substantial efforts. In the period 2014-2020, the EU invested €14.8 billion through cohesion policies to increase the supply of drinking water and its quality to 12 million people after a further 6 million in 2007-2013. people have benefited from the increase in the quality of the water supplied at the tap.
These initiatives come in the context of the EU Plastics Strategy stating that an increase in the quality of tap water would lead to a decrease in the consumption of bottled water by 17%, given that the cost of tap water is now E0.0002 /liter, well below the price a consumer pays at the shelf.
Also in this context, producers have at their disposal a series of opportunities for differentiation through innovative recycling processes in collaboration with the authorities and which include the consumer more. Gamification solutions can be implemented, which move recycling from an aspirational and desirable area to a social norm, and which remove barriers such as the lack of information and recycling procedures known to all consumers.