Growing global health trends, combined with an increasingly apparent lack of safe drinking water around the world, have produced considerable momentum in the bottled water space and premium mineral waters from untouched natural springs. Within just the last handful of years a dramatic shift has occurred in beverage consumption by adults all over the globe towards healthy choices and the bottled water market was even recently pegged in a new report published by Transparency Market Research as being on track to hit around $280 billion by 2020, growing at a CAGR of 8.7%.
MarketResearch.com analysis indicates a 20% growth rate over the past decade in the number of adults consuming five or more bottles of water per day, even as their consumption of beverages like diet and regular soft drinks plummeted. A Netscribes report also shows that the global trend towards bottled waters, and premium water in particular, is rock-solid, with the premium sparkling water market and enhanced or functional waters emerging as not only a favored beverage choice among global consumers, but as a healthy lifestyle fashion statement and even a fashion accessory. Currently, the breakdown of the bottled water market is roughly 65% still (regular), 23% carbonated, 7% flavored, and 5% functional, with the Asia-Pacific market forecast to outstrip all other markets over the next five years, running a 10.5% revenue CAGR on the strength of high-volume consumption, growing disposable income, and growing concerns over water quality.
IBISWorld’s recent report on U.S. bottled water production put the domestic market alone at over $8 billion in revenues last year, with more than 40% of the market being dominated by a tiny handful of players, including Coca-Cola (NYSE: KO) and Nestle (OTC: NSRGY), who have devoted an increasing amount of attention to the bottled water market in recent years, despite being brands more widely recognized for beverages like sugary soft drinks and chocolate milk. And yet the high-end, premium, private label market is still largely underdeveloped. Nestle’s water division for instance accounts for upwards of 10% of trading operating profit, with India and Indonesia remaining strong markets for the company, but players like Nestle only do broad spectrum consumer waters, where there is stiff competition and their biggest regional rival, France-based Danone (OTCQX: DANOY), is seeing similar headwinds in China. Outfits like the rapidly growing private group, Hangzhou Wahaha, which is able to capture market share more readily with its strong rural distribution network and established brand presence for nutrition drinks and teas, is taking the big boys to the cleaners in the broader consumer market. With all the competition focused on the broader consumer space, the major players have left the niche premium water market largely untouched.
One of the up and coming players in this burgeoning sector today is Boreal Water Collection (OTC: BRWC), an award-winning provider of premium bottled water, which is sourced from their abundant and pristine spring deep in the heart of the Catskill Mountains. BRWC caters largely to the attractive niche market of high-end private label clients, exploiting their established presence as a boutique bottler to capitalize on this still largely overlooked and fragmented space. BRWC CEO, Francine Lavoie, personally flew to attend the FHC China Show late last year to help capture more of this choice target market for Boreal’s premium bottled water, as the FHC show is the essentially the exhibition of choice for food and beverage importers, attracting key decision makers from across the Chinese retail, import, and hospitably sectors.
The hospitality market is a core demographic for BRWC, as evinced by their landing the Chatwal Hotel (New York) last year as a new client. The Chatwal Hotel is a luxe boutique hotel just two blocks off Times Square and Bryant Park, which occupies a gorgeous landmark building styled with 1930s art-deco interiors, attracting a select clientele that demands the very best in bottled waters. The Chatwal Hotel is well known for its luxurious spa, featuring an indoor saltwater pool and 24-hour fitness center, as well as The Lambs Club Restaurant & Bar, a fine-dining restaurant with a chic little bar, making this client an ideal addition to BRWC’s growing list of such high-end hospitality industry clients. High-end hotels like Chatwal are turning more and more towards providers like BRWC, who can offer custom bottle design and labeling, as well as premium water content that will whet the whistles of their discerning clientele.
Boreal Water Collection produces a wide variety of still, carbonated, flavored and functional waters, like caffeinated and mineral enhanced, and they have a broad array of bottle design options for their clients to choose from. Boreal does all its bottles in-house as well and uses extremely safe, high-quality PET plastics, which are not known to leach any chemicals suspected of causing cancer or disrupting hormones, like BPA plastics that make up most of the cheap water bottles on the market today. BRWC even uses company-owned PET moulds to produce their bottles, ensuring the highest standards in quality, and the bottles also have custom safety caps and seals to ensure no leaks occur and no air gets in to contaminate the product. Moreover, BRWC uses a rigorous ozonation process to disinfect the bottle and cap prior to bottling, leaving nothing in the bottle but the pure, clean taste of the spring water produced from deep inside thick, impermeable layers of prehistoric clay at the company’s natural spring source.
Water connoisseurs know that origin source makes all the difference when it comes to taste and health benefits, and that waters taste much different depending on where they come from, as well as what kind of source geology is present. The Boreal Water Collection spring is 600 million year-old Precambrian host rock that is naturally isolated from surface drainage and run-off, and the waters are produced through a dense series of layered crystalline shelves that act as a natural filter, giving the company’s water an incredibly delicious mineralized purity that has won them admirers from around the world.
Learn more about the company by visiting www.borealwater.com
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