Moody's has issued a new report that claims that the burgeoning bottled water market will help lift the stagnant beverage sector in the coming years.
The report, Soft Beverages -- Europe: Bottled Water Growth To Offset Slowdown In Other Segments, But Impact on Credit Quality Limited For Now, says that fast-growing demand for bottled water is likely to continue over the 'next five years, as health-conscious consumers shun sugary drinks like traditional carbonated soft drinks and fruit juices'.
This is likely to benefit companies such as Nestlé and Danone, who have seen declines in other food segments, says Moody's.
"Increasingly health conscious consumers are drinking more water," commented Paolo Leschiutta, a Moody's Vice President -- Senior Credit Officer and co-author of the report.
"As such, bottled water, which is nearly a quarter of the overall soft drinks market in terms of value, will help organic revenue growth in the drinks sector. This will benefit Nestle and Danone, who are the two largest global players in the segment."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.