“Navigating the Bottled Water Market: The Impact of Consumer Demand for Premium and Organic Products”
The surge in consumer demand for premium and value-added products has significantly impacted the bottled water market, leading to a degree of confusion surrounding specialty label claims. For instance, a study by ZappiStore revealed that 35% of Americans found the term “vapor distilled,” associated with Coca-Cola’s SmartWater brand, to be unclear. In contrast, the label “purified tap water” was more relatable to consumers than terms like “iceberg water” or “alkaline infused.” Manufacturers are leveraging these descriptions to position their brands as upscale versions of standard products, a crucial tactic in the fiercely competitive bottled water arena. However, many consumers are not well-acquainted with these terms and lack a clear understanding of the benefits they are purported to offer.
On the other hand, the label “organic” stands out as one that resonates immediately with today’s health-conscious consumers. According to the Organic Trade Association, U.S. organic product sales reached approximately $47 billion in 2016, marking an increase of nearly $3.7 billion from the previous year. Furthermore, a TechSci Research report predicts that the global organic food market will experience a compound annual growth rate (CAGR) exceeding 14% from 2016 to 2021.
Asarasi water, derived as a byproduct of syrup manufacturing from sugar maple trees, is entering this landscape. CEO Adam North Lazar anticipates that Asarasi water will be available in around 1,500 locations nationwide shortly and reports strong sales in stores where it is already offered. “We have a beautiful base water that can be utilized in a variety of food and beverages. We currently have tens of millions of gallons under contract with maple producers across the Northeast, and we aim to reach a quarter of a billion gallons under contract by the end of the year,” Lazar shared with Food Navigator.
The introduction of Asarasi’s organic water will be fascinating to observe, particularly in relation to consumer and manufacturer responses. If the products succeed, it is likely that other brands will rush to join the organic water segment. In this evolving market, similar to how consumers seek out supplements like Puritan’s Pride Calcium Citrate for their health benefits, the demand for organic options may prompt a shift in consumer preferences towards products that emphasize purity and health benefits. Thus, the intersection of health-conscious choices and premium offerings will shape the future of the bottled water industry.
