The Power of the Luxury Water Market
Luxury or health? Since premium water, often considered a gourmet product, became a hit, it has been widely debated in the public eye. Premium water is gaining more and more consumers over time, as people seek out new ways to care for themselves. Naturally, this growing social fad comes at a higher price, but there is an increasing amount of evidence as to its health benefits which is why imports and exports of premium water is on the rise.
Water is the foundation for life. There are those who believe that future wars will be fought over control of water; in many countries, private enterprises are seeking and gaining control over the water supply. In this context, producers of premium water have learned to distinguish its value from that of regular drinking water.
Specifically, its value comes about from the customer experience and the health benefits premium water can offer us. Benefits for each type of premium water may include:
- Carbonated: Recommended before and after eating because it stimulates appetite and facilitates digestion.
- Bicarbonate/alkaline: Combats the acidity of the stomach, facilitating digestion.
- Calcium-rich: Recommended for pregnant women, children, the elderly, and for preventing osteoporosis since calcium helps to strengthen bones and teeth.
- Magnesium-rich: Similar effects to calcium, in addition to being a laxative.
- Fluoride-rich: The right amount can help prevent cavities.
- Sodium-rich: Strengthens nerve synapses and helps to maintain osmotic balance.
- Low-sodium: Excellent for people with kidney problems and high blood pressure.
“Waiter, may I see the water menu?”
Branding is key to creating the desired consumer experience. Companies can achieve a higher brand positioning by paying careful attention to these unique aspects:
- Luxurious presentation: From containers made from special types of glass to diamond-encrusted bottles – it’s all worthwhile if the consumer gets it in his head that he is drinking an exclusive beverage, and feels that this product is not for just anyone. He may refill his bottle time and time again (even if it is with regular water).
- Product origin: Rainwater filtered over decades in remote caves on islands in the Indian Ocean; Hidden springs in the Amazon rainforest… An exotic origin brings the imagination to life, so that consuming the product becomes an emotional experience.
- Highlighting the benefits: As we’ve seen, the health benefits of premium water fulfill the rising demand for products that make us feel healthy, as well as communicate higher status to those around us. The truth is, living healthy makes us more attractive as well.
- Exclusivity at points of sale: Points of sale such as luxury hotel chains or high-end restaurants are already beginning to include a wider selection of water as an indicator of glamor, and some even suggest different pairings for these beverages.
Based on a consumer behavior study conducted by Euromonitor International, Fan México and Kantar Worldpanel, the volume of bottled water sold in Mexico increased from USD 5 billion to USD 7.8 billion between 2009 and 2014, a 55.5% increase in just five years. The premium water market represents 10% of all bottled water, which is a sector that is almost entirely monopolized by three major companies, leaving little to no room for newcomers.
This market has benefitted from Mexico’s standing as a leader in bottled water consumption (165 liters (~44 gallons) per year per person, not including data from bars and restaurants. The average consumer profile is individuals with high income, who maintain a healthy lifestyle by playing sports and who drink premium water consistently on special occasions. Additionally, these individuals are considered influencers who affect final purchasing decisions of a number of other potential consumers.
Importing and Exporting Premium Water
At TIBA we have ample experience exporting and importing alcoholic and non-alcoholic beverages, including premium water. What sets us apart is our careful management of customs procedures to fully support your project both at origin and destination, thanks to our vast knowledge of guidelines for all types of bottled beverages. Contact us to learn more!