In 2007 sales of bottled water in the US rose by 6.9% in volume terms according to the Virginia-based International Bottled Water Association (IBWA). Wholesale value sales climbed to $11US.7bn - a 7.8% increase on the year before. According to IBWA statistics, sales of bottled water have been steadily increasing for the last seven years; however, the 6.9% increase in 2007 was the lowest in that entire period.

Lower Growth In 2007

US Bottled Water Market

Source: International Bottled Water Association

This reduction in growth is likely to have been partly prompted by consumers becoming more price conscious as the US economy slows but may have also been driven by growing environmental awareness. Environmental groups argue that packaging and then transporting water across the world is environmental madness when safe water is available on tap.

These concerns have prompted firms to reduce the amount of packing used when bottling water. For example, a spokesperson for Nestlé Waters in North America revealed that the firm had introduced a bottle that used 30% less plastic. However, in the UK a successful campaign against bottled water suggests that these measures may not be sufficient in quelling the protests of environmental campaigners. According to retail analysts, TNS sales of bottled water in the UK fell by 9% in year to March 2008. This fall followed a concerted media campaign to encourage consumers to ask for tap water in restaurants and to avoid drinking environmentally unfriendly bottled water when possible.

The continued growth in sales in the US suggests that the environmental message is not yet having the same effect here; however, there are several signs that environmental campaigners may be starting to have an effect on public attitudes. The Washington-based Earth Policy Institute claims that many local governments have introduced legislation to limit bottled water use and promote tap water and that many schools, restaurants and religious groups have followed this example. With these campaigns starting to spread across the country, BMI expects the growth in bottled water to continue to slow and would not be surprised if sales even start to decline in the not too distant future.