Bottled Water - Iceland

The Bottled Water market in Iceland has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the increasing health consciousness among consumers. Bottled water is perceived as a healthier alternative to other beverages, such as sugary sodas or juices. In addition, the convenience and portability of bottled water make it a popular choice for on-the-go consumption.

Trends in the market: Another trend in the Bottled Water market in Iceland is the growing demand for premium and flavored water. Consumers are willing to pay a premium for bottled water that is sourced from natural springs or has added minerals for enhanced taste. Flavored water, such as fruit-infused or sparkling water, is also gaining popularity as a refreshing and healthier option to sugary drinks.

Local special circumstances: Iceland's unique geography and natural resources play a significant role in the Bottled Water market. The country is known for its abundance of natural springs and glaciers, which provide a pristine source of water. The purity and high mineral content of Icelandic water make it desirable both domestically and internationally. Additionally, the country's commitment to environmental sustainability has led to the rise of eco-friendly packaging options, such as biodegradable bottles made from plant-based materials.

Underlying macroeconomic factors: The growing tourism industry in Iceland has also contributed to the growth of the Bottled Water market. As more tourists visit the country, there is an increased demand for bottled water as a convenient and safe option for hydration. The tourism industry has also led to the development of innovative packaging and marketing strategies to attract international consumers. Furthermore, the relatively high disposable income of Icelandic consumers allows them to afford premium bottled water products. In conclusion, the Bottled Water market in Iceland is experiencing growth due to the increasing health consciousness among consumers, the demand for premium and flavored water, the country's unique geography and natural resources, the growth of the tourism industry, and the relatively high disposable income of Icelandic consumers.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.