Bottled Water - Azerbaijan

The Bottled Water market in Azerbaijan has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: In Azerbaijan, there has been a shift in customer preferences towards healthier beverage options, leading to an increased demand for bottled water. Consumers are becoming more health-conscious and are choosing bottled water as a healthier alternative to sugary drinks. This preference for healthier options is a global trend, driven by increasing awareness about the importance of hydration and the negative health effects of sugary beverages.

Trends in the market: One of the key trends in the bottled water market in Azerbaijan is the rising popularity of flavored and functional waters. Consumers are looking for more variety and are seeking out flavored waters that offer a refreshing taste. Additionally, there is a growing demand for functional waters that provide added benefits such as vitamins, minerals, or electrolytes. This trend aligns with the global shift towards functional beverages and the desire for added health benefits. Another trend in the market is the increasing popularity of premium and luxury bottled water brands. As disposable incomes rise in Azerbaijan, consumers are willing to spend more on premium products that offer a unique and high-quality experience. Premium bottled water brands often differentiate themselves through their packaging, source of water, or unique filtration processes. This trend reflects the growing consumer desire for premium products and the willingness to pay a premium price for perceived quality.

Local special circumstances: Azerbaijan is a country with a rich natural resource base, including an abundance of natural springs and mineral water sources. This has led to a strong local industry for bottled water production. The availability of natural water sources has made it easier for local companies to enter the market and compete with international brands. Additionally, the local production of bottled water helps to create jobs and stimulate the economy.

Underlying macroeconomic factors: The growing bottled water market in Azerbaijan can also be attributed to favorable macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable incomes. This has allowed consumers to spend more on discretionary items such as bottled water. Furthermore, improvements in infrastructure and distribution networks have made bottled water more accessible to consumers across the country. In conclusion, the Bottled Water market in Azerbaijan is developing due to changing customer preferences towards healthier options, emerging trends such as flavored and functional waters, local special circumstances including an abundance of natural water sources, and underlying macroeconomic factors such as economic growth and improved distribution networks. As these factors continue to drive the market, the bottled water industry in Azerbaijan is expected to grow further in the coming years.

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.