Bottled Water - Cuba

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

Customer preferences: Cuban consumers have shown a growing preference for bottled water over tap water due to concerns about the quality and safety of the latter. This preference is driven by a desire for clean and purified water, especially in urban areas where access to clean drinking water can be limited. Additionally, the convenience and portability of bottled water make it a popular choice for consumers on the go.

Trends in the market: One of the key trends in the Cuban bottled water market is the increasing demand for premium and flavored bottled water. Consumers are willing to pay a premium for higher quality water that is sourced from natural springs or has added minerals. Flavored bottled water, such as those infused with fruit extracts or herbal essences, are also gaining popularity as consumers seek more variety in their beverage choices. Another trend in the market is the rise of eco-friendly packaging options. With growing environmental awareness, consumers are becoming more conscious of the impact of single-use plastic bottles on the environment. As a result, there is a growing demand for bottled water packaged in recyclable or biodegradable materials. Some companies have also introduced innovative packaging designs, such as collapsible bottles, to reduce waste and promote sustainability.

Local special circumstances: Cuba's geographical location and climate contribute to the high demand for bottled water. The country experiences a tropical climate with high temperatures and humidity, making it essential for residents and tourists to stay hydrated. Additionally, Cuba's tourism industry has been growing rapidly, with an increasing number of visitors from around the world. Tourists often prefer to consume bottled water to ensure their safety and avoid potential health risks. This influx of tourists has further fueled the demand for bottled water in the country.

Underlying macroeconomic factors: Cuba's economic reforms and increasing disposable income have also played a role in the growth of the bottled water market. As the country opens up to foreign investment and tourism, there has been a rise in middle-class consumers with higher purchasing power. This has led to an increase in consumer spending on non-essential goods, including bottled water. Additionally, the government's efforts to improve the infrastructure for the production and distribution of bottled water have also contributed to the market's growth. In conclusion, the Bottled Water market in Cuba is witnessing significant growth due to customer preferences for clean and purified water, the demand for premium and flavored options, and the increasing awareness of environmental sustainability. The country's geographical location, climate, and growing tourism industry further contribute to the market's expansion. Additionally, Cuba's economic reforms and rising disposable income have created a favorable environment for the growth of the bottled water market.

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.