Agenda 8.Bottled Water-Media Experience and Consumption Trends

<JSDA’s reference material>

Mineral Waters –Media experience and consumption trends in Japan

2009 ICBA 2nd meeting,Sep.14-15 Munich, Germany

(1) Soft Drinks production by categories in J apan

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000'89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08

Year

Kilo LiterCarbonated Drinks

Fruits Drinks

Coffee Drinks

Mineral Waters

Vegetable drinks

Sports/ Functional Drinks

Lactic Drinks

Tea Drinks

The Other S.D

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

'82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08

Year

(2) The amount of Mineral Waters in J apan, Home production and Import

Home productionImport

Kiko Liter

(3) Home Production and Import trends of Mineral Waters in Japan

1. Home Production(a) Though home production of M.Ws has been still increasing, the

growth rate has dropped since 2007. The reasons are Consumers refrain from buying owing to deep recession The number of consumers who carry with their water bottle to work

has been increasing since recent recession. They make any drinks (ex. Tea drinks) on their own at home or prepare for tap water purified by the facility and put them in the water bottle to save money. They used to buy PET bottle drinks through convenience stores or vending machines in having lunch at the office or factory.

The number of water supply machines in supermarkets has been increasing. Most machines serve consumers with free water once they purchase the exclusive bottle at first.

(b) Diversification of the ways of purchase The sales of Home-delivery service by supermarkets have been

increasing. They lend a server to consumers and deliver large size bottled water (more than 10 Liter) to their homes once or twice a month.

Consumers who changes their choice in according to the use have been increasing, for instance, for cooking or drinking, and the hardness of mineral.

(3) Home Production and Import trends of Mineral Waters in Japan2. Import(a) Though import of M.Ws had been in good shape until

2007, it largely dropped in 2008. The reasons are Besides the reasons of home production, rising in defense

awareness of life has caused a shift to home-made goods in consumption because the price of imported goods is relatively higher than that of home-made ones and home makers developed the market more, especially in small PET bottles.

There were a few recall incidents especially caused by smell attachment to goods during import.

(b) To enlarge the demand, 3 companies dealing with imported M.Ws have started to promote a joint campaign named “one day one liter habit” in cooperation with major distributors. They have been doing publicity for a message that the practice leads you to healthy life style, using a unified icon.