Production levels of still mineral water rose by 15% last year compared with the previous period, while sparkling mineral water advanced by 6%, according to the data provided by SNAM (National Mineral Water Company).
The still mineral water market is worth around 70 million euros, being three times smaller than the value of the sparkling mineral water market. The traditional consumption of sparkling mineral water accounts for around 78% of the overall volume of mineral water bottled in Romania (1.1 billion litres last year, according to SNAM). However, amid the faster growth of the still mineral water segment, the domestic market may fall in line with the European market structures, according to leading market players.
Iosif Nagy, general manager of SNAM, forecasts the still mineral water market will grow faster over the next two years, by more than 15% compared with the previous period.
Mineral water bottlers' challenge will be to stand out from bottlers of table and spring water, which currently boast the biggest increases in terms natural bottled water due to watercooler bottling systems.
On the market of watercooler bottled water, put at 30-40 million euros at present, the top two positions are held by La Fantana and Campana brands, launched by Romanian companies in 2001 and 1999 respectively.
Competition is getting tougher on this market following the entrance of bottlers such as Perla Harghitei (Cristalina) on the niche segment of mineral water bottled for watercoolers.
The table water segment grows faster than the mineral water one due to the faster and simpler entrance on the market of the companies from the former segment.
While table and spring waters have separate regulations from mineral ones within this sector, market division is less obvious among consumers.
In time, companies' efforts, along with an affordable policy of retail prices for customers, may lead to consumers' switching from table or spring water to mineral water.
Romanian-held companies currently dominate the top of the biggest mineral water producers in Romania.
Expansion on a complementary fruit-flavoured soft drinks market was a natural step in the development of Romanian mineral water producers.
The biggest producers on this market are the most dynamic exporters of mineral water to neighbouring countries.
Mineral water exports accounting for some 3-4% in domestic production at present will witness an annual growth of 1-2%, according to SNAM estimates.
"The Romanian market holds over 30% of Europe's mineral water reserves," states Nagy.
However, reserves are exploited below potential amid a lack of strategic investments, adds Nagy.
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