The focus on our natural resources and how we make the most of them is greater than ever. Water is mankind’s No. 1 resource. As population levels continue toincrease and more people are living in cities than ever before, access to affordable water has taken on an even greater significance. With the global consumption of water continuing to grow substantially, so too does the market for bottled water. This is illustrated by a 28 percent increase in sales from 2007 to 2012. During that period, water accounted for 37 percent of the total global soft drinks market, amassing volume sales of 229 billion liters, whereas carbonated soft drinks totalled 36 percent, and juices, nectars, other soft drinks, isotonics and teas made up 27 percent. Within the bottled water market itself, still water dominated the sales charts, accounting for 86 percent of the total, with sparkling or carbonated water accounting for only 14 percent.
Of course, there are several different types of naturally occurring potable water. Well water, spring water, mineral water, purified water and distilled water all are quite different, which has a lot to do with the location of the water’s source and the processes that the water goes through before it reaches the point where it is collected prior to being sold to consumers. Well water, for example, usually is trapped and stored between layers of permeable rocks and soil. It is similar to spring water in the sense that both are produced from natural aquifers located around rock beds and soil, but spring water emerges naturally at the ground surface.
Mineral water can come from either a well or a spring but must contain a specified amount of certain trace minerals, such as calcium and magnesium. Purified water is produced by any process through which contaminants and minerals have been mechanically filtered or processed. The term is used loosely sometimes to describe water that has been treated to neutralize— but not necessarily to remove — contaminants that are harmful to humans or animals. Distilled water is one version of purified water produced by distillation, a process by which water is boiled until it is converted to vapor and then condensed, leaving solid contaminants behind.Whatever the type of water, producers’ needs in terms of bottling and hygiene remain the same. Polyethylene terephthalate (PET), which was used to contain 85 percent of all bottled water sold in 2012, now is the packaging material of choice in this growing market.
A highly competitive and changing market
The bottled water market is, of course, highly competitive. It is a volume-driven sector, although, even in today’s more global environment, the world market remains fragmented. Between them, a limited number of key global players produce a multitude of brands. Some are internationally recognizable — some are even available worldwide — but most are available only regionally. In 2011, the leading 10 brands accounted for 18 percent of the total volume sold. Presently, it appears that sales of bottled water in Western Europe and North America have reached a plateau, whereas in developing countries like Latin America, the Middle East and the Asia-Pacific region, the market for bottled water continues to grow significantly. This is especially true of China and India. In 2012, the Asia-Pacific region outperformed Western Europe as the leading consumer of bottled water for the second year running.
Consumers have become increasingly conscious of health issues in recent years, and their habits are changing as a result. Today, we are seeing a reaffirmation of the consumption of water for its intrinsic thirst-quenching qualities and natural attributes. For this reason, manufacturers are looking to maximize the benefits of naturally occurring waters, sometimes adding ingredients to further enhance their rehydration properties. Approximately five years ago, a trend emerged in the bottling of flavoredwaters, but it ultimately failed to grow significantly because it had only limited appeal to consumers. Also, around the world, personal and general social mobility is on the increase. This has led to changes in the packaging of drinks and the resulting growth in demand for smaller on-the-go bottles that are easy to handle and carry.
In the current beverage industry, investment decisions often are taken later in the marketing process, which usually results in the urgent need to get any new product to market quickly. Ultimately, this invariably leads to the necessity of a quick ramp-up of the production line. This truncated process coupled with the need to provide sustainable operation equipment effectiveness (OEE) are the main challenges that producers and bottlers are facing in the water market today. Employing solutions providers with experienced technicians in many different countries in many different parts of the world, often in close proximity to customers, can help to achieve efficient installation and start-up of bottling lines. Supported by simple operation, such as format changeovers, cleaning and maintenance, as well as standardized settings and pre-defined procedures, both expected and unexpected downtime can be minimized.
Efficiency is the key in minimizing total cost of ownership
With early consideration during management of the project, all the different elements of standardized solutions can be anticipated, including the layout of equipment, the operational process and any necessary training. This will sustain the efficiency reached during the quick ramp-up in the longer term, and the early transfer of skills to the customer’s operators will allow them to manage the production line autonomously after the handover. Overall assessment of the line’s performance — especially with regard to customer targets — also is a key consideration. In this area, options such as Sidel’s Efficiency Improvement Tool (EIT) can identify the location of any inefficiency within the line and the work needed to get production back to maximum output. EIT can be implemented on any existing line, regardless of its original integrator or manufacturer.
The single-serve market today generally requires highly efficient output at maximum speed. In such markets, speed typically is a key driver for the reduction of total cost of ownership, and production rates usually range between 40,000 and 80,000 bottles an hour. In the United States, for example, 85 percent of the market for bottled water in PET is in 20-ounce formats produced on dedicated high-speed lines. Conversely, there also is a strong demand for flexible lines capable of producing multiple formats at lower speeds. In these instances, production rates usually range from 20,000 to 60,000 bottles an hour, which is the optimal range for reducing overall unit cost.
