Water Filtration - US - January 2008

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Sales data for this report
• Consumer data for this report
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Market tops $2.4 billion, faster growth expected
• Oligopoly at FDM in POU
• Brita and PUR dominate consumer advertising
• Hardware/home center channel drives category growth
• The role of retail in the purchase decision
• Taste is cost-of-entry, health important as well
• Water is a local issue
• Consumer education central to future growth
• Bottled water backlash is an opportunity for the water filtration market
• Fast Forward Trends
• Trend: Decline of Deference
• Back to the tap
• A return to price consciousness
• Beyond security--the feeling of control
• Trend: Re-birth of cities
• My city, my water
• Unifying Power of Pride
• Market Drivers
• Overview
  • Figure 1: Factors with the greatest impact on water filtration product ownership, November 2007
  • Figure 2: Reason for buying a water filtration product, November 2007
  • Figure 3: Reason for buying a water filtration product, by age, November 2007
• Quality of tap water
  • Figure 4: Contaminants found by local water companies, by state, 2005
• Not all tap water is created equal
  • Figure 5: Water filter ownership and attitudes about water, by region, November 2007
• A little water education could go a long way
• Filtration gaining in the battle between bottle and tap
  • Figure 6: Type of drinking water used at home, November 2007 vs. November 2005.
• Competing with bottled water
• Convenience
• Taste and health
• Weight control
• Price
• Enhancements
• Kids
  • Figure 7: Type of drinking water used at home, by presence of children, November 2007
• As housing market slumps, DIY retailers suffer, but category holds strong
• Market Size and Segmentation
• Market size
  • Figure 8: U.S. retail sales of water filtration products at current and constant prices, 2002-07
• Market segmentation
• Overview
  • Figure 9: U.S. retail sales of water filtration products, by segment, 2002-07
• Water filtration devices
• Under-sink
• Pitchers
• Countertop systems
• Faucet attachments
• Water softeners
• Replacement filters
• Refrigerator filters
• Supply Structure
• Overview
  • Figure 10: FDM sales of water purification devices*, by manufacturer and brand, 2006-07
  • Figure 11: FDM sales of replacement filters, by manufacturer and brand, 2006-07
• Clorox Company (Brita)
  • Figure 12: Brita disposable bathroom faucet filtration system
• Procter & Gamble (PUR)
  • Figure 13: Pur flavor options faucet filtration system
• Clayton, Dubilier & Rice (Culligan)
• Morton Salt
• Cargill
• Omni
• General Electric
• Applica
• Advertising and Promotion
• Overview
• The Clorox Company (Brita)
  • Figure 14: Television ad for Brita' s new "Feel what better water can do for you" campaign, 2007
  • Figure 15: Television ad for Brita' s previous campaign, 2006
• Procter & Gamble (PUR)
  • Figure 16: Television ad for PUR Water Filters and Flavor Options, 2007
• Culligan
  • Figure 17: Television ad for Culligan water systems, 2007
• Applica
  • Figure 18: Television ad for Clear2O water filtration pitchers, 2007
• Retail Distribution
• Overview
• Hardware/home center channel drives category growth
  • Figure 19: Share of total U.S. retail sales of water filtration/purification products by retail channel, 52 Weeks ending July 15, 2007
  • Figure 20: Total U.S. retail sales of water filtration/purification products by retail channel, 2002-07
• Food/drug/mass (excluding Wal-Mart) lose share
  • Figure 21: FDM sales of water filtration/purification products, by segment, 2002-07
• Other retail channels
• Retail' s role in the purchase decision
  • Figure 22: Considerations for most recent filter purchase, November 2007
• Differences by type of product owned
• Demographic differences in purchase process
• Gender
• Age
• Household income
  • Figure 23: Considerations for most recent filter purchase, by household income, November 2007
• Married households versus unmarried households
  • Figure 24: Water filtration products, considerations for most recent purchase, by marital status, November 2007
• The Consumer: Sources of Drinking Water for the Home
  • Figure 25: Type of drinking water used at home, by race/ethnicity, November 2007
  • Figure 26: Type of drinking water used at home, by household income, November 2007
  • Figure 27: Type of drinking water used at home, by presence of children, November 2007
  • Figure 28: Type of drinking water used at home, by living arrangement, November 2007
  • Figure 29: Type of drinking water used at home, by education level, November 2007
• The Consumer: Type of Water Filtration Devices Owned
  • Figure 30: Water filtration product ownership, November 2007
  • Figure 31: Water filtration product ownership, by household income, November 2007
  • Figure 32: Water filtration product ownership, by presence of children and marital status, November 2007
• The Consumer: Reasons for not Purchasing
  • Figure 33: Reasons for not purchasing water filtration products, November 2007
  • Figure 34: Reasons for not purchasing water filtration products, by age, November 2007
• Future and Forecast
• Future trends
• Satisfaction with tap water to decline
  • Figure 35: Water filtration product ownership, by age, November 2007
• Long-term impact of bottled water positive for sales
• Pitchers as gateway products
  • Figure 36: Water filtration product ownership, by age, November 2007
• Greening of America will positively impact sales
  • Figure 37: Water filtration product ownership and concern about the environmental impact of bottled water, by level of education, November 2007
• Market forecast
• Water filtration market
  • Figure 38: Forecast of total U.S. retail sales of Water Filtration Products, at current and constant prices, 2007-2012
• Forecast factors
• Appendix: Trade Associations