Working with clients to create value through innovative

Download Report

Transcript Working with clients to create value through innovative

Perceptions of bottled water in
Australia
A research report prepared for
September 2009
David Stolper
General Manager
[email protected]
02 8213 3075
Jennifer Hammond
Research Assistant
[email protected]
02 8213 3081
1
Contents
1. Research Purpose and Objectives
2. Methodology
3. Environmental issues and the place of bottled water
4. Perceptions of bottled water and reasons for use
5. Control versus convenience and choice
6. Conclusions
7. Appendix 1 Bottled water consumption
8. Appendix 2 Respondent profiles
2
Research Purpose and
Objectives
3
Background and research purpose
 Water is vital for life, and as such is a critical resource. For humans, survival is only possible
for a few days without water.
 A desire for convenience and ease of access to clean drinking water have helped fuel the
market for bottled water.
 The Australian Bottled Water Institute wanted to find out how bottled water is viewed in
Australia – who drinks bottled water, the reasons they choose to drink bottled water over other
beverages and the general image of the industry.
 The research also aimed to uncover how bottled water is viewed in relation to the environment.
Specifically, what are the environmental impacts associated with bottled water in the eyes of
Australians?
4
Research Objectives
 The research aimed to find out how bottled water is viewed, particularly in relation to
environmental factors including:
 Over-extraction of ground water
 Problems associated with landfill
 Drought
 Transportation
 Carbon miles
 We also examined the reasons why people drink bottled water and why they choose bottled
water over other beverages.
 The possibility of a bottled water ban was broached in the groups to gain an insight into how
people would feel if such a ban was enforced (outside of the couple of small pockets where
such a ban is currently in place).
 The research also examined possible community solutions for limiting the environmental
impact of bottled water.
5
Methodology
6
Qualitative Methodology
 Overall the research involved a qualitative phase of research followed by a short quantitative
survey
 The qualitative phase involved a series of 4 discussion groups with people who frequently drink
bottled water (at least once a fortnight) and people who do not.
 They were conducted in early September in Sydney and Melbourne.
 The groups were divided according to bottled water consumption habits - people who drink
bottled water at least once a fortnight and people who drink bottled water less than once a
fortnight (and may have reduced consumption over the last year).
 Each group comprised a mix of men and women and a range of ages as outlined in the
following table.
Location
Drink bottled water at least once a
fortnight
Drink bottled water less than once a
fortnight
Sydney
Australians aged 45–75 years
Australians aged 18-30 years
Melbourne
Australians aged 18-30 years
Australians aged 31-45 years
7
Quantitative Methodology
 This report also presents the results of a short survey among Australians to determine their attitudes to the consumption of
bottled water.
 The survey was undertaken online and conducted between the 1 st and 3rd of September 2009.
 The overall sample size was 1500, segmented and weighted to be nationally representative of Australia’s population by gender,
age and location.
 The accuracy of the results at an overall level (after weighting) is +/-2.5% at the 95% confidence interval. This means, for
example, that if the survey returns a result of 50%, there will be a 95% chance that the actual result will be between 47.5% and
52.5%.
 In analysing the data we have referred to the following age and gender sub-segments. The following table illustrates the sample
size and margin of error for each segment. Further details of the respondent profile are included in the appendix.
Segment
n
Margin of error
All respondents
1500
+/-2.5
18-24
219
+/-6.6
25-34
335
+/-5.4
35-44
326
+/-5.4
45-54
278
+/-5.9
55-64
223
+/-6.6
65-74
119
+/-9.0
Men
777
+/-3.5
Women
723
+/-3.6
 Note: All percentage figures in this report are rounded. Accordingly, totals may not add up to 100%.
8
Environmental issues and
the place of bottled water
9
Top-of mind environmental issues
 When asked about the environmental issues facing Australia today, the main top-of-mind
issues included:
 Climate change/global warming;
 Drought;
 Recycling;
 The environmental impacts of mining;
 Air quality;
 Increasing need for power/electricity; and
 The difficulties associated with excessive amounts of waste destined for landfill (including
plastic waste).
 Whilst is can be inferred that several of these issues can link back to bottled water (plastic
waste in particular), no one directly linked bottled water to a major environmental problem in
Australia today without prompting.
10
The place of bottled water on the environmental agenda
 It was only after group participants were probed to either give specific examples, or were
asked outright about bottled water, that they raised any potential environmental problems that
the industry faces.
 From this, it is possible to draw the conclusion that the environmental impact of bottled water is
not an important top-of-mind concern for most Australians.
 Whilst there are some budding problems that could develop into something that needs to be
addressed in the future, ‘bigger picture’ concerns like global warming remain at the front of the
collective consciousness.
 It appears that the environmental impact of bottled water is not currently a hot-button issue,
there is always the potential for this to change in the future.
11
The environmental impact of bottled water
 When probed on the environmental impact of bottled water, the most common responses were
associated with waste. Specifically:
 Plastic water bottles ending up in landfill; and
 Littering
 Most people felt that the waste aspect of bottled water was the core environmental concern
associated with the industry (far ahead of any other environmental impact).
 There was a level of confusion about whether plastic water bottles can be recycled – some
people were under the impression that recycling was not possible.
‘Waste, the by-product, the
empty bottles, what do you do
with it – you can’t recycle it’
‘I’d be more inclined to buy
bottled water more often if it
was recycled’
‘I try not to buy a lot of it
because I think a lot of it will be
going to the tip, so many bottles
there’
Melbourne non-regular
drinker
Sydney regular drinker
Melbourne regular drinker
‘Plastic just doesn’t break down,
plastic takes hundreds of years’
Sydney non-regular drinker
12
The environmental impact of bottled water
 The issue of carbon miles expended in transporting bottled water were only briefly mentioned
within two of the four groups, and only when prompted. The idea of carbon miles hadn’t even
occurred to most people. However, once the issue was raised, most thought it was a problem
that should be addressed.
 No one in the focus groups mentioned a link between bottled water and over-extraction of
ground water. It was only when asked directly about this issue that some participants agreed
that this might be a concern.
 People were interested in finding out about the source of bottled water, not because they were
concerned about over-extraction, but because they wanted to know if spring water actually
meant that the water was from a spring (which was typically seen as a desirable thing).
‘You’ve still got to pay for the
transportation, it’s freighted
across the world’
‘How do we know where is
comes from anyway? Someone
could be just sitting in a factory
filling bottles from a tap’
Melbourne non-regular drinker
Sydney non-regular drinker
‘You wonder where it is being
sourced from’
‘Rumours that bottled water
companies just take tap water’
Sydney regular drinker
Melbourne regular drinker
13
The main reasons people don’t drink bottled water were the cost
and a preference for tap water - the environment was a distant third
People who don’t drink bottled water (n = 397)
4% of all respondents (N =1500) don’t drink bottled water for environmental reasons
16% of those who don’t drink bottled water do not drink it because of environmental reasons
Qu 4: What are the reasons why you don’t drink bottled water?
14
Why people sometimes don’t drink bottled water: cost, availability
of tap water, want something else (with taste)
People who drink bottled water (n = 1088)
Qu 3: Why are the reasons why you would sometimes choose to not drink bottled water (and drink something else instead?
15
Detailed analysis of environmental reasons why people do not
drink bottled water
People who don’t drink bottled water (n = 397)
Qu 4: What are the reasons why you don’t drink bottled water?
16
Bottled water is placed “mid-pack” as an environmental concern
compared to other frequently used products
All respondents
Average rank 4.9
Average rank 6.2
Average rank 5.4
Average rank 6.2
Average rank 6.4
Average rank 7.0
Average rank 6.8
Average rank 7.7
Average rank 6.7
Average rank 7.8
Average rank 7.9
Average rank 9.6
Average rank 8.5
Qu 5: The following are a list of products that people use in their everyday lives. How concerned are you about the environmental impact of each
of these? Please rank from 1-13
17
An opportunity to be proactive
 The environmental impact of the bottled water industry may not be a chief concern for
Australians at the moment, but it is possible that this will change in the future.
 There is an opportunity for ABWI and bottled water producers to take a proactive stance in an
effort to address those environmental issues head on, before they become a ‘fashionable’
cause that attracts a high level of negative attention.
 Focus group participants were shown a series of possible initiatives and asked to decide which
of those initiatives would be the best for the bottled water industry. These initiatives were as
follows:
 A bottled water brand only produced using locally sourced water and with the lowest
transport distance possible (versus imported waters);
 A bottled water brand made with filtered municipal water and only sold in that city/town;
 A bottled water brand that gave 25% of its profits to support local communities; and
 A bottled water brand that verified it was from sustainable water sources.
18
Environmental initiatives
A bottled water brand only produced using locally sourced water
and with the lowest transport distance possible (versus imported waters)
 Non-regular drinkers from Melbourne were particularly in favour of this proposal. Locally
sourced water would be lower in carbon miles.
‘If the water’s being bottled here, it’s going back into
local jobs’
Melbourne non-regular drinker
‘Low carbon footprint, verifiable source’
Melbourne non-regular drinker
 There was some support amongst Sydney regular drinkers. However, there was an
expectation that lower transport costs should be passed onto the consumer with a cheaper
product.
‘Good (idea), but you’d get variations in
the product (between towns or suburbs)’
‘I’d still want to know where locally (the
actual source)....not the creek’
Sydney regular drinker
Sydney regular drinker
19
Environmental initiatives
A bottled water brand made with filtered
municipal water and only sold in that city/town
 Support was mixed for this initiative.
 There was some thought that drinking filtered municipal water would be much the same as
drinking tap water.
 This was not appealing to those who were looking for something different or ‘special’ from what
they saw as pure spring water.
‘Why are you going to bottle tap
water to sell me when I can get it
from my own tap?’
Sydney regular drinker
‘The transport costs......the carbon
emissions aren’t being produced’
‘Wouldn't it be wasted energy if you
have every city and town with a
factory’
Sydney non-regular drinker
Melbourne regular drinker
‘I don’t get (this) one, it’s just bottling
what you can get in the tap, that’s
what it means by municipal water I
assume’
‘As soon as you say municipal water
to me, I think tap water’
Melbourne regular drinker
Sydney regular drinker
20
Environmental initiatives
A bottled water brand that gave 25%
of its profits to support local communities
 This message prompted a positive response amongst regular drinkers from Melbourne.
 Everyone in the Sydney non-regular drinker group liked the sound of this idea, although none
voted for this as their favourite environmental initiative.
 This was the most popular idea amongst regular bottled water drinkers in Sydney.
 Whilst this was a popular idea, it could be improved further if it was linked to a specific cause in
keeping with the nature of the product. For example, there would need to be some indication of
which areas within the local community would benefit i.e. which specific charities or community
groups.
 There was particular support for the 25% of profits to go towards environmental groups such
as Clean Up Australia or Coastwatch. The main environmental issues that people associated
with bottled water were concerned with littering and the amount of plastic waste produced.
Donating to environmental organisations that are involved with reducing litter and waste would
be a positive way of helping to alleviate this concern that is in keeping with the nature of the
product .
21
Environmental initiatives
A bottled water brand that verified
it was from sustainable water sources
 This initiative received support mostly because of the inclusion of the word ‘sustainable’ and
the fact that the source of the water was specifically referred to.
 There seemed to be a little confusion in the Sydney regular drinkers group – they had all heard
of the word ‘sustainable’ (and thought it was a good idea), but did not seem to be able to
explain exactly what it meant in the context of bottled water.
‘Verified sustainable water sources
sounds very nice’
‘It would be difficult to prove it was
sustainable’
Sydney regular drinker
Melbourne regular drinker
‘‘(I like it because it is about) the
impact on the environment’
Sydney non-regular drinker
22
Environmental initiatives
 The environmental initiatives that received the highest level of support within the focus groups
were the idea of a bottled water brand produced using locally sourced water, and a bottled
water brand that gave 25% of profits to support local communities.
Initiative
Level of support
A bottled water brand only produced using
locally sourced water and with the lowest
transport distance possible (versus imported
Higher level of support
waters)
A bottled water brand that gave 25%
of its profits to support local communities
A bottled water brand made with filtered
municipal water and only sold in that city/town
A bottled water brand that verified
it was from sustainable water sources
Higher level of support
Lower level of support
Lower level of support
23
How else could the bottled water industry help the
environment?
 Within the focus groups, participants made several suggestions about how the bottled water
industry could help the environment (and maybe pre-empt any potential environmental criticism
in the future).
 These suggestions included:
 Making the bottle biodegradable
 Offering a refund on bottles to encourage recycling
 Providing information on the label about where the water is sourced from and how it is
processed
 Planting a tree for every bottle sold
 Having public water stations for refilling bottles
 Encouraging reuse of bottles
 Sponsor an event like Clean Up Australia Day.
 Whilst not all of these solutions may be feasible, they show that there are avenues that bottled
water producers could possibly explore in an effort to reduce any environmental effects,
thereby demonstrating a commitment to reducing the environmental impacts associated with
the product.
24
Informing public opinion
 Whilst the environmental impact of bottled water is not currently seen as a major issue, this
means there is now an opportunity to pre-empt any potential negativity surrounding the
subject. For example, educating people about:
 The source of the water in the bottle – where has it come from, is it just out of the tap?
 Spring water – let people know that if a bottled water brand claims to be spring water, it
must have been sourced from a spring.
 Recyclability – many people are unsure if it is possible to recycle bottled water containers.
 Packaging concerns – are the empty bottles safe to be reused by the public?
 The industry would be more transparent if people were made aware about the current bottled
water standards (such as those listed above). This may make many feel more comfortable
about their choice to drink bottled water.
25
The refund deposit debate
 All focus groups mentioned the refund deposit scheme currently operating in South Australia,
and many were in favour of a similar scheme being introduced in both New South Wales and
Victoria.
 However, a few thought that this was not really practical and preferred current kerbside
recycling arrangements.
 Some people supported kerbside recycling, but would like to see it continue in conjunction with
a refund deposit scheme.
‘(The) five cent refund is a real
goer’
Sydney regular drinker
‘If that five cent thing came back, it
would be such an incentive (to
recycle)’
‘I’ve always been annoyed, why do
South Australians get five cents for
every bottle they recycle, why
doesn’t any other state?’
Sydney non-regular drinker
Melbourne regular drinker
‘Get the bottles and take them to the
recycling centre...encourage them to
recycle with ten cents or twenty
cents’
‘If they gave good refunds on the
bottles and promised that it was
going to be recycled (I’d drink more
bottled water)’
Melbourne non-regular drinker
Sydney regular drinker
26
Perceptions of bottled water
and reasons for use
27
Perceptions of bottled water are generally positive
 Bottled water generally prompted positive responses amongst the group participants
(especially amongst people who regularly drink bottled water). In particular, bottled water was
associated with attributes such as:
 Health
 Youth/young people
 Pure, fresh (particularly in relation to chilled bottled water)
 Fitness/outdoor activities
 Trendy (especially amongst younger people)
 The reasons why people drink bottled water include:
 It’s refreshing.
 It’s a healthier alternative to other bottled drinks such as juice or soft drink.
 It’s convenient (especially when tap water is not an option).
 It’s versatile
 The taste (some prefer the taste of bottled water compared to tap water)
 Its image (mostly in terms of healthy active lifestyles)
28
Why people drink bottled water: convenience above all
Respondents who drink bottled water (n = 1088)
Qu 2: What are the reasons why would you choose to drink bottled water?
29
Excessive levels of plastic waste was the main negative
 The negative aspects associated with bottled water focussed on:
 the amount of plastic waste produced that ends up in landfill or as litter (as discussed
previously);
 The fact that it is possible to get water out of a tap for free (so bottled water is sometimes
seen as unnecessary or a waste of money, particularly amongst people who do not
regularly drink bottled water);
 Some older non-regular drinkers also saw bottled water as frivolous, specifically as a
frivolous product that appeals to young trendy people (but in this instance, unlike in the
other groups, being trendy was seen as a negative).
30
Perceptions of bottled water
 Bottled water was frequently chosen because it provided a convenient source of water,
especially when it is not possible to access tap water.
 Even amongst people who were not regular bottled water drinkers, many would choose bottled
water when there was no tap available.
 There is a perception amongst some people though that bottled water is unnecessary or a
waste of money because water is available free from the tap.
 Bottled water needs to be seen in the context that it provides an alternative to other bottled
drinks – an alternative that is healthier than some of the other options on offer. It should not be
positioned as an alternative to tap water (which invites environmental criticism and also
reduces the “specialness” of the product).
As opposed to (soft drink) for
example, I try to think of the
health benefits of just drinking any
water......as opposed to some
sugary drink, this is going to give
me some health benefit’
Sydney non-regular drinker
‘You don’t always have access to
fresh water, it’s a convenience and
portability thing’
‘You’re paying for the bottle as much
as the water inside, you are paying for
that versatility’
Melbourne non-regular drinker
Melbourne regular drinker
31
Attitudes towards banning
bottled water
32
People want to be able to choose the option of bottled water
 Only a few people were aware that there is a ban currently in place in some areas of the
country.
 Support was generally low for a widespread ban on bottled water (although some thought it
was amusing). Even amongst people who were infrequent drinkers of bottled water and/or had
reduced consumption in the last year, most preferred to have the choice of bottle water
available to them. However, there were a few people who thought a ban on bottled water might
be a good idea (particularly amongst the non-regular drinkers).
 Overall, regardless of their personal feelings about bottled water, people preferred choice over
control – they like to make their own choices, and do not like to have those choices taken
away.
 Additionally, people felt that there were more important issues that the government should be
worried about, rather than focussing on whether or not to ban bottled water.
‘I have to honestly say I think it (bottled
water) is a bad thing, but if you also
honestly asked me to say what I wanted I’d
say yes (to bottled water).....convenience, I
want to be able to buy a bottle of water if I
want to’
Sydney non-regular drinker
‘If you can bottle something
and get people to drink it,
isn’t it your commercial right
to do so’
Melbourne regular drinker
‘The government can educate
people (about refilling their water
bottles)......but there are more
pressing things that the
government should be dealing
with’
Melbourne regular drinker
33
Over three-quarters of Australians do not want bottled water to be
banned
All respondents
Qu: 6 Which of the following statements is closest to your view?
34
Men are more likely than women to agree bottled water should be
banned
Men
Qu: 6 Which of the following statements is closest to your view?
35
Older people are more likely to agree bottled water should be
banned
All respondents
Qu: 6 Which of the following statements is closest to your view?
36
Lower income households and people without children are more
likely to agree bottled water should be banned
All respondents
Qu: 6 Which of the following statements is closest to your view?
37
The concept of choice is an opportunity
 Being able to have bottled water as an option when choosing what to drink is important to
almost all people involved in the focus groups.
 Even amongst most of the people who rarely drink bottled water, most would prefer bottled
water as an option when choosing a beverage.
 If the idea of banning bottled water starts to gain traction, the concept of personal choice
versus government control may become a very important tool for the bottled water industry.
 The main negatives that were raised in relation to bottled water centred around the fact that
water is available free from the tap, and the environmental costs associated with plastic waste
ending up in landfill or as litter.
 Whilst water may be available free from the tap, bottled water provides an alternative to juice,
soft drink or other beverages when out and about (and access to a tap is unlikely or difficult).
Bottled water provides a convenient solution.
38
The concept of choice is an opportunity
 Instead of focussing on ‘paying for bottled water’ compared to ‘accessing free tap water’,
bottled water should be seen in the context of choice – providing water as a choice alongside
other beverages such as juice or soft drink.
 It seems that as drinks such as soft drink or juice are not available from a tap, they do not
face the same scrutiny that bottled water faces.
 By buying bottled water, you are paying for spring water, purity and/or taste.
 If bottled water producers strive to help alleviate environmental concerns, particularly around
the issue of plastic waste/landfill, Australians may feel more confident about choosing bottled
water as an alternative to other bottled drinks:
 For example, you may be able to get water free from the tap, but bottled water provides a
more environmentally friendly alternative to other bottled drinks.
39
Conclusions
40
Conclusions
 Bottled water is seen as a legitimate beverage alternative by most people, particularly in cases
where drinking tap water is not an option (such as when away from the home).
 Overall, the image of bottled water is positive, and associated with refreshment, health and (in
particular) convenience.
 Even amongst those who avoid drinking bottled water, most would prefer bottled water to
remain an option alongside other bottled drinks.
 The negative aspects of bottled water centred around the fact that water is available free from
the tap, so buying water in a bottle is seen by some as a waste.
 There appears to be an instinctive comparison between bottled water and tap water, rather
than a comparison between bottled water and other bottled beverages.
41
Conclusions
 Environmentally, the main problem with bottled water focussed on the amount of plastic waste
produced (contributing to landfill).
 Whilst the environmental cost of bottled water was not a top-of-mind issue within the focus
groups, this may change in the future.
 By being proactive and addressing concerns linked to recycling and plastic waste (the most
prevalent worry in the focus groups), the industry may pre-empt any potential future
environmental criticism
 Other environmental issues such as carbon miles and over-extraction of ground water were not
raised within the focus groups unless the respondents were prompted in that specific direction.
 As no link has been made between these environmental concerns and bottled water, it would
be wise to avoid introducing one by addressing these issues head on.
42
Quotable quotes
‘Convenience.....you don’t always have a tap
available’
‘You’re paying for the bottle as much as the
water inside, you are paying for that versatility’
Melbourne regular drinker
Melbourne regular drinker
‘Generally I just like to keep a bottle in
my handbag......just the
convenience of it’
Melbourne regular drinker
‘You can’t find a tap on the
road’
Sydney non-regular
drinker
‘I don’t like this plastic bottle
that it comes in, the fact
that there’s millions of
them’
Melbourne non-regular
drinker
‘You don’t always have access to
fresh water, it’s a convenience
and portability thing’
Melbourne non-regular drinker
As opposed to (soft drink) for
example, I try to think of the
health benefits of just drinking
any water......as opposed to
some sugary drink, this is
going to give me some health
benefit’
Sydney non-regular drinker
‘It’s a bit of a waste of money, just
go to your tap’
Melbourne non-regular drinker
43
Quotable quotes
‘I hope so (that bottled water comes
from springs), that's what they say it
does’
‘I think that it’s absurd in one
respect that we....need to buy
bottled water (but) on balance, they
(bottled water) are fighting against
children drinking these high sugar
caffeine drinks’
Sydney regular drinker
Sydney non-regular drinker
‘I like keeping the empty bottle to
reuse it’
Melbourne non-regular drinker
‘There are some places now where
they say they are going to
completely ban bottled water, and I
think that’s pretty impractical.....if
you are out travelling or are out with
children , you need to be able to
buy a bottle of water’
Sydney regular drinker
‘If you actually just source your
water from the local area, you’re
going to cause more drought in that
area’
‘I think I’m doing myself more of a
service by having normal water
rather than a soft drink’
Sydney regular drinker
Sydney non-regular drinker
‘Waste, the by-product, the empty bottles, what do you
do with it – you can’t recycle it’
‘Where does all that plastic go. It’s
buried in the ground, it lasts
thousands of years’
Melbourne non-regular drinker
Melbourne non-regular drinker
44
Appendix 1 – Bottled Water
Consumption
45
Half of all Australians drink bottled water at least once a month
All respondents
 28% of people drink bottled water more than once a week. 50% drink it at least once a month
Qu: 1 How often do you consume the following drinks? Bottled water?
46
Younger people are most likely to drink bottled water
All respondents
Qu: 1 How often do you consume the following drinks? Bottled water?
47
Higher income households are most likely to drink bottled water,
as are households with children
All respondents
Qu: 1 How often do you consume the following drinks? Bottled water?
48
Women are somewhat more likely to drink bottled water
All respondents
Qu: 1 How often do you consume the following drinks? Bottled water?
49
In comparison, Australians consume tap water and other bottled
drinks more frequently than bottled water
All respondents
Qu: 1 How often do you consume the following drinks? Bottled water?
50
Appendix 2 – Respondent Profiles
51
Age and Gender
Segment
18 to 29
Respondents
385
26%
30 to 49
648
43%
50 +
467
31%
Male
777
52%
Female
723
48%
 Total respondents = 1500
 All figures are rounded. Accordingly, total percentages may not equal 100
52
Area of residence
Segment
Respondents
Metropolitan
1016
68%
Regional
484
32%
New South Wales
510
34%
Victoria
360
24%
Queensland
284
19%
Other
346
24%
 Total respondents = 1500
 All figures are rounded. Accordingly, total percentages may not equal 100
53
Household annual income
Segment
$0 -$39,999
Respondents
327
22%
$40,000 - $79,999
459
31%
$80,000 - $149,999
386
26%
$150,000 +
91
6%
 Total respondents = 1263. 237 respondents preferred not to state their income.
 All figures are rounded. Accordingly, total percentages may not equal 100
54