Duiven-based Innova Market Insights BV, which analyzes food and beverage trends, says the water industry struggled in 2008 and the first half of 2009, blaming the losses on the credit crunch, poor weather in key European markets and consumer concern over the environmental impact of plastic bottles.

However, the market for value-added or flavored water may hold the key to the industry’s recovery.

“The standard pure bottled market is likely to face ongoing problems for the foreseeable future,” says LuAnn Williams, Innova head of research. “And new product activity, as the Innova Database is currently illustrating, is likely to continue to focus on value-added and enhanced waters.”

In the United States, sales in the overall bottled water market fell 1 percent, while the market for flavored and enhanced water rose by over 8 percent. The United Kingdom market dropped 8 percent, although flavored water sales dropped by a more respectable 6 percent.

Successful products flagged up by Innova include the Active O2 range from German firm Adelholzener, which claims the product contains 15 times more oxygen than standard levels. Nestle’s PureLife and St Leonhard’s AquaSola, which are both marketed as having a "natural iodine content" have also proved popular across Europe.

In the U.S., enhanced waters are all the rage, says Innova, giving Glaceau’s VitaminWater10 and PepsiCo’s SoBe Lifewater ranges as examples.

Crain Communications Inc.'s European Plastics News is a sister publication to Plastics News.