March 12, 2013

Water recaptures America's heart

Whether it's tap or bottled, H2O is becoming the drink of choice for more U.S. consumers.

By CANDICE CHOI / The Associated Press

NEW YORK — It wasn't too long ago that America had a love affair with soda. Now, an old flame has the country's heart.

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Sugary soda’s reign as America’s most popular drink could be entering its twilight years, with plain old bottled water making a run for the top spot. And tap water may not be far behind.

The Associated Press

As New York City grapples with the legality of a ban on the sale of large cups of soda, one thing is clear: Soda's run as the nation's beverage of choice has fizzled.

In its place? A favorite for much of history: Plain old H2O.

For more than two decades, soda was the No. 1 drink in the U.S. with per capita consumption peaking in 1998 at 54 gallons a year, according to industry tracker Beverage Digest. Americans drank just 42 gallons a year of water at the time.

But over the years, as soda increasingly came under fire for fueling obesity, water quietly rose to knock it off the top spot.

Americans now drink an average of 44 gallons of soda a year, a 17 percent drop from the peak in 1998. Over the same time, the average amount of water people drink has increased 38 percent to about 58 gallons a year. Bottled water has led that growth, with consumption nearly doubling to 21 gallons a year.

Stephen Ngo, a 34-year-old civil defense attorney, quit drinking soda a year ago when he started running triathlons. He now has a Brita filter for tap water and also keeps his pantry stocked with cases of bottled water.

"It might just be the placebo effect or marketing, but it tastes crisper," said Ngo, who lives in Miami.

The trend reflects Americans' ever-changing tastes; it wasn't that long ago when tap water was the top drink.

But in the 1980s, carbonated soft drinks overtook tap as the most popular drink, with Coca-Cola and PepsiCo putting their marketing muscle behind their colas with celebrity endorsements from the likes of Michael Jackson and Bill Cosby.

Americans kept drinking more of the carbonated, sugary drink for about a decade. Then, soda's magic started to fade: Everyone from doctors to health advocates to government officials were blaming soft drinks for making people fat. Consumption started declining after hitting a high in the late 1990s.

At the same time, people started turning to bottled water as an alternative. Its popularity was helped by the emergence of single-serve bottles.

The new soft drink-like packaging helped fast-track bottled water's growth past milk and beer. In fact, the amount of bottled water Americans drink has risen nearly every year for more than two decades, while the estimates of how much tap water people drink has fluctuated during that time. When taken together, water finally overtook soda in 2008, according to Beverage Digest.

Analysts expect water to hold onto to its top spot for years to come. But whether people will drink from the tap or a bottle is uncertain.

Based on current trajectories, Michael Bellas, the CEO of the industry tracker Beverage Marketing Corp., predicts that bottled water alone could overtake soda within the next decade. That's not counting enhanced and flavored waters, which are growing quickly but remain a small part of the industry.

Currently, people drink 21 gallons of bottled water a year. That compares with 37 gallons of other water, which includes tap, sparkling, flavored and enhanced waters such as Coca-Cola's vitaminwater.

But there are numerous factors that could tilt the scales in favor of tap water.

Because of concerns that plastic bottles create too much waste, experts say bottled water could be hit by a public backlash similar to the one that has whipsawed the soda industry with pushes for bans and taxes.

New York City was preparing for a ban on cups of sugary drinks that are larger than 16 ounces starting on Tuesday. But on Monday a judge invalidated the regulation. Mayor Michael Bloomberg, who originally proposed the ban, vowed to appeal the judge's ruling.

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