Water Bottle Wars
Published on Sep 24, 2024 · Ben Chapdelaine & John Fisher
Introduction
The Stanley brand has been around for over a century, founded in 1913 by William Stanley Jr., who invented the all-steel vacuum bottle. However, the current craze centers specifically around the Stanley Quencher tumbler, which was introduced in 2016.
Initially, the Quencher didn't see much success. Stanley had traditionally marketed its products to men, focusing on outdoor enthusiasts and laborers. However, in 2017, The Buy Guide, a popular shopping blog, began promoting the product to their audience. In 2019, they struck a deal with Stanley to purchase 5,000 Quenchers, which they successfully sold to their followers. This marked the beginning of the product's shift towards a new demographic: women.
Stanley's success was noticed by other brands in the drinkware market, leading to a surge in competition.
This report examines that competition from an e-commerce perspective (i.e., online sales only), focusing on five key players: Stanley, Owala, HydroJug, BrüMate, and Corkcicle. We'll explore their product offerings, pricing strategies, and sales performance to understand the dynamics of the water bottle market and the strategies that have propelled these brands to success.
Market Overview
Led by Stanley and spurred consumer COVID spending, the reusable water bottle market doubled from 2018 to the end of 2020. Unlike other product categories, however, the market hasn't reverted back to the historical mean and is projected to continue growing at a steady pace, reaching $12.7 billion by 2032.
Reusable Water Bottle Market
Market Size in USD Bn from 2018 to 2032
This success came at a cost. Other brands and entrepreneurs noticed Stanley's success and have entered the market with their own unique offerings. This led to increased competition and innovation, with brands focusing on product differentiation, pricing strategies, and marketing tactics to capture market share.
Sales Revenue by Selected Brand
Share of Online Sales Revenue by Brand from January to August 2024
Since 2020, we've seen Stanley's early-mover advantage diminish as new competitors have found ways to stand out in the market. This year, Stanley's market share across the selected brands has declined from 79.24% in January to 42.74% in August.
Meanwhile, brands like Owala, HydroJug, BrüMate, and Corkcicle have gained traction, with BrüMate showing the most significant growth, increasing from 9.61% to 24.35% over the same period.
Product Assortment and Revenue Distribution
Bottle sales make up over 87% of revenue year-to-date (YTD) from these 5 companies. Other categories such as Backpacks, Coolers, and Accessories make up the remaining 13%.
Water Bottle Product Categories
Share of different water bottle product categories from January - August 2024
For the purpose of this analysis, Beer Growlers, Wine Tumblers, and like products are considered Water Bottles. Lids, Straws, Skins, and more are considered Water Bottle Accessories.
Stanley
Brand Overview
- Founded in 1913
- 1.2M+ Instagram followers
- Created the first all-steel vacuum bottle
- Largest revenue driver: Quencher H2.0 FlowState Tumbler
With over a century in the market, Stanley has undergone a remarkable transformation from its original focus on male-oriented outdoor gear to becoming a viral sensation among women. This shift was largely driven by effective social media campaigns and strategic influencer partnerships, which helped the brand tap into a new demographic and significantly boost its visibility.
Stanley 2024 Sales Overview
Despite Stanley’s successful brand positioning and initial growth, recent sales data shows a concerning trend. From January 2024 to August 2024, the brand has experienced a 46% decline in monthly sales volume and a 52% decrease in revenue.
Hero Product
The Stanley Quencher H2.0 FlowState Tumbler has emerged as a standout product, for its substantial 40oz capacity, ergonomic handle, and limited edition colors.
The Quencher series is so dominant that it accounts for 70% of Stanley’s total revenue YTD.
Quencher v Non-Quencher Products
Share of Quencher and Non-Quencher products in Stanley's e-commerce revenue YTD
Outside of their standard tumbler products, their top product is the All Day Madeleine Midi Cooler Backpack.
Pricing Distribution
With the majority of products priced between $29 and $46, the $42-$46 price bucket alone generates 42% of Stanley’s total revenue.
Stanley Assortment and Revenue Distribution
Percent of Product Assortment and Revenue by Price Bucket
When it comes to discounting, Stanley is the least aggressive among the five brands, with only 2% of its products being discounted. This strategy has helped maintain the brand’s premium image and drive revenue from higher-priced items.
Limited Color Drops
Stanley has been able to drive demand and create a sense of urgency by releasing limited edition color drops for its Quencher series.
These drops are often promoted through social media channels and have proven to be highly effective in generating buzz and driving sales.
Owala
Brand Overview
- Founded in 2020
- 500K+ Instagram followers
- Key innovation: FreeSip Spout
Owala, a dynamic newcomer in the water bottle market, has made significant strides through innovative product designs and effective marketing strategies. Leveraging DTC channels and a strong social media presence, Owala has rapidly established itself as a popular choice for consumers seeking stylish and practical hydration solutions.
2024 Sales Overview
Owala has shown a robust growth trajectory since its entry into the market. From January 2024 to August 2024, the brand has experienced over a 400% increase in monthly sales volume and over a 200% rise in revenue.
Hero Product
The Owala FreeSip Bottle stands out with its patented FreeSip spout for both sipping and swigging. Its ergonomic design and versatility have made it Owala’s best-selling product.
The FreeSip carries a market-leading 87% share of Owala’s total revenue YTD, highlighting its significance as a revenue driver for the brand.
FreeSip v Non-FreeSip Products
Share of FreeSip and Non-FreeSip products in Stanley's e-commerce revenue YTD
The FreeSip is most commonly sold in 24oz, 32oz, and 40oz sizes, with the 24oz size accounting for 40% of Owala’s total revenue.
Pricing Distribution
Owala’s product prices are concentrated between $30 and $39, with 39% of products priced at $37. Notably, 97% of their total revenue comes from items in the $30-$33 price bucket, and none of their products are discounted.
Owala Assortment and Revenue Distribution
Percent of Product Assortment and Revenue by Price Bucket
Major Restock
In the second half of August, Owala has completed a major restock of its FreeSip bottles. It appears that the brand is gearing up for a large Q4.
HydroJug
Brand Overview
- Founded in 2017
- 640K+ Instagram followers
- Key innovation: Closeable straw lid
HydroJug, a niche player in the hydration market, initially gained traction by focusing on large-capacity water bottles designed for fitness enthusiasts and individuals who prioritize staying hydrated throughout the day. The brand’s growth has been driven by social media marketing and a robust membership model, targeting consumers looking for versatile, durable hydration solutions.
2024 Sales Overview
HydroJug has exhibited growth in the hydration market. From January 2024 to August 2024, the brand saw a 58% increase in monthly sales volume and a 65% rise in revenue.
Hero Product
The HydroJug Traveler Bottle has emerged as the brand’s top-selling product, thanks to its innovative closable straw lid that enhances hygiene and convenience for on-the-go use—catering to the active lifestyle of HydroJug’s customer base.
Pricing Distribution
HydroJug’s pricing spans a wide range, with 42% of their assortment priced under $22 and 31% of products currently discounted. However, 58% of the brand’s revenue is driven by items priced over $40.
HydroJug Assortment and Revenue Distribution
Percent of Product Assortment and Revenue by Price Bucket
BrüMate
Brand Overview
- Founded in 2016
- 737K+ Instagram followers
- Key insight: Largest product assortment
BrüMate, a relatively new entrant in the drinkware market, has quickly established itself by offering innovative insulated beverage holders tailored for outdoor enthusiasts and social drinkers. The brand’s initial success can be attributed to its focus on products that enhance the drinking experience for beer, wine, and other beverages, particularly in outdoor or on-the-go settings.
2024 Sales Overview
BrüMate has experienced consistent growth in 2024. From January to August, the brand recorded a 28% increase in monthly sales volume and a 40% increase in revenue.
Hero Product
The Era is the brand’s top product, boasting a leakproof straw lid with an integrated straw system, offering seamless sipping while keeping drinks cold for hours. Its multifunctional design makes it a favorite among consumers seeking both practicality and convenience.
Pricing Distribution
With BrüMate's diverse assortment their price points span from $20 to upwards of $400. With roughly 25% of products being discounted, most revenue is still being driven from the mid $45 range.
BrüMate Assortment and Revenue Distribution
Percent of Product Assortment and Revenue by Price Bucket
Revenue Expansion via BrüTank
BrüMate successfully launched BrüTank Rolling Coolers, contributing 10% of YTD revenue, showing that product expansion can drive meaningful growth when done correctly.
BrüMate Cooler Rev Share
Share of different product categories from January - August 2024
Corkcicle
Brand Overview
- Founded in 2010
- 274K+ Instagram followers
- Key insight: Disney Collaboration
Corkcicle, a well-established brand in the drinkware market, has successfully differentiated itself through high-profile licensed collaborations with globally recognized franchises like Disney, Harry Potter, and Star Wars. These partnerships have allowed Corkcicle to combine its signature style with pop culture appeal, attracting a diverse customer base, including both casual drinkware users and dedicated fans of these franchises.
2024 Sales Overview
In 2024, Corkcicle has experienced mixed sales results. From January to August, the brand’s revenue increased by 4%, while sales volume declined by 8% YTD.
Hero Product and Accessories
The Cruiser Bottle is Corkcicle’s best selling product, featuring triple-insulated technology that keeps beverages cold for up to 20 hours or hot for 9 hours. Its sleek design and wide range of colors make it a versatile option for consumers who value both aesthetics and performance.
Beyond the Cruiser Bottle, Corkcicle’s collaboration with Disney has proven to be highly successful. The Disney Collab Sling is the brand’s top-performing accessory, contributing 10% of their revenue YTD.
Disney Sling Rev Share
Share of Disney Sling from January - August 2024
Pricing Distribution
Corkcicle stands out with over 70% of their products being discounted. With a more even spread of prices the revenue isn't highly concentrated in any particular price bucket.
Corkcicle Assortment and Revenue Distribution
Percent of Product Assortment and Revenue by Price Bucket
Disney Collaboration
Corkcicle has turned to licensing collaborations to drive sales, with the Disney partnership being a standout example.
Conclusion
The water bottle market is highly competitive, with brands competing for market share through a mix of product innovation, pricing strategies, and marketing tactics.
Once the clear market leader, Stanley has recently ceded a significant share of online sales, perhaps due to limited differentiation and slower adaptation to market trends. In contrast, other brands have boosted sales by focusing on performance-enhancing features, offering a wider range of colors, and leveraging collaborations.
Particl's analysis suggests that accessories, while beneficial for branding, do not significantly drive volume in this commodity-driven market. To succeed in the reusable water bottle space, brands must find ways to differentiate, whether through innovation, understanding consumer preferences, or balancing distinct brand identity with market demands.
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