Bottled Water Market Size, Share & Trends Analysis Report By Product (Spring Water, Purified Water, Mineral Water, Sparkling Water), By Distribution Channel (On-trade, Off-trade), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global bottled water market size was valued at USD 283.01 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.7% from 2022 to 2030. Increasing concerns regarding various health problems such as gastrointestinal diseases caused by the consumption of contaminated water are leading to the increased demand for clean and hygienic packaged options. Drinking water scarcity in several regions further necessitates the demand for safe drinking water, leading to increased product sales, thereby augmenting market growth.

Extensive restrictions imposed by governments worldwide to combat COVID-19 created logistical challenges for the bottled water industry. It has been more than one and a half years since the initial global outbreak of COVID-19. According to the International Bottled Water Association (IBWA), bottled water businesses have boosted their production capacities in 2020 to cater to the surge in demand for bottled water. This includes increasing bottling capacity, obtaining extra production and packaging materials, and consulting retailers to determine the demand.

Increasing preference for nutrient-fortified water is trending owing to the rising importance of health and wellness among consumers. The demand has been increasing among travelers and working professionals and for in-house consumption. Over the past few years, products with labels such as alkaline, electrolyte-rich, fortified, caffeinated water, and fortified with additional hydrogen or oxygen have been gaining popularity.

Consumers are increasingly prioritizing their health and wellness, which is boosting the demand for purified and ultra-purified bottled options. Consumers chose to opt for these bottles on the go as it is a healthier option to high-calorie, carbonated, and sugary drinks such as sports drinks and juices. According to an article published in Beverage Industry in September 2021, sales of bottled water grew by 4.7% in 2020. Rising awareness regarding healthy beverages due to access to information and dissatisfaction with quality drinking beverages are resulting in an increased shift towards premier or ultra-purified bottled options.

Packaging has been playing a crucial role in the growing penetration of the product. ZenWTR, in June 2020, introduced new packaging for bottles made of ocean rescued plastic. The product is available in packs of 1 liter, 23.7 ounces, and 16.9 ounces. The pure crisp H2O form is vapor distilled and ionized to reach a pH of 9.5 and is offered in infinitely recyclable bottles. The company has been involved in the research, development, and securing of the supply chain. With this, the company has made a robust move toward creating a sustainable product. The company plans to rescue over 70 million ocean-bound plastic bottles and would use up to five ocean-bound plastic bottles to produce every 1-liter packaging.

Similarly, in January 2020, Emerald Coast Ultra-Pure Water, a Florida-based company, launched 100% aluminum bottles for its ultra-purified product range. This new packaging is 100% recyclable and reusable and it aims to cut plastic pollution. Packaging is available in bottle size of 16.0 oz or 473ml, with a micro protective liner so that it doesn’t taste like aluminum. The lid is also a reusable screw top. Launches like these will further increase product visibility among consumers.

Product Insights

The purified segment held the largest revenue share of more than 40.0% in 2021 and is expected to maintain its lead over the forecast period. Diseases such as dysentery, diarrhea, and typhoid are usually caused due to contaminated particles in running water, thus consumers are looking for water-saving options and companies are addressing the same issues. For instance, Aquafina offers purified drinking options, which are filtered and sodium-free. Similarly, Dasani offers purified options with added minerals for safe and clean drinking.

The sparkling segment is projected to register the fastest growth rate of 7.4% from 2022 to 2030. The growing preference of consumers for the sparkling category as a healthy alternative for sugary drinks such as cola to cut down sugar content levels is driving the segment. The excess sugar level in the body causes weight gain/obesity, type 2 diabetes, and other related health issues. According to Bevnet Magazine November-December 2020 sparkling category has grown at nearly double the rate from the year 2019. This can be attributed to the product’s health advantages, coupled with a growing shift in consumer preference toward healthy drinks. This trend is likely to be the key driver for the segment.

Some of the leading companies offering the sparkling category are Topo Chico, Agua Mineral, Gerolsteiner Mineral, Mountain Valley, Jarritos Mineragua Club Soda, Voss Sparkling, and LaCroix Sparkling. The market for sparkling bottled water is highly competitive with the top companies intensively trying to gain a larger market share.

Distribution Channel Insights

The off-trade segment held the largest revenue share of more than 85.0% in 2021. The segment includes all retail outlets such as hypermarkets, supermarkets, convenience stores, mini markets, and traditional stores. The increasing convenience of quickly picking the required brand of bottled water with a particular set of minerals will boost the market growth in the forecast period. Some of the brands sold via the above-mentioned stores are Aquafina, Dasani, Nestlé, and Danone.

The on-trade channel is anticipated to register the fastest CAGR of 7.7% from 2022 to 2030. The segment includes outlets such as restaurants, cafes, clubs, hotels, and lounges. Growing health and hygiene concerns, coupled with the rising COVID-19 cases, have prompted consumers to buy packaged water instead of normal options at such places. Moreover, the opening up of clubs, bars, and outdoor activities at resorts and hotels is expected to drive the consumption of packaged drinking water through this channel.

Regional Insights

Asia Pacific held the largest revenue share of over 40.0% in 2021 and is expected to register the fastest CAGR from 2022 to 2030. Growing awareness regarding the importance of health and wellness in countries including China, India, Malaysia, and Indonesia is one of the major factors supporting the market growth owing to the heightened demand for hygienic consumables. With the growing awareness regarding the importance of hygienic beverage options, the demand for bottled options is also increasing, thereby creating avenues for market growth in the region.

North America held the second-largest revenue share in 2021. The growing trend of living a healthy lifestyle and extensive sports and other physical and outdoor activities are also responsible for the high demand for bottled water. Most Americans do not prefer drinking water straight from the tap as they find packaged options to be a safer and more convenient option. Moreover, the rising demand for eco-friendly and sustainable packaging solutions by customers is expected to offer lucrative opportunities for existing manufacturers and new entrants in the market. 

Key Companies & Market Share Insights

The global market is highly dynamic as a large number of companies can be seen competing for enhancing their share in the market. A large part of the industry is controlled by local firms. Several companies are centennial and some of these are family-owned. Some of the largest food and beverage companies including Nestlé, PepsiCo, and The Coca-Cola Company have entered the market. Along with that, in order to improve their efficiency and by using the international distribution channel, the companies have been ruling the industry. For instance, in Feb 2021, Nestlé sold its bottled brands in North America including Poland Spring, Deer Park, Arrowhead, Ozarka, Zephyrhills, and Pure to a subsidiary of One Rock Capital Partners and investment firm Metropoulos & Co. in order to revitalize individual brand sales.

In another instance, in May 2020, Kopparberg Brewery launched bottled water in the U.K., which claims to be vegan-friendly and gluten-free, with a 5% ABV content. It is available in flavors such as mixed berries, black cherry, and passion fruit flavors across Morrisons and Tesco stores in Europe. These product launches are anticipated to boost the visibility as well as sales of this alcoholic drink. Furthermore, in May 2020, TEN Alkaline Spring added a 12-ounce aluminum can with premium alkaline water with a high pH to its expanding product line. It represents a new, lower price point for the aluminum-packaged option, which is being retailed at approximately 50% less in terms of cost-per-ounce. Some prominent players in the global bottled water market include:

• Nestlé

• PepsiCo

• The Coca-Cola Company

• DANONE

• Primo Water Corporation

• FIJI Water Company LLC

• Gerolsteiner Brunnen GmbH & Co. KG

• VOSS WATER

• Nongfu Spring

• National Beverage Corp.

• Keurig Dr Pepper Inc. 

Bottled Water Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global bottled water market report on the basis of product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Spring Water

  • Purified Water

  • Mineral Water

  • Sparkling Water

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Off-trade

  • On-trade

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Mexico

  • Europe

    • France

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Indonesia

    • Thailand

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa