Bottled Water Market Size, Share & Trends Analysis Report By Product (Still Water, Sparkling Water, Functional Water), By Packaging (PET, Cans), By Distribution Channel (On-trade, Off-trade), By Region, And Segment Forecasts, 2023 - 2030

Bottled Water Market Size & Trends

The global bottled water market size was estimated at USD 303.95 billion in 2022 and is expected to grow at a CAGR of 5.9% from 2023 to 2030. This can be attributed to increasing health and wellness trends among consumers, the rising need for convenience and accessibility, and robust production innovation.

One of the key factors driving the bottled water market is the increasing health consciousness among consumers. As people become more aware of the importance of hydration and its role in overall health, they are opting for bottled water over sugary beverages such as sodas and juices. This shift is particularly evident among millennials and health-conscious individuals who prioritize natural and low-calorie options. The perception that bottled water is a healthier alternative has led to a surge in demand, as consumers seek products that align with their wellness goals. According to a survey by International Bottled Water Association, over 63 percent of Americans consider bottled water (both still and sparkling) to be one of their top beverage choices. Moreover, an overwhelming majority of 94% Americans believe that bottled water is a healthier option compared to soft drinks. Additionally, 93 percent of those surveyed feel that bottled water should be readily available wherever beverages are sold.

The fast-paced lifestyle of modern consumers has also contributed significantly to the growth of the bottled water market. With busy schedules, many individuals prefer convenient hydration solutions that can be easily carried and consumed on the go. Bottled water offers a practical option for staying hydrated during commutes, workouts, or outdoor activities. The availability of various packaging sizes-from single-serve bottles to larger family packs-further enhances convenience, making it easier for consumers to choose bottled water as their preferred beverage.

A notable factor propelling the growth of the bottled water market is robust production innovation. This involves the introduction of enhanced manufacturing processes and the development of new product variants to meet diverse consumer demands and preferences. Innovations in packaging, such as eco-friendly materials and convenient designs, along with advancements in water purification and flavor infusion technologies, have significantly contributed to making bottled water more attractive to consumers. These innovative efforts not only aim to improve product quality and sustainability but also seek to differentiate offerings in a highly competitive market, thus driving consumer interest and market growth. For instance, in 2024, An India based startup developed an innovative technology that allows for the extraction of drinking water from the atmosphere. This breakthrough is particularly significant in regions facing water scarcity, as it provides a sustainable and renewable source of clean water. The technology employs a combination of cooling and dehumidification processes. Air is drawn into the system, cooled below its dew point, causing moisture to condense. The collected water is then filtered and mineralized to ensure it meets safety standards for drinking.

Product Insights

Still bottled water held a market share of more than 74.5% in 2022, due to increasing consumer preference for convenience, health consciousness, and the perception of bottled water as a safer alternative to tap water. Additionally, aggressive marketing strategies by major brands and the expansion of distribution channels have contributed to its dominance in the beverage sector. The rise in outdoor activities and travel post-pandemic also fueled demand for portable hydration options, further solidifying still bottled water’s market position.

Functional bottled water is anticipated to witness a CAGR of 6.9% from 2023 to 2030. The increasing inclination towards wellness-oriented lifestyle choices are driving demand for water that offers additional health benefits beyond hydration. These benefits range from added vitamins and minerals to special ingredients aimed at improving immunity, energy levels, and overall well-being. Moreover, innovations in packaging and flavoring, coupled with a growing preference for healthy, convenient, and portable drinking options, are further propelling the market forward. Additionally, as consumers increasingly seek alternatives to sugary drinks and calories, functional bottled water emerges as a preferable choice, supporting market expansion during the forecast period. In March 2024, Essentia Water made a significant advancement in the hydration market with the introduction of Essentia Hydroboost, marking its first foray into flavored and functional water. This innovative product aims to cater to consumers’ growing demand for hydration solutions that are both tasty and beneficial, especially as lifestyle trends evolve towards healthier choices.

Distribution channel Insights

The off-trade distribution channel for bottled water accounted for a revenue share of more than 88.8% in 2022, owing to the comprehensive array of options these off trade outlets offer, appealing greatly to consumers. The availability of diverse brands and types of bottled water, coupled with the convenience of comparing products on the spot, makes off trade channels such as hypermarkets, supermarkets, convenience stores, mini markets, and traditional stores highly attractive to consumers. Moreover, these retail outlets benefit from well-established supply chains and efficient distribution models, ensuring consistent product availability. This operational efficiency not only draws in a wider customer demographic but also solidifies the market share of the off-trade distribution channel. For instance, in March 2024, Greene Concepts announced plans to ship its BE WATER 6-packs to a Walmart distribution center, aiming for placement on store shelves. This strategic move is part of the company’s efforts to expand its market presence and increase product availability through one of the largest retail chains in the U.S.

The on-trade channel for bottled water is anticipated to witness a CAGR of 10.1% from 2023 to 2030, due to increasing health consciousness among consumers, a growing preference for convenient and portable hydration options, and the rising trend of premium bottled water offerings in restaurants and cafes. Additionally, the expansion of foodservice establishments and the integration of bottled water into dining experiences are further propelling this growth. As consumers seek healthier beverage alternatives, the demand for bottled water in on-trade settings continues to rise. For instance, in July 2024, Chipotle introduced a new lineup of ready-to-drink beverages available at all its U.S. restaurants. This includes Open Water, which is canned water in aluminum bottles.

Packaging Insights 

The PET bottled water held a revenue share of more than 80.0% in 2022 due to its significant advantages in convenience, recyclability, and lightweight nature compared to other packaging materials. The widespread preference for PET bottles among consumers stems from their ease of transport and use, alongside a growing awareness and concern for environmental sustainability. PET bottles, being fully recyclable, align with increasing global initiatives towards reducing plastic waste and promoting circular economies. Furthermore, the lightweight characteristic of PET bottles reduces transportation costs and carbon footprint, making them a favored choice among manufacturers and consumers alike, thus driving their market. In October 2023, Coca-Cola India launched its first 100% recycled polyethylene terephthalate (PET) bottle, specifically for its Kinley packaged drinking water brand. This initiative marks a significant step towards promoting sustainability and plastic circularity in the country. The company introduced these bottles as part of its broader commitment to environmental responsibility and aims to reduce its carbon footprint. 

The packaging for bottled water in cans is projected to register the fastest growth during the forecast period with a CAGR of 6.4% from 2023 to 2030. This can be primarily attributed to increasing consumer awareness towards environmental sustainability. Cans offer a more eco-friendly alternative to plastic bottles due to their higher recyclability rate and efficiency in transportation, which contributes to lower carbon emissions. Additionally, the convenience and durability of cans appeal to active and on-the-go lifestyles, making them a popular choice among consumers. As a result, both beverage companies and consumers are shifting towards canned water, driving the significant growth in this market segment. For instance, in April 2024, Coca-Cola’s Smartwater brand unveiled 12-ounce aluminum cans with a new design, marking the first instance of vapor-distilled water being offered in this packaging format. The cans feature both Smartwater Original and Smartwater Alkaline with Antioxidant, catering to consumer preferences for convenient and environmentally friendly options

Regional Insights

Bottled water market in North America accounted for a revenue share of 23.9% in 2022. Factors such as lifestyle trends towards hydration and wellness, coupled with the wide availability and variety of bottled water products, play significant roles in driving consumption in the region. Additionally, the emphasis on portable and clean drinking water options for on-the-go consumers has bolstered the market's growth. To meet the growing customer demand for bottled water, several businesses have increased their investments while also improving product quality and distribution channels. In April 2023, Premium Waters, Inc., a Minneapolis-based bottled water producer, announced a new bottling plant in Seguin City, Texas. Proposed at an investment of USD 80 million, the facility will span 27 acres, and the operations are expected to begin in 2024.

U.S. Bottled Water Market Trends

Bottled water market in the U.S. accounted for 57.7% of the market share in 2022. This can be attributed to increasing health consciousness among consumers, shifting preferences from sugary drinks to healthier hydration options, and concerns over the safety and taste of municipal water supplies. Marketing efforts and the perceived convenience and purity of bottled water are also key factors fueling the market's expansion in the U.S.

Europe Bottled Water Market Trends

Bottled water market in Europe is expected to grow at a CAGR of 5.2% from 2022 to 2030. The tourism industry in Europe significantly contributes to the demand for bottled water as tourists often rely on bottled water due to unfamiliarity with local tap water quality. In February 2024, the Haus Cramer Group, a well-known German brewery recognized for its Warsteiner brand, broadened its product range by entering the bottled water market with the introduction of its new mineral water brand, El Puro. This strategic initiative reflects the company’s aim to capitalize on a burgeoning segment within the gastronomy sector, which increasingly highlights the significance of premium beverages, including water.

Asia Pacific Bottled Water Market Trends

Bottled water market in Asia Pacific held a revenue share of 45.1% in 2022. This can be largely attributed to its vast population base, increasing urbanization, and growing middle class with disposable income to spend on convenient and safe drinking water options. The region experiences varied water quality concerns and infrastructural challenges, leading to a high demand for bottled water as a reliable source of hydration. In October 2023, Clear Premium Water launched its new natural mineral water brand, NUbyClear (NU), in the Indian market. This product line is distinguished by its sourcing from the pristine Himalayas, aiming to deliver the essence of these mountains directly to consumers. The launch reflects a strategic response to evolving consumer preferences in the post-COVID era, where there is a growing inclination towards healthier lifestyle choices.

Key Bottled Water Company Insights

The bottled water market is characterized by a mix of international and domestic players, with several key companies dominating the landscape. These companies are leveraging various strategies such as product innovation, mergers and acquisitions, and geographical expansion to enhance their market presence and share.

Recent Developments

• In July 2024, Source, a company based in Scottsdale, Arizona, unveiled a groundbreaking method to tackle the water crisis by generating canned water using air and sunlight. This initiative is part of the increasing trend towards sustainable technologies that aim to resolve environmental challenges while ensuring access to vital resources. The product will be branded as Sky Wtr and is designed to offer an off-grid solution for producing drinking water. Source intends to launch this water for public sale across the U.S. in major retail outlets around August or September 2024. The canned drinking water will be packaged in recyclable aluminum cans and bottles.

• In February 2024, Gatorade announced the launch of its first unflavored water product, Gatorade Water in the U.S., marking a significant expansion into the bottled water category. This move is part of Gatorade’s strategy to diversify its offerings beyond traditional sports drinks and tap into the growing market for functional beverages. Gatorade Water is available nationwide across various retail platforms as well as on Amazon, and Gatorade.com.         

Bottled Water Market Report Scope

Global Bottled Water Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends 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 based on product, packaging, distribution channel, and region:

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

  • Still Water

  • Sparkling Water

  • Functional Water

  • Others

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

  • PET

  • Cans

  • Others

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

  • Off-trade

  • Supermarkets & Hypermarkets

  • Convenience Stores

  • Grocery Stores

  • Others

  • On-trade

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • France

    • Germany

    • U.K.

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Indonesia

    • Thailand

    • Singapore

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • U.A.E.