Packaged Water Market Size, Share & Trends Analysis Report By Product (Still, Carbonated, Flavored, Functional), By Region (North America, Europe, Asia Pacific, Latin America, MEA) And Segment Forecasts, 2018 - 2025

Industry Insights 

The global packaged water market size was valued at USD 255.7 billion in 2016 and is anticipated to reach USD 470.0 billion by 2025, increasing health awareness, and disposable income are the major factors that are fueling market growth.

Factors such as poor quality of tap water, risk of water-borne diseases, and ease of availability of packaged water have increased the demand for this product. The increasing health awareness is driving people to add nutrition in their diet. Companies have positioned and advertised packaged water as pure and healthy option; thereby, fueling market growth.

In addition, the launch of new products such as flavored water and functional water has increased the urge of customers to prefer such drinks than carbonated drinks. Flavored and functional water contain a certain amount of nutrients that help people intake more fluids. Consumption of bottled water has increased over the last decade as US sales of carbonated soft drinks, particularly colas, have steadily declined. The decline is mainly driven by consumer concerns about soda sugar content and increased awareness of obesity and diabetes rates, as well as perceived health risks associated with some artificial sweeteners.

Companies manufacturing this product are developing packaging made from recycled or biodegradable materials in an effort to promote sustainability and generate positive publicity. Many beverages are packaged in PET plastic bottles, but bottled water has received more scrutiny than soft drinks, most likely because tap water is often an available, more environmentally friendly option. 

Product Insights 

On the basis of product, the industry is segmented into; still, carbonated, flavored, and functional. Still water held the largest position with a share of about 60.0% in 2016 and is anticipated to maintain its position over the forecast period. Flavored water is expected to gain momentum over the forecast period owing to the increasing health awareness and the need for healthy diet intake

The increasing demand for still water is due to the factors such as growth in tourism, increasing health awareness, preference of filtered water, rise in disposable income, change in lifestyle, and prevent risk of water-borne diseases. According to the statistics by the International Bottled Water Association, the volume of packaged water grew to 12.8 billion gallons in 2016 from 11.8 billion gallons in 2015.

The rising health awareness and changing lifestyle is propelling consumers to opt for non-carbonated drinks such as flavored water owing to their additional ingredients and nutritional benefits. In addition, these drinks are preferred than carbonated drinks; therefore, the demand for flavored water is anticipated to grow lucratively over the forecast period.

Regional Insights

Asia Pacific accounted for the largest market share in 2016 and is estimated to retain its market share over the forecast period. This region is mainly driven by drinking water concerns, high water-borne diseases, changing lifestyles, and therefore the demand for clean water is increasing. In addition, the increasing disposable income in developing countries and tourism is propelling market growth. However, the lack of awareness of packaged water and environmental pollution is likely to slow market growth.

Latin America is the fastest-growing region over the forecast period owing to the presence of large population and rising disposable income, the demand for the packaged product is likely to grow over the forecast period. Modernizing retail channels, emerging economies, and rising middle-class incomes are creating opportunities for the growth of the market in the region. Low level of penetration with significant growth opportunities in these regions has led to a number of players to enter the market 

Packaged Water Market Share Insights

The major players operating in this market include Nestle Waters, Coca-Cola Company, PepsiCo Inc., Suntory Holdings, and Danone Inc. In order to maintain the market, share of the company, various strategies are adopted to keep the competition level high, and generate maximum revenues. For instance, in November 2016, PepsiCo, Inc. entered into an agreement to acquire KeVita, a North American creator of kombucha beverages and fermented probiotic. This acquisition will expand PepsiCo's wellness and health offerings in the premium chilled beverage space. 

Similarly, in May 2017, Nestle Waters and Danone announced a strategic alliance known as Natural Bottle Alliance to develop and launch commercial scale of PET bottles.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth and provides an analysis of the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research, Inc. has segmented the packaged water market on the basis of product, and region:

• Product Outlook (Revenue, USD Billion, 2014 - 2025)

  • Still

  • Carbonated

  • Flavored

  • Functional

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • Japan

    • China

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia