U.S. Bottled Water Market Size, Share & Trends Analysis Report By Product (Spring Water, Sparkling Water, Mineral Water), By Packaging (PET, Cans), By Distribution Channel (On-trade, Off-trade), And Segment Forecasts, 2024 - 2030

U.S. Bottled Water Market Size & Trends

The U.S. bottled water market size was estimated at USD 44.6 billion in 2023 and is expected to grow at a CAGR of 5.8% from 2024 to 2030. Demand for sanitary packaged goods is rising as worries about a range of health issues, including gastrointestinal disorders brought on by drinking tainted water, grow. A few areas of the United States lack access to clean drinking water, which increases demand for safe drinking water and boosts product sales and market expansion.

U.S. bottled water market for market share of 13.7% in the global bottled water market. The growing trend of consumers prioritizing health and wellness is reflected in their desire for nutrient-fortified water. The need has grown among business customers, working professionals, and vacationers. Products labeled as alkaline, electrolyte-rich, caffeinated, fortified with additional hydrogen or oxygen, have become more and more popular in the last few years.

Growing consumer emphasis on health and well-being is driving up demand for bottled choices that are ultra- and purified-powder. Because these bottles are a healthier alternative to high-calorie, carbonated, and sugary drinks like sports drinks and juices, consumers choose to use them when they were on the go.  As per the data by the Beverage Marketing Corporation, the volume growth of bottled water showed sluggish growth in 2022 compared to the previous year, but producers' revenues grew by roughly 12% owing to augmented prices.

While carbonated soft drink consumption stayed at 36 gallons, the per capita consumption of bottled water hit a record high of 46.5 gallons. The majority of the volume in the category was made up of single-serving sizes, which were the most widely used kind of bottled water. Beverage Marketing Corporation predicts that bottled water will overtake carbonated soft drinks in growth.
Vitamin-enriched fluids, or "functional water," have become more and more popular among consumers due to their ease, apparent health advantages, and superior flavor to tap water. Consumers are choosing healthier options such as flavored and functional water as a result of growing worries about a variety of health issues, including heartburn, weight gain, and digestive problems.

Functional waters are less expensive than other RTD beverages, and a growing number of packaging alternatives, such as single-serve bottles and containers, are increasing consumer interest in them and the functional water market. The swift increase in the popularity of fortified beverages can be credited to the incorporation of vital components including protein, amino acids, vitamins, and minerals in a range of functional drinks. The market is expected to increase as a result of the launch of fresh and creative varieties of functional water by beverage manufacturing firms that produce water from altered protein and mineral blends.

Market Concentration & Characteristics

The U.S. bottled water market is fragmented in nature, with the presence of a large number of regional and local players. The market stage growth is medium, and pace of growth is accelerating.

Large players in the industry are concentrating on capacity expansions, technological advancements, and the introduction of new products. Due to the existence of multiple regionally dispersed local manufacturers, the firms' market shares differ.
Businesses in the industry serve customers globally or only in certain areas. They are concentrating on introducing new varieties so that consumers can select the flavor of the water they drink from reusable, personal bottles.

Moreover, the expansion of e-commerce creates substantial potential for market participants and has encouraged manufacturers to offer their goods online due to its expanded distribution networks and product availability. Commercial locations can find many water bottles for sale from e-commerce giants such as Alibaba and Amazon.

Product Insights

In 2023, the mineral water market held a market share of 27.6% in terms of revenue and is expected to maintain dominance over the forecast period. Because typhoid, diarrhea, and dysentery are typically brought on by contaminated particles in flowing water, businesses are addressing the issue and customers are searching for safe water sources. For example, Aquafina provides filtered, sodium-free, purified drinking options. For safe and clean drinking, Dasani also provides alternatives that have been cleaned and enhanced with minerals.
One of the main factors driving the market is the increased focus on wellness and health.

 The sparkling bottled water market is projected to grow at a CAGR of 6.6% from 2024 to 2030. Customers are actively looking for functional beverages that can help them achieve their particular health goals as they become more aware of their overall well-being. Customers can easily and conveniently add these extra benefits to their regular hydration program by using bottled functional water.

Distribution channel Insights

Off-trade consumption of bottled water accounted for a market share of over 90% in 2023. All retail establishments, including supermarkets, small markets, hypermarkets, convenience stores, and traditional stores, are included in this sector. Throughout the projection period, the market will be supported by the growing ease with which consumers may select a specific brand of bottled water that contains a specific set of minerals. 

On-trade sales of bottled water are anticipated to grow at a CAGR of 5.9% from 2024 to 2030. The social and recreational elements of going out to eat or seeing shows are advantageous to the on-trade channel. Because bottled water is easily accessible in restaurants and bars, customers frequently decide to enjoy their food and beverages there. Because of this, there is a steady market for bottled water in the on-trade distribution channel.

Packaging Insights

PET bottled water market accounted for a revenue share of over 80% in 2023 and is expected to maintain dominance over the forecast period. PET packaging is unique in the bottled water industry since it is less expensive than alternatives such as glass or metal. PET bottles are reasonably inexpensive to produce, and their lightweight design greatly lowers the cost of shipping. Because of this financial benefit, PET has become the standard for water packaging, allowing producers to provide a variety of consumers reasonably priced bottled water options.

The packaging has been essential to the product's increasing uptake. Coca-Cola Bangladesh launched 100% recycled PET (rPET) bottles for its Kinley water brand in December 2022. As a result, Coca-Cola Bangladesh is the first business in South-West Asia to sell two-liter packs of 100% rPET bottles. The company has been making efforts to utilize more recycled plastic and less virgin plastic. Presently, the company sells 100% rPET bottles in more than 40 international marketplaces.

The canned bottled water market is expected to grow at a CAGR of over 6.0% during the forecast period. Because they create an impenetrable, light-resistant barrier, cans provide the best possible product protection, preserving the water's flavor and quality. This benefit is crucial for bottled water since it ensures that its freshness and purity will be maintained for the duration of its shelf life.

Key U.S. Bottled Water Company Insights

The market includes both international and domestic participants. Brand market share analysis indicates that key players are focusing on strategies such as new product launches, partnerships, mergers & acquisitions, and geographic expansions.

Some of the key companies include, Nestlé, PepsiCo, and The Coca-Cola Company, and DANONE, among others.

• For instance, in September 2022, A company well-known for its flavored sparkling water drinks, Waterloo Sparkling Water, has added two new flavors to its menu under the moniker "Sweater Weather." The two new tastes, "Pumpkin Spice" and "Caramel Apple," are meant to evoke the spirit of autumn and its beloved seasonal flavors.

• Some emerging players in the market include, FIJI Water Company LLC and VOSS Water.

Recent Developments

• In April 2021, Nestle SA declared to trade its bottled water business in the U.S. and Canada to a private equity company One Rock Capital Partners for USD 4.3 billion, being retitled BlueTriton Brands

• In October 2020, Primo Water Corporation declared the procurement of Mountain Valley Water Company of Los Angeles, thus maintaining the total number of consumers to over 8,000.

U.S. Bottled Water Market Report Scope

U.S. Bottled Water Market Report Segmentation

This report forecasts revenue growth at country level and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. bottled water market report based on product, packaging, and distribution channel:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Spring Water

  • Sparkling Water

  • Mineral Water

  • Others

• Packaging Outlook (Revenue, USD Billion, 2018 - 2030)

  • PET

  • Cans

  • Others

• Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

  • Off-trade

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Grocery Stores

    • Others

  • On-trade