Bottled Water Market Trends, Growth, Global Size by 2028

[Research Report] The bottled water market is expected to grow from US$ 228.84 billion in 2022 to US$ 322.85 billion by 2028; it is estimated to grow at a CAGR of 5.9% from 2022 to 2028. 

Market Insights and Analyst View:

Bottled waters are packaged drinking water which purified and are free from contamination. The bottled water is mostly of two types carbonated/sparkling or still water, generally available in plastic or glass packaging. The bottled water is the most convenient way to fulfill its hydration needs of body, hence are easily available nearby retail stores as well as supermarkets and hypermarkets. The rising health concern among the consumers along with a shift in demand from carbonated soft drinks to bottled water is driving the growth of the bottled water market across the world. Along with this, the increase in acceptance of premium bottled water is providing growth opportunities for the bottled water market across the world.

Growth Drivers and Challenges:

Health has become an increasingly influential factor in consumers' choice of soft drinks. Various health issues are influencing the dynamics of the soft drinks industry. Nowadays, consumers are looking for healthier alternatives to carbonated soft drinks. They are gradually shifting from soda to bottled water. This shift is mainly driven by a change in consumers' preferences from high-sugar and unnatural drinks to healthier alternatives. Soft drinks, particularly carbonates, have been criticized for their high sugar content. Increasing consumer demand for healthy soft drink options has resulted in huge demand for bottled water. The high consumption of sugar-rich soft drinks has contributed to problems such as digestive issues, weight gain, and heartburn. Various bottled water companies are highly focused on offering flavored and functional water. These products are in high demand due to the growing concerns about rising obesity levels. Consumers are increasingly shifting toward low-calorie flavored water and functional water. Hence, a shift in demand from carbonated soft drinks to bottled water is mainly driving the bottled water market globally.

Water bottles are bought in huge quantities every year. However, a very less amount is recycled. Many of the plastic water bottles bought end up in landfills. This leads to a big problem, as water bottles do not biodegrade but photodegrade. According to Valley Water, bottles used to package water take over 1,000 years to bio-degrade, and if incinerated, they produce toxic fumes. Each bottle leaks harmful chemicals into the environment along the way as it decomposes. The toxins from decomposing bottles of water leach into the environment and cause various health issues such as reproductive problems and cancer. Moreover, research led by the Barcelona Institute for Global Health (ISGlobal) found that the impact of bottled water on ecosystems is 1,400 times higher than tap water. Hence, the harmful impacts of bottled water on the environment are expected to restrain the growth of the bottled water market during the forecast period.

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Bottled Water Market: Strategic Insights

Market Size Value in	US$ 228.84 Billion in 2022
Market Size Value by	US$ 322.85 Billion by 2028
Growth rate	CAGR of 5.9% from 2022 to 2028
Forecast Period	2022-2028
Base Year	2022

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Report Segmentation and Scope:

The “Global Bottled Water Market” is segmented based on type, category, flavor, distribution channel, and geography. Based on type, the bottled water market is segmented into sparkling and still. On the basis of category, the market is bifurcated into functional and conventional. Based in flavor, the bottled water market is segmented into plain and flavored. Based on distribution channel, the bottled water market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. The bottled water market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America).

Segmental Analysis:

Based on type, the bottled water market is segmented into sparkling and still. On the basis of category, the market is bifurcated into functional and conventional. Based in flavor, the bottled water market is segmented into plain and flavored. Based on distribution channel, the bottled water market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. The conventional segment held the significant share in the bottled water market and is expected to register the significant growth over the forecast period. Conventional bottled water is water without any added ingredients. Increasing consumer awareness health issues associated with added ingredients used in bottled water is expected has surged the adoption of conventional bottled water.  Conventional bottled water usage is much higher in places where tap water is a concern. It is sourced from natural water sources such as springs and underground reservoirs. It is high in several essential minerals, including magnesium, calcium, and sodium. The health benefits associated with conventional bottled water are increasing its demand.

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Regional Analysis:

Based on geography, the bottled water market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global bottled water market was dominated by Asia Pacific which accounted for US$ 74.55 Billion in 2022. North America is a second major contributor holding more than 31% share in the global market. Europe is expected to register the considerable growth at a CAGR of 5.5% over the forecast period.  The demand for bottled water in North America is attributed to increasing demand for clean, safe, and high-quality drinking water. According to the International Bottled Water Association, per capita consumption in the US topped 45.2 gallons in 2020. Furthermore, many customers prefer flavored bottled water. This has surged bottled water companies to introduce new products with flavoring ingredients and attractive packaging.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the bottled water market are listed below:

1. In March 2022, RHODIUS Mineralquellen has announced the development of PET bottles made from 75% recycled PET. The development was aimed to introduce sustainable packaging solution for bottled water.
2. In February 2021, Coca Cola brand aha developed two new sparkling water which are calorie, sodium and sweetener-free. The flavor includes Raspberry+ Acai and Mango + Black Tea.
3. In January 2020, VOSS of Norway introduced Voss+ enhanced waters in 100% recycled PET bottle. The VOSS+ range includes VOSS + Collagen, VOSS + Vitamin D and VOSS + Aquamin. The launch was aimed to cater the growing consumer demand for sustainable products in bottled water.

Covid-19 Impact:

The COVID-19 pandemic affected economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. The food & beverages industry suffered due to serious disruptions in supply chains and shutdowns of production plants in the initial phases of the pandemic. The shutdown of manufacturing plants in leading countries in North America, Europe, Asia Pacific, South & Central America, and the Middle East & Africa disturbed the global supply chains, manufacturing, delivery schedules, and goods sales. Further, various companies announced possible delays in product deliveries and a slump in future sales of their products in 2020. In addition, the bans imposed by various countries in Europe, Asia, and North America on international travel compelled enterprises to temporarily suspend their collaboration and partnership plans

In 2020, various industries had to slow down their operations due to disruptions in value chains caused by the shutdown of national and international boundaries. After lockdowns were announced, the demand for bottled water increased as households rushed to secure supplies. During the pandemic, the lack of access to safe water or adequate infrastructure, coupled with health concerns, mainly drove up bottled water sales worldwide. On the other hand, as tourists and office workers were forced to stay home, countries with service-focused economies have seen drops in plastic bottle sales. As economies started reviving their operations in 2021, the demand for bottled water is rising globally. Reopening business activities in the hospitality & tourism sector are creating a demand for bottled water. The increasing demand for bottled water is expected to offer more growth opportunities for the bottled water market during the forecast period.

Competitive Landscape and Key Companies:

Some of the prominent players operating in the global bottled water market include Danone; FIJI Water Company LLC; GEROLSTEINER BRUNNEN GMBH & CO. KG; The Coca-Cola Company; Nestlé S.A; Nongfu Spring; BlueTriton Brands, Inc.; PepsiCo, Inc; Voss of Norway AS; RHODIUS Mineralquellen und Getränke GmbH & Co. KG among others. These players offer bottled water with flavors and are offering products in sustainable packaging solution to attract a large number of consumers.