Sparkling Water Market Share & Trends Forecast Report 2028

The sparkling water market is expected to grow from US$ 23,271.30 million in 2021 to US$ 55,298.58 million by 2028; it is estimated to grow at a CAGR of 11.7% from 2021 to 2028.

Market Insights and Analyst View:

Sparkling water is one of the preferred alternatives for soft drinks such as soda and juices. Sparkling water is produced when water is infused with carbon dioxide under pressure which makes it drink similar to soft drinks with less calories. It comes in plain and flavoured categories with added sweeteners and sugar. Sparkling water keeps a person hydrated and provides weight management benefits. Research also states that sparkling water improves digestion and helps to relieve constipation. Currently, sparkling water is gaining popularity owing to its health benefits and less calorie content compared to other soft drinks. On the basis of category, the sparkling water market is categorized into plain and flavoured. In 2020, flavoured sparkling water dominated the market, accounting for more than half of the market share. Also, in 2020, the caffeinated sparkling water segment held a significant market share.

Growth Drivers and Challenges:

With the growing trend of adopting a healthy lifestyle among all age groups, consumers are progressively switching to healthy and innovative drinks, including sparkling water, especially as an alternative to sodas and sugary carbonated beverages. This is increasing the sparkling water market size. According to Nestlé, a Switzerland-based food and beverages company, ~64% of consumers prefer functional beverages with no added calories. In addition, most young age consumers are increasingly opting for sparkling water over plain water, mainly due to their preference for flavours. Further, soft drinks contribute to a rise in the incidence of diseases such as hypertension and diabetes, and awareness regarding the same is further driving consumer inclination toward sugar-free drinks, including flavoured bottled water or sparkling bottled water. Consuming sparkling water can help consumers in managing weight, improve digestion, stave off dehydration, and reduce cholesterol and sugar levels. Thus, health benefits associated with sparkling water are boosting the sparkling water market growth. However, the prices of sparkling water are notably higher than carbonated drinks. Moreover, the uniqueness and originality of sparkling mineral water add to its cost compared to soda water. Both sparkling water and aerated soft drinks are carbonated, but their components make them significantly different. Also, the high prices required to set up systems for producing bottled water commodities is immensely hampering the sparkling water market growth.

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Sparkling Water Market: Strategic Insights

Market Size Value in	US$ 23,271.30 Million in 2021
Market Size Value by	US$ 55,298.58 Million by 2028
Growth rate	CAGR of 11.7% from 2021 to 2028
Forecast Period	2021-2028
Base Year	2021

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Report Segmentation and Scope:

The “Global Sparkling Water Market” is segmented based on category, packaging type, distribution channel, and geography. Based on category, the sparkling water market is segmented into plain and flavoured. The sparkling water market is segmented based on packaging type into bottles and cans. The sparkling water market is segmented based on distribution channel, into supermarkets and hypermarkets, convenience stores, online retail, and others. The sparkling water market based on geography is segmented into North America (US, Canada, and Mexico), Europe (Germany, France, Italy, the 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, El Salvador, and Rest of South & Central America)

Segmental Analysis:

Based on category, the sparkling water market is segmented into plain and flavoured. The flavoured segment holds a significant share in the sparkling water market and is expected to register significant growth over the forecast period. The flavoured segment includes sparkling water with added flavours. Flavoured sparkling water is gaining adoption as the majority of consumers are exploring their taste profiles. The major flavours consumed globally are lime, grapefruit, cranberry, orange, and others. The millennial and Gen Z population prefer dynamic, bold, and engaging flavour profiles. Thus, market players are focusing on introducing innovative flavour profiles to attract a larger customer base.

Regional Analysis:

Based on geography, the sparkling water market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global sparkling water market was dominated by Asia Pacific, which accounted for near about US$ 9,906 Million in 2021. Europe is one of the major contributors in the global sparkling water market growth. North America is expected to register considerable growth at a CAGR of over 12.7% over the forecast period. In North America, the sparkling water market is currently in the growth phase and experiencing exponential growth. Nearly 78 million adults and 13 million children in the United States deal with the health and emotional effects of obesity every day. Modern life in North America has led many people to eat more unhealthy foods, eat bigger food portions, and be less active. According to the U.S. Department of Health & Human Services, on average, US youth consume 143 calories from sugar-sweetened beverages (SSBs) and US adults consume 145 calories from SSBs on a given day. The consumption of SSB drinks has been associated with weight gain/obesity, type 2 diabetes, heart disease, renal illness, non-alcoholic liver disease, tooth decay, and other health concerns. As a result of the growing trend of leading a healthy lifestyle among all age groups, the population of North America is gradually shifting towards healthy and innovative drinks, including sparkling water. The market is likely to be driven by consumers' rising preference for sparkling water over soda water and sugary carbonated drinks over the forecast period.

Industry Developments and Future Opportunities:

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

• In 2021, PepsiCo launched Soulboost, a sparkling water beverage with a dash of real juice and beneficial ingredients. Soulboost is a light sparkling water refreshment that mimics the taste of a fruity beverage. Lift and Ease are the two flavours available, each with four exquisite flavours and 10 to 20 calories per 12 oz.
• In 2021, In the United States, Nestle added caffeinated sparkling water to their Perrier line. Perrier Energize is available in three flavours: Grapefruit, Tangerine, and Pomegranate. 
• In 2020, Keurig Dr Pepper acquired the sparkling water brand “LIMITLESS”. The deal will help grow the distribution of limitless products.

Covid-19 Impact:

The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the food and beverages industry. The shutdown of manufacturing units, disturbed global supply chains, manufacturing activities, and delivery schedules have negatively impacted the sparkling water market growth. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020. With the spread of COVID-19 across the globe, most countries declared a health emergency and stopped unessential movements, thus impacting heavily on the supply chain of goods. This also raised the demand for healthy food and beverage from consumers that boost immunity. The pandemic largely influenced the buying behavior of consumers toward healthy and nutritious food and beverages. During the initial months of the COVID-19 pandemic, a majority of public places and offices were closed, which led to a considerable drop in the commercial demand for sparkling water. The demand for sparkling water has further improved in 2021, with the relaxation of the COVID-19 norms. This has boosted the sparkling water market growth.

Competitive Landscape and Key Companies:

A few players operating in the global sparkling water market include PepsiCo; Nestle; A.G. Barr; Crystal Geyser Water Company; Talking Rain; National Beverage Corp.; Asahi Group Holdings, Ltd.; Dr Pepper Snapple Group, Inc.; Limitless; and The Coca-Cola Company.  The sparkling water brands focus on providing high-quality products to fulfill customer demand.