The global market for bottled water is expanding at a significant pace. With obesity becoming one of the biggest health issues in advanced countries across the globe, alarmed parents are increasingly trying to shift their preferences from carbonated beverages to flavored bottled water. This trend is envisioned to result in a robust rise in demand for bottled water in advanced economies of Europe and North America and several regions with emerging economies.
Giving in to the vast growth opportunities that the market has to offer, manufacturers these days are introducing different varieties of bottled water to entice consumers. They can be broadly categorized as still bottled water, carbonated bottled water, flavored bottled water, and functional bottled water. Coca-Cola, PepsiCo, Bisleri International, and Nestlé, are some of the dominant players in the market for bottled water that have become household names. Other players are Aqua Gold International, Danone, Icelandic Water Holdings, and China Water & Drinks.
According to a recent report by Transparency Market Research (TMR), the global market for bottled water is projected to register a promising 6.6% CAGR from 2016 to 2024 to reach an opportunity of US$307.2 bn in 2024 from a valuation of US$169.9 bn in 2016.
In this piece, TMR analysts present insights regarding some of the key trends recently observed in the global bottled water market:
What factors are chiefly responsible for driving demand for bottled water?
Rising health consciousness coupled with awareness about adverse effects of carbonated soft drinks, which are high in sugar, is one of the primary reasons for people opting for flavored or carbonated bottled water. Increasing disposable incomes of people in Eastern Europe, Asia Pacific, and Latin America, are also driving up demand for bottled water in the regions. Further, innovative packaging styles and efficient techniques for enriching hygienic water with vitamins and iron are also pushing up demand. Growth, however, has been partially hindered by water contamination caused by leaching and lack of awareness regarding health hazards of low cost tap water.
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Which product varieties are clocking high demand?
Currently, still bottled water, which does not contain artificial sweeteners or ingredients, has maximum share of the market. In terms of revenue it dominates close to 80% of the market and in terms of volume it commands over 82%, at present. It is slated to maintain its dominant position in the coming years too, owing to a rapid rise in calorie conscious consumers and occurrence of diabetics.
Carbonated bottled water is the second-most popular in the market and is estimated to clock healthy growth rate in the coming years. In terms of growth, however, flavored bottled water is slated to outshine all others, by exhibiting an 8.4% CAGR between 2016 and 2024. The segment of functional bottled water is envisioned to clock a slightly less yet promising CAGR over the said period.
Asia Pacific Leads the Market for Bottled Water?
Yes. Led primarily by Asia Pacific, there has been an increasing demand for bottled water worldwide, in the past couple of years. Propelled by robust demand from China, India, Indonesia, and Thailand, the Asia Pacific market has been dominant revenue-wise. Rising disposable incomes in urban areas where bottled water is abundantly available on account of a well-developed supply chain have been responsible for solid uptick in sales. The high consumption trend will continue in the coming years due to a change in drinking habits that will result in more and more takers for hygienically packaged drinking water over tap water. Besides Asia Pacific, the Latin America market is also expected to put up a good showing over the forecast period between 2016 and 2024 owing to increasing number of manufacturing facilities in the region and robust marketing strategies.