According to a new report published by Allied Market Research, titled, “Bottled Water Market," The bottled water market was valued at $301.7 billion in 2021, and is estimated to reach $515.3 billion by 2031, growing at a CAGR of 5.5% from 2022 to 2031.
Bottled water is packed water that meets all applicable government, regional federal or state standards, which is sealed in a sanitary container, and is sold for human consumption. In addition to this, bottled water are available in various sizes ranging from small single serving bottles to large carboys used for water coolers. There are several types of bottled water, such as still water, flavoured water, carbonated water, and functional water.
Growth in awareness for health-related activities has surged the demand for bottled water owing to its great taste and added nutrients. This is expected to fuel the bottled water market growth during the forecast period. Furthermore, increase in value and potential of bottled functional water and the fact that bottled functional water become a major commercial beverage category in both developed and developing economies, including the U.S., China, and others owing to its enrichment with supplements ingredients such as vitamins, minerals, acids, herbs, raw fruits, or vegetables has made customers more linear towards it. This is expected to drive the global bottled water market.
However, the availability of tap water at cheaper rates as compared to bottled water is expected to hinder the growth of the bottled water market during the forecast period.
On the contrary, there is a rapid shift towards using safe, refreshing, and healthy beverages that are free from calories, caffeine, and preservatives. This is anticipated to increase the sales of bottled water owing to accruing health benefits associated with the use of bottled water; thus creating lucrative opportunities for the market.
The bottled water market is segmented on the basis of type and region. By type, the market is segregated into carbonated water, flavored water, still water, and functional water. The still water segment dominated the global market, in terms of revenue in 2021, with 64.3% of the total share. This is attributed to increase in demand for cheap and safe drinking water where still bottled water is the highly preferred bottled water types among restaurants & hotels, supermarkets, offices, and other areas of application.
Region-wise, the bottled water market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific bottled water market size is projected to grow at the highest CAGR during the forecast period, owing to factors such as rise in urbanization, standard of living, and rise in health awareness about waterborne diseases, such as malaria, typhoid, diarrhoea, food poisoning, and others, which in turn surge the utilization of safe and clean bottled water. In addition, the beverage sectors in the region witnesses a significant growth owing to rapid establishments of food & beverage sectors where flavored and carbonated bottled water is widely used to produce a wide range of soft drinks. In addition, the arrival of local players in Asia-Pacific is expected to augment the growth of the bottled water market in this region.
Key players operating in the global bottled water market include, Danone, Hangzhou Wahaha Group Co, Ltd., Icelandic Glacial, Nestlé, Niagara Bottling, LLC., Nongfu Spring., Norland International, PepsiCo, The Coca-Cola Company, and VOSS of Norway AS.
The novel coronavirus COVID-19 is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The bottled water market has been positively impacted due to rising concerns related to hygiene. In addition, several bottled water manufacturing companies have had to expand their operations due to fulfilling the rising demand, primarily in the developed nations. This has increased the production rate of bottled water. However, more than 100 countries have locked their international borders for transportation and non-essential trade activities, which have faced reduction in the use of bottled water.
In 2020, bottled water prices were higher in Asia-Pacific. The price rise was due to continuous regional demand trends and tight product availability. Firm downstream demand for bottled water and stronger upstream costs are expected to sustain the price gain. However, the lift of restrictions post-COVID-19 scenario may further enhance the performance of the bottled water market owing to the increase in demand for bottled water among food outlets and restaurants. Furthermore, consumers are becoming more aware of health and hygiene practices, which in turn is expected to enhance the demand for bottled water post the COVID-19 pandemic.
Key Findings of Study
- The still water segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.4% from 2022 to 2031.
- North America garnered the highest share of 31.4% in 2021, in terms of revenue, growing at a CAGR of 4.7%.