Bottled Water Market Definition
The bottled water market consists of sales of bottled water services and related goods by entities (organizations, sole traders and partnerships) that provide bottled water. The bottled water industry includes establishments that purify and bottle water.
Bottled Water Market Size
The global bottled water market was valued at around $238 billion in 2017 and is expected to reach $349 billion in 2021, growing at a CAGR (compound annual growth rate) of 9.99% during 2017-2021. In terms of volume, the market is estimated at 437 billion liters in 2017 and is expected to reach 623 billion liters in 2021, growing at a CAGR of 927% during 2017-2021.
Bottled Water Market Drivers
The key drivers of the bottled water market include:
Consumer Concerns – Consumer concerns over rising obesity levels combined with an increase in public awareness about health issues in countries such as China, India and Indonesia had a positive effect on the bottled water market. Consumers have been switching from sugary carbonated drinks to healthier alternatives. This shift significantly contributed to the growth of bottled water in this region.
Bottled Water Market Restraints
The key restraints on the bottled water market include:
Campaigns and Restrictions against Improper Disposal of Plastic Bottles – The period 2011-2016 saw trash cans and streets all around the world overflowing with plastic water bottles, resulting in a major environmental concern. People started spreading awareness on social media pages and groups voicing their concern and organized campaigns against improper disposal of plastic water bottles. This not only led to negative publicity for the global bottled water industry but also encouraged governments to formulate several strict regulations regarding the use of recyclable packaging solutions. For instance, the impact of improper disposal of plastic bottles led San Francisco to ban plastic water bottles.
Bottled Water Market Trends
Major trends influencing the bottled water market include:
Growing Acceptance Of Premium Bottled Water – The acceptance of premium bottled water is gradually increasing in emerging economies such as Brazil. Premium bottled water has less sodium content, high mineral content and special glass or plastic packaging, and is priced higher than normal bottled water. The prices established for premium bottled water brands are not as high as imported brands, thus enabling consumers to opt for premium bottled water. The consumption of premium bottled water is also highly incentivized by restaurants in countries such as Brazil since it is not common to serve tap water. This is expected to drive the demand for premium bottled water in the forecast period.
Increasing Obesity Rate Boosts Demand For Flavored And Functional Water – Bottled water companies are increasingly offering flavored and functional water, which is in high demand due to the growing concerns about rising obesity levels. Carbonated water can lead to digestive issues, weight gain, heart burn, etc. This is leading consumers to shift towards low-calorie flavored water and functional water. Flavored water can be natural or purified mineral water with added flavors. Functional water has added functional value in the form of oxygen, minerals, vitamins, and botanicals. The World Health Organization states that the number of obese children below the age of five is expected to reach 70 million by 2025 from 42 million in 2013. Companies are launching products in this segment in response to rising opportunities in this product type. For instance, Pepsi has launched new sparkling Aquafina flavored waters to cater to rising consumer demand in the flavored and functional water segments.
Bottled Water Market Segmentation
The bottled water market is segmented by product type, by packaging, by pack size, by origin of product, by quality, and by geography.
By Product Type-
The bottled water market is segmented by product type into
Packaged Drinking Water - Still was the largest segment in the global bottled water market, with 58.8% share of the market.
- a) Packaged Drinking Water - Still
- b) Spring + Mineral - Still
- c) Flavored Water - Still
- d) Functional Water
- e) Spring + Mineral - Sparkling
- f) Flavored Water - Sparkling
- g) Packaged Drinking Water - Sparkling
By End User Packaging -
The bottled water market is segmented by packaging into
Plastic Bottle packaging was the largest segment in the global bottled water market, with 57.6% share of the market.
- a) Plastic Bottle
- b) Drum (Bulk)
- c) Glass Bottle
- d) Can
- e) Others
By Pack Size -
The bottled water market is segmented by pack size into
By Origin of Product -
The bottled water market is segmented by origin of water into
- a) 1501 ml and above
- b) 501 ml - 1000 ml
- c) 331 ml - 500ml
- d) 1001 ml - 1500 ml
- e) =330 ml
By Quality -
The bottled water market is segmented by quality into
By Geography - The bottled water market is segmented into
- a) Non-Premium
- b) Premium
Asia Pacific was the largest region in the global bottled water market, with a 42.5% share of the market, followed by Americas.
- o Americas
- o Europe
- o Asia Pacific
- Hong Kong
- o Middle East and Africa
- South Africa
Bottled Water Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Nestle Waters
- • Danone
- • Hangzhou Wahaha Group Co
- • The Coca-Cola Company
- • Nongfu Spring
- • Tingyi (Cayman) Holding Corp
- • PepsiCo