Bottled Water Market - Forecasts from 2022 to 2027

The global bottled water was evaluated at US$ 173.359 billion in the year 2020, growing at a CAGR of 4.59% reaching the market size of US$ 237.308 billion by the year 2027.

The ever-increasing consumer awareness regarding health benefits that result from consuming bottled water is one of the drivers that is estimated to drive the market during the forecast period. Further, the emergence of beverage engineering has come along in such a manner that there are a plethora of choices at the disposal of consumers whereby they can settle for specifically designed content beverages, such as beverages with nutritional benefits directed at both children and adults, water with energy functionalities, as well as those that carry a particular flavour along with additional health-promoting factors that are derived naturally (especially pertaining water obtained from natural sources). The other aspect that is expected to drive this market is the food and beverage industry which comprises the most developed sector and accounts for a majority of spending by individual consumers, as well as enterprises. Further, constant investment in innovation by various companies as well as government policies conducive to the propagation of the beverage industry as a whole are also factors that are poised to drive the global bottled water industry to a new echelon. Further, negative externalities which arise from human-related activities such as pollution have also contributed to the profusion of bottled water in recent times. Additionally, the increasing alteration of lifestyle coupled with work stress, expanding urbanization, and increasing disposable income have all the more facilitated the increase of the number of bottled water varietals. Another factor that affects the sales of bottled water and hence the market for the same to a certain extent is the weather which in recent times has altered due to climate change and consequently has driven the sales of bottled water as the global temperature continues to rise. The other aspect is that of emerging economies, like that of APAC, wherein the domestic players increasingly invest in bottled water and make their products available to the local customers. Further, expansion of the economy and the increasing propensity of women in the household to earn are a few of the factors contributing to the opportunities which global bottled water companies are looking forward to capitalizing on, thus, enabling them to penetrate these markets.

Conversely, the space in convenience stores that is allocated to bottled water is increasingly being taken away by soft beverage products with new functionalities that are posing as one of the restraining factors hindering the growth of this market. The other factor which is expected to hinder growth is the increasing offerings of meal deals wherein relatively expensive soft drinks are offered, which incentivizes consumers to settle for such deals as they are perceived as economically viable. Further, the increasing number of water ATMs in certain countries that are acting as practical and safe water refilling stations is also an aspect to which bottled water is losing ground. Further, an increasing proportion of value-driven consumers who are environmentally conscious are settling for reusable water bottles that allows them the conveniences of dedicating different water bottles for different activities Viz. one of the gyms, the office, and so on. Nevertheless, the off-the-shelf mineral water will remain the most frequent type of consumed water as it caters to the upkeep of the basic corporeal functions of replenishing by best meeting the requirement of bodily fluids and contributing to the aspect of refreshment. Moreover, viz. brands like Pathwater, the first 100% reusable, recyclable bottled water made available in a sturdy aluminium bottle that addresses the needs of environmental consumers are leading the next generation of eco-conscious consumer packaged goods and debuted its limited-edition Made in USA bottle in May 2020, encouraging consumers, to refill and reuse. It also should be noted that after four refills, Pathwater's bottle becomes carbon neutral.

Therefore, as a response to the various driving factors mentioned, there is an increasing number of developments that are taking place in the global bottled water undeterred by the reduced economic activities caused by COVID 19. For instance, in June 2020, Ferrarelle, which is Italy's 4th largest mineral water producer, announced that it had struck a distribution deal with French food company Danone (DANO.PA), to boost its exports and increase brand awareness among the consumers of foreign countries. Under this agreement, Danone will sell, distribute, and merchandise Ferrarelle's eponymous sparkling water in several countries abroad. In May 2020, the Alkaline Water Company Inc. (NASDAQ and CSE: WTER) announced that the line of A88CBD™ infused ingestible products are now available on A88CBD.com, and at Pure CBD, a CBD-only dispensary with multiple retail locations in LA. The organization is a producer of premium bottled alkaline water, flavoured-infused waters, and CBD-infused products sold under the brand names Alkaline88®, A88 Infused™, and A88CBD™, respectively. This marks a strategic shift for the company as it opens another distribution channel for its speciality products. In May 2020, bottled water brand Vittel launched Vittel UP Pamplemousse - a grapefruit-flavoured variety - in France. The water, which mixes Vittel's natural mineral water with a touch of fruit and a pinch of certified organic cane sugar, is after the launch of UP peach and UP lemon-lime in 2019. UP Pamplemousse is made available in 1L and 4x50cl bottles, which are made from 50% rPET. Vittel is also expected to launch UP peach in a 33cl children's format.

Future innovations in bottled water packaging are expected to drive further sales of bottled water, as evidenced by the London-based start-up Notpla (formerly known as Skipping Rocks Lab) which has been engaged in developing and fine-tuning its edible water bottle, known as Ooho. A translucent, edible film formed of algae and calcium chloride surrounds these water bubbles. A frozen ball of liquid is dipped into a combination of algae to create the Ooho. The membrane creates a watertight seal around the ice as it melts. The Ooho capsules, which are completely biodegradable and may be used as a sustainable replacement for plastic bottles, can either be a bit into and drank from or consumed in their whole. If not taken, the capsules expire in 4 to 6 weeks. As a result, they aren’t intended for use in long supply chains or to be displayed in supermarkets.

During the anticipated period, the sparkling segment, by type is anticipated to increase at the fastest rate. The market is being driven by customers' increased desire for the sparkling category as a healthier substitute for sugary drinks like cola to reduce sugar content levels. Type 2 diabetes, obesity, and other linked health problems are all brought on by the body's excessive sugar levels. According to Bevnet Magazine, the sparkling category's growth from November through December 2020 was almost twice as fast as it was in 2019. This might be ascribed to the product's health benefits as well as an increasing trend among consumers toward drinking healthier beverages. The segment's main driver is probably going to be this tendency.

Recent Developments and expansions

• Nestlé sold Poland Spring, Deer Park, Arrowhead, Ozarka, Zephyrhills, & Pure, among other bottled brands in North America, to a subsidiary of One Rock Capital Partners & investment company Metropoulos & Co. in February 2021 to boost sales of individual brands.
• Kopparberg Brewery introduced bottled water with a 5% ABV in the UK in May 2020, claiming it to be gluten-free and vegan-friendly. In European Morrisons and Tesco supermarkets, it is offered in varieties such as mixed berries, black cherries, and passion fruit.
• A 12-ounce aluminium can of high-pH premium alkaline water was added to TEN Alkaline Spring's growing product line in May 2020. It marks a new, lower price point for the alternative that is packaged in aluminium and is being sold for about 50% less per ounce in terms of the retail price.

COVID-19 Impact

The bottled water sector faced logistical difficulties as a result of the extensive regulations put in place by governments around the world to combat COVID-19. According to the International Bottled Water Association, bottled water producers expanded their output in 2020 to keep up with the surge in demand. This entails raising the bottling capacity quiring more supplies for production and packaging, and speaking with retailers to gauge demand.

Segmentation

By Type

• Still Water
• Sparkling Water
• Functional Water

By Flavor

• Flavored
• Non-Flavored

By Packaging

• PET Bottles
• Glass Bottles

By Distribution Channel

• Online
• Offline

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Colombia
• Chile
• Peru
• Europe
• Denmark
• Finland
• France
• Germany
• Italy
• Netherlands
• Poland
• Spain
• Sweden
• UK
• Middle East and Africa
• Saudi Arabia
• Israel
• UAE
• Turkey
• South Africa
• Asia Pacific
• China
• India
• Japan
• South Korea
• Australia
• Thailand
• Indonesia