Global Bottled Water Market By Product Type (Still Water, Sparkling Water, Functional Water, Others), By Packaging (Plastic Bottle, Cans, Others), By Distribution Channel (Online, Offline), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2033

Report Overview

The Global Bottled Water Market is anticipated to be USD 551.2 billion by 2033. It is estimated to record a steady CAGR of 5.3% in the Forecast period 2023 to 2033. It is likely to total USD 328.9 billion in 2023.

Bottled water, simply is water that has been packed in bottles, usually made of glass or plastic intended for consumption by humans. It includes a range of forms, such as purified water, spring water and mineral water. Each has distinct features and awe.

The industry of bottled water has seen a dramatic growth in the last few decades driven by a combination of reasons: concerns about the quality of tap water as well as a desire to have ease of use, and clever advertising campaigns which have placed the bottled water industry as an emblem of the health of a person and their hydration.

Note: Actual Numbers Might Vary In The Final Report

Key Takeaways

• Market Size and Growth: The global Bottled Water Market is expected to reach USD 551.2 billion by 2033. It is projected to grow at a CAGR of 5.3% from 2023 to 2033.
• Product Types: Still Water is the dominant segment in 2023, holding a market share of 72.3%.
• Packaging  Plastic Bottles are the most popular packaging choice, with a market share of 68.5% in 2023.
• Distribution Channels: Online distribution is dominant, commanding a market share of 90.1% in 2023.
• Driving Factors: Increasing health consciousness among consumers is driving the demand for bottled water.
• Challenges: Environmental impact due to plastic waste generation is a concern.
• Growth Opportunities: Premium and functional bottled water segments offer growth opportunities.
• Key Market Trends: Shift towards plant-based and recyclable packaging.
• Regional Analysis: Asia Pacific (APAC) holds a dominant market position, driven by a growing population and health-conscious trends.
• Top Key Players: Nestlé, PepsiCo, The Coca-Cola Company, DANONE, Primo Water Corporation, FIJI Water Company LLC, Gerolsteiner Brunnen GmbH & Co. KG, VOSS WATER, Nongfu Spring, National Beverage Corp., Keurig Dr Pepper Inc., Other Key Players

By Product Type

In 2023, the Bottled Water market exhibited a robust segmentation by product type, encompassing Still Water, Sparkling Water, Functional Water, and other variants. Among these, the Still Water segment emerged as the frontrunner, commanding a significant market share of 72.3%. This dominance can be attributed to the enduring preference of consumers for pure and uncarbonated water. Still Water continues to resonate with health-conscious individuals and those seeking a simple and natural hydration solution.

Furthermore, the Sparkling Water segment, while not surpassing Still Water, maintained its presence with a substantial market share. This segment accounted for a noteworthy portion of the Bottled Water market, reflecting the enduring popularity of carbonated options among consumers who enjoy the effervescence and crispness that sparkling water provides.

Additionally, the Functional Water segment, characterized by enhanced attributes such as added minerals, vitamins, or other health-related benefits, showed promising growth. While it didn’t hold the largest share, it carved a niche in the market by catering to consumers with specific health and wellness preferences. The Functional Water segment’s growth is indicative of a broader trend toward healthier beverage choices in the market.

Lastly, the category of ‘Others’ included various innovative and niche bottled water products that catered to specific consumer demands. While the market share of this segment was relatively smaller compared to Still Water and Sparkling Water, it showcased the industry’s versatility and willingness to adapt to evolving consumer preferences.

By Packaging

Moving on to the Bottled Water market’s packaging segment, Plastic Bottles emerged as the dominant player in 2023, securing an impressive market share of 68.5%. This packaging choice’s popularity can be attributed to its convenience, portability, and widespread availability. Plastic bottles are lightweight and durable, making them a preferred choice for both manufacturers and consumers.

Cans, while not as prevalent as plastic bottles, maintained a notable presence in the market, particularly among environmentally conscious consumers. Cans are recyclable and considered more eco-friendly than some plastic options, which resonated with a specific segment of the market. As sustainability continues to gain importance, the demand for canned bottled water is expected to grow.

The ‘Others’ category within packaging encompassed various alternatives, including glass bottles and cartons, catering to niche preferences. Although this segment held a smaller market share, it highlighted the industry’s commitment to offering diverse packaging options to meet consumer demands.

Note: Actual Numbers Might Vary In The Final Report

By Distribution Channel

Shifting our focus to the distribution channel, the Offline segment emerged as the dominant force in 2023, commanding an impressive market share of 90.1%. This dominance can be attributed to the ongoing digital transformation and the convenience of purchasing bottled water online. Consumers increasingly value the ease of ordering, home delivery, and the ability to explore a wide range of product choices online.

While the Online segment took the lead, the Offline distribution channel, which includes brick-and-mortar stores, retained significance in the market. Many consumers still prefer to make in-store purchases, especially for immediate consumption or when shopping for groceries. Physical retail locations provide an opportunity for consumers to examine products firsthand and make on-the-spot decisions.

Driving Factors

• Health and Wellness Awareness: Increasing health consciousness among consumers is a significant driver for the bottled water market. Consumers are choosing bottles of water instead of drinks that are calorie- and sugar-laden and are assuming it is an alternative that is healthier.
• Convenience and Portability: Bottled drinking water provides convenience and portability and is a popular alternative for those who are always on the move. It’s easily accessible and can be carried around for instant hydration, especially in regions with inadequate tap water quality.
• Environmental Concerns: Growing environmental awareness has led to a surge in demand for eco-friendly and sustainable packaging solutions. Many bottled water companies are adopting recyclable materials and promoting responsible disposal, appealing to environmentally conscious consumers.
• Flavored and Functional Water Varieties: The introduction of flavored and functional bottled water options, such as vitamin-enhanced and electrolyte-infused varieties, has attracted a broader consumer base. These innovations cater to different tastes and offer additional benefits beyond hydration.

Restraining Factors

• Environmental Impact: The bottled water industry faces criticism for its environmental impact due to plastic waste generation. Increasing concerns about plastic pollution have led to calls for more sustainable packaging alternatives, which can increase operational costs.
• Competition from Tap Water: In regions with high-quality tap water infrastructure, bottled water faces competition from readily available and cheaper tap water. This factor can limit the growth of the bottled water market in certain areas.
• Stringent Regulations: Bottled water is subject to strict regulations related to quality and safety. Adhering to these regulations can be costly and time-consuming for manufacturers, potentially affecting profitability.
• Consumer Perception: Negative perceptions about the source and purity of bottled water can deter some consumers from choosing it. Reports of contaminants or unethical sourcing practices can erode consumer trust in the industry.

Growth Opportunities

• Premium and Functional Varieties: There is a growing opportunity in the premium and functional bottled water segment. Consumers are willing to pay more for specialty waters like alkaline, sparkling, or CBD-infused waters, which offer unique benefits and flavors.
• E-Commerce Expansion: The rise of e-commerce platforms provides a significant growth avenue for bottled water companies. Online sales and subscription services offer convenience to consumers, allowing them to receive bottled water at their doorstep.
• Emerging Markets: Emerging economies with improving disposable incomes represent untapped potential for the bottled water market. As more consumers in these regions seek safe and convenient hydration options, market expansion opportunities abound.
• Brand Innovation: Brands that innovate in terms of sustainable packaging, eco-friendly initiatives, and transparent sourcing practices can differentiate themselves and tap into the conscious consumer market, driving growth.

Key Market Trends

• Plant-Based Packaging: A prominent trend in the bottled water market is the shift towards plant-based and recyclable packaging. Companies are increasingly adopting eco-friendly materials like PET, PLA, and glass to reduce their environmental footprint.
• Flavored and Functional Waters: The market is witnessing a surge in flavored and functional water varieties. These products cater to evolving consumer preferences for enhanced taste and health benefits, diversifying the product portfolio.
• Premium Water Brands: Premium water brands with unique stories, branding, and distinct water sources are gaining traction. These brands emphasize purity, authenticity, and exclusivity to attract discerning consumers.
• Local Sourcing and Traceability: Consumers are showing a growing interest in the source and traceability of bottled water. Brands that provide information about the water’s origin and production processes are gaining consumer trust and loyalty.

Key Market Segments

By Product Type

• Still Water
• Sparkling Water
• Functional Water
• Others

By Packaging

• Plastic Bottle
• Cans
• Others

Distribution Channel

• Online
• Offline

Geopolitical and Recession Impact Analysis

Geopolitical Impact

• Trade and Tariffs: Geopolitical tensions and trade disputes between countries can lead to tariffs and trade restrictions on bottled water imports and exports. These measures can disrupt the supply chain, increase costs, and potentially affect market accessibility.
• Regulatory Changes: Geopolitical shifts can result in changes to regulations related to bottled water quality, safety standards, and labeling requirements. These alterations may necessitate adjustments in production processes and compliance measures, impacting the industry’s operational landscape.
• Global Market Access: Geopolitical stability or instability in key markets can determine a company’s ability to access and expand into those regions. Political instability or conflict can deter investments and limit market growth opportunities.
• Resource Availability: Geopolitical factors can influence access to the natural resources required for bottled water production, such as water sources and packaging materials. Disputes over resource ownership or availability can affect the industry’s supply chain and sustainability efforts.

Recession Impact

• Consumer Spending: During economic recessions, consumers often reduce discretionary spending, impacting the demand for bottled water. While bottled water is generally considered an essential product, consumers may opt for tap water to save on expenses, leading to reduced sales.
• Price Sensitivity: Recessions can make consumers more price-sensitive, leading to increased scrutiny of bottled water prices. Manufacturers may need to adjust pricing strategies to remain competitive and maintain market share.
• Supply Chain Disruptions: Economic downturns can disrupt supply chains due to financial instability among suppliers or transportation challenges. This can lead to delays in production and distribution, affecting product availability.
• Packaging and Sustainability: Recessions may influence consumer attitudes toward packaging and sustainability. Some consumers may become more conscious of waste and environmental impact, leading to a shift in preferences toward eco-friendly packaging options or reusable containers.

Combined Impact

The combined impact of geopolitical instability and economic recessions on the Bottled Water market underscores the need for adaptability and resilience within the industry. Companies operating in this market must closely monitor geopolitical developments, anticipate potential regulatory changes, and diversify their market presence to mitigate risks associated with geopolitical tensions.

During economic downturns, businesses should focus on cost-efficiency, price competitiveness, and maintaining product quality. Innovative packaging solutions that align with sustainability trends may help companies differentiate themselves and cater to environmentally conscious consumers, even in challenging economic environments.

Regional Analysis

In 2023, Asia Pacific (APAC) held a dominant market position in the Bottled Water market, capturing more than a 46% share. The demand for Bottled Water in Asia Pacific was valued at USD 151.2 billion in 2023 and is anticipated to grow significantly in the forecast period. This region’s supremacy is underpinned by its vast population, rapid urbanization, and increasing awareness of the importance of clean drinking water. As urbanization continues to surge, the demand for convenient and safe bottled water options in single-use and bulk packaging has witnessed substantial growth across APAC countries.

Additionally, the emergence of health-conscious consumer trends and concerns about water quality have driven the adoption of bottled water as a reliable source of hydration. APAC’s dynamic market is characterized by a diverse range of offerings, from purified and mineral water to flavored and functional varieties, catering to various consumer preferences and needs.

North America holds an impressive market share in the Bottled Water industry. By 2023, North America held a significant portion of this industry due to factors like health and wellness trends, convenience and an overall shift away from sugary beverages. Consumers in this region increasingly favoring bottled water as a healthier beverage option which has contributed to its steady expansion. Environmental concerns have led many companies in North America to invest in eco-friendly packaging options to address this growing trend.

In Europe, the Bottled Water market exhibited a robust presence, with a notable market share in 2023. European consumers’ preference for natural and premium bottled water varieties, such as mineral and spring waters, has been a key driver of market growth. This region places an intense focus on product quality and safety, resulting in strict regulations that govern the industry of bottled water. European customers are willing to pay more for premium bottled water products which further contributes to the market’s upward trend.

Latin America has emerged as an exciting marketplace for water bottled with an increase in demand over the last few years. Factors such as the rise in disposable income urbanization, health-consciousness, and urbanization have increased the demand for bottles of water throughout the region. By 2023, Latin America held a significant market share that reflects the growing demand of consumers to purchase bottled water instead of carbonated beverages as well as other alternatives. This trend is likely to continue as people prioritize the importance of drinking more water and look for healthier drink options.

Lastly, the Middle East and Africa region also witnessed growth in the Bottled Water market in 2023. This increase can be attributed to factors like the rise in temperatures, a rise in tourism and the requirement for reliable and portable source of drinking water. The region is confronted with problems related to water scarcity and the quality of water, bottled drinking water offers an easy and reliable solution. Market players in this region have introduced various product innovations to cater to the diverse consumer preferences, including flavored and vitamin-enriched water options.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries Covered in this Report

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

A key player analysis examines the major companies operating in an industry and evaluates their market position, business and growth strategies, financial performance, competitive landscape, strengths and weaknesses. This provides insights into the competitive dynamics of that industry.

Some of the major key players in the global bottled water market include:

• Nestlé
• PepsiCo
• The Coca-Cola Company
• DANONE
• Primo Water Corporation
• FIJI Water Company LLC
• Gerolsteiner Brunnen GmbH & Co. KG
• VOSS WATER
• Nongfu Spring
• National Beverage Corp.
• Keurig Dr Pepper Inc.
• Other Key Players

Recent Developments

• Nestlé’s Sustainable Packaging: In April 2023, Nestle joined forces with Acreto, a company dedicated to sustainable packaging, to introduce a fresh range of bottled water crafted entirely from plant-based materials.
• PepsiCo Taps into Captured Carbon Emissions: In February 2023, PepsiCo collaborated with biotech firm LanzaTech to pioneer a novel method for crafting bottled water derived from captured carbon emissions.
• Essentia Targets Health-Conscious Consumer: In September 2022, Essentia Water unveiled the introduction of Essentia Plus, a new line of electrolyte-infused bottled water designed for health-conscious consumers seeking a wholesome alternative to sugary sports drinks.
• Coca-Cola Repurposes Ocean Plastics: In June 2022, Coca-Cola partnered with The Ocean Cleanup to release Clear Ocean, a novel bottled water line composed entirely of 100% recycled ocean plastic.

Report Scope