Global Flavored Water Market By Type (Sparkling Water and Still Water), By Distribution Channel (Online platforms and Offline Stores), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the global flavored water market accounted for USD 15.2 billion and is expected to grow to around USD 40.6 billion in 2032. Between 2023 and 2032, this market is estimated to register the highest CAGR of 10.6%.

Flavored water can be defined as water that have had natural flavors added to enhance the taste of water. Flavored water is available in three types sparkling water, still water, and available water with natural flavors. Sparkling flavored water uses carbonation to add minerals.

Still, water is non-carbonated water as tap water and natural mineral water. Flavored water contains additional elements that help to improve the body’s immune system, balance its pH, and recover it. Flavored water offers a clear flavor that improves the customer’s experience.

Key Takeaways

• Market Growth: The global flavored water market accounted for USD 15.2 billion in 2022 and is projected to reach around USD 40.6 billion in 2032, with a notable Compound Annual Growth Rate (CAGR) of 10.6%.
• Flavored Water Definition: Flavored water is water with natural flavors added to enhance its taste, and it is available in three primary types: sparkling water, still water, and water with natural flavors. Sparkling flavored water uses carbonation to add minerals, while still water is non-carbonated.
• Sparkling Water Dominance: Among the different types of flavored water, sparkling water holds a significant share, accounting for 78% of the global flavored water market in 2022. The demand for fizzy hydration products and flavored bubbly is driving the growth of sparkling water.
• Distribution Channels: The market is divided into two major distribution channels: online platforms and offline stores. In 2022, offline stores were the most lucrative segment, with a market share of 60%. The COVID-19 pandemic has led to an increased preference for online platforms for essential shopping, including water.
• Drivers for Market Growth: Increased Demand for Healthy Beverages Customers are showing a growing interest in beverages flavored with herbs, fruits, and nutritious ingredients, leading to an increased demand for flavored water products that offer health benefits. E-commerce Sales The pandemic has accelerated the shift towards online shopping, presenting opportunities for companies to create unique flavored water products. Cosmetic Benefits Flavored water is associated with health and beauty, attracting consumers who are willing to pay for products that enhance their well-being.
• Market Restraints: The availability of alternative products at similar prices and concerns related to packaging, such as the use of bottles, pose challenges to market growth.
• Market Opportunities: The growing awareness of physical fitness is expected to drive flavored water market growth, as it is a clear, low-calorie, and low-sugar option favored by fitness-conscious consumers.
• Customer Preference for Health and Organic Beverages: Consumers are increasingly leaning towards healthier lifestyles, choosing clear liquid diets like flavored water that provide hydration.
• Regional Analysis: North America This region held the highest revenue share in 2022, at over 42%, driven by the presence of popular brands and increased product adoption. The Asia-Pacific region is expected to experience significant growth, especially in countries like India and China, due to changing lifestyles and rapid urbanization.
• Key Market Players: Leading companies in the flavored water market include PepsiCo, Inc., The Coca-Cola Company, Talking Rain, Hint, Inc., and others. These players have been expanding their market share through strategies like mergers, acquisitions, and new product launches.

Market Scope

Type Analysis

Based on type, the market for flavored water is segmented into sparkling water and still water. Among these types, the sparkling type segment is the most lucrative in the global flavored water market. The total revenue share of sparkling water in the global flavored water market is 78% in 2022.

The increase in demand for fizzy hydration products and flavored bubbly is projected to drive sparkling water growth. Sparkling water is increasingly preferred due to its fizz, taste, and health benefits.

Market leaders are launching new products of sparkling water in the market according to demand from consumers. The new sparkling water products have no carbohydrates, sodium, or sweeteners and have a unique flavor of the hibiscus flower. Such products are estimated for the segment’s growth over the forecast period.

Distribution Channel Analysis

The market is further divided into online platforms and offline stores by distribution channel. The offline store segment is estimated to be the most lucrative segment in the global flavored water market, with a market share of 60% in 2022, and will grow further at a steady CAGR from 2023 to 2032.

A large number of consumers prefer to buy bottled water from supermarkets and hypermarkets due to their shopping experience. Customers are increasingly interested in services like click & collect and home delivery at many supermarkets. Carrefour, Walmart, Edeka, and Woolworths are just a few of the top supermarket chains in the world.

The COVID-19 pandemic has changed the shopping patterns of consumers. Nowadays more and more customers are willing to buy their essentials including water through online platforms. The pandemic has resulted in online platforms becoming more and more popular and the most important distribution channels among customers, distributors, retailers, and manufacturers.

Key Market Segments

Based on Type

• Sparkling Water
• Still Water

Based on the Distribution Channel

• Online Platforms
• Offline Stores

Drivers

Global Demand for Nutritious, Flavorful, and Functional Beverages Has been on the Rise.

There has been an increase in customers’ curiosity about beverages flavored with herbs, fruits, and other nutritious ingredients. Increased awareness about health during the pandemic led to an increase in demand for flavored water products enhanced with the benefits of vitamins and minerals particularly among health-conscious customers, which led to an increase in flavored water market growth.

This trend is continuing in the future providing opportunities for companies in the flavored water market to innovate and offer new products to meet customers’ demands.

Increase in E-commerce sales

The pandemic has enhanced the shift towards online shopping platforms and this trend is continuing even after the pandemic. As customers increasingly shop online there are opportunities for companies to create exciting and unique flavors for customers.

Cosmetic Benefits Associated with Flavored Water Consumption

Even though flavored water is a bit expensive, increasing the income levels of people allows them to consume products like flavored water. This is expected to be a main factor holding a positive impact on market growth. Manufacturing companies have grasped the right market by connecting water to health and beauty. Increasing industrialization in China has led to a polluted water supply as a result increasing demand for packaged drinking water.

Restraints

Availability of Alternative Products

In the global flavored water market main challenge around the world is the availability of alternative products at very similar prices, a balance of flavors sugar, and another factor, as a result, a decrease in market growth. There are several protests against the use of bottles for packaging which can largely affect the market. The risk of alternatives is a long-term challenge that can continue to negatively impact market growth.

Opportunity

Growing Awareness Towards Physical Fitness Will Increase the Flavored Water Market Growth

Flavored water is clear and natural, has low- calories, and less sugar. Hence brands are involving these factors in their products to attract customers focusing on fitness and physical well-being. The growth of the market is also attributed to the existence of leading brands around the globe.

Trends

Customer Preference for Healthy and Organic Beverages to Increase Market Growth

The market for flavored water is expected to increase due to customers growing preference for healthier lifestyles. Because clear liquid diets such as juices, water, and other beverages are quickly digested. People attempt to live a healthier lifestyle and include liquid diets into their eating patterns. Water that has been flavored water or fruit included provides all hydration.

Regional Analysis

North America was the region with the highest revenue share, at over 42% in 2022. It will grow further at a steady rate during the estimated period because of rising product consumption. Some popular brands like Bubbly and Nestle Pure Life, Schweppes, LaCroix, and Talking Rain offer a variety of products.

This has led to increased product adoption in this region. The dominance of the market is mainly due to the availability of flavored water operations in North America, and several variants of flavors that are preferred by consumers according to taste. Also, an increase in knowledge of health awareness among consumers about available products increases the revenue of flavored water in North America.

The Asia-Pacific region dominates the global flavored water market, and the region is expected to show large growth in upcoming years. In countries like India and China, growth in the flavored water market is estimated to be high due to lifestyle changes and rapid urbanization, while Asia Pacific has seen the fastest growth.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

To strengthen their flavored water market share, key players have employed various expansion strategies like mergers & acquisitions or new product launches. PepsiCo Inc. introduced five new caffeinated sparkling glasses of water in February 2021 under its Bubly label.

The company’s line of caffeinated drinks has been expanded with the additions of mango passion fruit and blood orange grapefruit, as well as triple berry, citrus cherry, and blueberry pomegranate flavors.

Market Key Players

• PepsiCo, Inc.
• The Coca-Cola Company
• Talking Rain
• Hint, Inc.
• Waterloo Sparkling Water Corp.
• Tata Consumer Products Limited
• NYSW Beverage Brands, Inc.
• Spindrift
• Nestlé S.A.
• National Beverage Corp.
• JUST Goods, Inc.
• Other Key Players

Recent Developments

• In July 2021, Phocus released its new Cola-Flavored water for expanding upon its current lineup of flavors, which includes Blood Orange, Grapefruit, Lime, Natural, Cucumber, and Peach.
• In December 2021, the most carbonated sweet Raspberry and Rhubarb tonic water are now available at Fever-Tree. The drink is a combination of sweet raspberries from Scotland and rhubarb sent from a ranch in Norfolk.
• In February 2020, BLNCD Naturals leading CBD health and wellness brand entered the beverage industry by teaming up with Big Watt Coffee and presenting three new flavors of CBD sparkling water.