Drinking Water Market Size, Share & Industry Analysis, By Type (Mineral Water, Sparkling Water, Distilled Water, Spring Water, Others), By Distribution (Supermarkets/Hypermarkets, Convenience Stores, Online Retailers, Others) And Regional Forecast, 2024-2032

Drinking water, also known as potable water, that is safe for human consumption and utilization for culinary preparations. Drinking water is generally sourced from public water supply systems such as - private wells, reservoirs, lakes or underground aquifers. Almost all drinking water contain various trace elements, such as sodium, chloride, and potassium, some of which play a role in metabolism.

The availability of safe drinking water is essential to public health, whether it is for drinking, domestic use, food production, or recreational purposes. Improved water supply and sanitation facilities and better water resources management can promote economic growth in countries and is likely to contribute in reducing poverty. Moreover, the increase in demand for packaged drinking water across the globe is attributed to the gradual shift of consumers towards healthier alternatives such as bottled and functional water from soda and high sugary drinks.                   

Increased demand for safe drinking water, especially in the developing economies with large populations, along with ineffective water management in some residential areas are major factors contributing to the growth of bottled drinking water. Additionally, bottled drinking water offers ease of convenience, along with offering a healthier alternative to consumers who want to reduce their calorie, sugar, caffeine, and other ingredients intake in their diet. This gradual shift significantly contributes in fueling bottled water market. According to the International Bottled Water Association (IBWA), drinking bottled, filtered, or tap water is always a healthy decision due to the high incidence of obesity, diabetes, and heart disease in the U.S. IBWA promotes water consumption from all sources to assist the public in making healthy hydration a part of their daily lives. Thus, the aforementioned factors are expected to drive the market for drinking water in the forecasted period.

Contaminated water and poor sanitation are linked to the spread of diseases such as cholera, diarrhea, dysentery, typhoid fever, and polio. According to World Health Organization (WHO), an estimated 829,000 people die every year due to unhealthy drinking water, sanitation, and hand hygiene. Inadequate or poorly managed water and sanitation services expose people to preventable health risks, which is one of the factors restraining the market growth.

Key Market Driver -

Increased Awareness about Waterborne Diseases, coupled with the Convenience Offered by Bottled Water

Key Market Restraint -

Contaminated Water, Poor Sanitation and Plastic Packaging of Bottled Water to Restraint the Market Growth

In addition, the harmful effects of using plastic bottles, due to the presence of polyethylene terephthalate (PET), can act as an endocrine disruptor, which changes hormonal systems. The improper disposal of plastic bottles, also pose a serious risk to the environment and human health, which also acts as impeding factor in the market growth.

Key Players Covered:

The leading manufacturers operating in the global drinking water market are Nestlé S.A., PepsiCo, Inc., The Coca-Cola Company, The Wonderful Company LLC, Gerolsteiner Brunnen GmbH & Co. KG, Reignwood Investments UK Ltd., Hangzhou Wahaha Group Co., Danone S.A., Bisleri International Pvt. Ltd., Icelandic Water Holdings hf., and others.

By type, mineral water is expected to hold a significant market share; due to its carbonation and mineral content, along with its ability to offer several health benefits. Scientific studies have proven that mineral water can reduce bad cholesterol (LDL) and increase the level of good cholesterol (HDL). Regular drinking of mineral water can also improve bone health and prevent women's postmenopausal bone density loss. Furthermore, with the ongoing health crisis, it becomes more important to choose wisely to ensure that enough mineral-rich water is consumed to support important body functions and provide important nutrients to the body, which is expected to boost the sales for this segment.

The sparkling water segment is also anticipated to witness growth in the upcoming years, owing to the rising demand for healthy and natural water. It provides more water and fewer calories than soda. Drinking sparkling water can help stave off dehydration and provide essential nutrients to promote healthy weight management and improve digestion.

By distribution channel, convenience stores are expected to hold largest market share, owing to their high penetration. According to the Association for Convenience & Fuel Retailing (NACS), convenience stores help consumers on-the-go stay hydrated, selling nearly 50% of bottled drinking water. There are many opportunities to promote and increase sales of bottled drinking water in convenience stores, as these stores are selling almost half of all drinking bottled water within the U.S. and consumers increasingly looking for healthier options.

Online retailers are also expected to see growth, owing to the growth in sales amidst pandemic across e-commerce platforms. Post COVID-19, the e-commerce sales spiked, and brands such as Bisleri, Aquafina, and Bailey embraced the direct-to-consumer model, by launching their online selling platforms or partnering with delivery apps. For instance, in 2020, Bisleri launched its website and is also started accepted delivery orders through its customer service number.

Regional Analysis

North America is expected to hold the largest market share due to increasing concerns of consumers regarding health and obesity, leading to a higher demand of bottled drinking water in the region. According to International Bottled Water Association (IBWA), in 2019, bottled is the best-selling beverage category in the U.S. According to the Beverage Marketing Corporation (BMC), the total amount of bottled water volume increased from 13.8 billion gallons in 2018 to 14.4 billion gallons in 2019, nearly 4%. This is mainly due to the rising demand for mineral water in the U.S, as it provides additional functional value in the form of vitamins and minerals. Thus, these factors cumulatively aid in fueling the growth of market.

Europe is anticipated to see growth, owing to the convenience of handling and mobility of bottled drinking water. European Parliament also adopted a drinking water directive in 2021, which focuses on the concerns such as suitability and safety of drinking water for human consumption. Its goal is to protect human health from the adverse effects of any pollution by ensuring the health and cleanliness of water for human consumption. Thus, the growing government concerns related to proper sanitation of drinking water is expected to boost the market in this region.

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Asia Pacific is predicted to be the fastest growing market due to rising health and wellness awareness among customers. People lack access to safe tap water, so consumption of bottled drinking water is gradually rising in the region. With the growing popularity of mineral and sparkling water among millennials, the demand for bottled water is also rising in rural areas of the region, further fueling drinking water growth.

Segmentation

Key Industry Developments:

• In July 2021, National Beverage Corporation, an American beverage manufacturer released a trio of new flavours of sparkling water under its LaCroix brand. The sparkling waters have zero-calorie and zero-sugar.


• In May 2021, PepsiCo Inc., a leading global food & beverage company, launched Soulboost, an enhance sparkling water beverage, infused with functional ingredients. There are two varieties of the drink: blueberry pomegranate and black cherry citrus, which contain 200 mg of ginseng to help maintain mental stamina; blackberry passion fruit and strawberry rose contain 200 mg of theanine, which helps in relaxation.