Sparkling Water Market Size, Share & Industry Analysis, By Type (Natural/Mineral and Caffeinated), By Packaging (Glass Bottles, Cans, and Plastic Bottles), By Distribution Channel (Hypermarket/Supermarket, Convenience Store, Online Channel, and Others), and Regional Forecast, 2024-2032

The global sparkling water market size was valued at USD 38.13 billion in 2023 and is projected to grow from USD 42.62 billion in 2024 to USD 108.35 billion by 2032, exhibiting a CAGR of 12.37% during the forecast period. Europe dominated the sparkling water market with a market share of 45.32% in 2023. Moreover, the sparkling water market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 24.87 billion by 2032, driven by rising demand of healthy beverages with no added sugar and free of calories. Also, substantial presence of key players in the country is further driving the market size growth.

The sparkling water market has witnessed significant growth in recent years, driven by various factors such as changing consumer preferences, increasing health consciousness, and rising demand for healthier beverages. The product's increasing popularity has led to a competitive market with numerous brands vying for the market share. Therefore, as consumer preferences evolve, the market is expected to see further diversification and expansion in the coming years.

The soda water beverages faced an abrupt fall in sales in the initial months of the pandemic. Delays in manufacturing, transportation, and logistics have also impacted the availability of certain brands and flavors. Furthermore, trade restrictions and global supply chains faced significant disruptions acting as a massive restraint for the market. However, as the situation evolved and restrictions were eased down, the market regained momentum, owing to continued consumer interest in healthier beverage options.

Sparkling Water Market Trends

Increasing Demand for Non-alcoholic Beverages to Aid Market Growth

The rise of non-alcoholic beverages has created opportunities for soda water brands. Consumers have been seeking out sophisticated and refreshing alternatives to abstain from or reduce their alcohol consumption. Furthermore, consumers aim to improve their physical health by opting for beverages that contain no alcoholic content. According to the Beverage Trends Report, 2021, consumers in the U.S. and U.K. prefer alcohol-free, zero-proof spirits, which are low-calorie and low in carbs. Such trends have opened up new opportunities for the global sparkling market manufacturers. Moreover, collaboration with celebrities for product endorsement and launch can help manufacturers reach out to a broader consumer group. For instance, in May 2023, Waterloo Sparkling Water, a U.S.-based company, collaborated with TV personality and celebrity chef Curtis Stone for the launch of their new Tropical Fruit Sparkling water.

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Sparkling Water Market Growth Factors

Burgeoning Demand for Flavored Sparkling Water to Aid Market Growth

Flavored carbonated water offers a refreshing and flavorful option for those consumers who want to reduce their consumption of sugary beverages. Such drinks also provide a healthier alternative without compromising the taste, making it an appealing choice for health-conscious consumers. Beverage companies have responded to this trend by introducing a wide variety of flavors and brands to cater to the growing demand for the product and help propel the sparkling water market growth. For instance, in April 2023, Topo-Chico, a sparkling mineral water brand, expanded its reach beyond the mineral water category by launching fruit-flavored carbonated waters with herbal extracts in the U.S. The availability of different types of flavored carbonated water, mainly citrus-flavored sparkling water, can tempt consumers who prefer refreshing hydration. Hence, to capitalize on this trend, manufacturers can come up with more citrus-flavored sparkling water products.

Proliferating Demand for Fortified Beverage to Support Market Growth

Nowadays, health-conscious consumers are actively seeking products that offer functional benefits. Fortified beverages, such as vitamin-enriched waters, nootropics, protein shakes, and other fortified juices, are seen as convenient options to support overall health and well-being. Therefore, manufacturers are continually introducing new fortified beverages, including carbonated waters with innovative ingredients and formulations. For instance, in February 2023, Kyowa Hakko U.S.A., Inc., a manufacturer of fermented amino acids & branded ingredients, partnered with CENTR Brands Corp. to launch Centr Enhanced, a sparkling water containing a blend of nootropic and adaptogenic ingredients. The product claims to reduce stress, elevate mood, and improve focus, mental clarity, memory, and energy.

RESTRAINING FACTORS

High Costs Associated with the Product to Restrain Market Growth

Sparkling water, especially branded or flavored varieties, are costlier than regular water or other soft drinks. The low prices of alternative beverages, such as carbonated drinks and regular water anticipated to impede the expansion of the global market. The growing shipping costs and domestic taxes may also pose a threat to market growth.

Moreover, a lack of awareness about the product in several regions may impede market growth. However, better marketing strategies, such as the launch of products in different package sizes, the launch of regular marketing campaigns to increase awareness regarding the product, and the launch of products in visually appealing and exotic packaging, can help boost market growth in the coming years.

Sparkling Water Market Segmentation Analysis

By Type Analysis

Natural/Mineral Segment to Lead the Market Owing to its Perceived Health Benefits and Easy Availability

Based on type, the market is segmented into natural/mineral and caffeinated. The natural/mineral segment is dominant, with significant global sparkling water market share. Natural/mineral water is usually manufactured with no added sugar or artificial sweeteners, which is majorly demanded by health-conscious consumers. Furthermore, millennials increasingly prefer flavored versions due to their health benefits, taste, and fizziness. Therefore, the key players in the market are introducing products to broaden their offerings and meet the increasing demand for flavored soda water. For instance, in March 2021, 7-Eleven, Inc., a multinational chain of retail convenience stores, launched an imported proprietary sparkling mineral water, Serafina. The new product range comes in three flavors, original, organic lime, and organic lemon ginger.

The caffeinated segment is expected to grow at a high CAGR over the forecast period. Such drinks contain added caffeine which helps boost energy levels. Consumers seeking an energy boost seek caffeinated drinks due to their increasing interest in exploring new healthy beverages, further propelling the segment growth. Manufacturers are launching

By Packaging Analysis

Cans Hold the Major Share as they offer Convenience and Portability

Based on packaging, the market is classified into glass bottles, cans, and plastic bottles.

The cans segment is expected to hold a significant share of the global market. Canned packaging has become increasingly popular in recent years due to its convenience and portability. Seltzer water is typically packaged in aluminum cans, which helps maintain its freshness and fizziness, and also provides airtight sealing preventing the carbonation from escaping. The cans are a preferred choice for on-the-go consumption as they are lightweight and easy to transport. Several beverage companies offer various flavored and unflavored sparkling options in cans, catering to different consumer preferences. For instance, in January 2022, Evian, a French brand that bottles mineral water, launched its soda water in 33 cl aluminum cans.

The glass bottle segment is expected to grow at a high CAGR in the forecast period. Glass bottles are often used to pack beverages as they offer a transparent view of the liquid inside, allowing consumers to observe the sparkling water's effervescence and clarity. Moreover, increasing consumer concerns over environmental sustainability encourage them to use sustainably packaged products such as reusable glass bottles.

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By Distribution Channel Analysis

Hypermarket/Supermarket is the Leading Distribution Channel owing to Wide Availability of Premium and Private Label Brands

Based on distribution channel, the market is categorized into hypermarket/supermarket, convenience store, online channel, and others. The hypermarket/supermarket segment holds a significant share of the global market. Hypermarkets, being large retail stores, offer a wide range of products and are well-suited to cater to the demand for food and beverages, including soda water. Such stores often stock various brands and flavors of carbonated mineral water, providing consumers options. Additionally, such markets frequently offer competitive pricing and promotions, which further help surge the demand for carbonated water.

The online channel segment is expected to grow at a high CAGR in the forecast period owing to new launches of products and services through popular e-commerce platforms such as Amazon, Walmart, and others. For instance, in January 2023, CENTR Brands Corp, one of the fastest-growing premium functional wellness drink brands, expanded its online store with the launch of CENTR Enhanced, a refreshing, zero-calorie, and non-CBD functional sparkling water.

REGIONAL INSIGHTS

Based on region, the market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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Europe dominated the global market share and stood at USD 15.61 billion in 2022. The Europe market is expanding considerably due to the growing demand for flavored sparkling water in Germany, the U.K., Italy, Spain, France, and the Netherlands. The countries have a long-standing tradition of soda water consumption offering a wide range of local and international brands. Furthermore, the trend toward healthier lifestyles, increased awareness of the importance of hydration, and a growing preference for drinks with no calories, sugars, and artificial sweeteners have also propelled the market growth. For instance, in May 2022, Dash Water, a U.K.-based beverage company, expanded its portfolio of fruit-and vegetable-infused sparkling waters. The new product is available in mango flavor and contains no sugars, artificial sweeteners, or calories.

The North America market is highly competitive due to the presence of established brands and new entrants vying for market share. Major brands, such as LaCroix, Topo Chico, San Pellegrino, and Dasani Sparkling, have been the key players in the region. The region also observed growing health-conscious consumers seeking alternatives to sugary beverages. Consumers opt for refreshing drinks with little to no calories, sugars, or artificial additives owing to increasing health-related problems such as diabetes, obesity, weight gain, and others. The Trust for America's Health (TFAH) reported that four in ten American adults had obesity in 2022. Furthermore, urban areas, the younger generation, and health-conscious individuals were the key segments driving the market.

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The trend of Westernization and the influence of global food & beverage have played a significant role in surging the demand for soda water in Asia Pacific. Consumers have become more exposed to international lifestyles and cuisines, thereby increasingly adopting the consumption habits of the West, including the popularity of carbonated water as a non-alcoholic alternative. The emerging demand from millennials for healthy products with refreshing tastes and zero-calorie content has led manufacturers to develop innovative beverages in the region. For instance, in March 2022, Danone Waters China, a unit of global food and beverage giant Danone, launched its first zero-sugar soda water. The company aimed to attract health-conscious younger consumers in the country, propelling the market growth.

The growing emphasis on health and wellness, cultural preferences, and urbanization across South American economies, such as Argentina and Brazil, is projected to contribute to the growing demand for the product across the region.

List of Key Companies in Sparkling Water Market

Innovative Product Launches by Major Companies to Attain Highest Market Position

With several well-established competitors, the global market is quite competitive. The players in the market are focusing on growing their reach through new product launches, acquisitions, base expansions, and investments in order to capitalize on market growth. For instance, in May 2021, PepsiCo Inc., an American multinational food, snack, and beverage corporation, launched Soulboost, a soda water beverage range, including real juice and functional ingredients. The company's R&D team developed desirable functional ingredients such as L-theanine and Panax ginseng and added them to the beverage line to address emerging consumer health trends.

LIST OF KEY COMPANIES PROFILED:

• Nestlé S.A. (Switzerland)


• PepsiCo, Inc. (U.S.)


• Keurig Dr. Pepper Inc. (U.S.)


• The Coca-Cola Company (U.S.)


• Sanpellegrino S.P.A. (Italy)


• WakeWater Beverage Co. (Canada)


• National Beverage Corp. (U.S.)


• Big Watt Cold Beverage Co. (U.S.)


• Danone S.A. (France)


• Volay Brands (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2023 – Bisleri International, a prominent Indian multinational company, launched ‘Vedica Himalayan Sparkling Water’ to expand its premium spring water brand Vedica. The product is available in 300 ml glass bottles.


• May 2023 – PepsiCo introduced its no-sugar sparkling water, Bubly, in the Australian market. The product is available in lime, blackberry, pineapple, passionfruit, and raspberry flavors.


• June 2022 – Soleil Sparkling Water brand, owned by Albertsons Companies, partnered with Library Collective to relaunch its carbonated waters with colorful new packaging designs and Gen-Z-focused internet culture.


• May 2022 - Talking Rain Beverage Company, a maker of Sparkling Ice beverages, announced its partnership with the national non-profit organization, Homes For Our Troops (HFOT). The partnership helped build and donate specially adapted custom homes for injured post-9/11 veterans. The company aims to give back to the Veteran community and honor their service and sacrifice for their country.


• November 2021 - Waterloo Sparkling Water, a U.S.-based beverage company, partnered with Grovara Online Marketplace to establish its fast-growing soda water products in the overseas markets.

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