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The premium bottled water market size is estimated to grow at a CAGR of 6.65% between 2022 and 2027. The market size is forecast to increase by USD 8,013.56 million. The growth of the market depends on several factors, including an increasing focus on health and wellness by consumers, expansion of distribution channels, and growth of online retailing.
This premium bottled water market report extensively covers market segmentation by product (flavored and unflavored), distribution channel (supermarkets and hypermarkets, specialty stores, online, and others), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing focus on health and wellness by consumers is notably driving the market growth, although the availability of counterfeit products may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing focus on health and wellness by consumers is notably driving the premium bottled water market growth. In recent years, the prevalence of health problems such as obesity, cardiovascular disease, and diabetes has received increasing attention. As a result, consumers are becoming more health conscious and avoiding artificial flavors and carbonated beverages. Carbonated drinks taste fizzy because of the dissolved carbon dioxide, but they cause many health problems, including Obesity. However, flavored waters not only add flavor to water without the need for a carbonation process, but they also add dietary benefits. Rising pollution levels in drinking water are driving consumers to switch to premium bottled water that is purified, clean, and free of bacteria. With the development of health drinks, manufacturers are adapting to consumer demands. Demand for flavored water is particularly high among seniors, and fitness/energy drinks are a popular post-workout drink for teens. The health benefits of flavored water include weight loss, improved skin texture, improved digestion, and immunity.
Rapid urbanization marks an increase in per capita income and consumer disposable income, followed by changes in lifestyle and diet. According to the World Bank Group, 56% of the world's population lived in urban areas in 2021. Therefore, the market is expected to grow over the forecast period due to rapid urbanization and increasing consumer interest in health and wellness.
The introduction of new flavors and product ranges is a key trend influencing the premium bottled water market growth. The market is seeing increased consumer demand for new flavors. Therefore, market players are adding new flavors to their product lines to stay ahead of their competitors by launching flavored waters with raspberry, strawberry, pineapple, cucumber, and watermelon flavors. Manufacturers of flavored waters and fitness/energy drinks are also introducing many new flavors such as “H2ROSE”, a sweet and fragrant drink made with rose water. H2ROSE water is available in 4 flavors namely mango, peach, wildberry, and apple. Such developments are anticipated to drive the growth of the market during the forecast period.
The availability of counterfeit products is challenging the premium bottled water market growth. The market is heavily impacted by the availability of counterfeit products. Customers may not be able to distinguish such products from the original branded products. Therefore, the sales of these fakes are increasing. These counterfeit and imitation products are available at a lower price than premium bottled water, thus influencing the sales and pricing strategies of major vendors selling premium bottled water products. These counterfeits are made from inferior raw materials, which reduces production costs and allows manufacturers to lower the price of their final product. This makes it difficult for suppliers producing branded products to develop pricing strategies without negatively impacting their profit margins. To overcome this problem, incumbents are forced to offer affordable products at lower margins. Such factors are expected to limit the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Premium Bottled Water Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alpine Glacier Water Inc: The company offers different types of premium bottled water solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the flavored segment will be significant during the forecast period. Flavored premium bottled water is marketed as water with natural or artificial flavors, sugars, vitamins, and minerals. Considered to be healthier than soft drinks and lower in calories than sodas and juices. With the growing demand for healthier beverages, low-calorie water flavors such as flavored water have gradually increased. Consumers prefer flavored water over regular water because it is refreshing and hydrating. Flavored waters are becoming more popular as awareness of the benefits of health drinks increases.
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The flavored segment was valued at USD 16,551.60 million in 2017 and continued to grow until 2021. Flavored water manufacturers focus on introducing new flavors as consumers prefer better taste and health benefits when purchasing beverages. Additionally, consumers are looking for a variety of energy-providing functional ingredients, flavor combinations, and trendy herbal teas when purchasing flavored waters. This is expected to fuel the growth of the market during the forecast period.
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Europe is estimated to contribute 34% to the growth of the global premium bottled water market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in the European region is expected to grow at a steady rate during the forecast period. Some of the largest contributors to the market are the UK, Germany, France, Italy, and Sweden. Growing demand for sparkling and flavored water and strong penetration of well-known retail product manufacturers in Eastern and Western Europe are expected to have a positive impact on the premium market in the region during the forecast period. Rising household income, increasing demand for fitness activities, and advanced product offerings from major vendors are the major factors driving the market in the region.
In 2020, the COVID-19 outbreak negatively impacted the market globally. The pandemic slowed economic growth across the world. Due to government-enforced regulations and supply chain disruptions, the temporary closure of several end-use industries and businesses, including physical retail and food and beverage industries, adversely affected the market in 2020. However, in 2021, the availability of vaccines and large-scale vaccination campaigns conducted by several national governments across the world helped various businesses and increased the sales of bottled water. Moreover, increasing consumer awareness and decreasing availability of pure water are expected to spur the growth of the market during the forecast period.
The premium bottled water market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global premium bottled water market as a part of the global soft drinks market within the overall food and beverages sector. The global soft drinks market includes segments such as carbonated drinks, juices, juice concentrates, bottled water, functional drinks, and sports drinks (plant-based drinks, prebiotic and probiotic drinks, soy-based beverages, dairy-based beverages, and specialty beverages). Technavio calculates the global soft drinks market size based on the total revenue of soft drink manufacturers.
Premium Bottled Water Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.65% |
Market growth 2023-2027 |
USD 8013.56 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.44 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 34% |
Key countries |
US, Canada, China, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alpine Glacier Water Inc., Berg Water, Beverly Hills Drink Co., Bling H2O, BlueTriton Brands Inc., BLVD Water, Danone SA, EVOCUS, FIJI Water Company LLC, Icelandic Glacial Inc., Lofoten Arctic Water AS, Mountain Valley Spring Co. LLC, Nestle SA, NEVAS GmbH, ROI Rogaska d.o.o., Smoother Spirits Ltd., The Coca Cola Co., VEEN Waters Finland Oy, and VOSS of Norway AS |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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