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The premium bottled water market size is forecast to increase by USD 8.37 billion at a CAGR of 6.6% between 2023 and 2028. The market is experiencing significant growth, driven by consumers' increasing focus on health and wellness. This trend is fueled by the perception that bottled water is a healthier alternative to sugary beverages. Convenience stores are increasingly stocking premium bottled water to cater to health-conscious consumers looking for high-quality hydration options while on the go. Additionally, the introduction of new flavors and product ranges is expanding the market, catering to diverse consumer preferences. With the rise of e-commerce, premium bottled water brands are reaching a wider audience by offering convenient online purchasing options for consumers seeking high-quality hydration delivered directly to their doors. However, the market faces challenges, including the availability of counterfeit products, which undermines consumer trust and poses a threat to market integrity. Producers must prioritize product authenticity and transparency to maintain consumer confidence and ensure long-term market success.
The market caters to discerning consumers in the hospitality industry who seek high-quality hydration options. Available in plastic or glass bottles, this market offers a variety of choices, including spring water, distilled water, and mineral water, each with unique characteristics and carbonation levels. Convenience stores that sell beverages with high sugar content may inadvertently contribute to health issues, as contaminated water and waterborne diseases can exacerbate the risks associated with poor dietary choices Advanced treatment methods like ozone treatment and reverse osmosis ensure quality, purity, and safety. Premium bottled water may also contain additional nutrients and dissolved minerals, promoting hydration and potentially offering benefits like clearer skin and detoxification, while safeguarding against waterborne diseases.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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 17.28 billion in 2018. The 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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North America is estimated to contribute 34% to the growth of the global 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 companies are the major factors driving the market in the region.
Our researchers analyzed the data with 2023 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 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 without the need for a carbonation process, but they also add dietary benefits. Increasing pollution in drinking water sources is compelling consumers to transition to premium bottled water, which is purified, clean, and devoid of bacteria, reflecting a growing emphasis on distilled water, healthy lifestyles, distillation, purity, dissolved minerals, and water-borne disease prevention.
Furthermore, with the development of health drinks, manufacturers are adapting to consumer demands. Demand is particularly high among seniors, and fitness/energy drinks are a popular post-workout drink for teens. The health benefits 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 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.
Furthermore, manufacturers of 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 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 companies.
Furthermore, 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 market forecasting 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 market growth analysis strategies.
Customer Landscape
Companies 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 market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market offers a range of options beyond traditional sources like well water and tap water. Catering to those embracing a healthy lifestyle, it includes choices like sparkling water, glacier/natural water, and soda alternatives. These premium waters often boast antioxidants, calcium, magnesium, sodium, and zinc, providing added health benefits. Through processes like deionization, they ensure the removal of harmful contaminants present in tap water, reducing the risk of waterborne diseases. Packaged in unique designs with eye-catching logos, premium bottled water is popular in general stores, restaurants, cafes, and hotels, appealing to health-conscious consumers looking for a refreshing and safe hydration choice.
The market addresses growing health consciousness by offering a variety of options, including carbonated water and fresh water, appealing to those seeking alternatives to sugary beverages. Emphasizing purity and safety, these premium products ensure the removal of Harmful containments present in tap water, reducing the risk of waterborne diseases. To cater to varying tastes, some brands offer flavored options with sweeteners. Premium bottled water often features unique packaging designs to stand out on shelves, attracting health-conscious consumers looking for a refreshing and safer hydration choice compared to regular bottled or tap water.
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Market Scope |
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Report Coverage |
Details |
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Page number |
156 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.6% |
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Market growth 2024-2028 |
USD 8.37 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
5.77 |
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Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 34% |
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Key countries |
US, Germany, France, China, and Canada |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 |
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Market dynamics |
Parent market analysis, Market Forecasting, 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 market forecast period |
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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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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