|Study Period:||2016 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The bottled water market is expected to register a CAGR of 6.1% during the forecast period (2021 - 2026).
Extensive restrictive measures set up by governments around the world to combat the global coronavirus outbreak have been creating logistical challenges for the bottled water processing sector. While this has been creating new bottlenecks in the sector, consumers continue to prefer stockpiling of essential commodities. This remains the key factor sustaining the demand for bottled water even during the COVID-19 crisis.
The demand for bottled water rose in the initial months of lockdown stemmed from the stockpiling attitude of consumers in anticipation of lockdowns and scarcity. The trend, however, soon declined further, coupled with decreased sales caused due to setbacks of the tourism industry globally.
The demand for bottled water is driven by the fear of diseases as an aftermath of drinking contaminated tap water and the easy portability and convenience provided by bottled water. Environmental pollution caused by plastic trash poses a challenge for the market’s growth. The consumption of bottled water leads to health hazards.
The innovative packaging of bottled water is the latest trend in the market. The aim is to establish a brand image and differentiation in the bottled water market. It includes resealable and recyclable packaging material, sophisticated transparent bottles, or inks and coatings applied on the bottle so as to enhance the customer experience through unique visual effects, along with increasing shelf appeal.
Scope of the Report
Bottled water is packed drinking water that can be carbonated or not. Most bottled water is packed in PET or glass bottles that are available in distinct sizes, including single-serve to 1 liter, 10 liters, 15 liters, and others. The bottled water market offers a range of products, including still water, sparkling water, and functional water through on-trade and off-trade distribution channels. The off-trade distribution channel is further sub-segmented into supermarkets/hypermarkets, convenience stores, home and office delivery (HOD), and other distribution channels. The study also covers a global level analysis for the major regions, namely, North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
|By Distribution Channel|
Key Market Trends
Strategic Investments By Key Players, Along With Favorable Government Regulations
The market studied has witnessed significant investments by the global brands, especially by Nestle SA and The Coco-Cola Company. These companies are focusing on expanding their production capabilities and presence across various countries driving the bottled water market, globally. Moreover, companies also making strategic investments to develop innovative products with enhanced benefits owing to changing consumer preferences and to achieve competitive advantage in the market. For instance, In November 2018, Nestlé Waters’ invested EUR 70 million over the next three years, with the aim of making Acqua Panna, Nestlé’s premium still water brand available worldwide. With this investment, the company intends to increase its production to enter new markets and expand their distribution network in the United States, the United Arab Emirates, and Russia. In December 2019, Nestlé introduced a canned sparkling water drink that contains caffeine and made with green tea. Along with the caffeinated water brand, Nestlé is also working on a new line of mineral-infused water. Recently, Coco-Cola planned to invest USD 200 million in two new bottling plants in Pakistan. The company also invested USD 500 million in 2017 on upgrading its existing plants in the country. Similarly, as a part of community engagement program and to support local communities, Nestlé Pakistan had set up seven clean drinking water facilities in its operational areas. Furthermore, stringent government regulations pertaining to the manufacturing and sales of bottled waters, have led to gain consumer trust and interest towards bottled water. This, in turn, is boosting the growth of the market studied. For instance:, The Bureau of Indian Standards has formulated Indian Standard IS 14543 for Packaged Drinking Water (PDW) and IS 13428 for Packaged Natural Mineral Water (PNMW), which specify the quality parameters for the respective water sold in packaged form. Thus, this is likely to boost the demand for bottled water, across both on-trade and off-trade channel.
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Increasing Consumption of Functional Bottled Water in North America
In developed economies, like the United and Canada, functional water is constantly becoming a major commercial and popular beverage category, as it is an appealing option for health-conscious consumers. Hence, this is augmenting the bottled water market. Major manufacturers and marketers in the country have started to position functional water as an alternative to carbonated drinks and fruit juices. Through product description, modern and interactive labeling and backing from respected brands and organizing programs and seminars, the players are claiming that functional water is an enriched product that is not just for hydration but also can function as a functional beverage.
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The bottled water market is highly competitive, attributed to the number of small players involved in the country and regional marketplace. Apart from convenience being the key factor, product innovation is a prominent move that the major players undertake to stay ahead in the market. Product differentiation has gained significant traction over the past years. Regional or domestic companies have been marketing their products with strategies, such as sponsorship and significant investment in advertisements. Some of the globally renowned companies in the market include Danone SA, The Coca-Cola Company, Pepsico, and Nestle SA.
- In February 2020, Agthia Group PJSC announced the launch of Al Ain Plant Bottle, the region's first plant-based water bottle. An MoU was also signed between Agthiaand Veolia, a global leader in optimized resource management, to launch a PET water bottle collection initiative in the United Arab Emirates.
- In November 2018, Elysian Natural Mineral Water launched bottled water in Bahrain and Saudi Arabia. It is a premium bottled water brand that has been launched by the Saudi Arabian company Skan For Water LLC in Saudi Arabia and Bahrain by Saudi entrepreneur Sheema Alnafisee.
- In January 2018, one of the world’s first bottled still water containing vitamin D was launched by Al Ain. This bottled still water is free from flavors, colors, and preservatives. It can be consumed daily, like regular water, by both adults and children. The water is packed in 500 ml and 330 ml bottles and is available at supermarkets, convenience, and large retail stores.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Still Water
5.1.2 Sparkling Water
5.1.3 Functional Water
5.2 By Distribution Channel
126.96.36.199 Convenience Stores
188.8.131.52 Home and Office Delivery
184.108.40.206 Online Retail Stores
220.127.116.11 Other Off-trade Channels
5.3 By Geography
5.3.1 North America
18.104.22.168 United States
22.214.171.124 Rest of North America
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 Rest of Asia-Pacific
5.3.4 South America
220.127.116.11 Rest of South America
5.3.5 Middle-East and Africa
18.104.22.168 South Africa
22.214.171.124 Saudi Arabia
126.96.36.199 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Danone SA
6.4.2 The Coca-Cola Company
6.4.3 PepsiCo Inc.
6.4.4 Nestle SA
6.4.5 Otsuka Pharmaceutical Co. Ltd
6.4.6 FIJI Water Company LLC
6.4.7 Voss Water
6.4.8 National Beverage Corp.
6.4.9 Binzomah Group
6.4.10 Hana Water-Hana Food Industries Co.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Bottled Water Market market is studied from 2016 - 2026.
What is the growth rate of Bottled Water Market?
The Bottled Water Market is growing at a CAGR of 6.1% over the next 5 years.
Which region has highest growth rate in Bottled Water Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Bottled Water Market?
North America holds highest share in 2020.
Who are the key players in Bottled Water Market?
Danone S.A., PepsiCo Inc., The Coca-Cola Company, Otsuka Pharmaceutical Co., Ltd., Nestle SA are the major companies operating in Bottled Water Market.