Bottled water market to double by 2030

Bottled drinking water should be safe for human consumption in many respects, chemically harmless, have favorable organoleptic properties and be simply tasty and affordable.
The demand for bottled water has been on the rise in the last decade due to health concerns around the world. Beverage companies are improving their packaging due to environmental concerns, as well. Coca-Cola has shrunk caps on its bottles to 24 ounces or less to reduce the company’s plastic consumption.

Bottled water market
Bottled water industry as a separate sector was assessed at US$185 billion in 2015 and is expected to reach $ 334 billion by 2023, an 8.5% CAGR growth over the 2018-2023 forecast period. Also, experts expect that there will be an increase in the subsector of lightly carbonated drinks, probably by one and a half times.

Market Dynamics
The bottled water industry is driven by health concerns regarding drinking water. Change of lifestyle, preference for vitamin and mineral-rich drinking water, and the ease of handling and portability of bottled water can be considered as factors influencing the market.

Bottled water manufacturers introduce new products with health benefits and new flavors. It raises a need to launch several products in the bottled water market. New products offer functional benefits, convenience and better taste which consumers prefer.

PET development in the bottling industry in the world has also helped in the widespread supply of bottled water through a wide global network of organized markets, as well as several grocery and club stores. These factors are expected to drive the growth of the bottled water market in the nearest future.

However, there are some restrictions slowing down the industry, such as plastic bottle pollution of environment.

This issue has prompted adoption of the several strict government regulations regarding the use of packaging recycling solutions and measures aimed at reduce of the industry’s carbon footprint. For example, Directive 94/62/EC of the European Parliament and of the Council.

This requires Member States to ensure compliance with regulations regarding increased use of reusable or restorable packaging, capacity to reduce amounts of hazardous substances and materials, and package weight, as well as to achieve targets for recovery and recycling of packaging materials. Such regulations would hamper the overall development of the global bottled water market.

The main opportunities identified for the bottled water industry are innovative products with minimal environmental and health risks and exit to emerging markets.

Market segmentation
The bottled water market can be segmented by product types, distribution channels and geography. By product type, the bottled water market is categorized into still water, carbonated (sparkling) water, flavored water, and functional water segments.

Still water is the largest category of bottled water market, accounting for over 65% of demand, followed by sparkling water. Product innovation in terms of flavor and packaging created a need for flavored water. According to the types of distribution channels, this market can be divided into hypermarkets, supermarkets, convenience stores, department stores, specialty stores and online shopping.

The bottled water segment continues to dominate the global market in terms of revenue and volume. It is expected that the share of the segment in the total market revenue by 2022 will reach 78%.

Carbonated (sparkling) water — is the second largest segment of the bottled water market. Sparkling bottled water is expected to slightly decrease its market share in the coming years. The flavored and functional water segments are expected to grow rapidly over the forecast period.

Regional analysis
According to the location Asia Pacific is the largest market in terms of revenue and total consumption, accounting for 33% of the market. It is also the fastest growing target market for bottled water, covering over a third of the market uptake, supported by a large population, strong demand, untapped market status, demographic conditions, and rapid urbanization.

As a result, we can observe a business expansion driven by almost all major players of the market. The Asia-Pacific region, led by China and India, is expected to achieve the highest CAGR values in the forecast period.

Europe is therefore the second largest market with a market share of 28%. Other regions such as North America, South America and Africa hold a significant share of the bottled water market. North America is a saturated market with consistent demand and currently the highest bottled water consumption per capita. ABOUT US

Competitive environment
The bottled water market is fragmented due to the presence of a large number of private label brands and local bottlers. More than 60% of the world market is occupied by regional and national players.

The competition is reported to be extremely strong, mainly in North America and Europe, where markets are saturated with slow growth and strong demand. The increasing demand for crunchy foods along with health and hygiene concerns, multiple market sales channels, and public acceptance of bottled water are expected to help the market grow at a good pace.

The competition is steadily growing. Internal competition in the bottled water market is comparatively high due to the large number of major bottled water suppliers and increasing number of small-scale domestic market players.

The main players in the bottled water market are:

Ajegroup SA
CG Roxane, LLC
Coca-Cola Company
Fonti di Vinadio Spa
Danone Group
HassiaWaters International GmbH & Co. KG
Nestle Waters
PepsiCo, Inc.
Source: businessweeknews.com
Image source: photogenica.ru