U.S. BOTTLED WATER MARKET ANALYSIS

U.S. Bottled Water Market Size and Trends

The U.S. bottled water market is estimated to be valued at USD 28,262.2 Mn in 2024 and is expected to reach USD 49,770.4 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.4% from 2024 to 2031.

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Consumers in the U.S. are increasingly choosing bottled water over soft drinks and other sugary beverages due to health and wellness trends. Bottled water is seen as a more convenient and portable beverage option compared to tap water. Moreover, sustained marketing campaigns by leading bottled water companies have created strong brand loyalty among customers.

Increasing Health & Wellness

Increasing health consciousness among Americans regarding the benefits of staying hydrated and importance of clean drinking water has been a key driver for the growth of bottled water market in the US. More and more people are recognizing that drinking enough water is essential for overall health and avoiding various lifestyle-driven diseases. As busy routines and dependence on packaged food leaves less time for proper hydration, bottled water has become a very convenient way for people to fulfill their daily water intake requirements while onthego. Bottled water is perceived as a healthier alternative to carbonated drinks and high calorie beverages by health-conscious consumers. The changing dietary patterns and growing preference for low sugar options has contributed towards bottled water gaining popularity as a no-calorie refreshment. Many bottled water brands prominently market their products as being free from additives and high in minerals to further appeal to the health-focused demographic. There is a perception that bottled water is safer to drink than tap water in certain regions due to potential contamination issues or unusual taste of tap water. Hence, bottled water provides assurance of clean, pure and great-tasting water anywhere, anytime.

Market Concentration and Competitive Landscape

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Portability and convenience has allowed bottled water to become a ubiquitous part of daily life in the U.S. With bottled water available everywhere from grocery stores to convenience shops to vending machines, it has never been easier for Americans to stay hydrated on the go. Busy lifestyles have fueled demand for an easily accessible beverage that can be grabbed in a hurry and sipped. Bottled water fits seamlessly into fast-paced schedules, allowing drinkers to stay hydrated without having to find and carry reusable water bottles or track down drinking fountains.  This high level of convenience has helped bottled water become the second most popular beverage category in the country, behind only carbonated soft drinks. According to data from the Bureau of Labor Statistics, in 2021, over 44 billion bottles of water was consumed in the U.S., with about 13 gallons of bottled water consumed per person. While some people criticize bottled water for its environmental impact, its small portable size makes it attractive to time-strapped Americans who want a no-fuss hydration solution whether commuting, working out, or on the go. The portability of bottled water allows busy people to stay hydrated virtually anywhere without much thought or effort. 

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People are aware about plastic waste generated from bottled water and its potential effects on the environment. Some governments have proposed taxes on bottled water to discourage its use. Additionally, The consumption of soda and other sugary drinks has declined in recent years, representing stiffer competition for bottled water companies.

Opportunities: Growing demand for purified bottled water

As public concerns about tap water quality persist in some regions, demand for purified bottled water is expected to remain steady. Functional and nutrient-enriched bottled water varieties continue to gain popularity as a healthier alternative to other beverages. Large bottled water companies can leverage their production and distribution capabilities to expand their footprint nationally.

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By type, still water segment is estimated to contribute the 71.2% market share in 2024. Americans consider still water to be the purest and healthiest option, with many believing enhanced and flavored varieties contain unnecessary additives. This viewpoint has persisted despite ongoing product innovation from competitors.  Even as sparkling or functional waters advertise specific wellness benefits, still water maintains its appeal of being an indistinctly "healthy" refreshment free of additional components or processing. Meanwhile, decades of steady consumption have ingrained still water as a cultural norm and household staple. It features prominently in grocery aisles, restaurants, and home refrigerators across diverse regions and demographics. Familiarity and past enjoyment reinforce continued selection over attempted alternatives. With the greatest name recognition and consumer learned behaviors, dominant brands of still water can rely on routine repurchasing from a mass, loyal customer base.

Insights, By Packaging: Portability Drives PET segment

In terms of packaging, PET segment is estimated to contribute 48.7% market share in 2024 due to their unmatched portability. As lifestyles grow busier and time for sitting down to beverages decreases, bottles that can be carried everywhere without spill risk have become essential. PET satisfies this need perfectly through its lightweight yet durable construction.  Whether commuting to work, exercising outdoors, or spending active family days on the go, PET bottles go anywhere without burden. Their squeezable rigidity ensures water stays cleanly contained even when tossed loosely into bags. As daily errands and busy schedules leave little room for heavy or breakable drinkware, PET's featherweight handiness has made it ubiquitous for stay-hydrated-on-the-go Americans. PET packaging uplifts branding visibility wherever bottled water travels. Vibrant labels remain prominently outward facing no matter the bottle's orientation, catching eyes during frequent advertisements. Major water brands maximize versatile displays through optimally portable PET containers.  Between enabling active daily routines and dynamic product visibility, PET has developed an unmatched symbiosis with the active American lifestyle that few competing forms can challenge. Its light, shatterproof construction will likely dominate the bottled water market for years to come based on proven performance on the frontlines of busy modern living.

Insights, By Distribution Channel- Mass Merchandisers Move Off-trade Volumes

Among distribution channel, off-trade segment is estimated to contribute 61.4% market share in 2024, leveraging mass merchandisers. Grocery stores and big box retailers move the vast majority of packaged water volume in the U.S. through advantageous scale and awareness. As essential weekly shopping destinations, supermarkets consolidate beverage assortments under one expansive roof. Households rely on their comprehensive selections for routine provisions including bottled water. Members associate the channel with family-size variety packs well-suited for parties or offices. Mass club shoppers develop repeat routines refilling oversized inventories. Conversely, on-trade channels like vending machines struggle for visibility against supermarket giants. With off-premise retail dominating family routines and brand exposures, most people opt for familiar selections from main shopping routes. Off-trade’s accessibility and prominence reinforce its control over bottled water distribution in the U.S. market.

Market Report Scope

U.S. Bottled Water Industry News

• In February 3, 2023, Primo Water Corporation announced the acquisition of an additional spring water source located adjacent to its current Mountain Valley spring in Arkansas, U.S. This acquisition will provide an additional high-quality sustainable water source that will help in strengthening the company’s flagship bottled water brand “Mountain Valley Spring Water” portfolio
• In August 2022, The Coca-Cola Company, a multinational launched bonaqua, the first label-less bottled water in Taiwan, China. This locally manufactured alkaline water is sold in 100% recyclable bottles containing less plastic material that implicates sustainability and less environmental damage.
• In April 2022, one of the largest manufacturing plants of PepsiCo was launched in Bihar, India, by Varun Beverages Limited, one of the major franchisees of PepsiCo in the world, outside the U.S. This plant has commenced the production of 16.22 million cases of carbonated soft drinks, 7.02 million of packaged juices, and 8.34 million of packaged drinking water. The company had spent around US$ 40 million and is planning to invest US$ 27 million more by 2024-2025 in order to boost the manufacturing capacity.
• In March 2022, Keurig Dr Pepper Inc. partnered with Papacks, a sustainable packaging manufacturer, in order to develop 100% recyclable and compostable paper bottle using patented PAPACKS technology, in which fiber and organic materials are utilized to create a 100% plastic-free bottle

*Definition: U.S. Bottled Water Market consists of companies involved in the manufacturing, marketing, and distribution of bottled water for sale in the U.S.. Major products in this market include spring water, purified water, sparkling water, and flavored water sold in plastic bottles ranging from single-serve sizes to larger gallons bottles. Bottled water competes with tap water but is seen as a healthier, more portable option. The bottled water industry has experienced significant growth over the past few decades

Market Segmentation

• Type Insights (Revenue, USD Mn, 2019 - 2031)
• • Still Water
  • Sparkling Water
  • Functional Water
  • Others
•  Packaging Insights (Revenue, USD Mn, 2019 - 2031)
• • PET
  • Cans
  • Others
•  Distribution Channel Insights (Revenue, USD Mn, 2019 - 2031)
• • Off-trade
  • On-trade
• Key Players Insights
  • 3 Spring Water Company, Llc.
  • Adobe Springs Water Co
  • Bluetriton Brands, Inc.
  • CG Roxane, Llc
  • Diamond Springs Rva, Llc
  • Fiji Water Company Llc.
  • Idaho Ice
  • Keurig Dr Pepper Inc.
  • National Beverage Corp
  • Pepsico
  • Premium Waters, Inc.
  • Primo Water Corporation
  • The Coca-Cola Company
  • Water Boy, Inc