The U.S. bottled water market is estimated to be valued at USD 28,262.2 Mn in 2024, exhibiting a CAGR of 8.42% over the forecast period of 2024-2031. Consumers are increasingly preferring bottled water due to growing health consciousness. Furthermore, availability of flavored and functional bottled water options is also gaining traction among buyers.
Growing health consciousness among consumers and increasing disposable income are the major drivers driving the growth of the U.S. bottled water market. Individuals are more aware about importance of hydration and associations between water intake and overall health and well-being. This is encouraging the consumption of bottled water. Rising disposable incomes allow customers to spend more on premium and innovative bottled water products. Growing focus on fitness and presence of BPA-free and recyclable bottled water variants further appeals to health-cautious consumers.
Changing lifestyles with fast-paced schedules leave little time for proper hydration. On-the-go consumption options through bottled water fulfill the need of time-pressed consumers. Availability of bottled water in grocery shops, departmental stores, and via online retailing also contributes to its widespread availability and demand.
Bottled water is seen as a healthier alternative to sugary drinks
One of the key drivers for the growth of the U.S. bottled water market is rising health consciousness among consumers. With growing awareness about obesity and other health issues related to excess sugar consumption, many consumers are choosing bottled water as a healthier alternative to carbonated drinks and fruit juices. Bottled water contains no calories, sugar or artificial flavors. It provides hydration without any unhealthy additions. This has made bottled water popular among health conscious individuals as well as parents who want to offer their children a beverage option free from additives.
On-the-go lifestyle boosts demand for portable beverage options
Another major driver for the bottled water industry is the fast paced and busy lifestyle of many Americans. With long working hours and hectic schedules, there is a growing demand for convenient and portable beverage and food options that can be consumed anywhere, anytime. Bottled water fulfills this need perfectly as it can be carried easily and consumed while traveling, working or engaging in outdoor activities. The availability of bottled water in different package sizes also allows consumers to choose options based on the duration and nature of activities outside home. This factor significantly contributes to the volume sales in the U.S. bottled water market.
Environmental concerns and packaging waste restrain bottled water sales
One of the key challenges faced by the U.S. bottled water industry is the environmental impact of plastic waste from bottles. Growing environmental awareness among consumers and restrictions on plastic usage has negatively impacted bottled water sales. While recycling efforts are increased, a significant percentage of plastic water bottles still end up in landfills. This poses a big environmental threat. Concerns over plastic pollution associated with bottled water may discourage some consumers from choosing it over alternate beverage options. High production and transportation costs of bottled water also add to its carbon footprint.
Price sensitivity in a mature market restricts robust growth
As the U.S. bottled water market matures over the years, robust growth has been difficult to sustain due to price sensitivity among customers. Bottled water, while more convenient than tap water, is significantly more expensive when bought individually. This deters some consumers, especially in an economic downturn. Large customers like office complexes and educational institutions also put pressure on water companies to lower prices through bulk purchases and tenders. This makes the operating environment challenging for profitability. Stiff competition further limits the scope for steep pricing and restrains overall sales growth potential in the U.S. market.
Demand for innovative packaging and product types presents opportunities
One opportunity area for bottled water companies is development of innovative packaging solutions that are more environment-friendly. Use of fully recyclable and reusable bottles made from alternative materials like glass, aluminum, and others can boost the industry's green credentials and attract conscious consumers. Product extension into premium bottled water categories like flavored, functional and sparkling varieties using unique natural ingredients also allows differentiation in the saturated market. There is consumer appetite for such healthier product innovations that enhance hydration experience.
Untapped regional markets still exist for market expansion
While coastal cities dominate bottled water consumption currently, significant potential remains in expanding footprint to under-penetrated regions in central and southern U.S. Aggressive distribution expansion combined with customized local packaging, promotional initiatives and pricing strategies can help companies unlock untapped markets. Partnerships with regional retailers and engagement of local influencers and community leaders play a vital role in educating new customer demographics on product attributes. This presents an opportunity to drive incremental volumes and revenues from currently under-developed geographic territories within the U.S.
Increased health focus and demand for convenience can drive the U.S. bottled water market but environmental issues and pricing pressures influence its growth dynamics. Innovation and opportunity exist in product/packaging improvements as well as further regional market penetration to counter mature market challenges. An optimal balance focusing on these factors is needed for sustainable growth in the future.
Link - https://www.coherentmarketinsights.com/market-insight/us-bottled-water-market-3267
Key Developments
- On 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 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
Key Players
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
