Premium Bottled Water Market

Market Overview

The global premium bottled water market size was valued at USD 19.49 billion in 2022. It is estimated to reach USD 33.20 billion by 2031, growing at a CAGR of 6.1% during the forecast period (2023–2031). A growing conscience of benefits and the increased use of premium bottled water in the hospitality industry are expected to boost market growth.

Drinking water packaged in plastic or glass bottles, such as spring water, distilled water, well water, or mineral water, is called bottled water. Carbonation levels in bottled water can vary. Small single-serving bottles up to big carboys for water coolers are available. Premium bottled water is normally unprocessed water that satisfies the same quality criteria as regular packaged water and is obtained from an underground water source. Before being provided for human consumption, packaged water on the market goes through various processes, including ozone treatment or reverse osmosis. These high-end bottled waters are frequently offered in Tier 1 cities and have grown in popularity worldwide.

Market Dynamics

Global Premium Bottled Water Market Drivers

A Growing Conscience of Benefits

People are switching from tap water to premium bottled water as awareness of the value of a healthy lifestyle grows. Numerous people choose mineral or sparkling water over conventional bottled water due to the inclusion of several minerals like sodium, magnesium, and calcium. Premium bottled water, including sparkling water, also has several benefits, including easing constipation and aiding digestion. Furthermore, several studies have found that premium glacier/natural water is not as bad for dental and bone health as sodas. As a result, many consumers view carbonated water as a healthier alternative to soda and other sweet, carbonated beverages.

The rise in bottled water commercials has been a key factor in raising brand and product visibility over the past several years. In addition to emphasising flavour and convenience, these adverts promote the superior quality and hydration advantages of premium sparkling/natural water.

Increased Use of Premium Bottled Water in the Hospitality Industry

Usually, special gatherings and events organised at five-star hotels and resorts include premium bottled water products. However, in recent years, this market's focus has expanded to include the hospitality sector. Due to the poor quality of tap and standard bottled water, restaurants, resorts, and spas in Brazil have started to serve premium bottled water, which is expected to increase product demand there. With a vast selection of sparkling and mineral bottled water available by various brands, nations like the U.K. and Germany offer separate water menus at restaurants and cafés. Some high-end bottled water brands sold in European nations are NEVAS, Uisge Source, and MINUS 181, sourced from natural glaciers and springs. Over the projected term, this will probably contribute to the rising demand for upscale bottled goods. Additionally, since the COVID-19 epidemic, the country's per-customer spending on clean water has climbed significantly, which has raised the demand for premium bottled water in hotels and restaurants.

Global Premium Bottled Water Market Restraint

Advanced Charges Due to its Natural Water Source

Premium bottled water is becoming increasingly popular in restaurants and other commercial settings. However, the market is constrained by the high cost of bottled water. Premium bottled water costs between 1000 and 3000 times more than tap water. Additionally, small bottled water businesses selling sparkling water frequently experience price wars that impact their profit margins. The purification procedures used to filter premium water include glaciers, natural springs, distilleries, and other private sources of a natural origin. Sometimes sourcing may be challenging owing to weather limits, requiring more money to get water from such sources. The entire cost is significantly more than that of conventional bottled water or tap water as a result. With a smaller targeted market, luxury water firms that charge much for a glass bottle have lower profit margins and a smaller market for their products. Having such high prices will be difficult for other brands as well.

Global Premium Bottled Water Market Opportunities

Market Expansion

Premium bottled water producers have been searching for business prospects in developing nations like India, Malaysia, Brazil, China, and South Africa, where clean water is essential for human health. The need for better water infrastructure in these economies is primarily fueled by expanding public awareness of the need for clean water, rising per capita income, and evolving health concerns. People in North America no longer consume most sugary drinks, according to a survey in the medical journal. For the highest per-capita intake of sugary beverages, it has since slipped to a lower position. Governments have attempted to curb the use of sugary drinks through various programs with variable degrees of success, including pricing regulations, public awareness campaigns, and school sales restrictions. These attempts were made because excessive added sugar consumption has been related to cardiometabolic disease and obesity.

As a result, people are choosing water more frequently at restaurants because it contains no sugar. Pressurised carbon dioxide is added to water to create modern sparkling water. This is a wonderful soda substitute because it contains significantly less sugar than a typical can of soft drink, even with flavouring added to the water. While eating at restaurants, many customers choose to sip on sparkling or flavoured water, and this practice is becoming more widely recognised worldwide. Over the forecast period, these variables are projected to produce a positive outlook for the premium bottled water market.

Regional Analysis

Europe Dominates the Global Market

Based on region, the global premium bottled water market is bifurcated into North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.

Europe is the most significant Global Premium Bottled Water Market shareholder and is estimated to exhibit a CAGR of 5.2% over the forecast period. In many European nations, premium bottled water is in high demand and is regularly served with meals in hotels and restaurants. Quick-service restaurant consumption of these items is anticipated to increase and fuel market expansion. Europe is a well-liked travel location. A well-known provider of passenger and freight ferry services, Condor Ferries, estimates that 538 million foreign tourists visited Europe in 2018, which is a significant portion of global tourism. Because packaged premium bottled water has a high mineral content and appealing packaging, most tourists choose it. The desire for these products has also been fueled by their accessibility in various retail settings, including resorts, parks, and busy tourist destinations like airports.

According to a report released by Natural Mineral Waters Europe in the area, the mineral concentration is substantially higher than in any other global tap water in bottled waters sold in March 2021. The survey also claims bottled water from France and Germany has superior flavours and higher mineral content than most typical bottled water in many industrialised nations worldwide, including the United States.

Asia-Pacific is anticipated to exhibit a CAGR of 7.8% over the forecast period. One of the main problems in Asian nations, such as China, India, and Indonesia, is water poisoning. Market expansion is anticipated to be aided by consumer preference for packaged and bottled water. In 2018, the World Health Organisation said that 70% of the surface water in the Asia region was unfit for human consumption. The bottled water industry in Asia is expanding exponentially due to shifting consumer preferences and a rise in the need for clean, safe drinking water.

Due to the region's expanding population, improving levels of living, and increased prevalence of diseases brought on by tainted water, the market for premium bottled water has a sizable potential, particularly in nations like China and India. The market is anticipated to be driven by a change in customers' preference for bottled water over tap water, particularly in developed Asian cities like Beijing, Shanghai, Tokyo, Mumbai, and Singapore.

North America emerged as one of the fastest-growing regions in the global market. In 2020, Americans consumed 15 billion gallons of bottled water, up 4.2% from 2019, according to the Beverage Industry Report published in May 2021. Three in five Americans in 2020 preferred bottled water over other beverages, which may account for the rise in bottled water consumption. Additionally, bottled water maintained its position as the most popular packaged beverage in America in 2020, outpacing all other beverages (by volume), followed for the fifth consecutive year by soda, coffee, and soft drinks, according to the most recent data from Beverage Marketing Corporation (BMC). Due to several factors, including its purported naturalness, apparent superior taste to tap water, added mineral content, and impurity-free nature, premium bottled water is increasingly preferred in the region over other beverages like coffee, tea, and soft drinks. These factors are anticipated to fuel demand for premium bottled water over the forecast period.

In LAMEA, the huge demand for bottled water results from the lack of fresh water in most Central and South American nations. Bottled water has become a popular commodity as the demand for freshwater rises and consumer disposable money rises. Due to a rise in health consciousness among customers in the area, consumers have been demonstrating an increased desire for water with additional health ingredients, including minerals, vitamins, and antioxidants. Additionally, the region's rising infrastructure, commercialisation, employment prospects, and corporate culture are all causing the demand for high-end goods like bottled water.

Segmental Analysis

The Global Premium Bottled Water Market is bifurcated into product and distribution channels.

the global premium bottled water market is bifurcated into spring water, mineral water, sparkling water, and others.

The mineral water segment dominates the global market and is projected to exhibit a CAGR of 6% over the forecast period. The U.S. Food and Drug Administration defines mineral water as water with at least 250 parts per million of total dissolved solids (TDS) coming from subsurface water sources that are geologically and physically protected. The relative proportion of minerals and trace elements from the real source makes this section different from its predecessors. Numerous health advantages of mineral water include reduced blood pressure, improved blood circulation, and strengthened bones.

With creative and stylish packaging, premium mineral water typically has a higher content of nutrients, including calcium, magnesium, sodium, and zinc. Over the projection period, there will likely be a growth in demand for mineral water due to rising consumer expenditure on premium goods like premium mineral water and growing awareness of its health benefits.

The global premium bottled water market is segmented online and offline based on distribution channels. 

The offline segment dominates the global market and is predicted to exhibit a CAGR of 6.2% during the forecast period. This is attributable to consumers' rising preference for shopping at supermarkets and hypermarkets because it is easy. Many supermarkets provide lucrative and sophisticated services that have drawn customers, like click-and-collect and home delivery. Another important element driving the growth of this market sector is the physical inspection of the goods, combined with professional support. Additionally, customers frequently make spontaneous purchases at supermarket and hypermarket checkout counters. Among the top grocery store chains worldwide are Carrefour, Walmart, Woolworths, and Magnit.

Recent Developments

• February 2023- Bisleri International, a producer of bottled water, has expanded internationally for the first time by forming a manufacturing and bottling partnership with the diversified Nasser Abdulla Lootah business of Dubai.

• January 2023- Accor has partnered with SOURCE Global, PBC, to provide Singapore's most prestigious hotels with the world's first sustainable bottled drinking water brand.