Premium Bottled Water Market Size - By Product (Spring water, Mineral water, Sparkling water, Flavored water, Functional water), Distribution Channel (Supermarkets and hypermarkets, Specialty stores, Online retail), Packaging, & Global Forecast, 2024-2032

Premium Bottled Water Market Size

Premium Bottled Water Market size was valued at USD 36.3 billion in 2023 and is estimated to register a CAGR of over 6.8% between 2024 and 2032. The growth can be attributed to a confluence of factors that reflect changing consumer preferences and evolving lifestyle trends. One significant driver of this growth is the growing health and wellness consciousness among consumers.
 

Many are choosing Premium Bottled Waters as a healthier alternative to sugary beverages, perceiving them as purer and cleaner sources of hydration. These bottles often come with features such as filtration systems or alkaline properties, enhancing their appeal to health-conscious consumers. In addition, there is a growing emphasis on sustainable packaging in this market. The companies are increasingly focusing on eco-friendly materials like glass or reusable options, catering to consumers who are environmentally aware and looking to reduce single-use plastic waste.
 

The premium bottled water market is highly competitive among numerous brands, pricing that often exceeds regular bottled or tap water, and concerns regarding environmental impact pose significant hurdles. The perception of overpricing and skepticism about the claimed health benefits of premium bottled waters can deter potential buyers, and stringent health and safety regulations add complexity to manufacturing processes.
 

COVID-19 Impact

As financial stability became uncertain for many households, a considerable portion of consumers began to exercise greater discretion in their purchases. Non-essential items, such as premium bottled water, were among the first to experience a decline in demand, as people opted to prioritize essential goods and services, like groceries, healthcare, and savings. With concerns about job security and economic well-being prevailing, the premium bottled water, often perceived as a luxury or discretionary purchase, faced reduced consumer spending as individuals and families adapted their budgets to navigate the economic challenges posed by the pandemic.
 

Premium Bottled Water Market Trends

This shift in consumer behavior is characterized by a heightened awareness of the importance of maintaining a healthy lifestyle. As part of this broader trend, individuals are becoming more discerning about the quality of the products they consume, including their choice of beverages. In the context of the premium bottled water market, this emphasis on health and wellness has driven consumers to seek cleaner and more sophisticated hydration options.
 

Cleaner hydration options refer to water products that are perceived as being of higher purity and quality. Consumers are increasingly concerned about contaminants, such as impurities or pollutants, in their drinking water. They are looking for premium bottled waters that offer filtration or purification processes to ensure that the water they consume is free from these contaminants.
 

Premium Bottled Water Market Analysis

The premium bottled water market from spring water segment dominated around USD 9.1 billion revenue in 2022, due to an increased awareness of health and wellness among consumers, leading to a shift in beverage preferences. Spring is perceived as a healthier alternative to sugary and artificially flavored drinks, as it contains naturally occurring minerals that can have potential health benefits. In addition, as consumers become more conscious of the sources and quality of their water, mineral water's origins from natural springs or mineral-rich underground reservoirs hold a strong appeal. This natural sourcing, often coupled with the absence of artificial additives, adds to the perception of purity and cleanliness.
 

The supermarket and hypermarket segment held over 59.6% of the premium bottled water market share in 2022. Supermarkets and hypermarkets are one-stop shops for a wide range of groceries and household goods, including premium bottled water. This makes it convenient for consumers to purchase premium bottled water while they are shopping for other items. In addition, these stores provide a one-stop shopping experience, allowing customers to purchase everything they need in a single shopping trip. This convenience saves time and effort, making it an attractive choice for many shoppers.
 

The glass bottles segment accounted for 55.4% of the premium bottled water market share in 2022. Glass bottles are more aesthetically pleasing than plastic bottles. They have a more elegant and sophisticated look, which is appealing to consumers who are looking for a premium product. In addition, it can be reused and recycled multiple times, while plastic bottles typically end up in landfills. This is important to consumers who are concerned about the environmental impact of their purchases.
 

The Asia pacific premium bottled water market size will gain remarkable momentum during the forecast timeline, owing to Consumers in Asia Pacific are becoming more aware of the health benefits of drinking water, and they are looking for convenient and accessible ways to stay hydrated. Premium bottled water is seen as a healthy and convenient beverage option. In addition the region is increasingly urbanization. This is leading to a growing demand for convenient and accessible food and beverage options, such as premium bottled water.
 

Premium Bottled Water Market Share

Major companies operating in the premium bottled water market are as below:

• Nestle
• Danone
• PepsiCo
• Coca-Cola
• FIJI Water
• Voss Water
• Acqua Panna
• Perrier
• San Pellegrino
• Evian
• Gerolsteiner Brunnen
• Tata Global Beverages

Coca-Cola's business model is based on the sale of syrup and concentrate to its bottling partners. The bottling partners then manufacture, package, and distribute the finished products to consumers. Coca-Cola owns a minority stake in some of its bottling partners, but it does not directly own or operate any bottling plants. The market player are undergoing strategic initiatives such as mergers, acquisition, and partnerships.
 

Premium Bottled Water Industry News

In August 2022, PepsiCo Inc. announced a strategic agreement with AQUA Carpatica, it is a premium natural mineral water brand bottled at source in the Carpathian Mountains. The strategic agreement provides PepsiCo with distribution rights for Romania and Poland with opportunities to expand into other markets, including the United States.
 

This premium bottled water market research report includes in-depth coverage of the industry with estimates & forecast in terms of transactional value (USD Billion) and transactional volume (Kilotonnes) from 2018 to 2032, for the following segments:

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Market, By Product

• Spring Water
• Mineral Water
• Sparkling Water
• Flavored Water
• Functional Water

Market, By Distribution Channel

• Supermarket and Hypermarket
• Specialty Stores
• Online Retail

Market, By Packaging

• Glass Bottles
• Plastic Bottles

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
  • Australia
  • Malaysia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Egypt