Bottled water is a packaged drinking water especially packed in plastic or glass water bottles and are available in different sizes from small to large. It is also available in the carbonated form that contains dissolved carbon dioxide gas. Bottled water is the most convenient way to use since it is handy and enables the consumer to carry them easily and are suitable for on-the-go usage. Bottled water is available in retail and departmental stores. They are gaining huge demand across the working class and Millennia’s populations.
The U.S. bottled water market was valued at US$ 22,175.71 Million in 2021 is expected to exhibit a CAGR of 8.42% during the forecast period (2022 to 2030).
Growing health consciousness among consumers is a prime factor fueling the U.S. market growth of bottled water. Rising cases of various health issues such as gastrointestinal diseases, neurological disorders, and reproductive problems caused by drinking contaminated water are fueling the demand for clean and hygienic bottled water in the U.S., and packaged water protects it against various types of bacterial contamination. Hence, rising awareness of the health benefits of bottled water is expected to propel the U.S. bottled water market growth.
Figure 1. U.S. Bottled Water Market Value Share (%), By Distribution Channel, 2021
On the basis of distribution channel, the U.S. bottled water market is segmented into supermarkets, convenience stores, grocery stores, and others (food service & vending). In 2021, the others segment dominated the market in terms of revenue share.
Bottled water is expensive as compared to tap water which is limiting its adoption across low-income class people. This factor is expected to hamper the market growth. Moreover, it is not a money-saving option, and sometimes, it has no difference from tap water and may have similar or worse quality than tap water. These factors are projected to hinder the market growth over the forecast period.
|Base Year:||2021||Market Size in 2021:||US$ 22,175.71 Mn|
|Historical Data for:||2017-2020||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||8.42%||Forecast Period:||2022-2030|
Nestle Waters, PepsiCo, Inc., The Coca-Cola Company, Groupe Danone, Suntory Beverage & Food Ltd, Mountain Valley Spring Company, LLC, and CG Roxane, LLC.
|Restraints & Challenges:||
The advent of advanced technology and practices for reducing production time is expected to foster market growth over the forecast period. For instance, in June 2018, North Carolina-based Clear Water Manufacturing, bottled water manufacturing company, had introduced a machine that can filter, fill, and cap more than 300 bottles of water per one-hour cycle on-site at any location such as campuses, hotels, and stadiums, or in retail spaces. Therefore, advancement in technology is expected to propel the market growth.
Increasing investment by major players in reducing single-use bottles is expected to boost the U.S bottled water market growth. For instance, in January 2019, FloWater, a U.S.-based producer of drinking water, raised US$15 million to put bottled water out of business for eradicating the plastic water bottles by using the newest technology in its water refill stations. FloWater asserts that their water tastes and hydrates better than any bottled water, even premium brands. Hence, this factor is expected to foster market growth over the forecast period.
On the basis of material, the PET segment accounted for the largest market volume share in 2021, in the U.S. bottled water market.
Figure 2. U.S. Bottled Water Market Value Share (%), By Material, 2021
On the basis of material, the U.S. bottled water market is segmented into PET, HDPE, and others. In 2021, PET dominated the market in terms of revenue share.
An increasing number of acquisitions among key players in the U.S bottled water market is expected to foster market growth over the forecast period. For instance, in November 2019, Nestlé Waters North America (NWNA), American bottled water manufacturing company, had announced the acquisition of bottled water distributor Watchung Spring Water in the US. The acquisition enabled NWNA to expand ReadyRefresh by Nestlé beverage delivery service to the New Jersey coast. Hence, the rising adoption of such growth strategies is expected to fuel market growth.
Major players operating in the U.S. bottled water market include Nestle Waters, PepsiCo, Inc., The Coca-Cola Company, Groupe Danone, Suntory Beverage & Food Ltd, Mountain Valley Spring Company, LLC, and CG Roxane, LLC.
Bottled water is considered a consumer food product by the U.S. Food and Drug Administration (FDA). The FDA has set strict standard of identity (165.110[a]) for bottled water. The FDA categorizes bottled water into spring water, purified water, mineral water, sparkling water, artesian water, and well water. Companies are focusing on new product launches in order to strengthen their market presence. For instance, in November 2019, The Coca-Cola Company, a U.S.-based multinational beverage corporation, launched its new sparkling water line, AHA. AHA is available in eight flavors, out of which black cherry + coffee and citrus + green tea contains added caffeine. The product is available in the U.S. market since March 2020.
The growing focus of manufacturers’ on launching eco-friendly packaging solutions for water is expected to augment the market growth over the forecast period. For instance, in July 2019, PepsiCo, an American multinational food, snack, and beverage corporation, announced that it will start rolling out its popular Aquafina water in aluminum cans in 2020 subjected to rising concern about global, non-recyclable waste mounts. The move comes as the brand's biggest attempt to reduce single-use plastic containers, as aluminum is easier to recycle than many materials such as plastics.
Rising government regulations regarding recyclable packaging solutions and decreasing carbon footprint are projected to hinder the growth of the U.S. bottled water market. Moreover, the production of plastic bottles promotes usage of fossil fuels as raw material thus manufacturers are highly depended on fossil fuels. This factor is expected to restrict the growth of the U.S. bottled water market over the forecast timeframe.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section