Premium Bottled Water Market By Type (Flavored and Unflavored) and By Distribution Channel (Supermarkets, Convenience Stores, Departmental Stores, and Others)- Global Industry Analysis, Share, Growth, Regional Outlook And Forecasts, 2021-2027

The global Premium Bottled Water market gathered revenue around USD 18.32  Billion in 2021 and market is set to grow USD 30.70 Billion by the end of 2027 and is estimated to expand at a modest CAGR of 7.9% during the prediction period 2022 to 2030.

Key Takeaways:

• The sparkling water segment is projected to register the fastest growth during the forecast period owing to the high product demand on account of numerous health benefits, such as improving digestion, aiding weight loss, and keeping the body more hydrated than normal water

• The online distribution channel segment is expected to register the fastest CAGR during the forecast period owing to the easy availability of products on a single platform

• Asia Pacific is projected to be the fastest-growing CAGR regional market over the forecast period owing to the rising demand for healthy foods & beverages, coupled with the increasing adoption of active lifestyles by consumers across the country

• Companies focus on manufacturing luxury bottled water derived from exquisite resources. Product innovation and launches are the key strategies deployed by the majority of market players to stay abreast of the competition

Growth Factors:

Premium bottled water companies set themselves from the mass market with a unique selling point, attracting a target group of consumers and commanding a higher value than the mass market. Growing awareness among consumers regarding premium-quality drinking water is the primary factor driving the product demand. The global foodservice and hospitality industry has been severely affected due to the COVID-19 pandemic, resulting in the closures of numerous businesses. Hotels, resorts, restaurants, spas, and clubs stayed closed, which hampered the retailing of food & beverages at these establishments. This has disturbed the product demand and led to declining sales across the globe.

The market growth in the U.S. is due to the high consumption of bottled water. As per a survey conducted in 2020, 3 in 5 Americans preferred bottled water over other beverages. Furthermore, according to the new data from Beverage Marketing Corp. (BMC), bottled water reaffirmed its position as America’s top packaged drink in 2020, outselling all other packaged beverages (by volume) followed by soda, coffee, and soft drinks for the fifth year in a row.

Restaurants in countries, such as Brazil, encourage customers to drink mineral-rich or premium bottled water. This trend is expected to drive the product demand during the forecast period. Mineral content, source of the water, and additional composition are some of the unique selling points, which create a premium image of bottled water.

The growing preference for premium bottled water over other beverages including coffee, tea, and soft drinks, especially in the Europe and North America regions, is attributed to several factors, such as supposed naturalness, better taste than tap water, added mineral contents, etc., which is expected to drive the market over the forecast period.

Furthermore, the product has several advantages, such as it helps improve digestion and may help relieve constipation. In addition, various studies have suggested that premium glacier/natural water is not as harmful as sodas for dental and bone health. Hence, several consumers consider carbonated water as a healthier alternative to soda and sugary carbonated drinks.

Report Coverage

Product Insights

The mineral water segment held the largest revenue share of 42.9% in 2021 and is expected to maintain its dominance over the forecast period. Premium mineral water usually contains a higher content of calcium, magnesium, sodium, and zinc. The growing awareness regarding the health benefits and increased spending on premium products are expected to drive the segment over the forecast period.

The sparkling water segment is projected to register the fastest CAGR during the forecast period. With the growing awareness about the importance of leading a healthy lifestyle, individuals across the world are gradually turning to healthier and more inventive drinks, such as sparkling water over sodas and sugary carbonated drinks. Sparkling water offers numerous health benefits, such as improving digestion, weight loss, and keeping the body more hydrated. These factors will drive the growth of this segment.

Distribution Channel Insights

The supermarkets & hypermarkets segment accounted for the highest revenue share of more than 42% in 2021. This is attributed to the growing preference of consumers for supermarkets/hypermarkets for product purchasing due to the convenient shopping experience. Several supermarkets offer lucrative and sophisticated services, such as click & collect and home delivery, which have been attracting consumers.

Physical verification of the product, along with expert assistance, is another key factor that drives the growth of this segment. In addition, shoppers often purchase products impulsively at the checkout points of hypermarkets & supermarkets. Carrefour, Walmart, Woolworths, and Magnit are among the leading supermarket chains across the globe.

The online distribution channel segment is projected to register the fastest CAGR during the forecast period. Companies in the industry have been focusing on increasing consumer reach by strengthening their online networks. For instance, in October 2019, Uisge Source, in collaboration with Fabrica, developed a new e-commerce website to be a scalable, easy-to-update system for the internal team.

Regional Insights

Europe accounted for the largest revenue share of 35.6% in 2021. Premium bottled water is in high demand in various European countries, including Germany, the U.K., Italy, Spain, France, and the Netherlands, where it is frequently provided with meals at hotels and restaurants. The growing consumption of these products at Quick-Service Restaurants (QSRs) is also expected to drive the demand.

Asia Pacific is expected to witness the fastest CAGR from 2022 to 2030. The market has a significant scope in this region, especially in countries, such as India and China, due to the increasing population, rising living standards, and growing prevalence of diseases caused due to contaminated water. The shift in consumers’ propensity to opt for bottled water instead of tap water is expected to drive the product demand in this region.

Key Companies & Market Share Insights

The market is characterized by the presence of some exclusive companies with a strong presence across the U.S. and Europe. Several players have been introducing premium bottles to expand their consumer base in this niche market. These developments and innovation strategies have had a positive impact on the market. An increasing number of companies have also been introducing new products to gain a competitive edge. For instance, in November 2020, Bling H2O launched its new made-to-order collection called The Ten Thousand Bespoke Collection, with each premium bottle priced at USD 2,700.00 and made of over ten thousand hand-applied Swarovski Crystals. The bottle can be customized according to any color or combination upon request. Some of the key players operating in the global premium bottled water market include:

• Bling H2O

• Roiwater

• Beverly Hills Drink Company

• NEVAS GmbH

• Lofoten Arctic Water AS

• MINUS 181 GmbH

• Alpine Glacier Water Inc.

• BLVD Water

• Berg Water

• Uisge Source

• VEEN

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2027 and covers subsequent region in its scope:

• By Type

• Flavoured
• Unflavoured

• By Distribution Channel

• Supermarkets
• Convenience Stores
• Departmental Stores
• Others

By Geography

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

Highlights of the Report:

• Market Penetration: Comprehensive information on the product portfolios of the top players in the market.
• Product Development/Innovation: Detailed insights on the upcoming technologies, R&D activities, and product launches in the market
• Competitive Assessment: In-depth assessment of the market strategies, geographic and business segments of the leading players in the market
• Market Development: Comprehensive information about emerging markets. This report analyzes the market for various segments across geographies
• Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the market

Research Methodology

In the study, a unique research methodology is utilized to conduct extensive research on the growth of the Premium Bottled Water market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the conclusions.

Secondary resources referred to by analysts during the production of the Premium Bottled Water market study are as follows - statistics from government organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of this report as a primary resource.

Comprehensive information acquired from primary and secondary resources acts as a validation from companies in the market, and makes the projections on the growth prospects of the Premium Bottled Water markets more accurate and reliable.

Secondary Research

It involves company databases such as Hoover's: This assists us recognize financial information, structure of the market participants and industry competitive landscape.

The secondary research sources referred in the process are as follows:

• Governmental bodies, and organizations creating economic policies
• National and international social welfare institutions
• Company websites, financial reports and SEC filings, broker and investor reports
• Related patent and regulatory databases
• Statistical databases and market reports
• Corporate Presentations, news, press release, and specification sheet of Manufacturers

Primary Research

Primary research includes face-to face interviews, online surveys, and telephonic interviews.

• Means of primary research: Email interactions, telephonic discussions and Questionnaire based research etc.
• In order to validate our research findings and analysis we conduct primary interviews of key industry participants. Insights from primary respondents help in validating the secondary research findings. It also develops Research Team’s expertise and market understanding.

Industry participants involved in this research study include:

• CEOs, VPs, market intelligence managers
• Procuring and national sales managers technical personnel, distributors and resellers
• Research analysts and key opinion leaders from various domains

Key Points Covered in Premium Bottled Water Market Study:

• Growth of Premium Bottled Water in 2022
• Market Estimates and Forecasts (2017-2030)
•  Brand Share and Market Share Analysis
•  Key Drivers and Restraints Shaping Market Growth
•  Segment-wise, Country-wise, and Region-wise Analysis
•  Competition Mapping and Benchmarking
•  Recommendation on Key Winning Strategies
•  COVID-19 Impact on Demand for Premium Bottled Water and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  Premium Bottled Water Consumption Analysis
•  Premium Bottled Water Production Analysis
•  Premium Bottled Water and Management