By Frost & Sullivan
The global bottled water hydration market is witnessing
Environmental concerns arising due to single-use plastics are influencing both product and business model innovation opportunities along the value chain of the bottled water industry. Eco-friendly packaging is gaining momentum and has become a key trend that will shape the future of the global bottled water hydration market. As consumer’s preferences for sustainable packaging continues to grow, emerging companies such as Just Water and Boxed Water have set new industry benchmarks with their innovating packaging solutions that involve the use of renewable resources. Evian and Highland Spring, on the other hand, are going to introduce 100% recyclable PET bottles.
The regional tastes of consumers and the substantial lifestyle changes in developing and developed nations are providing the platform for new product development. Consumer preferences in the US are steadily shifting from high calorie/sugar drinks towards healthier alternatives. This has resulted in a shift from carbonated drinks such as soda to bottled, flavored and functional water. Traditionally,
Europe is the largest consumer market for bottled water, as it accounts for 36.9% share of the global bottled water hydration market. Eastern Europe states are seeing robust growth. Western Europe to a large extent is ranked as the world’s most mature bottled water market. The market is led by France Germany, Italy, and the UK that have a strong foothold in bottled water market growth. Consumers across Europe are looking for a good source of nutrients and added supplements in their beverages. Hence, functional water with added flavors is expected to see solid growth in the forecast period.
Asia-Pacific is the second largest market in terms of total consumption, accounting for 33% market share. It is also the fastest growing market, due to its rapidly growing population, growing middle class, high disposable income, and increasing focus on health and wellness. Aqua Botanical, an Australian bottled water company has sourced a sustainable way of harvesting water from fruit and vegetables that are free of toxins and contains essential plant minerals. Products such as these are eventually gaining momentum and acceptance among consumers.
The bottled water market in North America is mature due to its relative saturation and is expected to grow due to the tangible shift of customers from soda-based drinks to water-based alternatives of sparkling, flavored and functional such as Hint Water, Agua Water, Vitamin Water, and Voss Water. Latin America and the Middle East and Africa are likely to experience rapid growth during the forecast period due to their poor water infrastructure, and unsafe and unclean tap water.
Innovative water treatment systems for residential, light commercial and HoReCa segments are emerging as disruptive applications and a huge threat to bottled water companies, as advanced systems can generate mineral quality drinking water or even flavored and functional water at home. Mitte, for example, is one such company that offers a smart water purifier system that can purify and enhance water through a process that is like
The persisting water crisis caused by drought has led to the deterioration of tap water across the African continent. Consumers are showing more interest in bottled water due to an upsurge in the incidence of waterborne diseases. Efficient business models, such as water filtration systems at grocery and convenience stores where consumers can refill their cans and pay by the liter, will increase revenues and reduce the carbon footprint created using plastic bottles. I-Drop Water was launched in South Africa to empower grocery owners to sell pure and safe water to customers using its nano-purification water filtration technology and global system for mobile communication (GSM)-enabled platform. Customers pay by the
Partnering with water utility companies will enable bottled water firms to provide safe drinking water to a large number of consumers across the globe. NEWater in Singapore, a subsidiary of Singapore’s Public Utilities Board uses a dual membrane and ultraviolet technologies for purifying wastewater and producing bottled drinking water.
The global bottled water hydration market is highly fragmented and dynamic. Tier I participants are partnering with or acquiring small players to expand their presence and make their products available in remote locations with severe water scarcity. The top tier will remain so in the foreseeable future, with many small and regional participants competing for market shares. Some of the key players in the current global bottled water market are Nestle Waters, Danone, PepsiCo, Coca-Cola, Fiji Water, Hangzhou Wahaha Group Co Ltd, Bisleri International Pvt Ltd, MaiDubai, Hint Water, Frequency H2O, Aqua Botanical, and Penta Water.
Bottled water market is providing significant opportunities and it is imperative that companies capitalize on these to create an edge amongst the competition.
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