Premium Bottled Water Market Size, Share & Trends Analysis Report By Product (Spring Water, Mineral Water, Sparkling Water), By Distribution Channel (Supermarket & Hypermarkets, Specialty Store, Online), By Region, And Segment Forecasts, 2023 - 2030

Premium Bottled Water Market Size & Trends

The global premium bottled water market size was valued at USD 19.44 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.0% from 2023 to 2030. Premium bottled waters 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 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 demand and led to declining sales of premium bottled water across the globe.

Consumers are seeking premium mineral water that originates from natural and pristine sources. The trend focuses on water that undergoes minimal processing and retains its inherent mineral composition. This trend aligns with the preference for products that are perceived as pure, authentic, and free from artificial additives.

With growing awareness regarding the importance of leading a healthy lifestyle, people are switching from regular water to premium bottled water. Due to the presence of a variety of minerals, including sodium, magnesium, and calcium, several consumers opt for sparkling water/mineral water over regular bottled water. Furthermore, premium bottled water, including sparkling water, has a number of advantages; 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.

Over the past few years, an increase in the number of commercial advertisements for bottled water has played an important role in boosting brand and product visibility. These advertisements highlight the quality and hydration benefits of premium sparkling/natural water and also emphasize on taste and convenience. For instance, Nestlé uses the catchphrase ‘Drink Better. Live Better’ for its Pure Life brand’s campaigns. Nestlé Pure Life Sparkling Water has zero calories and zero sweeteners, and is available in Original and a variety of fruit flavors.

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 region is attributed to several factors such as supposed naturalness, apparent better taste than tap water, added minerals content, and impurity-free product of bottled water, which is expected to drive the demand for premium bottled water over the forecast period.

Furthermore, premium bottled water has several advantages; 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.

Product Insights

The mineral water segment held a largest market share of 41.8% in 2022 and is expected to maintain its dominance over the forecast period. Premium mineral water usually contains a higher content of ingredients like calcium, magnesium, sodium, and zinc with innovative and elegant packaging. The growing awareness regarding the health benefits, coupled with the increased spending on premium products, is likely to boost the mineral water demand over the forecast period.

The sparkling water segment is projected to register faster growth during the forecast period. With the growing trend of leading a healthy lifestyle among people of all ages, 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.

Distribution Channel Insights

The supermarkets and hypermarkets made the largest contribution to the global market of 37.5% in 2022. This is attributed to the growing preference of consumers for product purchasing from supermarkets/hypermarkets 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 a 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 is projected to register a higher growth 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 made the largest contribution in the global market of 33.7% in 2022. Premium bottled water is in high demand in various European countries, including Germany, the UK, 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 is expected to drive the demand.

In the highly competitive Europe premium bottled water market, key brands are strategically focusing on unique selling propositions, premium packaging designs, and compelling brand storytelling to create a perception of exclusivity, purity, and sophistication among consumers. These strategies enable brands to differentiate themselves and capture the attention of discerning consumers in the premium bottled water segment.

The increasing emphasis on health and wellness among consumers has influenced the demand for UK premium bottled water. Many individuals are opting for healthier beverage options, including mineral-rich and natural spring water, as a means to stay hydrated and promote well-being.

Asia Pacific is expected to witness a higher CAGR from 2023 to 2030. The market has a significant scope in the region, especially in countries such as India and China, due to 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 demand.

In the rapidly growing Asia Pacific premium bottled water market, consumers are actively seeking out premium bottled water that goes beyond basic hydration and offers additional health benefits. This trend has fueled the emergence of functional and enhanced water products in the region, featuring added vitamins, minerals, electrolytes, and other ingredients that cater to specific health needs. Brands in the Asia Pacific market are capitalizing on this demand by offering innovative and specialized premium bottled water options that align with consumers' evolving preferences and wellness goals.

According to recent data released by the United Nations in 2023, India has emerged as the 12th largest consumer of bottled water worldwide in terms of market value. This highlights the significant demand for premium bottled water in the Indian market, reflecting the country's growing population, increasing urbanization, and changing consumer preferences.

According to the Beverage Industry Report published in May 2021, Americans consumed 15 billion gallons of bottled water in 2020, an increase of 4.2% as compared to 2019. The increased consumption of bottled water can be accounted for as 3 in 5 Americans preferred bottled water over other beverages in 2020.

The growing preference for premium bottled water over other beverages including coffee, tea, and soft drinks in the region is attributed to several factors such as supposed naturalness, apparent better taste than tap water, added minerals content, and impurity-free product of bottled water, which is expected to drive the demand for premium bottled water in North America over the forecast period.

In the highly competitive U.S. premium bottled water market, brands are strategically focusing on differentiation strategies to set themselves apart from the competition. This includes leveraging premium packaging designs, introducing innovative bottle shapes, and crafting brand stories that evoke a sense of exclusivity, exceptional quality, and sophistication. These efforts are aimed at capturing the attention of discerning consumers in the U.S. market who prioritize both the visual appeal and the perceived value of premium bottled water products.

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.

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.

In January 2021, Lofoten Arctic Water launched a range of infinitely recyclable aluminum bottles manufactured by the world’s leading producer of aluminum cans ‘Ball Corporation’. Premium sparkling and still waters have gained huge popularity across consumers for both packaging and taste.

In May 2021, BLVD Water associated with the Fine Water Society educates consumers, the media, and F&B professionals about premium bottled water and its importance for society. Some of the prominent players 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

Premium Bottled Water Market Report Scope

Global Premium Bottled Water Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global premium bottled water market on the basis of product, distribution channel, and region:

• Product Outlook (Revenue, USD Billion, 2017 - 2030)

  • Spring Water

  • Sparkling Water

  • Mineral Water

  • Others

• Distribution Channel Outlook (Revenue, USD Billion, 2017 - 2030)

  • Supermarkets & Hypermarkets

  • Specialty Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia & New Zealand

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • UAE