Sparkling Water Market Size, Share & Trends Analysis Report By Product (Natural/Mineral, Caffeinated), By Distribution Channel (Hypermarket & Supermarket, Online), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global sparkling water market size was valued at USD 29.71 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 12.6% from 2021 to 2028. With the growing trend of leading a healthy lifestyle among all age groups, people around the globe are gradually shifting to healthy and innovative drinks, including sparkling water. The growing consumer preference for sparkling water over sodas and sugary carbonated drinks is projected to drive the market over the forecast period. During the initial months of the Covid-19 pandemic, a majority of public places and offices were shut, which led to a significant drop in the commercial demand for sparkling water. However, widespread home isolation orders have spurred the demand for bottled water of various kinds among households across the globe, including sparkling water. According to the International Bottled Water Association (IBWA), bottled water businesses have boosted their production capacity to cater to this surge in demand, which, in turn, has benefitted the market.

With the growing awareness regarding the importance of leading a healthy lifestyle, people are switching to sparkling water due to the presence of a variety of minerals, including sodium, magnesium, and calcium, in the product. Furthermore, the product has a number of advantages; for instance, it helps improve digestion and may help relieve constipation.

Various studies suggested that sparkling 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. Furthermore, over the past few years, an increase in the number of commercial advertisements for bottled water has been playing an important role in boosting brand visibility. These advertisements highlight the quality and hydration benefits of the product, and also emphasize taste and convenience.

Key players of bottled water are launching sparkling water to gain maximum market share. For instance, in February 2021, PepsiCo, Inc. introduced five new caffeinated sparkling water flavors, namely mango passion fruit, blood orange grapefruit, triple berry, blueberry pomegranate, and citrus cherry flavors, under its bubbly brand. These launches are increasing product visibility in the market and are anticipated to boost the market growth over the forecast period.

Product Insights

Natural/mineral sparkling water held the largest share of more than 60.0% in 2020. The growing demand for natural and healthy water among consumers is driving the segment. The flavored variants are increasingly preferred owing to their taste, dizziness, and health benefits.

Key players are launching new products in the market in accordance with the demands of health-conscious consumers. For instance, in May 2019, National Beverage Corp. launched a new flavor, Hi-Biscus! under its LaCroix brand. This new sparkling beverage has no carbohydrates, sweeteners, or sodium, and has a unique flavor of the hibiscus flower.

The caffeinated segment is projected to register the fastest CAGR of 12.6% from 2021 to 2028. Caffeinated sparkling water is calorie- and sugar-free but contains added caffeine to boost energy levels. These drinks are a good substitute for coffee drinks, sweetened teas, and conventional energy drinks.

As consumers are seeking sparkling water with added benefits, manufacturers are trying to launch new variants of the product with caffeine in it. Flavored caffeinated sparkling water held the largest share of 85.4% in 2020. The growth of this segment is attributed to rising consumer demand for different flavors such as berry, orange, cucumber, and lemon.

Distribution Channel Insights

The others segment dominated the market and held a share of 36.4% in 2020. The hypermarket and supermarket and convenience stores together held a significant share in 2020. Moreover, the wide availability of both premium and private label brands at these stores attract consumers to purchase products through these channels. Furthermore, membership programs offered by these stores include benefits such as discounts and access to unlimited free delivery to enhance the shopping experience of the customers.

The online distribution channel is expected to register the fastest CAGR of 13.3% from 2021 to 2028. The shift in consumers’ shopping behavior is one of the major factors driving sales through the online channel. Benefits offered by online platforms, including shopping from the comfort of one’s home, doorstep delivery, free shipping, subscription services, and discounts, are attracting millennials and the younger generation to opt for this channel.

Regional Insights

North America held the largest share of over 35.0% in 2020. The rising consumer preference for healthy alternatives to soft drinks is the major factor driving the segment. Benefits such as improved intake, better digestion, and enhanced bone and heart health are influencing consumers to drink sparkling water. Moreover, the easy availability of this product across distribution channels is anticipated to boost the growth of this segment.

Europe accounted for a significant share in 2020. In Europe, there is a strong demand for sparkling water in several countries, such as Germany, the U.K., Italy, Spain, France, and the Netherlands, where the product is often served with meals in restaurants. In Europe, quick-service restaurants are expanding at a notable growth rate. They have been introducing several new beverages and food items inspired by national as well as international cuisines in order to further their footprint in an increasingly competitive environment. This is foreseen to bode well for the regional market in the coming years.

Key Companies & Market Share Insights

Mergers & acquisitions and product launches are among the key strategies taken up by the market players. For instance, in January 2020, Keurig Dr Pepper Inc. acquired Limitless, a U.S.-based caffeinated sparkling water company. This acquisition has widened Keurig Dr Pepper’s water portfolio and through this acquisition, the company entered the caffeinated sparkling water market. Some prominent players in the global sparkling water market include:

• Nestlé

• PepsiCo, Inc.

• National Beverage Corp.

• Talking Rain

• Keurig Dr Pepper Inc.

• The Coca-Cola Company

• Danone S.A.

• SANPELLEGRINO S.P.A

• Clear Cut Phocus

• Caribou Coffee Operating Company, Inc.

• Hiball

• RHODIUS Mineralquellen und Getränke GmbH & Co. KG

• AQUA Carpatica

• Northwest Coffee

• Volay Brands, LLC

• WakeWater Beverage Co.

• Big Watt Cold Beverage Co.

Sparkling Water Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global sparkling water market report on the basis of product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2028)

  • Natural/Mineral Sparkling Water

    • Flavored

    • Unflavored

  • Caffeinated Sparkling Water

    • Flavored

    • Unflavored

• Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)

  • Hypermarket & Supermarket

  • Convenience Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

    • Italy

    • Spain

    • France

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa