US Bottled Water Packaging

US Bottled Water Packaging

Demand for bottled water packaging is forecast to increase 2.9% annually to $16.0 billion in 2027, with unit demand expected to grow 1.8% annually to 375 billion. Gains will be supported by above average growth in the sparkling water market and, despite its maturity, significant continuing sales of bottled still water. Market value will be boosted by the above average growth of containers made with higher-priced alternative materials.

Plastic to Maintain Dominance Despite Sustainability Concerns

Plastic will continue to dominate the US bottled water packaging market due to its low cost, good performance and versatility. As the environmental impact of plastic packaging remains a concern, packaging suppliers are looking for ways to incorporate more sustainable practices into their production model. This includes increasing their use of recycled plastics (particularly recycled PET) in order to reduce reliance on virgin plastics and appeal to environmentally conscious consumers.

Sustainability Drives Growth for Aluminum Bottles, Molded Fiber & Paperboard Containers

Demand for aluminum bottles and paperboard and molded fiber containers will experience rapid growth from a small base. Notable for their environmental benefits, these sustainable materials cater to growing consumer demand for environmentally conscious alternatives to traditional plastic packaging:

• Aluminum bottles’ durability, high recyclability, and energy-efficient production methods make them more appealing than plastic bottles.
• Molded fiber bottles and paperboard bottles and cartons are biodegradable and made from renewable resources, aligning with the environmental values of health-conscious consumers.

These products represent higher value alternatives to plastic bottles, and will therefore contribute to market value gains. However, cost and customer acceptance will remain key hurdles to overcome to achieve significant market penetration.

Sparkling Water Packaging Demand Will Log Faster Growth Than Still WaterWhile both still and sparkling water packaging will register good growth, still water will maintain its larger market share while the sparkling water segment will grow at a much faster rate through 2027. This is due to consumer shifts away from sugary soft drinks toward healthier carbonated alternatives. Aluminum cans will remain the primary container for sparkling water due to their excellent oxygen barrier properties, which maintain product freshness, although plastic bottles are key for larger sized packages.

This Freedonia industry study analyzes the $13.9 billion bottled water packaging industry. It presents historical demand data (2012, 2017, and 2022) and forecasts (2027) by product (containers, multipack packaging, closures and labels), material (metal, glass, plastic, paperboard, molded fiber), and application (still water, sparkling water). Annual historical data and forecasts are also provided from 2019 to 2026. Data are given in unit and dollar value.