United States Bottled Water Market Assessment, By Type [Still Water, Sparkling Water, Functional Water, Others], By Packaging [PET Bottles, Glass Bottles, Biodegradable Packaging, Metal Cans, Others], By End-user [Individual, Commercial], By Distribution

United States Bottled Water Market Assessment, By Type [Still Water, Sparkling Water, Functional Water, Others], By Packaging [PET Bottles, Glass Bottles, Biodegradable Packaging, Metal Cans, Others], By End-user [Individual, Commercial], By Distribution Channel [Convenience Stores, Grocery Shops, Internet Retailing, Supermarkets/Hypermarkets, Others], By Region, Opportunities, and Forecast, 2016-2030F

The United States bottled water market has experienced substantial growth and widespread consumer adoption, reflecting evolving preferences and lifestyle trends. With a market value reaching USD 25.03 billion in the year 2022, bottled water consumption has become ingrained in American culture. It is further anticipated to grow at a CAGR of 6.6% from 2023 to 2030 and is poised to reach USD 41.74 billion by 2030.

One driving factor is the perception of bottled water as a convenient and on-the-go hydration solution. The portability of various bottle sizes caters to the fast-paced lifestyles of individuals, contributing to the market's robust performance. Furthermore, marketing efforts by bottled water brands emphasize the purity and safety of their products, tapping into concerns about tap water quality in certain parts of the country.

Consumer health and wellness trends have also played a significant role in the market's expansion. As people increasingly prioritize healthier beverage choices, bottled water stands out as a calorie-free and hydrating option. The availability of enhanced waters, including those infused with vitamins, minerals, or flavours, aligns with consumers' desire for functional and refreshing alternatives.

Despite environmental considerations and sustainability concerns associated with single-use plastics, the convenience and perceived benefits of bottled water continue to drive demand. Efforts to address sustainability concerns have led to innovations in eco-friendly packaging, with some companies promoting the use of recycled materials.

The market's trajectory is marked by continual innovation in packaging, water sourcing, and branding strategies. As the industry responds to evolving consumer expectations and environmental consciousness, the United States bottled water market remains dynamic, adapting to changing preferences while retaining its status as a go-to beverage choice for a diverse consumer base.

Perceived Purity Fuelling the Demand for Bottled Water

The perception of purity plays a pivotal role in driving the market. Consumers often choose bottled water over tap water due to the belief that it undergoes stringent purification processes, ensuring a cleaner and safer drinking experience. This perceived purity is a key marketing strategy employed by bottled water brands, fostering trust among consumers who prioritize water quality. As health-conscious trends persist, the perception of bottled water as a pure and untainted source of hydration continues to influence purchasing decisions, contributing significantly to the market's sustained growth and consumer preference.

In April 2023, Topo Chico introduced Topo Chico Sabores, a premium line of sparkling waters featuring real fruit juice and herbal extracts. The combination of filtered sparkling water and added minerals was available in three distinctive flavours - blueberry with hibiscus extract, lime with mint extract, and tangerine with ginger extract, and was offered in 12-oz. slim cans. The launch initially took place in select markets such as New Mexico, Arizona, Colorado, Texas, and New York.

Readily Available and Convenient for On-The-Go Lifestyles

Convenience stands as a dominant factor shaping the United States bottled water market. The fast-paced lifestyles of Americans, characterized by on-the-go routines, have fuelled the demand for readily accessible hydration. Bottled water's portable and convenient packaging aligns seamlessly with this lifestyle, making it a preferred choice for consumers. The availability of various bottle sizes enhances its versatility, catering to diverse preferences and occasions. As a result, convenience emerges as a driving force behind the consistent growth of the bottled water market, providing a quick and easy solution for hydration needs in a society where convenience is highly valued. In January 2022, SOLÉ Natural Italian Mineral Water, a premium Italian mineral water brand that consisted of three distinctively bottled SOLÉ lines, announced the initiation of a three-pronged sales and marketing program. This program featured an exclusive partnership with online beverage retailer Beverage Universe and Amazon to launch the most expensive water.

Growing Demand for Functional Water

The United States is witnessing a burgeoning demand for functional water as health-conscious consumers seek beverages that offer more than just hydration. Functional water, enriched with vitamins, minerals, and other beneficial ingredients, aligns with the prevailing wellness trend. Consumers are increasingly drawn to options that provide specific health benefits, such as improved immunity, enhanced energy, or stress relief. This shift in preferences reflects a desire for beverages that contribute to overall well-being. With the market responding to this demand, the functional water segment is experiencing substantial growth, offering a variety of options that cater to different health and lifestyle needs. In October 2023, Karma Water, a revolutionary health and wellness water, proudly introduced Karma Energy Water, the latest addition to their esteemed beverage portfolio. Crafted in collaboration with Kyowa USA, Karma Energy Water stood out with its distinctive Push Cap, which preserved active components for maximum effectiveness and optimal nutrition. It combined 150mg of natural caffeine sourced from green tea and B-Complex vitamins, along with a blend of nootropics, adaptogens, and essential nutrients, providing a sustained, healthier energy boost.

Impact of COVID-19

The United States Bottled Water Market faced notable shifts due to the COVID-19 pandemic. Initially witnessing increased demand during lockdowns as consumers prioritized packaged water for its safety and convenience, the market later experienced disruptions in the supply chain and production. The closure of public spaces and decreased on-the-go activities impacted single-serve formats, while bulk and home-delivery options gained prominence. The heightened focus on health and wellness, along with the perceived safety of bottled water, remained significant drivers. As the market adapted to changing consumer behaviours, factors such as e-commerce growth, sustainability concerns, and the acceleration of digital strategies became focal points, shaping the industry's resilience and recovery post-pandemic.

Key Players Landscape and Outlook

In the United States Bottled Water Market, key players such as Danone North America Public Benefit Corporation, The Coca-Cola Company, and PepsiCo, Inc. continue to dominate. These giants, alongside regional players like CG Roxane, LLC and premium brands like FIJI Water Company LLC, shape the competitive landscape. The market outlook is characterized by sustained growth, driven by increasing health consciousness, on-the-go lifestyles, and environmental considerations. Premiumization, innovation in flavours and packaging, and the integration of functional elements contribute to the sector's dynamism. As consumer preferences evolve, strategic partnerships and sustainability initiatives are expected to play pivotal roles in shaping the future of the industry. In April 2023, the company formerly identified as Nestlé Waters North America officially commenced operations under a new corporate identity, BlueTriton Brands. This declaration came after the successful acquisition by One Rock Capital Partners, LLC, in collaboration with Metropoulos & Co., from Nestlé S.A., finalized on March 31, 2021.