Bottled water is considered as a safe option for drinking as compared to tap water owing to presence of contaminants and changes in taste & odor. Bottled water is readily available in different sizes and packaging formats such as PET bottles or cans, thereby making it highly portable. The U.S. bottled water market has gained traction in recent years owing to increasing health consciousness among consumers regarding quality of drinking water. People often prefer bottled water due to perceived issues with municipal water systems.
The U.S. Bottled Water Market is estimated to be valued at US$ 26067.32 million in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Growing Health Consciousness among Consumers: Rising consumer preference for packaged drinking water over tap water owing to perceived contamination in tap water is one of the major factors driving the growth of the U.S. bottled water market. Consumers are increasingly becoming health conscious and are willing to pay premium prices for bottled water due to perceived health benefits. Additionally, rising awareness regarding importance of hydration is also propelling the market growth. According to the Bottled Water Association, bottled water consumption in the U.S. reached 41.4 gallons per capita in 2021 owing to perceived health benefits associated with its consumption.
Another major driver for the market growth is increasing preference for bottled water over soft drinks and other sugar-sweetened drinks owing to rising health concerns regarding sugar intake. Bottled water offers a convenient and healthy option that assists in hydration without any added sugar. Furthermore, availability of bottled water in various packaging formats and sizes according to consumer requirement and occasion makes it a popular beverage of choice on-the-go.
The U.S. bottled water market is segmented into still bottled water and carbonated bottled water. Among these, the still bottled water segment dominates the market with over 80% share. The still bottled water segment is experiencing higher demand as consumers are increasingly preferring still water over carbonated variants due to health reasons like obesity.
Political: The U.S. bottled water industry faces some rules and regulations from FDA regarding production, labeling and distribution of bottled water. However, the regulations are not as stringent as other beverage categories which helps industry growth.
Economic: With rising disposable incomes, consumers are willing to pay premium prices for bottled water products catering to health and wellness. As tap water crisis continues in certain areas, bottled water demand also rises driven by economic factors.
Social: Changing lifestyle and health consciousness are major social drivers for bottled water consumption. People prefer bottled water on-the-go and perceive it to be relatively safer than tap water. With increasing health awareness, bottled water caters to the need for a safe and healthy beverage option.
Technological: Technology advancements in bottling, packaging and distribution help players launch new product formats, customize bottle packaging as per consumer needs and strengthen supply chain networks to boost availability of bottled water products.
The U.S. Bottled Water Market Size is expected to witness high growth during the forecast period of 2023 to 2030. The U.S. Bottled Water Market is estimated to be valued at US$ 26067.32 million in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.
Regional analysis shows that Western and Southern regions dominate the market currently due to water shortage issues. The Western region is anticipated to continue dominating the market during the forecast period as well. States like California face regular water shortage issues driving higher bottled water adoption. Population growth in the Western states and their natural climatic conditions support market growth in the region.
Key players operating in the U.S. bottled water market are Nestle Waters, PEPSI, Danone Waters of America, and Niagara Bottling.
Key players operating in the U.S. bottled water market are focusing on developing different product formats like flavored water, vitamin-enhanced water and launch of sustainable bottling practices to appeal to the shifting consumer preferences. They are also strengthening their distribution networks across modern retail formats as well as online retail platforms for expanding market reach. The U.S. bottled water market is expected to grow significantly during the forecast period due to rising health awareness and clean drinking water needs.
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it