The global U.S. Bottled Water Market is estimated to be valued at US$ 26067.32 Mn in 2023 and is expected to exhibit a CAGR of 8.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The U.S. bottled water market size consists of bottled drinking water, which includes still water, flavored water and enhanced water. Bottled water is widely used as a substitute fortap water for drinking purposes due to the rise in health consciousness among individuals. It is considered as a convenient and healthier option as it is free of contaminants such as chemicals, metals, pesticides and impurities. Bottled water providers offer a variety of packaging sizes and formats such as PET bottles, glass bottles and pouches to cater to different customer requirements. The market is gaining popularity, especially among youngsters, due to attractive packaging and launch of fruit and vitamin infused water varieties.
Market Key Trends:
The growing awareness about health benefits of consuming clean drinking water is a key trend fueling the demand for bottled water in the country. Individuals are increasingly opting for bottled water due to perceived risks of contamination in tap water. Another major driver is the expansion of distribution channels by bottled water companies. E-commerce platforms and convenience stores now offer a wide range of bottled water options to customers. Manufacturers are also focusing on developing innovative packaging solutions such as aluminum cans and glass bottles to meet changing consumer preferences and attract new customers. The increase in outdoor recreational activities has further boosted the sales of bottled water. Advancements in bottling technologies have enabled companies to provide purified drinking water at competitive prices.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the U.S. Bottled Water Market is moderate. The bottled water industry requires major capital investment for infrastructure and production plants, limiting new entrants.
Bargaining power of buyers: The bargaining power of buyers is high. The U.S. bottled water market has numerous players providing a wide variety of products. This gives buyers multiple alternatives and bargaining power over prices.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Few companies control the supply of raw materials like PET. However, the availability of substitutes reduces suppliers’ control over pricing.
Threat of new substitutes: The threat of new substitutes is high in the bottled water market. Water dispensers and filtration systems pose a significant threat. Tap water is also an economical substitute.
Competitive rivalry: The U.S. Bottled Water Market witnesses intense competition amongst established players. Players compete on the basis of brand, quality, distribution network, and pricing.
Key Takeaways
The global U.S. Bottled Water Market is expected to witness high growth, exhibiting CAGR of 8.4% over the forecast period, due to increasing health consciousness among consumers. Bottled water is perceived as a more hygienic and portable option compared to tap water.
Regionally, the Western region dominates the U.S. bottled water market, with states like California accounting for the largest share. Abundant natural springs and a hot climate increase demand. The Southeast region is also growing rapidly due to hot weather and rising disposable incomes in states like Florida and Texas.
Key players operating in the U.S. bottled water are Nestle Waters, PepsiCo, Inc., The Coca-Cola Company, Groupe Danone, Suntory Beverage & Food Ltd, Mountain Valley Spring Company, LLC, and CG Roxane, LLC. Brand recognition, extensive distribution networks, and new product launches are some factors driving the leading market players.
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.