Premium Bottled Water Market Size, Share, and Trends 2024 to 2033

Premium Bottled Water Market Size and Growth

The global premium bottled water market size was USD 20.71 billion in 2023, calculated at USD 22.17 billion in 2024 and is expected to reach around USD 40.89 billion by 2033, expanding at a CAGR of 7.04% from 2024 to 2033. The increasing health consciousness and the benefits of premium bottled water are leading to the market’s growth.

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Premium Bottled Water Market Key Takeaways

• Europe dominated the global premium bottled water market with the major revenue share of 35% in 2023.
• Asia Pacific is projected to grow at the fastest rate with an exceptional CAGR during the forecast period 2024 to 2033.
• By product, the mineral water segment accounted for the largest revenue share of 43% in 2023.
• By product, the sparkling water segment is expected to grow at the fastest rate in the market during the forecast period.
• By distribution, the supermarkets & hypermarkets segment has held the largest revenue share of 38% in 2023.
• By distribution, the online segment is projected to register the fastest growth in the market during the forecast period 2024 to 2033.

Europe Premium Bottled Water Market Size and Growth 2024 to 2033

The Europe premium bottled water market size was exhibited at USD 7.25 billion in 2023 and is projected to be worth around USD 14.52 billion by 2033, poised to grow at a CAGR of 7.19% from 2024 to 2033.

Europe dominated the global premium bottled water market in 2023. Countries like Germany, Spain, the UK, Italy, and France are some of the major global tourism contributors, and they witness a greater number of tourists all year long. This has led to the increasing use of premium bottled water in hotels and tourist spots. This has boosted the per capita income in these countries and has resulted in the growth of the distribution network. The increasing demand for flavored and sparkling water in Europe is considered to drive market growth. Many brands are focusing on improving packaging and marketing to promote innovations in the market.

North America accounts for a significant share of the premium bottled water market revenue. The increasing urbanization in countries like the United States, Canada, and Mexico increases the demand for premium bottled water. This has led to a massive change towards health awareness, which has resulted in consumers opting for products that provide health benefits to them. Many North American companies are focusing on building a sustainable market environment that also attracts new audiences by introducing new bottle designs and enhancing their quality. These rising market trends could potentially lead to the growth of the premium bottled water market.

Asia Pacific is projected to grow at the fastest rate with an exceptional CAGR in the premium bottled water market during the forecast period 2024 to 2033. The rising urbanization in countries like China, India, and Japan are considered to be the key market drivers. Many regions in these countries face water disease-related issues, which have shifted a rapid number of people towards consuming healthy products, including bottled water. India and China have the largest middle-class population, which is targeted by companies gaining their focus on these products. Coco-Cola is a leading beverage company that mentioned India among its top 5 consumers of their premium water, which is named ‘SmartWater.

Market Overview

Premium bottled water refers to high-quality water offering extra health benefits besides basic hydration. The luxurious product offers superior water quality, unique sourcing, and high-quality packaging. The premium water comes from a specific glacier or spring, making it more purified and with a natural taste and additional health benefits. These products have higher costs than general water bottles as they offer additional health benefits. Top brands in the premium bottled water market often claim higher and specific mineral content in their products. Some types of premium water are spring water, mineral water, artesian water, alkaline water, sparkling water, and many more.

The premium bottled water market has witnessed tremendous growth in recent years. The growth is attributed to the increasing health consciousness among individuals, especially after the outbreak of Covid-19. The rapid increase in urbanization is leading to an increasing number of people opting for the premium bottled water market. As disposable income rises in developed and developing regions, the willingness to pay for these luxurious products is increasing rapidly. This is leading to the inclusion of new companies in the market.

• In May 2024, Marvelle Healthcare, a leading healthcare company, announced a new premium water brand named ‘Rhythm,’ which is sourced from the Himalayas.

Premium Bottled Water Market Growth Factors

• The emergence of new products in the market is gaining significant popularity and fulfilling consumer demand; this is resulting in a growth factor for the premium bottled water market.
• The increasing popularity through various advertisements and collaboration is attracting a wider audience, which is contributing to growth.
• The increasing awareness of the benefits of premium bottled water is leading to more users, driving the demand for the premium bottled water market.
• The rising number of distribution channels and increasing connectivity are expanding access to products, resulting in the growth of the premium bottled water market.

Premium Bottled Water Market Scope

Premium Bottled Water Market Dynamics

Drivers

Increasing health awareness

The rising health awareness among individuals is a major contributor to the growth of the premium bottled water market. The changing sedentary lifestyles in the urban regions have led to numerous health concerns, which are constantly driving the need for healthy products for health benefits. The demand for premium water has increased due to rising concerns about the purity of normal tap water. The premium water claims to add multiple mineral benefits with a change in taste, which also helps attract a larger audience. The changing climatic conditions raise issues about hydration, which can be addressed by premium water. Multiple trends regarding health will help the market grow.

Growing disposable incomes

The rising number of disposable incomes, especially in the developing regions, is influencing the Western lifestyle, which acts as a growth driver for the premium bottled water market. The increasing influence leads to a larger number of people spending on such luxuries, which also have health benefits. The growth in disposable income leads to changes in consumption patterns and lifestyles, which leads to the adoption of such premium products. This indirectly is considered beneficial to the new emerging market companies to contribute to the market growth. Rising incomes allow individuals to try new and different products, which helps companies come up with new products to fulfill consumer demand.

Restraint

Higher costs of premium bottled water

The premium bottled water market has witnessed exponential growth in recent years, but the higher costs of the product could still hamper the market growth. The costs of these products are seen as higher due to the availability of quality and the technologies and tools used to purify the quality of the water. This leads to the restriction of new consumers from using premium bottled water. This has created a competitive business environment that can hamper companies' profit margins. Many companies are focusing on improving the production process and coming up with innovative ideas to tackle the problems that may restrict market growth.

Opportunities

Increasing E-commerce adoption

The business world has drastically changed due to the rapid adoption of e-commerce services. It has contributed to the expansion of the premium bottled water market, enhancing the product reach in developing economies. The online shopping segment offers a convenient and flexible option for customers as it provides doorstep services. Social media also plays a vital role as it helps take the product to the targeted audience, which also creates a direct consumer relationship for the brands. E-commerce platforms also provide data analysis of consumer demand and behavior, which helps companies make strategic decisions for growth.

Increasing advertisement and collaborations

The growing landscape of new media is projected to boost the premium bottled water market rapidly in the upcoming years. Advertisements and collaborations provide an opportunity for premium bottled water companies to enhance their brand visibility and expand their reach to new audiences. Promotion campaigns and advertisements are considered to boost the growth of the market in the coming years due to their tremendous influence.

• In March 2024, Clean Premium Water, India’s fastest-growing brand, completed a one-year partnership with Indian Bollywood superstar Hrithik Roshan as their brand ambassador. The company has extended their partnership as it witnessed significant growth in its business and branding.
• In July 2022, NBA superstar Lebron James announced a multi-year partnership with LIFEWTR, a leading premium bottled water brand.

Product Insights

The mineral water segment accounted for the largest share of the premium bottled water market in 2023. Mineral water contains various elements and minerals which are beneficial for health. It has gained significant popularity and a set reputation, which is the reason for its dominance. The increasingly health-conscious population drives demand for premium bottled products, including mineral water. Mineral water dominates due to its availability in multiple regions. The quality of the product is expected to carry the growth of the market during the forecast period.

The sparkling water segment is expected to grow at the fastest rate in the premium bottled water market during the forecast period. Sparkling water, also referred to as carbonated water or seltzer water, is compared to soda drinks as it contains infused CO2, which creates fizziness and bubbles in the water. The water can be carbonated naturally and artificially with the infusion of CO2. Sparkling is considered one of the best alternative drinks to soda as it eliminates artificial sugar and other contents. The growing concerns about health and consumer preferences for carbonated drinks are leading to rapid demand for sparkling water. Sparkling water gives new products to consumers, which drive popularity and contribute to the growth of the market.

Distribution Insights

The supermarkets & hypermarkets segment held the largest share of the premium bottled water market in the year 2023. These platforms have gained significant demand as they offer a wide range of products at low to high prices. These stores typically have a wider reach and have created significant control over the market. Supermarkets and hypermarkets have a huge number of products, such as groceries, which can lead to customers impulsively purchasing them. The wider reach helps these stores promote new luxurious products as they can be reached through a larger audience. The extensive reach of supermarkets and hypermarkets will help to cater to customer demand, leading to the growth of the market.

The online segment is projected to register the fastest growth in the premium bottled water market during the forecast period 2024 to 2033. The online distribution segment majorly includes direct-to-consumer websites and e-commerce platforms. This segment offers a convenient and flexible doorstep service to consumers, which increases the demand for online services. Online stores offer a wider range of products that provide multiple options for customers. The rapid change in the digital world and increasing internet connectivity are playing a key role in the growth of the premium bottled water market.

Premium Bottled Water Market Companies

• Bling H20
• Roiwater
• Beverly Hills Drink Company
• NEVAS GmbH
• Lofoten Arctic Water AS
• VEEN
• Uisge Source
• Berg Water
• BLVD Water
• Alpine Glacier Water Inc.
• Minus 181 GmbH.

Recent Developments

• In September 2023, Clear Premium Water announced the launch of their natural mineral water brand named ‘NubyClear’ (NU) in India. The product is sourced from the Himalayas and aims to cater to the elite customer segment, promoting a healthier lifestyle.
• In March 2024, JM Financial Private Equity announced an investment of 45 crore INR rupees in Energy Beverages Private Limited. The investment aims to expand the brand image.
• In September 2023, Icelandic Glacial announced a new investment, shareholder structure, and operational expansion with support from Iceland Star Property Ltd and Blackrock’s U.S. Private Credit team.
• In December 2022, Nestle announced an investment of $107 Million in low-carbon logistics for their three water brands: S.Pellegrino, Acqua Panna, and Perrier.
• In August 2022, PepsiCo Inc. announced an agreement with a premium water brand named Aqua Carpatica. The strategic investment deals with distribution rights for Poland and Romania to expand their business.

Segments Covered in the Report

By Product

• Spring Water
• Sparkling Water
• Mineral Water
• Others

By Distribution

• Supermarkets & Hypermarkets
• Speciality Stores
• Online
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa