Introduction

Now, bottled water is a global thing, been for a few decades. Convenience, safety (perceived at least) and some marketing. However, with the water bottled increasing, comes associated environmental impact and sustainability problems. In this post we explore the growth of the water bottled industry, consumer habits and stats behind the takeover of the beverage market.

Bottled Water Industry Growth

History

Bottled water was a niche product, but made its way in to the mainstream some time in the late 20th century. It first hit the shelves as a luxury product but grew with the steady increase in tap water quality concerns and consumer demand for convenience.

Milestones

• 1970s: A consequence of Perrier’s entry in the US market was that water bottled became a premium product.
• 1990s: The masses got water bottled made by affordable brands Dasani and Aquafina.
• 2000s: water bottled was a healthy alternative to sugary drinks because it was fit within health and wellness trends.

Consumption

Global

According to latest stats:

• In 2023, the global bottled water market was over $230 billion and globally expected to grow at 6.5% CAGR through 2030.
• The consumer market is largest in the Asia-Pacific region owing to population rise and restricted availability of safe drinking water sometimes.
• High disposable income and health conscious consumers are the significant reasons for high markets of the products in North America and Europe.

Per Capita

Countries with the highest per capita bottled water consumption:

• Mexico: For tap water safety concerns, 264 liters per person per year.
• Italy: Leaving out bottled water intake results in a total consumption of 188 liters per person per year, according to cultural preference.
• United States: Market is steady, 154 liters per person per year.

Why Bottled Water is So Popular

Health and Safety

Where there is poor water infrastructure, bottled water is safer. This has been reinforced marketing campaigns around purity and the advanced filtration.

Convenience and Portability

It fits busy lifestyles and is available at the push of a button where there is no need to prep for hydration on the go.

Shift from Sugary Drinks

As people get healthier, more are moving soda and other sugary drinks for water bottled. This has driven huge demand.

Marketing

Branding and Positioning

Bottled water brands have marketed their product as health, as pure and as luxury. It enables an emotional connection with consumers by the use of images of natural springs and beautiful landscapes.

Premium

A market has developed for high end water bottled to exploit consumer desire for status symbols or for specific taste profiles, as has occurred with premium brands such as Fiji and Voss.

Environmental Impact of Increased Consumption

Plastic Waste

Bottled water consumption is growing exponentially:

• Just over 1 million plastic bottles are sold every minute worldwide.
• Most of the millions of plastic soda bottles produced each year will end up in landfills or oceans, and less than 10% of those bottles are recycled.

Carbon Footprint

Bottled production, transportation and refrigeration yields significant greenhouse gas emissions. The environmental cost of [these products] is invisible to consumers.

Over-Extraction of Water Resources

Over extraction of natural springs and aquifers based on high demand for bottled water has depleted local water resources and broken up ecosystems.

Facts and Figures

Revenue and Market Share

• The US bottled water market is a $40 billion plus per year business, which amounts to about eight 1/4 gallons per person per day.
• In the US bottled water has become the number one packaged beverage, 24% of total beverage market, surpassing carbonated soft drinks.

Consumer Insights

• Most consumers, 60%, choose bottled water about taste.
• A third of consumers buy bottled water for the health benefits.

Flavored and Functional Water

• Historically flavored and functional water categories have been growing quickly and consumers are picking hydration with benefits such as vitamins or electrolytes.

Challenges and Criticisms

Cost to Consumer

Most importantly, consumers pay up to 2,000 times more per gallon for bottled water than they do for tap water. If tap water is safe and readily available, how can the justification be made?

Regulation

On the upside, bottled water is regulated — but standards vary from country to country and generally aren’t as strict as municipal water systems. The results have been contamination and mislabelling.

Innovations and Trends

Sustainability

To address environmental concerns some brands are:

• Packaging that is disposable and recyclable.
• Discontinuing single use plastics with refillable bottle programs.

Smart Bottles

We are seeing new consumer engagement opportunities from smart bottles with hydration tracking.

Water Sourcing Ethics

Sourcing practices are beginning to be held against brands. But some invest in community projects that bring clean water to areas affected by over extraction.

Future of Bottled Water

Growth

Water bottled will continue to grow:

• Developing countries’ urbanization.
• Awareness about health benefits of hydration.

Sustainability Challenges

To be sustainable the industry will have to deal with environmental and ethical issues. Consumers are going to demand more transparency and accountability of brands.

Conclusion

But bottled water is a reflection of changing consumer habits and lifestyles that also contain challenges. But bound up in that label is an environmental and economic cost to water bottled we can’t ignore. You now know the facts and figures, choose wisely and compromise for convenience over sustainability.