The U.S. bottled water market has emerged as one of the fastest growing beverage segments over the past few years, owing to the rising demand for convenient and healthy hydration solutions. Bottled water is packaged drinking water that comes in plastic bottles as well as aluminium and glass bottles. It contains no added sugar, caffeine or artificial flavors and offers a zero-calorie option compared to sugary sodas. Beyond basic hydration, consumers also demand bottled water for its portability and comfort.
The U.S. Bottled Water Market is estimated to be valued at US$ 30029.56 Bn in 2024 and is expected to exhibit a CAGR of 10 % over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the U.S. bottled water are Amgen, Gilead Sciences, Biogen, Pfizer, Novartis, Roche, Johnson & Johnson, Sanofi, Merck & Co., AbbVie, GlaxoSmithKline, AstraZeneca, Eli Lilly, Novo Nordisk, Bayer, Bristol-Myers Squibb, Teva Pharmaceutical, Takeda Pharmaceutical, Boehringer Ingelheim, Astellas Pharma. The growing health and wellness trends have increased the demand for bottled water in the country. Consumers are looking for beverages that offer functional benefits along with basic hydration. Technological advancements focus on producing bottled water using optimized filtration and purification techniques to enhance the organoleptic and sensory properties including taste and smell.

Market Trends

There is an increased preference for larger pack sizes and bulk packaging of U.S. Bottled Water Market Size as consumers demand more value. Players are focusing on premium and high-end bottled water products targeting the luxury category. The incorporation of unusual flavours including tropical fruit is gaining popularity among millennials.

Market Opportunities

The booming catering and food services industry reliance on bottled water for away-from-home consumption points towards new opportunities. Sustainability initiatives aimed at reducing plastic waste through innovative packaging materials will support the future expansion of the U.S bottled water market. The emerging trend of flavored and functional bottled water with ingredients offering additional health benefits presents an avenue for product line extensions and launches.

Impact of COVID-19 on U.S. Bottled Water Market
The outbreak of COVID-19 has significantly impacted U.S. bottled water market growth. During the initial months of pandemic, consumer demand surged as people were concerned about the safety of municipal water supplies and wanted to avoid risks of contamination. This led to a spike in bottled water sales across grocery stores and online platforms. However, as lockdowns were imposed and economic activities declined sharply, disposable income of people reduced drastically affecting their purchasing power. Bottled water sales at restaurants, cafes, retail stores witnessed a steep decline due to closures of such outlets. Companies faced disruptions in production and supply chain owing to strict restrictions on mobility of goods and people. Temporary shut down of manufacturing facilities impacted the market. With phased lifting of lockdowns and reopening of industries, the demand is recovering gradually. However, uncertainties around the future waves of virus may act as a barrier. Companies are exploring cost optimization strategies and adopting digital platforms to boost sales channels. Overall, Covid-19 negatively impacted U.S. bottled water market in the short term but focus on hygiene will augur well for future growth.

Northeast Region dominates U.S. bottled water market in terms of value. States like New York and Pennsylvania have shown high per capita consumption of bottled water. This can be attributed to factors like increasing health awareness among consumers, availability of various flavored and functional bottled water products appealing to taste preferences. Moreover, hot and humid weather conditions in summer months drive the demand. Northeast region accounts for over 30% of the total U.S. bottled water market revenue owing to its high population density and disposable incomes. With growing health and wellness trends, the region remains most lucrative for bottled water companies.

The Western region is emerging as the fastest growing market for bottled water in the U.S. States like California, Washington have registered rapid yearly growth over past few years. Increased outdoor activities among population coupled with busy urban lifestyles have boosted on-the-go consumption of bottled water. Rising health consciousness and proliferation of bottled water startups offering organic, alkaline and flavored innovative products are attracting consumers. Growing population, improving economic conditions and rising spending on healthy beverages will continue to present lucrative opportunities. Moreover, weather changes with hotter summers have positively impacted the bottled water demand.
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