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Leading players operating in the U.S. bottled water market include Nestle Waters, CG Roxane, LLC., Suntory Beverage & Food Ltd., Groupe Danone, Mountain Valley Spring Company, LLC., The Coca-Cola Company, and PepsiCo, Inc., finds Persistence Market Research (PMR). A number of prominent players are focusing on launching advanced water products that provide several health benefits and are safer to consume in all environments, in key strategy to stay ahead of others, notes PMR.

An increasing number of bottle water manufacturers and beverages companies opt for strategies to meet widely changing consumer preferences and regulatory concerns, in a move to consolidate their shares. For instance, Nestlé, has adopted fully recyclable PET to make the storage more environment-friendly. Another prominent player PepsiCo has planned to adopt more useful and transparent labelling, mentioning the place from the water is sourced from.

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According to PMR, the U.S. bottled water market is estimated to be valued at US$17 Bn by 2017 end and is predicted to reach a valuation of nearly US$22,226.2 Mn by the end of forecast period.  The U.S. bottled water market is projected to rise at a CAGR of 4.0% from 2016 to 2024, representing an opportunity of over US$6 Bn in 2024 over 2016, in absolute dollar terms.

The major distribution channels of bottled water in the U.S. market are supermarket, grocery stores, and convenience stores. Of these, supermarket is projected to be the leading segment, accounting for over 35.0% value share by the end of the 2024. Of all the capacities in which bottled water are sold in the U.S., the 3-gallon products form the major segment. Of the various materials used in making bottled water, close to 66.0% of the US bottled water market is led by HDPE materials.

Launch of Healthier Products Marketed in Safer Packaging to Boost Market

The mounting concern of several health problems being caused by the consumption of contaminated water in populations in various parts of the U.S. is a primary factor driving the demand for bottled water. The use of proper packaging increases the safety of bottle water by making it free from any bacterial or chemical contaminants. Stringent regulatory oversight by agencies, such as the U.S. FDA and International Bottled Water Association (IBWA), is a crucial factor that has established credibility of the various purported benefits of bottled water, including its safety for consumption.

The marked shifts from carbonated drinks to the demand for healthier, refreshing beverages free from caffeine, preservatives, and any carcinogenic substances, is a prominent trend bolstering the demand for bottled water in various states of the U.S. In addition, the launch of bottled water products that are marketed as safer and healthier bodes well for the U.S. market.

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Adverse Environmental Impacts of Bottles Storage and Disposal Glaring Constraints

The U.S. bottled water is facing several challenges with regard to its storage and the disposal, which is likely to account for the sluggish growth of the market in the coming years. For instance, the predominant use of plastic bottles used in packing water has led to marked environmental hazards if not properly disposed of. Nevertheless, manufacturers in various states are inclined to adopt eco-friendly and cost-effective alternatives and several of them are using 100% recyclable PET bottles. This is a promising development that augurs well for the market. In addition, the presence of a well-established infrastructure for recycling PET is further supporting the adoption of these bottles, favorably impacting the growth of the U.S. bottled water market. The growing adoption of eco-friendly packaging is a key trend expected to open up lucrative avenues for market players during the assessment period.

Large Carbon Footprint Key Challenge, However Launch of Healthier Products Promising Development

The mounting concern of large carbon footprint of the manufacturing processes as flagged by environmentalists is another critical factor likely to negatively impact the market to an extent. Stricter imposing of unfavorable regulations is a key factor likely to hamper its production in some states. Nevertheless, the introduction of products that have a variety of health benefits and innovative flavors are key trends impacting the growth of the U.S. market. The growing popularity of mineral laced water and low-calorie flavored drink bodes well for the market.

The study presented here is based on a report by Persistence Market Research (PMR) titled, “Bottled Water Market (Capacity – 3 Gallons and 5 Gallons; Material Type – PET and HDPE; Cap Type – Screw Cap, Snap-On Cap, Sports Cap, and Snap Screw Cap; Distribution Channel – Supermarket, Grocery stores, and Convenience Stores)– U.S. Industry Analysis and Forecast.”

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