Sparkling Water Market

Market Overview:

The global sparkling water market is projected to exhibit a growth rate (CAGR) of 10.50% during 2023-2028. Rising health consciousness, flavor innovation, and growing sustainability concerns, along with convenient packaging options, online availability, and targeted marketing campaigns by manufacturers, are some of the key factors driving the growth of the industry.

Sparkling water is a type of carbonated beverage that is made by infusing water with carbon dioxide gas under pressure. This process gives the water effervescence, making it a popular choice for individuals who enjoy the fizzy sensation. Unlike soda or other flavored carbonated drinks, sparkling water is generally free of sugars, artificial sweeteners, and calories, offering a healthier alternative. It is available in various forms, including mineral water, which naturally contains minerals and is often sourced from springs, and seltzer water, which is artificially carbonated and typically devoid of minerals. Some brands also offer flavored versions infused with natural fruit essences or extracts without added sugars. Sparkling water can be consumed on its own or used as a mixer in cocktails and other beverages. It's also a versatile ingredient in culinary applications, such as in the preparation of doughs and batters.

The global sparkling water industry is being driven by the rising disposable income among consumers, especially in emerging markets. As economies grow, people have more spending power, enabling them to indulge in premium beverages like sparkling water. In addition to this, the availability of sparkling water in various packaging options, from single-serve bottles to family-sized packs, makes it accessible and practical for different occasions, thereby driving the product demand. The surge in e-commerce and online shopping, coupled with the rise in social gatherings and outdoor activities, has further contributed to increasing product sales. Marketing and celebrity endorsements have also played a crucial role as brands are investing in aggressive marketing campaigns that leverage social media, celebrity endorsements, and strategic collaborations to reach a broader audience. Moreover, the global rise in mixology and cocktail culture has made sparkling water a staple ingredient in bars and restaurants. Its effervescence adds a unique texture to cocktails, and its lack of sugar or flavor allows it to mix well with various spirits and ingredients.

Sparkling Water Market Trends/Drivers:

Rising health consciousness among consumers

One of the most significant factors driving the industry is the growing awareness about health and well-being among consumers. As people become increasingly conscious of the adverse effects of sugary beverages like sodas and artificial juices, they are turning toward healthier alternatives. Sparkling water aligns well with this shift and offers the satisfaction of carbonation without the health drawbacks commonly associated with sugary drinks. The demand for the product is particularly strong among millennials and Gen Z consumers, who are more likely to prioritize wellness and clean eating. This health-conscious trend has been amplified by social media influencers, health experts, and changing consumer behavior, making sparkling water a preferred choice for a healthier lifestyle.

Growing focus on flavor innovation by manufacturers

Another critical factor propelling the market is the innovation in flavors and formulations. Brands are continuously experimenting with a variety of natural fruit flavors, botanicals, and adaptogens to enhance consumer experience. These innovations make sparkling water more appealing to a broader audience, as well as serve niche markets that seek unique and exotic tastes. Ranging from the addition of unusual fruit essences to the inclusion of vitamins and minerals, the evolving product landscape has led to increased consumer engagement. This, in turn, is driving sales and expanding the market reach, catering to various preferences and dietary requirements.

Increasing eco-friendly practices

The market is also influenced by the growing emphasis on environmental sustainability. Consumers are becoming more eco-conscious, preferring products that adhere to responsible sourcing and sustainable packaging practices. Brands that source water responsibly and use recyclable or biodegradable materials for packaging are gaining traction. This is not only beneficial for the planet but also serves as a marketing advantage for brands looking to align themselves with sustainable practices.

Sparkling Water Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market report, along with forecasts at the global, regional, and country levels for 2023-2028. Our report has categorized the market based on product, packaging type, and distribution channel.

Breakup by Product:

• Natural/Mineral Sparkling Water
  • Flavored
  • Unflavored
• Caffeinated Sparkling Water
  • Flavored
  • Unflavored
     

The report has provided a detailed breakup and analysis of the market based on the product. This includes natural/mineral sparkling water (flavored and unflavored) and caffeinated sparkling water (flavored and unflavored).

Natural/mineral sparkling water primarily consists of naturally sourced sparkling water, often enriched with minerals. It appeals to consumers who are health-conscious and looking for an unadulterated, refreshing beverage. Brands in this category often emphasize their natural origins and the absence of artificial additives.

Caffeinated sparkling water is generally aimed at consumers seeking an energy boost and refreshment. It combines the fizziness of carbonated water with caffeine. This segment is gaining traction among young adults and professionals who require a quick energy boost without the sugar and calories found in traditional energy drinks.

Breakup by Packaging Type:

• Glass Bottles
• Plastic Bottles
• Cans
   

A detailed breakup and analysis of the market based on the packaging type has also been provided in the report. This includes glass bottles, plastic bottles, and cans.

The glass bottle segment targets consumers who prioritize premium quality and sustainability. Glass bottles are often associated with a higher-end experience and are recyclable, aligning with eco-conscious consumer preferences. This segment appeals to those who are willing to pay a premium for a perceived increase in quality and environmental responsibility.

Plastic bottles are widely available and offer convenience and portability, making them popular for on-the-go consumption. However, the use of plastic has raised environmental concerns, leading some brands to develop eco-friendly, biodegradable plastic options to meet consumer demand for sustainability.

Aluminum cans are increasingly becoming popular in the market due to their lightweight and recyclability. They are convenient for outdoor events, picnics, and other casual settings. The rise in canned sparkling water also coincides with the growing trend of canned cocktails, further driving this segment.

Breakup by Distribution Channel:

• Hypermarkets and Supermarkets
• Convenience Stores
• Online Stores
• Others
   

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes hypermarkets and supermarkets, convenience stores, online stores, and others.

Hypermarkets and supermarkets offer a wide variety of brands and packaging options. Consumers often prefer this channel for bulk purchases, given the advantage of physical inspection and immediate availability.

Convenience stores offer quick and on-the-go options for consumers. Sparkling water in convenience stores usually comes in smaller, single-serve packages, ideal for immediate consumption, making it a popular choice for busy individuals and commuters.

The rise of e-commerce platforms has significantly impacted the market, allowing for easy comparison shopping and bulk ordering. Online stores offer the advantage of convenience and often run promotions that can be more competitive than brick-and-mortar outlets.

Other distribution channels include specialty stores, vending machines, and direct-to-consumer methods like subscription boxes. These alternative channels cater to niche markets and offer specialized products, such as organic or flavored sparkling water varieties, targeting specific consumer preferences.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.

North America is a significant market for sparkling water, driven by consumer demand for healthier beverage options as an alternative to sugary drinks. Innovations in flavor and packaging, along with aggressive marketing strategies, contribute to its growth.

Europe has a mature sparkling water market, with a long-standing tradition of consuming carbonated mineral water. Countries like Italy, France, and Germany are key players, and consumer preference leans toward premium and naturally sourced products.

The sparkling water market in Asia Pacific is witnessing rapid growth due to rising disposable income and increasing health consciousness. Countries like China and India are emerging as significant markets, driven by urbanization and a burgeoning middle class.

Latin America shows potential for growth in sparkling water consumption. Increasing awareness of health and wellness, coupled with a growing middle class, is making it an emerging market.

The sparkling water market in the Middle East and Africa is still in its nascent stages but offers potential for growth. Factors like rising tourism and an increasing expatriate population contribute to the growing demand for sparkling water.

Competitive Landscape:

Key players in the market are adopting a multi-faceted approach to maintain a competitive edge. They are heavily investing in research and development to innovate in flavor profiles and formulations. This caters to a broader consumer base while addressing niche markets that demand unique and exotic flavors. Companies are also transitioning to eco-friendly packaging options such as recyclable cans and biodegradable plastic bottles to appeal to environmentally conscious consumers. Furthermore, brands are leveraging social media platforms, celebrity endorsements, and strategic collaborations to reach a wider audience. For instance, limited-edition releases and co-branding partnerships have become popular strategies to create buzz and attract consumer attention. Online marketing campaigns are often data-driven, targeting specific demographics based on consumer behavior and preferences.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• AQUA Carpatica
• Asahi Group Holdings Ltd.
• Big Watt Beverage Co.
• Crystal Geyser Water Company (Otsuka Pharmaceutical Co. Ltd.)
• Danone S.A.
• Gerolsteiner Brunnen GmbH & Co. KG
• Keurig Dr Pepper Inc.
• National Beverage Corp.
• Nestlé S.A.
• PepsiCo Inc.
• The Coca-Cola Company
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Sparkling Water Market Report Scope:

Key Questions Answered in This Report:

• How has the global sparkling water market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global sparkling water market?
• What is the impact of each driver, restraint, and opportunity on the global sparkling water market?
• What are the key regional markets?
• Which countries represent the most attractive sparkling water market?
• What is the breakup of the market based on the product?
• Which is the most attractive product in the sparkling water market?
• What is the breakup of the market based on the packaging type?
• Which is the most attractive packaging type in the sparkling water market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the sparkling water market?
• What is the competitive structure of the global sparkling water market?
• Who are the key players/companies in the global sparkling water market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the sparkling water market from 2017-2028.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global sparkling water market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the sparkling water industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.