Sparkling Water Market

Sparkling Water Market Size:

The global sparkling water market size reached US$ 39.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 88.7 Billion by 2032, exhibiting a growth rate (CAGR) of 9.45% during 2024-2032. The market is driven by increasing health consciousness among consumers, rising obesity rates, and significant retail expansion, reflecting a shift toward healthier beverage choices due to changing consumer preferences.

Sparkling Water Market Analysis:

• Major Market Drivers: The sparkling water market overview offers valuable insights into the evolving market, as the increasing health awareness among customers is raising the demand for healthier substitutes for sugary drinks. The growing focus on environmental sustainability is stimulating a shift toward eco-friendly packaging and manufacturing methods in the sparkling water industry.
• Key Market Trends: The popularity of flavored sparkling water is on the rise, appealing to a variety of consumer preferences and tastes, with the emergence of premium and artisanal companies that target niche markets with distinctive flavors and branding.
• Geographical Trends: The sparkling water market in North America and Europe is driven by varying consumer preferences, and lifestyle trends. The growth in the Asia Pacific region is due to the rapid urbanization and rising disposable incomes in developing regions are driving the demand for sparkling water.
• Competitive Landscape: Some of the major market players in the sparkling water industry 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, among many others.
• Challenges and Opportunities: The sparkling water market outlook presents a concern regarding the use of artificial sweeteners and flavors on some of the products, making them fall under the scrutiny of a health-conscious consumer. Moreover, sparkling water market recent opportunities lie in standard segments and unexplored territories in functional sparkling water infused with vitamins or CBD that also provides a way to respond to changing consumer preferences and ride on to new waves.

Sparkling Water Market Trends:

Rising health consciousness among consumers

The surge in health consciousness among consumers has been instrumental in driving the sparkling water market growth. To state an instance, as per the Natural Source Water Association, in the United Kingdom (UK), individuals consume an average of 7.5 liters of sparkling water annually. This translates to roughly 140ml per week or merely 20ml daily, indicating that sparkling water is more of an occasional indulgence rather than a regular beverage choice. Currently, sparkling water is a healthy hydration option, with a fizzy replacement without the downsides of sugar or added calories which stipulates consumers with another refreshing drink option, affiliating with their preferences for a bubbly experience while maintaining a health-conscious lifestyle. As individuals become more informed about the risks of excessive sugar consumption, they are seeking out healthier alternatives like sparkling water, with its zero-sugar and low-calorie composition, escalating the product demand.

Growing Obesity Rates

The growing obesity rates are concerning upward trajectory, as per the World Health Organization (WHO) in 2022, the global population grappling with obesity surpassed a staggering 1 billion individuals. This marks a significant surge since 1990, with the prevalence of obesity among adults more than doubling worldwide and quadrupling among children and adolescents aged 5 to 19. Additionally, the data underscores that in 2022, 43% of adults were classified as overweight. This alarming trend has underscored the importance of adopting healthier dietary habits, prompting consumers to gravitate towards beverages that offer a guilt-free indulgence. For instance, sparkling water, with its refreshing taste and absence of added sugars, has gained traction as a viable alternative to traditional sugary drinks. The rising demand for low-calorie and zero-sugar beverages, due to the growing concerns over obesity and related health issues, has directly contributed to the sparkling water market growth.

Significant Retail Expansion

The proliferation of retail channels, spanning supermarkets, convenience stores, and online platforms, has been instrumental in expanding the accessibility and availability of sparkling water products. This widespread retail expansion has facilitated greater consumer reach, enabling individuals to conveniently purchase sparkling water from a variety of outlets. For instance, in 2023, the global retail market was valued at approximately $28,514.0 billion. According to forecasts by the IMARC Group, the market is projected to grow to $46,304.9 billion by 2032, with an annual compound growth rate of 5.54% from 2024 to 2032. This enhanced retail presence caters to existing consumer demand and cultivates new market opportunities by tapping into previously underserved segments. As sparkling water becomes more ubiquitous on retail shelves and online platforms, it continues to attract consumers seeking healthier beverage alternatives, further driving sparkling water market revenue.

Sparkling Water Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. 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 or mineral sparkling water provides flavored and unflavored sparkling water, meeting the needs of those looking for a pure, refreshing experience without any added sugars or artificial flavors. Most of the time, it targets health-conscious consumers who require hydration but without sugars like those in the sodas. The flavored ones offer a natural fruit essence twist of refreshment to consumers in need of taste variation but without added sugars or artificial flavors. Besides this, unflavored selections appeal to purists who want the invigoratingly clean flavor of carbonated water with no added flavorings. Generally, it targets health-conscious people, athletes, and people looking to get more hydrated with a little zing. Hence key players are introducing such variants to expand their market share. For instance, on March 2, 2021, 7 ELEVEN introduced SERAFINA, it is a new sparkling water brand, as a refreshing and healthier beverage choice, sourced from Italy. This exclusive sparkling mineral water is available at 7-Eleven in three varieties such as Original, Organic Lime, and Organic Lemon Ginger, each priced at $1.79 for a 16.9-ounce bottle.

Besides this, caffeinated sparkling water also provides flavored and unflavored varieties, catering to individuals seeking a fizzy boost of energy without the calories or jitters associated with traditional caffeinated beverages. It typically appeals to consumers seeking a refreshing pick-me-up during their busy lifestyles, combining the effervescence of sparkling water with the stimulating effects of caffeine. As per the sparkling water market forecast, the market is witnessing continued growth and innovation due to evolving consumer demands and the introduction of new flavors and functional ingredients.

Breakup by Packaging Type:

• Glass Bottles
• Plastic Bottles
• Cans
   

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

The glass bottle sector caters to consumers who prioritize premium quality and sustainability. Known for their association with upscale experiences and recyclability, glass bottles resonate with environmentally conscious preferences. This niche appeals to individuals willing to invest more for perceived enhancements in both quality and environmental stewardship.

Plastic bottles, easily accessible and offering convenience, are favored for their portability, especially for on-the-go consumption. Moreover, the growing environmental concerns surrounding plastic usage have encouraged brands to explore eco-friendly, biodegradable plastic alternatives, addressing the sparkling water demand for sustainability.

Aluminum cans are gaining traction in the market due to their lightweight nature and recyclable properties. They are particularly convenient for outdoor activities, picnics, and casual gatherings. The surge in canned sparkling water mirrors the increasing popularity of canned cocktails, further propelling this segment's growth. For instance, in January 2022, Danone's Evian brand introduced its new sparkling water in aluminum cans, which have a higher recycling rate and are anticipated to greatly enhance the sustainability efforts of the brand by improving its circularity.

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 are major distribution channels for sparkling water, providing consumers with the convenience of selecting from a wide range of brands and varieties under one roof. These large retail spaces are advantageous for manufacturers who seek high visibility and broad reach. These outlets frequently offer competitive pricing and promotional activities, making them a popular choice for routine and bulk purchases.

Moreover, convenience stores offer quick and easy access to sparkling water, catering to consumers looking for on-the-go hydration options. These stores are typically located in easily accessible areas, making them ideal for quick stops. Although the selection might be more limited compared to hypermarkets, the convenience of these stores makes them a preferred choice for immediate consumption needs.

Besides this, online stores have emerged as a significant distribution channel for sparkling water, especially with the increase in digital shopping trends. Consumers appreciate the convenience of home delivery and the ability to easily compare prices and products online. This segment has grown particularly fast as consumers seek contactless purchasing options and the ability to buy directly from producers or through third-party e-commerce platforms.

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 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.

As per the sparkling water market recent developments, North America is a significant market. The demand is primarily driven by consumers seeking alternatives to sugary soft drinks amidst rising health consciousness. Brands are focusing on zero-calorie and low-sugar options to attract health-conscious consumers. Innovative flavors and convenient packaging options have also helped boost the market. Additionally, the trend of using sparkling water as a mixer for alcoholic and non-alcoholic beverages is on the rise, further expanding its market reach. For instance, on 7 March 2024, Topo Chico is refreshing its U.S. product lineup with the introduction of Topo Chico Mixers. Drawing inspiration from Topo Chico Mineral Water, these mixers are meticulously formulated with filtered sparkling water, high-quality ingredients, and hints of herbal flavors with a subtle and delicious complement to specialty mocktails and cocktails. Along with this, the effervescent, non-alcoholic beverages are available in three varieties including Ginger Beer, Tonic Water, and Club Soda offers a refined taste experience.

Europe holds a significant share of the global sparkling water market, with a long-standing tradition of consuming carbonated mineral water. The market is primarily driven by the high per capita consumption in countries such as Italy, Germany, and France. Moreover, European consumers prefer premium, naturally carbonated springs and mineral waters, often consumed as a healthier alternative to alcoholic beverages and soft drinks. Besides this, environmental concerns in Europe also drive the demand for eco-friendly packaging and sustainable production practices.

In the Asia Pacific region, the sparkling water market is driven by increasing health awareness and a growing middle class with disposable income. Countries such as China and Japan are leading in consumption due to urbanization and the influence of Western dietary habits. Additionally, local manufacturers are innovating with flavors and packaging to cater to regional tastes, which helps in capturing a broader consumer base. The trend toward healthier lifestyles and the substitution of sugary drinks with healthier alternatives like sparkling water are significant growth factors in this region.

The sparkling water market in Latin America is growing, with countries such as Brazil and Mexico experiencing increased demand. Moreover, the rising health awareness among the population and the increasing availability of international brands are contributing to the market growth.

Besides this, in the Middle East and Africa, the sparkling water market is driven by increasing urbanization and changing lifestyles. The hotter climate and the cultural preference for non-alcoholic beverages make sparkling water an attractive option for hydration.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major sparkling water companies 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, etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• At present, leading market players are focused on catering to health-conscious consumers with zero-calorie and low-sugar options, aligning with wellness trends. Marketing strategies emphasize vibrant and lifestyle-centric branding, appealing to younger demographics. Additionally, partnerships with high-profile events and influencers help boost visibility and consumer engagement. These efforts, combined with expanded distribution channels, including e-commerce platforms, are significantly contributing to the dynamic growth of the sparkling water industry. For instance, in March 2024, PepsiCo has unveiled a new addition to its beverage lineup, bubly burst™. This fresh offering infuses bubly® sparkling water with a vibrant fruit flavor, delivering a refreshing new drink experience.

Sparkling Water Market News:

• On 3 May 2024, Waterloo Sparkling Water unveiled three exciting new flavors including All Day Rosé, Pi-No Colada, and Mojito Mocktail Sparkling Waters. These summer-inspired beverages are available for a limited time. To mark the occasion, Waterloo has collaborated with celebrity chef Guy Fieri, known for his culinary expertise, best-selling cookbooks, Emmy-winning television presence, and his title as the Mayor of Flavortown.

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 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 2018-2032.
• 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 assists 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.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.