US Bottled Water Market – Trends and Opportunities for the Industry by 2024

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New York, NY — 11/07/2017 — The U.S. bottled water market is estimated to be valued at nearly US$ 17 Bn in 2017 and is projected to reach a market valuation of nearly US$ 22.5 Bn by the end of 2024. The U.S. bottled water market is slated to register a CAGR of 4.0% during the forecast period 2016 – 2024. The U.S bottled water market is anticipated to represent absolute dollar opportunity of more than US$ 6 Bn in 2024 over 2016.

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Factors fueling revenue growth of the U.S. bottled water market

There are increasing concerns regarding various health problems such as neurological disorders, gastrointestinal diseases and reproductive problems caused by the consumption of contaminated water, which is leading to an increase in demand for clean and hygienic bottled water in the U.S. If the water is properly packaged, it is protected against any kind of bacterial contamination, regardless of the storage time. There is a marked shift in consumers in favor of safe, healthy and refreshing beverages that are free from calories, caffeine and preservatives. This trend is fueling the demand for bottled water in the U.S. Carbonated water contains caffeine and phosphoric acid that can lead to digestive issues, weight gain, heart burn, etc. Also, there is high acid content in carbonated water due to which consumers are preferring a healthier option that is low calorie flavored water. Due to this shift, companies are refocusing their efforts towards the development of healthy beverages such as flavored water and functional water.

Restraints restricting the growth of the U.S. bottled water market

The companies producing bottled water are facing increasing criticism for their manufacturing processes from environmentalists, as a large amount of energy is needed for water extraction, water processing and bottling. Another dimension to this aspect is the environmental pollution caused due to improper disposal of plastic bottles – this factor is expected to hinder the growth of the U.S. bottled water market in the future. For example, in February 2016, sale of plastic water bottles was banned in the U.S. city of San Francisco to check environmental pollution. Moreover, increasing number of norms and regulations related to the packaging of bottled water is expected to have a negative impact on the growth of the U.S. bottled water market.

Opportunities in the U.S. bottled water market

Environment-friendly packaging of bottled water

As stated above, there are increasing concerns regarding environmental degradation due to the packaging of bottled water. Hence, there is an increased emphasis on the development of recyclable and ecofriendly packaging materials for bottled water. This is expected to open up opportunities for various players operating in the U.S. bottled water market, making it a lucrative business for key players operating in this space in the long run. For example, in July 2015, Nestlé launched its new bottled water brand called 'Natural Spring Water'. The water packaged under this brand comes in 100% recycled plastic (rPET) bottles, excluding the label and cap.

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Trends in the U.S. bottled water market

Introduction of products with various health benefits gaining traction in the U.S. bottled water market

Consumers in the U.S. are opting for healthier beverages instead of carbonated drinks. As a result, bottled water companies are focusing on establishing new and enhanced water products and ensuring that all primary qualities of naturalness and hydration of conventional plain water are maintained. This has given rise to various product launches and developments in the bottled water industry that is revolving around the various health benefits acquired by consuming such products.

U.S. Bottled Water Market Analysis, by Distribution Channel

By distribution channel, the others segment is expected to maintain its dominance in the U.S. bottled water market during the forecast period, with 38.3% value share and a CAGR of 4.1% by 2024. The super market segment is expected to register a CAGR of 4.4%. The super market segment is estimated to account for 35.3% value share by 2024 end. It is followed by the grocery store segment, which is expected to account for a market share of 20.4% by 2024 end. The grocery store segment is anticipated to register a CAGR of 3.8% during the forecast period.

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Brad Bennett

Brad Bennett

Brad grew up in a small town in northern Iowa. He studied chemistry in college, graduated, and married his wife one month later. They were then blessed with two baby boys within the first four years of marriage. Having babies gave their family a desire to return to the old paths – to nourish their family with traditional, homegrown foods; rid their home of toxic chemicals and petroleum products; and give their boys a chance to know a simple, sustainable way of life. They are currently building a homestead from scratch on two little acres in central Texas. There’s a lot to be done to become somewhat self-sufficient, but they are debt-free and get to spend their days living this simple, good life together with their five young children.
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