Sparkling Water Market Key Growth Factors and Industry Analysis 2017 - 2025

The sparkling water is a form of non-alcoholic beverage available as carbonated water. It is available in many flavors and is devoid of sugar content and many other additives, unlike soda water. Sparkling water is generally made out of mineral water due to the presence of less amount of solid minerals and naturally present carbon dioxide. The sparkling water market is a rapidly growing segment of the carbonated water market. Due to the consumer shift towards healthy drinks, the sparkling water market is expected to grow at an exponential rate in the forecast period.

Sparkling Water Market: Segmentation

The sparkling water market can be segmented on the basis of type and distribution channel.

On the basis of type, the sparkling water market can be segmented as unflavored and fruit-flavored. The fruit-flavored segment can be further segmented as citrus, berries, and others. The citrus segment can be further segmented as orange, lime, lemon, and grapefruit. The berries segment can be further segmented as raspberry, black berry, strawberry, and others.

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On the basis of the distribution channel, the sparkling water market can be segmented into direct sales and indirect sales. The indirect sales can be further segmented into store-based retailing and online retail. The store-based retailing can be further segmented into modern grocery retail and traditional grocery retail. The modern grocery retail can be segmented as hypermarkets/supermarkets, convenience stores, mom & pop stores and discount stores. The traditional grocery retailing can be further segmented as food & drink specialty, independent small groceries, and others.

Sparkling Water Market: Drivers, Restraints, and Trends

The trend of the sparkling water is a microcosm of a much larger trend in the non-alcoholic beverage industry. The trend is of growing number of health-conscious consumers and an enormous shift towards healthy and nutritious beverages. This is significantly evidenced by the fact that the key players in the carbonated drinks industry are transitioning their portfolio to include sparkling water which consequently acts as a major factor in the growth of the sparkling water market. The sparkling water market is slowly taking up the share of the soft drinks market, as sparkling water boasts of no-sugar and calorie-free tag yet presents itself as a unique bottled water drink for the consumers. The fact that the key players are also developing new strategies to promote and market their products as health drinks to enhance their health-conscious consumer base, is a strong growth indicator for the growth of the sparkling water market. The health-conscious consumers are looking for more healthy alternatives in the beverage market and sparkling water is currently leveraging itself as a healthy and refreshing option for consumers in the non-alcoholic beverage market. However, lack of consumer awareness in many regions and absence of distribution channels may slightly hinder the growth of the sparkling water market.

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Sparkling Water Market: Regional Outlook

In North America, the sparkling water market is currently in the growth phase and experiencing exponential growth. Introduction and promotion of sparkling water by the key players are ultimately compelling the regional and local players to expand their portfolio to include sparkling water to cope up with the immense competition in the market. In Latin America, the giant beverage players are investing in the sparkling water market by acquisitions of major sparkling water brands, which denotes the consumer demand and immense market potential for sparkling water in this region. Europe is also in the growth phase in the sparkling water market and is coming up with innovations like the launch of equipment with CO² faucets, which is designed to convert regular water into sparkling water. In the Asia Pacific, rapid industrialization and rising disposable income have garnered attention for the sparkling water market and a significant growth is also expected from Japan in the forecast period. Consumer demand for innovative carbonated products coupled with a hot and arid climate is expected to boost the growth of the sparkling water market in the Middle East and Africa.

Sparkling Water Market: Key Players

Nestlé Waters North America
PepsiCo
THE COCA-COLA COMPANY
DS Waters of America, Inc.
National Beverage Corp.
Talking Rain Beverage Co's

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