U.S. Bottled Water Market Poised to Reach Nearly US$ 22.5 Billion by 2024, Driven by Health and Sustainability Trends

The U.S. bottled water market is on a steady growth trajectory, expected to reach a market valuation of nearly US$ 22.5 billion by the end of 2024, up from an estimated US$ 17 billion in 2017. According to the latest market analysis, the market is projected to register a compound annual growth rate (CAGR) of 4.0% during the forecast period from 2016 to 2024. The U.S. bottled water market is anticipated to present an absolute dollar opportunity of more than US$ 6 billion over the period from 2016 to 2024.

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Key Market Highlights
Market Size (2017): US$ 17 billion
Projected Market Size (2024): US$ 22.5 billion
CAGR (2016-2024): 4.0%
Absolute Dollar Opportunity (2016-2024): US$ 6 billion
The growth of the U.S. bottled water market is driven by increasing concerns over the safety of drinking water, as well as consumer demand for healthy and calorie-free beverages. Bottled water has become a popular alternative to carbonated drinks, which are often linked to health issues such as weight gain, digestive problems, and heartburn. In contrast, bottled water provides consumers with a safe, refreshing, and calorie-free hydration option, making it a preferred choice.

Factors Driving Market Growth
Health and Wellness Concerns Fueling Bottled Water Demand
Consumers are becoming increasingly aware of the health risks associated with consuming contaminated water, which has driven demand for bottled water. Health problems such as gastrointestinal diseases, neurological disorders, and reproductive issues linked to unsafe water have prompted many to seek bottled water as a hygienic and reliable source of hydration. Proper packaging of bottled water ensures that it remains protected against bacterial contamination, regardless of storage duration.

Furthermore, consumers are shifting towards beverages that are free from caffeine, preservatives, and calories. Bottled water meets these demands, particularly as many people move away from carbonated drinks that often contain high levels of caffeine and acids. This trend has also led to the rise in popularity of low-calorie flavored water, a segment that bottled water companies are capitalizing on by developing healthier alternatives.

Sustainability Initiatives in Bottled Water Packaging
Environmental concerns, particularly those surrounding plastic waste, have become a significant challenge for the bottled water industry. Environmentalists and regulators have criticized the amount of energy required for the extraction, processing, and bottling of water, as well as the pollution caused by the improper disposal of plastic bottles.

In response to these concerns, companies are investing in sustainable packaging solutions, including the use of recyclable and eco-friendly materials. For instance, Nestlé launched its 'Natural Spring Water' brand in 2015, packaged in 100% recycled plastic (rPET) bottles. Such innovations are expected to play a key role in the market's future growth by aligning with consumers' growing preference for environmentally responsible products.

Challenges Facing the Market
Environmental Criticism and Regulatory Pressure
The U.S. bottled water market faces significant pressure from environmental advocates and regulatory bodies. The energy-intensive processes of water extraction and plastic production, combined with the issue of plastic waste, have led to increasing scrutiny of the industry. For example, the city of San Francisco implemented a ban on plastic water bottles in February 2016 to reduce environmental pollution. Such regulations are expected to continue impacting the market, potentially restricting its growth.

Rise of Counterfeit Products and Packaging Concerns
In addition to environmental concerns, the industry is contending with the rising availability of counterfeit bottled water products. Consumers and companies alike are impacted by the presence of fake products, which can harm brand reputation and lead to a loss of consumer trust.

Opportunities for Growth
Eco-Friendly Packaging Innovation
As sustainability becomes a core concern for consumers, opportunities are emerging for bottled water companies that adopt eco-friendly packaging solutions. Companies that invest in recyclable materials, biodegradable packaging, and water-efficient processes will be well-positioned to capture market share in the years ahead. Innovations in this space not only address environmental challenges but also offer a competitive advantage for brands that prioritize sustainability.

Product Diversification and Health-Focused Offerings
Another opportunity lies in product innovation. As U.S. consumers become more health-conscious, bottled water companies are introducing new products with added health benefits. Flavored and functional waters, which include minerals, vitamins, and electrolytes, are gaining traction. These products offer hydration with additional nutritional benefits, catering to the growing demand for healthier beverage options.

Trends Shaping the U.S. Bottled Water Market
Shift from Carbonated Drinks to Bottled Water
Over the past several years, U.S. consumers have increasingly favored bottled water over carbonated drinks, driving market expansion. This shift reflects a growing focus on health and wellness, with consumers opting for beverages that offer hydration without the sugar and calories often found in carbonated options. Bottled water is perceived as a pure and refreshing alternative, leading companies to develop new flavors and formats to meet consumer preferences.

Growth of Functional and Enhanced Water
Functional water products, which offer additional health benefits such as vitamins and electrolytes, have become a growing trend within the bottled water market. These enhanced waters appeal to consumers looking for beverages that support their health and fitness goals. In particular, younger consumers and fitness enthusiasts are increasingly seeking out products that offer both hydration and nutritional benefits, which has driven innovation in this space.

Distribution Channels
The others segment, which includes vending machines, convenience stores, and food service channels, dominates the U.S. bottled water market with a 38.3% value share and is expected to grow at a CAGR of 4.1% by 2024. Supermarkets are also a key distribution channel, projected to register a CAGR of 4.4% and account for 35.3% of the market by 2024. Grocery stores, though slightly behind in market share, are anticipated to maintain steady growth, with a 3.8% CAGR expected through 2024.

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Outlook for 2024 and Beyond
The U.S. bottled water market is set to continue its growth, supported by health-conscious consumers, eco-friendly packaging innovations, and the ongoing shift away from carbonated beverages. As companies respond to consumer demand for sustainability and health benefits, the market is expected to remain robust in the coming years.

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This release was published on openPR.