Bottled water refers to drinking water packaged in plastic or glass water bottles. Bottled water contains various minerals which makes it taste better than tap water. It is seen as a convenient and portable source of hydration. Bottled water has witnessed significant growth, especially among health conscious consumers who prefer its purity and quality over tap water.

Market key trends:

One of the major trends driving the growth of the U.S. bottled water market is the rising health consciousness among consumers. The consumer preference has been shifting towards bottled water due to growing concerns regarding the purity and quality of tap water. Bottled water is considered a safer and cleaner source of drinking water by many consumers compared to tap water. Moreover, busy lifestyles have fueled the demand for bottled water as a convenient and portable source of hydration. Manufacturers are introducing innovative packaging such as aluminum bottles and recyclable bottles made from plants materials to cater to the sustainability needs of environmental conscious consumers. This is expected to further support the market growth over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate in the U.S. bottled water market. High capital requirements for setting up production plants and licensing approvals pose entry barriers. However, favorable bottling opportunities exist through private label production.
Bargaining power of buyers: The bargaining power of buyers is high due to presence of many established brands in the market. Buyers can negotiate on discounts and promotions. Private label brands offer competitive prices to buyers.
Bargaining power of suppliers: The bottled water industry relies on natural aquifers or municipal supplies for raw water. However, alternative sources can be developed. Thus, the bargaining power of suppliers is moderate.
Threat of new substitutes: Threat from new substitutes like packaged juices and soft drinks is moderate due to brand loyalty for bottled water among health-conscious consumers.
Competitive rivalry: The market is highly competitive with several international giants competing.

SWOT Analysis

Strength: Extensive distribution channels of leading players. High brand recognition and consumer trust in established brands.
Weakness: Raw material sourcing issues can impact supply. Environmental concerns over plastic waste generation.
Opportunity: Growing health awareness is driving demand for pure drinking water. Rise in outdoor activities and on-the-go consumption favors bottled water.
Threats: Stringent regulations on plastic packaging. Susceptibility to economic downturns affecting disposable incomes.

Key Takeaways

The Global U.S. Bottled Water Market Size is expected to witness high growth, exhibiting CAGR of 8.4% over the forecast period, due to increasing health consciousness among consumers. Bottled water serves as a healthier option compared to carbonated and high calorie beverages.

The Western region dominates the U.S. bottled water market currently due to high disposable incomes and outdoor recreational activities in states like California. The South region is expected to witness fastest growth during the forecast period aided by hot climate and rising population.

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