Asia-Pacific Bottled Water Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Asia-Pacific Bottled Water Market size is expected to grow from USD 84.47 billion in 2023 to USD 111.50 billion by 2028, at a CAGR of 5.71% during the forecast period (2023-2028).

Key Highlights

• The demand for hygienic food and drinks is increasing with the growing number of educated and health-conscious people. This has resulted in an increased demand for clean and hygienic water, leading to a rise in the demand for bottled water. The bottled water market is expected to grow due to the demand for convenient, safe, healthy, and refreshing drinks from health-conscious consumers. The rise in healthcare awareness regarding waterborne diseases such as malaria, typhoid, diarrhea, and food poisoning is further driving the market.
• Additionally, the demand for electrolytes, protein, and vitamin-enriched drinks is increasing in the region, especially among baby boomers and the millennial population who want to keep their bodies fit and active after hectic work schedules, gym, and other activities. Manufacturers retailing their products at competitive prices further incline consumers towards healthy hydration, while premium water ranges are also witnessing an upsurge in the market led by the rising income group in the region. The portability and convenience of bottled water also support market growth.
• However, the lower cost of tap water compared to bottled water is one of the major restraints of the market. Stringent regulations for the approval of bottled water and the presence of harmful chemicals such as bisphenol can further hamper growth. The competition in the Asia-Pacific bottled water market is high, with many regional and local players, along with private label brands.
• The market is expected to grow due to health concerns, a thirst for innovative products, and multiple distribution channels. In India, the Indian Railway Catering and Tourism Corporation Limited produced 198.6 million bottles of drinking water in 2022, according to the Indian Railway Catering and Tourism Corporation.

Asia-Pacific Bottled Water Market Trends

Premiumization With the Growth of Fortified and Flavored Water

• Functional water, enriched with vitamins and other beneficial components, has gained popularity among consumers due to its convenience, purported health benefits, and improved taste over tap water. As concerns about various health issues have grown, including heartburn, weight gain, and digestive problems, people are turning to healthier options like flavored and functional water.
• The functional water industry is growing as consumers seek relatively inexpensive options with different packaging options like single-serve bottles. In the Asia Pacific region, the bottled water market is heavily reliant on technology and equipment used to produce bottled beverages due to the absence of clean water and various body contaminations.
• The introduction of new flavors with appealing packaging is expected to drive the growth of the bottled water market in the Asia-Pacific region. The rising per capita income and international tourist arrival in Asia-Pacific countries are also driving the premium bottled water market. For instance, the Bureau of Immigration (India), 7 million international tourists arrived in India in 2021.
• Increasing awareness towards physical and mental well-being is promoting the consumption of organic beverages, pH-balanced ingredients, and sugar-free beverages. Additionally, industry players often cite water purity as a distinguishing feature, while some products differentiate themselves by offering functionality. Branding, positioning, and product packaging, including glass containers, are assisting manufacturers in projecting a more luxurious image.
• The bottled water industry is expected to expand as fortified and flavored water quickly premiumize. Major players in the industry are concentrating on big advertising campaigns and celebrity and social media influencers' endorsements to increase brand visibility and profitability. The market is also benefiting from the trend of offering premium, one-of-a-kind items with eye-catching labels and customized packaging, such as sparkling water in hand-crafted wooden boxes.

India is the Fastest Growing Market

• The rapid growth of the bottled water industry in India can be attributed to increased disposable income, a weak public water distribution system and infrastructure, and the Indian government's lack of concern for the nation's water resources. Despite being blessed with abundant natural water resources, the rising population, alarming rates of global warming, and rapid industrialization have resulted in water scarcity due to a lack of adequate and improved management of water supply systems, leading to increased water consumption, waste, and deterioration of water supply networks.
• The bottled water industry has seen new opportunities arise due to water scarcity in India, with many new players entering the market, particularly in rural areas, as there is no control over the entry and quality of products. The rise in health awareness, increase in tourism, and ease of availability of bottled water have contributed to an increase in per capita consumption of bottled water in India.
• The market is dominated by the top five players, but they struggle to penetrate small cities and towns due to poor infrastructure, creating opportunities for small regional players. Furthermore, flavored bottled drinking water has become popular in India, with different kinds of flavored water containing fruit essence and artificial sweeteners acting as a substitute for plain bottled water. This shift is creating an opportunity to expand the product line of bottled water manufacturers in India.
• Market growth is being spurred on by rapid urbanization and the rising adoption of a healthy lifestyle by city inhabitants who prefer enriched water. Fortified water is preferred over soft drinks since it is healthier and includes no artificial sweeteners, tastes, or colors. There has been a recent shift in consumer preference away from beverages rich in sugar and artificial ingredients and towards healthier or more balanced.
• In addition to individual sales, market players are focusing on institutional sales through partnerships with airlines, movie theatres, and hotels, increasing the penetration of the product in the market and leading to a rise in overall sales volume in India.
• For instance, according to the Indian Railway Catering and Tourism Corporation (IRCTC), approximately INR 1,722.6 million of revenue was generated from Railneer packaged drinking water for Indian Railways Catering and Tourism Corporation Limited in 2022.

Asia-Pacific Bottled Water Industry Overview

The Asia-Pacific bottled water market is characterized by intense competition due to the presence of numerous small players in the regional marketplace. In addition to convenience, product innovation is a significant factor that major players adopt to maintain their position in the market. These leading players are implementing various strategies such as mergers & acquisitions, collaborations, product launches, and expanding their product offerings to capture a substantial market share and expand their customer base worldwide.

The market is dominated by key players such as Nestlé S.A., Suntory Beverage & Food Ltd, PepsiCo Inc, The Coca-Cola Company, and TATA Group. Their company profiles highlight their market position, financial standings, and recent Asia-Pacific Bottled Water Market developments.

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