U.S Market Study on Bottled Water: Convenience Stores Distribution Channel Segment Estimated to Create Incremental Opportunity of over US$ 240 Mn During 2016-2024


  • Published On : Mar-2017 |
  • Pages : 104 Pages |
  • Format :

Persistence Market Research analyzes the U.S. bottled water market in a new publication titled “Bottled Water Market: U.S. Industry Analysis and Forecast, 2016–2024”. This study provides data for 2015 along with a comprehensive forecast for an eight year period 2016–2024. The main objective of the report is to identify dynamics in the market and provide recent updates and insights affecting various segments of the U.S. bottled water market. To provide better understanding of the U.S. bottled water market, the report also includes an analysis of drivers, restraints, and trends, which are likely to influence the current market scenario and future status of the U.S. bottled water market over the forecast period.

Market Segmentation

By Capacity Type

  • 3 Gallons
  • 5 Gallons
  • Others

By Material Type

  • PET
  • HDPE
  • Others

By Cap Type

  • Screw Cap
  • Snap-on Cap
  • Sports Cap
  • Screw Snap Cap
  • Others

By Distribution Channel

  • Supermarket
  • Grocery Stores
  • Convenience Stores
  • Others (Foodservice/Vending)

To understand and assess market opportunities and trends, the U.S. bottled water market report is categorically split into different sections based on market segmentation – by capacity type, by material, by cap type, and by distribution channel. The report starts with the market overview and provides market definition and taxonomy along with value chain and pricing analysis of the U.S. bottled water market. The next few sections evaluate the U.S. bottled water market on the basis of various factors affecting the market. Each section discusses the qualitative and quantitative aspects of the U.S. bottled water market. To give a brief idea about revenue opportunities from the different market segments, the report also provides value (US$ Mn) data, absolute $ opportunity analysis, and total incremental opportunity for each segment over the forecast period.

The final section of the report focuses on the U.S. bottled water market structure and a detailed competition landscape with company market share and performance, to provide report audiences with a dashboard view of key players operating in the U.S. bottled water market along with their business strategies. This is intended to enable clients to assess strategies deployed by market leaders and help them develop effective strategies accordingly.

Research Methodology

For market data analysis, the report considers 2015 as the base year, with market numbers estimated for 2016 and forecast made for 2017–2024. To calculate market size, the report considers the weighted average price of bottled water across key areas within the U.S. The forecast assesses the total revenue (US$ Mn) as well as volume (US$ Mn) of the U.S. bottled water market. To deduce market volume size, consumption of bottled water has been considered. In order to provide an accurate forecast, the report starts by sizing up the current market, which forms the basis of how the U.S. bottled water market is expected to develop in the future. Critical market data, including the base number and segmental splits, has been devised through in-depth secondary research. This data is then triangulated on the basis of different verticals, considering both supply side and demand side drivers and other dynamics of the various markets, along with primary interviews of manufacturers and industry experts operating in the U.S. bottled water market. The forecast presented in the report evaluates the actual use of bottled water and expected consumption in the U.S. bottled water market over the forecast period.

The report also analyzes the different segments of the U.S. bottled water market in terms of basis point share (BPS) to understand individual segments’ relative contribution to market growth. This detailed level of information is important for identifying the various key trends governing the U.S. bottled water market. The report also analyzes the U.S. bottled water market based on absolute dollar opportunity. This usually overlooked while estimating the market forecast. However, from a sales perspective, it is essential to identify absolute dollar opportunity to identify potential resources in the U.S bottled water market. Persistence Market Research has developed a market attractiveness index to understand the key segments in terms of their performance and growth in the U.S. bottled water market. This market attractiveness index would help clients identify real market opportunities in the U.S. bottled water market.

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.

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.

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.

us bottled water market

Analyst Viewpoint

High price of PET segment is adversely affecting the U.S. bottled water market

PET segment is widely used due to its relatively low cost and can be recycled. PET is reliable and environmental friendly because 100% recycling is possible. This will open newer avenues of growth for the bottled water market in the U.S. However, the market expansion of the U.S. bottled water market is somewhat walled by the high pricing structure of the PET segment. Moreover, the use of PC polycarbonates bottles is diminishing greatly due to its adverse environmental impact.

Company Profiles 

  • Nestle Waters
  • PepsiCo, Inc.
  • The Coca-Cola Company
  • Groupe Danone    
  • Suntory Beverage & Food Ltd 
  • Mountain Valley Spring Company, LLC 
  • CG Roxane, LLC
  • Others
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