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The World’s Most Popular Beverage Is Bottled Water

5 October 2022 by Mordor Intelligence


The World’s Most Popular Beverage Is Bottled Water

The global Bottled Water Market is projected to register a CAGR of 6.2% during the forecast period (2022 – 2027).

The demand for bottled water is driven by the increasing need for prevention of water-borne diseases as an aftermath of drinking contaminated tap water and the easy portability and convenience provided by bottled water.

The gravitation towards healthy lifestyles by large swathes of populations and wide utilization of bottled water for activities, such as trekking and other sports activities, are the major factors responsible for the high demand for bottled water in developing economies. There is further evidence of increased demand for functional and specialty forms of bottled water in these regions.

For instance, in May 2021, Pepsi Co. launched Soulboost, a functional sparkling water brand infused with ingredients L-theanine and Panax ginseng, while targeting wellness-conscious consumers across the globe.

Moreover, the increasing demand for eco-friendly packaging of bottled water is creating lucrative market opportunities for existing manufacturers and new entrants in the market.

Functional Water- The Next Generation of Drinkables

Functional water is vitamin-enriched water that has gained consumer popularity for convenience, perceived health benefits, and improved flavor over tap water.

Functional water provides added health benefits. Consumers are increasingly aware of the importance of being hydrated and rising average temperatures, along with the need for an additional nutritional boost that they may not get otherwise from regular water.

The functional bottled water market is expanded to grow, owing to a change in beverage consuming habits, with preference shifting from high sugar, carbonated beverages to functional and flavored water.

In Oct 2021, Masafi Co LLC introduced a sustainable bottled drinking water brand in the United Arab Emirates called SOURCE.

There are increasing concerns regarding various health problems such as digestive issues, weight gain, heartburn, etc., due to which consumers prefer healthier options like functional water and flavored water.

Read More On: Gulf Cooperation Council (GCC) Bottled Water Market

Why Are Tourists Drinking More Bottled Water in Saudi Arabia?

The Saudi Arabian bottled water market witnessed significant growth, with 1,828.8 million in 2021, due to the growing tourism industry.

Moreover, the number of food service channels, such as hotels and restaurants, is also increasing in the country. In 2021, there is an increase of 37.5% in international arrivals, as governments worldwide have eased the restrictions. Thus, the growth in tourism in the country is expected to significantly impact the market demand.

With the rising influx of local and foreign tourists to tourist centers, the country’s consumption of treated water, i.e., bottled water, is expected to increase.

Therefore, to offer quality service to their tourists, they also contribute to the high share of sales in bottled water, primarily from the still bottled water segment.

In May 2021, Red Sea Development Co. inaugurated the first 100% renewable bottled water plant in Saudi Arabia. It is the first mineral water extraction plant using solar and wind energy in the Kingdom as a part of efforts to preserve the environment by limiting carbon emissions.

In January 2022, Pure Beverage Industry Company announced the launch of IVAL, a quality bottled water locally produced from underground water wells in Saudi Arabia.


This insight was contributed by knowledge partner: