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The sparkling water market size is estimated to grow by USD 41.68 billion at a CAGR of 16.48% between 2023 and 2028. Market growth is influenced by several key factors, with notable contributors being the frequent introduction of new products, the expanding cohort of health-conscious consumers, and the uptick in mergers and acquisitions within the industry. The steady stream of product launches reflects ongoing innovation efforts by companies to meet evolving consumer preferences and stay competitive in the market. Additionally, the growing awareness of health and wellness prompts more consumers to seek out products that align with their lifestyle choices, driving demand for healthier options across various market segments. Moreover, increased consolidation through mergers and acquisitions reshapes the competitive landscape, fostering synergies and expanding market reach for participating entities. Together, these factors create a dynamic environment conducive to sustained market growth, with opportunities for companies to leverage innovation, consumer trends, and strategic partnerships to capitalize on emerging market opportunities.
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In the market, millennials emerge as a pivotal demographic segment, driven by their health consciousness and preference for alternatives to sugary beverages like soda water. This cohort's emphasis on bone and teeth health, along with combating issues like constipation, propels the demand for beverages infused with lime, grapefruit, and cranberry, offering both flavor and functional benefits. The market also sees traction in eco-friendly packaging solutions such as reusable glass bottles, aligning with growing environmental concerns. Furthermore, collaboration between brands and convenience stores enhances accessibility, while transportation efficiencies mitigate the impact of trade restrictions. Key players like Dasani Sparkling, LaCroix, Topo Chico, and San Pellegrino leverage innovative marketing strategies, emphasizing effervescence and airtight sealing to maintain product quality. Amidst evolving consumer interests and rising alcohol consumption trends, the market fosters a dynamic landscape where consumer interest drives product diversification and fosters industry expansion.
Frequent product launches are notably driving the market growth. The market has witnessed significant growth due to the increasing popularity of low-alcohol content beverages. The rising demand for low-carb and low-alcohol beverages as well as health concerns related to the ingredients of beverages, have changed the tastes and preferences of consumers. Sparkling water has become popular among health-conscious consumers.
The market witnessed a big boost in the last few years owing to frequent product launches in the market. companies across the world are focusing on product innovation and launches to cater to the growing demand for sparkling water. For instance, in March 2023, PepsiCo Inc. brand SodaStream announced the launch of two new models of sparkling water lineup, the E-TERRA, and the E-DUO. Similarly, in February 2021, The Coca Cola Co. brand AHA added new flavors to its sparkling water lineup, namely raspberry, acai, mango, and black tea. Thus, the frequent launch of products will boost the development of the market during the market forecast period.
The changing consumer lifestyle is a key trend influencing the market. Consumers across the world are becoming more health conscious. Hence, they are focusing on purchasing food and beverage products made of natural and health-benefiting products. Consumers are shifting to healthier alternatives such as low-carbohydrate and no sugar, which is driving the expansion of the market. Manufacturers are adding new natural flavors to their products to attract consumers.
Sparkling water comes in a wide range of flavors and varieties. Many consumers prefer convenient, on-the-go options for hydration. Many influencers and celebrities on social media promote sparkling water brands, which is increasing their popularity. Consumers prefer sparkling water over sodas and sugary carbonated drinks. To cater to such demands of consumers, companies are focusing on product innovation. Therefore, the changing lifestyles and increasing demand for healthy ingredients by consumers may positively impact the growth of the global sparkling water market during the forecast period.
Stringent safety and quality regulations may impede market expansion. The US Food and Drug Administration (FDA) regulates the manufacturing of the market. Manufacturers have to follow Current Good Manufacturing Practices (CGMPs). They are required to process, bottle, hold, and transport bottled water under sanitary conditions. Moreover, all water sources must be protected from bacteria, chemicals, and other contaminants. The bacteriological and chemical safety of the water should be ensured. The source water and the final product must be sampled and tested for contaminants.
The US FDA, under its Food Safety Program, verifies whether the plant product water and operational water supply are sourced from an approved source. The agency also inspects all the washing and sanitizing procedures as well as bottling operations. Thus, the stringent regulations may impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Anheuser Busch InBev SA NV - The company offers sparkling waters under the brand Hiball.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is driven by increasing health consciousness among millennials, leading to a shift away from sugary soda drinks. Consumer interest in healthier alternatives like Dash Water, LaCroix, and Topo Chico fuels market growth. Trends include the rise of reusable glass bottles and airtight sealing for freshness. However, challenges such as transportation costs and trade restrictions may hinder market expansion. Moreover, competition from established brands like San Pellegrino and Dasani Sparkling poses a challenge to emerging players in convenience store shelves. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market share growth by the hypermarkets and supermarkets segment will be significant during the forecast period. Supermarkets and hypermarkets are the major distributors of sparkling water. Distributors offer branded as well as local products. Brands such as Nestle SA, Danone S.A., and The Coca Cola Co. offer through supermarkets and independent stores.
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The hypermarkets and supermarkets segment was valued at USD 11.53 billion in 2018. Supermarkets and hypermarkets are the most preferred channels for the purchase of various alcoholic and non-alcoholic beverages, as they offer convenience and cost-effectiveness. Other factors, such as attractive shelf displays and discounts, encourage consumers to buy from hypermarkets and supermarkets. The rapid growth in the accessibility, convenience, affordability, and availability of a wide range of products is driving the growth of the market. Thus, the increasing demand for organized retailing has been fueling the growth of the market. Such factors are expected to drive the growth of the segment during the forecast period.
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Europe is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Factors such as urbanization, the rising adoption of healthy meals, the increasing awareness about sugar-free products, the growing demand for online shopping, and the presence of prominent companies are driving the evolution of the market in North America. The high percentage of the urban population will contribute to the demand for sparkling water, which will propel the growth of the market in North America. In addition, the number of supermarkets, hypermarkets, and other independent retailers is increasing in the region to meet the needs of consumers. These factors will boost the development of the regional market during the forecast period.
The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
In the competitive landscape of the market, consumers, especially conscious consumers, increasingly prioritize their health, seeking alternative beverages over added sugar options like sweetened teas and coffee drinks. Brands like Waterloo Sparkling capitalize on this trend, offering a variety of refreshing flavors like tropical fruit, mango passion fruit, and triple berry, appealing to diverse palates while addressing concerns such as dental health and bone health. The use of natural/mineral water and exotic packaging reinforces the perception of quality and purity.
However, challenges such as high shipping costs and domestic taxes impact competitive pricing and commercial demand. Effective product endorsement by influencers like Curtis Stone and strategic commercial advertisements enhance brand visibility, combating a lack of awareness. With a focus on minerals and promoting energy levels, the market thrives on innovation, offering flavored versions like blueberry pomegranate and citrus cherry in reusable glass bottle, catering to the discerning tastes of today's consumers.
Furthermore, the market offers a refreshing alternative to regular water, with a growing caffeinated segment featuring various flavors and artificial sweeteners. Brands like Serafina provide options in reusable glass bottle, promoting sustainability. With flavors like orange, cucumber, and lemon, consumers enjoy a wide range of choices. This trend reflects increasing consumer interest in healthier beverage options, with a focus on digestion and mineral sparkling water varieties like those from the LaCroix brand.
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Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 16.48% |
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Market growth 2024-2028 |
USD 41.68 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
12.74 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 34% |
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Key countries |
US, Germany, China, UK, and Italy |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Anheuser Busch InBev SA NV, Aqua Maestro Inc., Big Watt Beverage Co., Boca Foods and Beverages Pvt. Ltd., Carpathian Springs SA, Cloud Water Brands, Danone SA, JAB Holding Co., Klarbrunn, National Beverage Corp., Nestle SA, PepsiCo Inc., Primo Water Corp., RHODIUS Mineralquellen und Beverages GmbH and Co. KG, Shepley Spring Ltd., Talking Rain Beverage Co., The Coca Cola Co., Volay Brands LLC, VOSS of Norway AS, and WakeWater Beverage Co. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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