MINTEL GLOBAL NEW PRODUCTS

Still and Sparkling Water

Market Overview

Total retail sales of packaged still and sparkling water reached an estimated $23.7 billion in 2021. Increased consumer interest in health and wellness drives the market’s growth as consumers swap sugary drinks for still and sparkling waters.

Consumers’ return to social activities in 2021 greatly benefited the bottled water market, and bottled water brands across the board, from basic private label to premium aspirational brands, experienced increased growth. Sparkling and mineral water remain two of the fastest-growing nonalcoholic beverage categories, and 2021 sales may have been even higher if not for supply chain constraints.

Key Issues

Functionality is the most prevalent trend within the water category as brands launch new water products that go beyond just hydration. From probiotic waters that support the microbiome, to relaxation waters that help mitigate stress, all functional benefits are on the table when it comes to water product innovation. Flavor innovation represents a key opportunity for brands to attract younger consumers, and unique flavors can allow water to compete with flavorful beverages such as carbonated soft drinks and sports drinks. Floral- and herbalflavored waters are trending, indicating opportunities for waters that blend familiar and trending flavors, such as blueberry lavender or watermelon mint.

Basic private label bottled water is a growing segment of the water market, and while consumers view refillable water bottles as the most environmentally friendly water option, bottled water’s taste and convenience outweigh environmental concerns in the minds of most consumers. However, increased discourse regarding climate change may result in decreased water bottle purchases.

Sales have increased 40% since 2016, making packaged water one of the strongest-performing markets in the beverage industry. FOR MORE INFORMATION, VISIT WWW.MINTEL.COM OR CALL 800-932-0400

What Consumers Want, and Why

Packaged water is a growing market, thanks to high consumer interest in betterfor-you beverages and the strong association between health and hydration.

Water’s inherent health benefits should be enhanced with functional ingredients that transform water into the ultimate functional drink. Functional claims bring water into new consumption occasions and appeal to Gen Z and Millennial consumers.

Flavored still and flavored sparkling are two of the fastest-growing segments of the water market, as flavor innovation makes water a more exciting and enjoyable beverage. Flavor innovation appeals to younger water consumers and is necessary for products to stand out on shelf.