Sparkling Water Industry Overview

The global sparkling water market was valued at USD 29.71 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 12.6% from 2021 to 2028. This growth is largely driven by a global shift toward healthier lifestyles, with people of all age groups increasingly opting for healthier and more innovative drink options, such as sparkling water. As consumers become more health-conscious, there is a noticeable preference for sparkling water over sugary sodas and other carbonated drinks. This trend is expected to continue, contributing to the market's expansion throughout the forecast period.

The Covid-19 pandemic initially caused a significant decline in commercial demand for sparkling water due to the closure of public places and offices. However, as widespread home isolation orders were put in place, the demand for bottled water, including sparkling water, surged in households worldwide. According to the International Bottled Water Association (IBWA), bottled water companies responded by increasing production capacity to meet this rising demand, which further benefitted the market.

Sparkling water’s growing popularity can also be attributed to the increasing awareness of the health benefits associated with it. Rich in essential minerals such as sodium, magnesium, and calcium, sparkling water is considered a healthier alternative to sugary carbonated drinks. In addition to hydration, sparkling water is believed to help improve digestion and may offer relief from constipation, making it a preferred choice for many consumers seeking health-conscious beverages.

Numerous studies have suggested that sparkling water is less harmful to dental and bone health compared to sodas, further driving consumer interest in carbonated water as a healthier substitute. Over the years, the rise in commercial advertisements promoting bottled water has played a significant role in boosting brand visibility and consumer awareness. These advertisements typically highlight the product's hydration benefits, quality, taste, and convenience, reinforcing the growing preference for sparkling water.

To capture a larger market share, major bottled water companies have introduced new sparkling water offerings. For example, PepsiCo, Inc. launched five new caffeinated sparkling water flavors in February 2021 under its Bubly brand, including mango passion fruit, blood orange grapefruit, triple berry, blueberry pomegranate, and citrus cherry flavors. These innovative product launches are not only enhancing the visibility of sparkling water but are also expected to drive further market growth in the coming years.

Gather more insights about the market drivers, restrains and growth of the Sparkling Water Market

Regional Insights:

North America held the largest share of over 35.0% in 2020. The major factor driving the market in this region is the growing consumer preference for healthier alternatives to traditional soft drinks. Sparkling water is being increasingly consumed due to its benefits, including improved digestion, better intake of essential minerals, and enhanced bone and heart health. These health benefits are motivating more consumers to opt for sparkling water as part of their daily diet. Additionally, the easy availability of sparkling water across a wide range of distribution channels, such as supermarkets, convenience stores, and online platforms, is expected to further fuel the growth of this segment in North America.

Europe also accounted for a significant share in 2020. There is a strong demand for sparkling water in several European countries, including Germany, the U.K., Italy, Spain, France, and the Netherlands, where sparkling water is often served alongside meals in restaurants. This trend is particularly popular in the dining culture, where consumers prefer sparkling water as a refreshing and healthy option. Additionally, the region has seen a rise in the number of quick-service restaurants (QSRs), which are expanding rapidly and introducing a variety of new beverages and food items. These establishments are not only inspired by national cuisines but also incorporate international flavors, thus diversifying their offerings to attract a broader customer base. This expansion of the QSR sector is anticipated to benefit the European sparkling water market, contributing to its growth in the coming years.

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Key Sparkling Water Company Insights

Mergers & acquisitions and product launches are among the key strategies taken up by the market players. For instance, in January 2020, Keurig Dr Pepper Inc. acquired Limitless, a U.S.-based caffeinated sparkling water company. This acquisition has widened Keurig Dr Pepper’s water portfolio and through this acquisition, the company entered the caffeinated sparkling water market. Some prominent players in the global sparkling water market include:

• Nestlé
• PepsiCo, Inc.
• National Beverage Corp.
• Talking Rain
• Keurig Dr Pepper Inc.
• The Coca-Cola Company
• Danone S.A.
• SANPELLEGRINO S.P.A
• Clear Cut Phocus
• Caribou Coffee Operating Company, Inc.
• Hiball
• RHODIUS Mineralquellen und Getränke GmbH & Co. KG
• AQUA Carpatica
• Northwest Coffee
• Volay Brands, LLC
• WakeWater Beverage Co.
• Big Watt Cold Beverage Co.

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