Flavored Water Market Analysis

Global Flavored Water Market Overview

Flavored Water Market Size was valued at USD 15.1 billion in 2021. The Flavored Water industry is projected to grow from USD 16.61 Billion in 2022 to USD 32.36 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 10.0% during the forecast period (2022 - 2030). The growing organized retail sector and health awareness are the key market drivers enhancing Flavored Water's growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Flavored Water Market Trends

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  Consumer preference for healthy and organic beverages to propel market growth

  
  

As per market dynamics, the market for Flavored water is anticipated to expand due to consumers' growing preference for healthier lifestyles. Because clear liquid diets like water, juices, and other beverages are swiftly digested and leave no undigested residue in the gut, people attempting to live healthier lifestyles are attempting to include liquid diets into their eating patterns. Water that has been Flavored Water or fruit-infused provides all the hydration of a refreshing glass of water and the lively, sweet, and tangy flavors of the foods you've selected. Many individuals are influenced to drink more water by adding palatable tastes. 

Thus, flavoring water with additional ingredients can make it more palatable and even provide nutrients. Forbes, a business publication in the United States, reports that in 2020, 63% of consumers aged 50 and older and 54% of all consumers will be more concerned about the nutritional benefits of the food and drink they choose than they were in 2010. In contrast, 74% of Americans will aim to limit their sugar intake in 2020, down from 80% in 2019. Thus, a growing consumer preference for a healthy lifestyle fuels the development of Flavored water. One hundred twenty-five million Americans suffered from one or more chronic illnesses in 2000. As per market statistics, by 2030, this figure is anticipated to rise by more than 1%. 

The number of Americans with chronic diseases will rise by 46 million, or 37 percent, between 2000 and 2030. Different population subgroups have different prevalence rates for some chronic diseases. The prevalence rose with age and was greater in women (28.4%) than in males (25.9%). Adults who were non-Hispanic white (30.6%) had the highest prevalence of multiple chronic illnesses, whereas non-Hispanic Asian (16.4%) and adult Hispanics (17.7%) had the lowest prevalence.

Figure 1: Percentage of the population with chronic disease, 1995-2030

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

A crucial trend that is becoming more and more popular in the Flavored Water industry is corporate strategic alliances. Companies that produce Flavored Water products cooperate to create new technologies and goods. For instance, in January 2022, the US-based manufacturer of Flavored Water Phocus teamed up with Kroger, a US-based retailer that runs supermarkets and multi-department stores across the country. Due to the arrangement with Kroger, Phocus can now offer its goods at 185 more Kroger-owned shops located throughout Georgia, Alabama, and South Carolina. Similarly, in February 2020, Big Watt Coffee, a US-based manufacturer and distributor of caffeinated sparkling water, and BLNCD Naturals, a manufacturer and distributor of high-quality CBD and hemp-derived goods, partnered to introduce a new line of CBD-infused sparkling water. Three kinds of these new drinks—blueberry lemon, pink grapefruit, and berry acai—are offered, each of which has a unique set of advantages. Each of the three products contains the same amount of CBD (20mg per 12-ounce can).

Flavored Water Market Segment Insights

Flavored Water Type Insights

Based on type, the  Flavored Water market segmentation includes Carbonated and Still. According to the market competitive landscape, there will likely be a rise in carbonated water. As a result, businesses are utilizing their marketing plans to beat the competition and win over customers. The main cause of the growth in demand for sugar-free carbonated beverages is the rising incidence of obesity and high blood sugar levels in the general population. The main cause of the growth in demand for sugar-free carbonated beverages is the rising incidence of obesity and high blood sugar levels in the general population. Therefore such factors will boost the flavored water market growth.

Figure 2:  Flavored Water Market, by Type, 2021 & 2030 (USD Million)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Flavored Water Packaging Type Insights

The  Flavored Water market segmentation, based on Packaging type, includes Bottles, Cans and others. The PET bottles sector, valued at $13,654.9 million in 2020 and is anticipated to reach $24,729.6 million by 2030, showing a CAGR of 5.8%, is based on a market study for Flavored Water packaging. The most common packaging used by beverage producers worldwide is PET bottles. The market for PET bottles has made excellent strides due to the introduction of technological breakthroughs. During the projected period, introducing new technologies is anticipated to fuel the growth of PET bottles. Additionally, several top companies are developing can-flavored water to lessen plastic usage in response to end customers' rising environmental concerns. This is anticipated to support market expansion.

Flavored Water Distribution Channel Insights

Based on Distribution Channel, the  Flavored Water market data includes Store-Based and Non-Store-Based. The category based on stores is expected to increase at the fastest rate. The supermarkets and hypermarkets category had the highest revenue share of over 55% in 2020 and would continue to expand from 2021 through 2028 at a consistent CAGR. Due to the shopping experience, most consumers purchase bottled water from supermarkets and hypermarkets. Customers have also been drawn to services offered by some supermarkets, such as home delivery and click & collect. The top grocery store chains worldwide are Walmart, Carrefour, Woolworths, Magnit, and Edeka.

Flavored Water Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. Asia-Pacific flavored water market accounted for USD 6.67 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. The growth of quick-service and full-service restaurants and rising customer desire for the product are projected to improve the market picture in the area. The demand for healthy foods and drinks has increased due to consumers being more aware of the advantages of leading a healthy lifestyle, which will help the regional market flourish.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  FLAVORED WATER MARKET SHARE BY REGION 2021 (%)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Due to increasing product use as a healthy substitute for other carbonated beverages, the North American flavored water market had the second-largest revenue share, with over 37% in 2020. It will continue to grow at a consistent CAGR from 2021 to 2028. Numerous well-known companies in the area provide a broad variety of goods, including bubbly, AHA, Talking Rain, Nestlé Pure Life, Perrier, Schweppes, and LaCroix. As a result, product uptake in the area has been boosted by the product's enhanced accessibility. Further, the US Flavored Water market held the largest market share, and the Canada Flavored Water market was the fastest-growing market in the Region.

Europe flavored water market controls a substantial portion of the world market. Consumers concerned about their health will find natural Flavored water and naturally carbonated waters with high quantities of minerals more enticing. Natural fruit extracts are frequently used to create the flavors that are added to the drinks. Sales of the product are robust in several nations, including Germany, the UK, Italy, Spain, and France, where it is frequently offered with meals in restaurants. Further, the Germany Flavored Water market held the largest market share, and the UK Flavored Water market was the fastest-growing market in the European Region.

Flavored Water Key Market Players & Competitive Insights

Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for the Flavored Water market. With significant industry changes, including new product releases, contractual agreements, mergers & acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their  presence. According to the market competitive landscape, players in the Flavored Water industry must provide affordable products to grow and remain in a market that is becoming more and more competitive.

Manufacturing locally to cut operational costs is one of the main business tactics used by the Flavored Water industry to serve customers and increase the market industry. The Flavored Water industry has recently given medicine some of the most important advantages. The Flavored Water markets major players such as Nestle, Talking Rain,  PepsiCo Inc., The Coca-Cola Company,  Hint Inc.,  Spindrift, National Beverage Corp., Sanpellegrino S.P.A.,  KeurigDr Pepper Inc. and others are working on expanding the market demand by investing in research and development activities.

La Croix, Shasta, and Faygo are some of the most well-known brands of the American beverage creator, producer, and distributor National Beverage Corp., which has its headquarters in Fort Lauderdale, Florida. Hibiscus! was a new flavor that National Beverage Corp. introduced to their LaCroix line in May 2019. The brand-new sparkling water has a distinctive hibiscus flower flavor and is free of salt, sugars, or carbs. Over the projection period, such new introductions are expected to boost category growth.

The Coca-Cola Company is a  American beverage company that was established in 1892 and is best known for being the maker of Coca-Cola. The Coca-Cola Company also produces, sells, and markets alcoholic drinks and various non-alcoholic beverage concentrates and syrups. Topo Chico was purchased by the American multinational beverage company Coca-Cola for $220 million in May 2020. Due to the acquisition, Coca-Cola has invested in a well-known brand from a market that is still expanding. The Mexican brand has joined other sparkling water options from Coca-Cola, such as effervescent Smartwater and Dasani. The firm that produces Flavored Water beverages, Topo Chico, is in Mexico.

For instance, PepsiCo Inc. unleashed five new caffeinated sparkling waters under their Bubly brand on February this year alone. For example, mango passion fruit, blood orange grapefruit, triple berry blueberry pomegranate citrus cherry were added to the company’s list of caffeine-based drinks.

Zero calorie GOJAI Organic Caffeinated Sparkling Water launched in February 2020 with three flavors-Berry Gorilla, Orange Space Monkey; and OG Lion.

In January 2020, Keurig Dr Pepper Inc. expanded its water portfolio by buying Limitless, an American caffeine sparkling water company.

Phocus released its new Cola-Flavored water that July expanding on all other flavors, including Blood Orange, Cucumber, Grapefruit, Lime, Natural and Peach to increase the line up of its existing flavors available at Phocus.com.

In May 2021, Sparkling Spring Mineral Water Co., a popular household goods retailer was acquired by Nestle Waters. There is so much potential for these buyers since North American market leader’s position has been enhanced by this purchase into the Nestle Waters business unit.

Key Companies in the Flavored Water Market Include

• Nestle


• Talking Rain


• PepsiCo Inc.


• The Coca-Cola Company


• Hint Inc.


• Spindrift


• National Beverage Corp.


• Sanpellegrino S.P.A.


• KeurigDr Pepper Inc.

Flavored Water Industry Developments

In 2023: Nestlé Launched a new line of sparkling water infused with real fruit juice and botanical extracts under the "San Pellegrino Essenza" brand, targeting health-conscious consumers seeking natural flavors and functionality

October 2023: Nestlé is developing milk and plant-based products.

October 2023: The Coca-Cola Company and Pernod Ricard have revealed their plans for launching an Absolut Vodka & Sprite Ready-to-Drink Cocktail.

Evian introduced its first sparkling water in both can and bottle form at various market shelves in January 2022. Its mineral quality is excellent hence glittering moderately with tiny bubbles, which make it light tasting enough to be interestingly refreshing.

The most carbonated sweet Raspberry and Rhubarb tonic water are now available at Fever-Tree from December 2021. This drink is a blend of cherries produced in Scotland for sweetness and Norfolk-grown rhubarb.

December 2021: The most current carbonated sweet Rhubarb and Raspberry tonic water are now available at Fever-Tree. The drink is a combination of sweet Strathmore Valley raspberries from Scotland and acidic "Timperley Early" rhubarb that was sent from a ranch in Norfolk. The seasoned water is devoid of any false sugar and contains only naturally derived seasonings.

July 2021: Phocus just released its newest Cola-flavored Water, expanding upon its current lineup of flavors, which also includes Grapefruit, Peach, Yuzu and Lime, Blood Orange, Natural, and Cucumber.

Flavored Water Market Segmentation

Flavored Water Type Outlook

• Carbonated


• Still

• Bottles


• Cans

Flavored Water Distribution Channel  Outlook

• Store-Based


• Non-Store-Based

Flavored Water Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America