India Bottled Water Market Outlook to 2028

India Bottled Water Market Overview

India Bottled Water Market is valued at USD 6 billion, based on a five-year historical analysis. The market is primarily driven by increasing consumer awareness about health and safety, coupled with growing concerns over the contamination of tap water. Urbanization has also significantly contributed to the rising demand for bottled water, as consumers in cities prefer bottled water for its convenience and perceived purity.

In the India bottled water market, metropolitan cities like Delhi, Mumbai, and Bangalore dominate consumption due to their dense population and a higher percentage of urbanized residents. These cities are home to a substantial middle-class population that prefers bottled water due to convenience and hygiene concerns.

The Food Safety and Standards Authority of India (FSSAI) enforces regulations for bottled water, particularly focusing on water quality and labeling requirements. FSSAI has amended the standards for packaged drinking water, which now includes specifications for total dissolved solids (75-500 mg/l), calcium (10-75 mg/l), and magnesium (5-30 mg/l). The authority’s efforts have ensured greater transparency in labeling and improved the overall safety of bottled water sold in India.

India Bottled Water Market Segmentation

By Product Type: The market is segmented by product type into still water, sparkling water, flavored water, and functional water. Recently, still water has dominated the market due to its affordability, wide availability, and consumer preference for plain drinking water. Brands like Bisleri and Kinley have maintained strong market positions by ensuring quality and reliability, making still water the most popular choice. With increasing urbanization and greater awareness of safe drinking water, still water continues to be the preferred option for the majority of consumers, especially in both retail and on-the-go consumption.

By Distribution Channel: The market is segmented by distribution channel into supermarkets and hypermarkets, convenience stores, online channels, and foodservice (Ho Re Ca). Supermarkets and hypermarkets have a dominant market share under this segmentation due to their wide availability and ease of access to a variety of products. These channels offer customers the convenience of bulk purchases and promotions, making them popular among urban consumers. Additionally, the modern retail format has helped brands expand their market presence by offering premium and functional bottled water products.

India Bottled Water Market Competitive Landscape

The India bottled water market is dominated by both domestic and international brands, with a few major players holding a significant market share. The market is highly competitive, with brands continuously innovating in packaging, product quality, and marketing strategies to maintain their position. Domestic brands like Bisleri and Kinley dominate due to their established distribution networks and brand loyalty, while international brands focus on premium water segments.

Company

Established

Headquarters

Market Coverage

Product Portfolio

Innovation Rate

Sustainability Initiatives

Packaging Types

Bisleri International

1965

Mumbai, India-----

Tata Global Beverages

1962

Kolkata, India-----

Coca-Cola India (Kinley)

1993

Gurgaon, India-----

Pepsi Co India (Aquafina)

1989

Noida, India-----

Parle Agro (Bailley)

1929

Mumbai, India-----

India Bottled Water Market Analysis

Growth Drivers

Urbanization and Migration to Cities: The rapid pace of urbanization in India has been a major driver for the bottled water market, especially in metro cities. As of 2022, around 35% of the Indian population resides in urban areas, with 387 million people migrating from rural regions for better living conditions, leading to a growing demand for clean, packaged drinking water. This trend is expected to continue, with urban population numbers increasing in 2024 due to the infrastructure development in Tier-I and Tier-II cities, further fueling bottled water consumption.

Rising Health Awareness and Preference for Safe Drinking Water: Health-conscious consumers are driving demand for bottled water as concerns about waterborne diseases increase.  In Maharashtra, for example, there was a notable increase in waterborne disease cases in 2023, with 1,213 cases reported throughout the year. However, preliminary data for 2024 indicates a sharp rise, with over 2,441 cases recorded by early September. The shift towards healthier lifestyles has made bottled water a necessity for many, particularly in urban and semi-urban areas where concerns about tap water safety persist.

Premiumization of Bottled Water Brands: With the rising disposable income in urban India, premium bottled water brands are seeing significant demand growth. In 2024, the premium bottled water segment is gaining traction, with brands like Himalayan, Qua, and Vedica leading the market. The premium bottled water segment is benefiting from this trend, with more consumers opting for value-added water products such as mineral-rich or alkaline water.

 Challenges

Plastic Waste and Recycling Issues: The widespread use of plastic bottles has become a significant environmental concern in India. India generates 9.4 million metric tons of plastic waste annually. This has raised questions about the sustainability of bottled water packaging, prompting government and industry efforts to increase recycling rates. The government’s push towards a circular economy and its Swachh Bharat Mission to address waste management challenges have highlighted the need for better plastic recycling initiatives.

High Operational and Distribution Costs: Operating costs for bottled water companies remain high, with substantial expenses in water extraction, bottling, and distribution. In 2023, the average operational cost for bottled water production stood at approximately ?120-150 per 20-liter unit. Additionally, the distribution network requires cold storage and efficient logistics, especially in remote areas, contributing to increased fuel and transportation expenses.

India Bottled Water Future Market Outlook

Over the next five years, the India bottled water market is expected to witness significant growth driven by rising health awareness, increased urbanization, and the growing popularity of premium water products. Furthermore, the shift towards sustainable packaging and eco-friendly practices is likely to create new growth opportunities in the market. The demand for flavored and functional water is also anticipated to grow as consumers seek healthier beverage options. Additionally, government regulations aimed at reducing plastic waste may propel innovation in sustainable packaging solutions, further boosting market expansion.

Market Opportunities

Adoption of Eco-Friendly and Biodegradable Bottles: To address the environmental concerns surrounding plastic, several bottled water companies are adopting eco-friendly and biodegradable packaging options. This shift is expected to gain momentum, driven by government regulations and increasing consumer preference for sustainable products. The Swachh Bharat initiative has further incentivized companies to adopt sustainable practices, creating an opportunity for brands to stand out in the market

Rising Demand in Tier-II and Tier-III Markets: In 2024, the increasing penetration of bottled water in Tier-II and Tier-III cities presents a substantial market opportunity. The rising affluence and improving infrastructure in these areas have made bottled water a popular choice. With more companies expanding their distribution networks to serve these regions, the market is expected to see steady growth.
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