India Development News & Foreign Investment Opportunities

Bottled Water Market 2018-2023 CAGR 20.75%

Market Trend: Institutional partnerships

0

Market Trend: Institutional partnerships

PepsiCo.

 

The bottled water market in India is expected to reach Rs.~403.06 billion by the end of 2023, from its current value of Rs.~160 billion, expanding at a compound annual growth rate (CAGR) of ~20.75% from 2018.

Based on volume, the market is likely to reach ~35.53 billion liters by 2023, expanding at a CAGR of ~18.25% from 2018 to 2023, according to a report “Bottled Water Market in India (2018-2023)” by ResearchAndMarkets.

Increasing health concerns, and unavailability of clean drinking water have led to the growth of the bottled water market in India.

The major bottled water brands operating in India are Bislery, Kinley, and Aquafina.

In India, bottled water is sold in four main types of SKUs – one-liter bottles, two-liter bottles, 500 milliliter bottles, 250 milliliter bottles, pouches, and barrels of 15-20 liters. Among the different SKUs, one-liter bottles have acquired the largest market share of ~42% in 2018, followed by 500 milliliter bottles and 250 milliliter bottles.

Flavored bottled drinking water has become popular in India. Different kinds of flavored water containing fruit essence and artificial sweeteners like soda, cola, juice, and other sweetened beverages often act as a substitute to plain bottled water.

At times consumers prefer flavored bottled water to normal bottled water. This shift is developing an opportunity to expand the product line of bottled water manufacturers in India.

Apart from individual sales, market players in India have recently inclined towards institutional sales through partnership with airlines, movie theatres and hotels.

Such partnerships are eventually increasing the penetration of the product in the market, followed by rise in the overall sales volume in India.

India accounts for ~18% of the global population. In addition, the per-capita income of Indians witnessed a growth of ~8.6% in 2017.

Moreover, increased awareness among the growing population about the importance of safe drinking water for maintaining good health, along with a sharp rise in per capita income is creating a demand for bottled water in India.

Tourists prefer bottled water to normal tap water. The rate of foreign tourists in India is expected to increase at a rate of ~6.7% during 2015-2025. This, in turn, is anticipated to boost the sale of bottled water in India.

In recent years, a number of companies selling fake branded bottled water have cropped up in the market. These players do not maintain quality and hygiene standards, which in turn leads to health issues among consumers. As a result, consumers lose faith in bottled water, thus affecting the overall sales.

Nearly 67% of the population resides in rural areas. However, the rate of penetration of bottled water is significantly low in these regions. This, as a result, hinders the growth of the market in India.

Companies in the water business: Bislery International, Coca-Cola India, Dhariwal Industries, Indian Railway Catering and Tourism Corporation, Narang Group, Nestle Group, Tata Global Beverages, Parle Agro, PepsiCo and United Breweries. fiinews.com

Leave A Reply

Your email address will not be published.