Bottled water is one of the largest commercially sold beverage categories and fastest selling drinks globally. Growing concerns over the health effects of carbonated beverages and the easy availability of newer flavors in functional water have led to the growing consumption of bottled water. The easy portability of pure and clean water in a bottle and the launch of innovative packaging have stimulated the market for bottled water. Transparency Market Research (TMR), a leading business intelligence firm, in its report mentions that the global bottled water market was valued at US$157.3 bn in 2013; in the market, still bottled water accounted for 64.9% of the revenue and is expected to dominate the market in the period from 2014 to 2020. Carbonated water was the second largest segment in terms of revenue in 2013 but is expected to lose its share during the period 2014 to 2020.

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Bottled Water Giving Soft Drinks a Run for their Money

Major soft drink companies are witnessing a decline in the sale of sugary soft drinks as more and more people are becoming health-conscious and opting for bottled water products like still water or flavored water. The growing incidence of obesity and diabetes among children and adults alike is also decreasing the sale of soft drinks and other sugary beverages, as compared to bottled water.

Unavailability of Clean Tap Water Boosts Sales of Bottled Water

Although the growth of the bottled water market is aided by growing health concerns, countries like China, Mexico, India, and others are expected to be the prime regional segments for the sale of bottled water. This is because clean and pure water is not readily available uniformly across the world. Water pollution and similar other factors make the water in many regions unfit for human consumption, thus propelling the bottled water market.

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Lack of Demand Causes Coca-Cola Soft Drinks Plants to Shut Down in India

Even as summer is round the corner, Coca Cola India has been forced to shut multiple plants in India due to inadequate demand for its carbonated beverages. Growing awareness about the harmful effects of soft drinks has been responsible for the huge losses in the soft drinks market in the recent past and the soft drinks market will continue to be hampered by the rising demand for bottled water in the coming years.

Availability of Low-cost Tap Water may hinder the Market for Bottled Water

While the increasing disposable income in Western countries drives the sales of bottled water, the same cannot be said for countries in developing regions of the world, where the consumption of low-cost tap water prevails despite the concerns regarding its portability. The demand for bottled water thus varies from region to region, depending on the level of awareness about the consequences of unhygienic water consumption, and the spending power of people residing in that region.