India Bottled Water Market: Cutting-Edge Innovations and Strategic Shifts in a Dynamic Industry

The India Bottled Water Market was valued at USD 3792.39 Million in 2023, and the total revenue is expected to grow at a CAGR of 13% from 2024 to 2030, reaching nearly USD 8922.00 Million by 2030.
India Bottled Water Market Overview
India Bottled water market is a symbol of a new lifestyle and health-consciousness rising in several States. While a substantial portion of the population struggles to get safe drinking water, a new generation, particularly in metropolitan areas, is becoming accustomed to paying high costs for bottled water. Over the last five years, the India bottled water market has grown by 40-45 percent. Higher disposable income, increasing taste for hygiene, improved price, easier availability of packaged drinking water, and a lack of safe drinking water are driving demand for bottled water. While India is among the top ten bottled water users in the world, its per capita bottled water consumption is estimated to be five liters per year, which is far lower than the global average of 24 liters. Bottled water is becoming one of India's fastest growing industries.

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COVID-19 Impact on India Bottled Water Market

The pandemic has delivered a significant hit to bottled water producers, who rely heavily on sales from workplaces, aeroplanes, and the HoReCa (hotels, restaurants, and catering) sector. Retail sales for the category have been terrible, despite the fact that tourism has just recently resumed. As a result, Indian bottled water producers are seeking for new methods to approach customers directly. The India Bottled Water Market was valued at USD 3792.39 Million in 2023, and it is estimated to reach USD 8922.00 Million by 2030, according to the Trade Promotion Council of India. However, because to the pandemic, this industry, 80 % of which is unorganized, face a de-growth of more than 30 %.

Bisleri, Aquafina, and Bailley are embracing the direct-to-consumer concept by developing their own online platforms or partnering with delivery applications. Bisleri, for example, has developed its own website and is now accepting orders for delivery via its customer service line. Bisleri International has delivery agreements with Zomato, Dunzo, Big Basket, and Amazon, and it has increased its physical presence in pharma and milk shops. Bailley, a subsidiary of Parle Agro, began supplying 20-liter jars via internet channels during the lockdown period and is now trying to "aggressively" expand.
India Bottled Water Market Dynamics
Factors increasing the growth of the market: The bottled water market in India is one of the country's fastest-growing industries, with projections indicating a billion-dollar business by the end of the decade if current growth trends persist. Several factors contribute to this rapid expansion, including rising disposable incomes, inadequate public water distribution systems and infrastructure, and the government's limited focus on managing the nation's water resources. However, like any thriving industry, the Indian bottled water sector faces challenges such as insufficient transportation infrastructure, low barriers to market entry, difficulties in brand differentiation, and occasional opposition from environmentalists and social activists concerned about the environmental impact of bottled water.

While India is rich in natural water resources, the combination of a growing population, escalating global warming concerns, and rapid industrialization, along with the lack of effective management of water supply systems, has led to increased water consumption, waste, and deterioration of water supply infrastructure. These factors have contributed to a growing water scarcity crisis. This scarcity, in turn, has created new opportunities for the bottled water industry in India, as consumers seek reliable alternatives to tap water.

Direct-to-Consumer Model in India Bottled Water Market: The pandemic has heightened consumers' desire to purchase bottled water directly from companies. OwO Technologies, which offers brands like Bailley, Bisleri, Aquafina, Kinley (from Coca-Cola), and Divya Jal (from Patanjali) via its app, aims to fulfill 500 orders daily in Gurugram and plans to expand to other parts of Delhi-NCR soon. Major brands such as Bisleri, Aquafina, and Bailley began delivering directly to residential areas starting in June 2020. OwO generates about 30% of its revenue from institutional sales, with the remainder coming from direct consumer sales. These partnerships give companies access to large multi-story residential complexes, an opportunity in a largely unorganized market where counterfeit bottled water has been a major issue. In this context, consumers are becoming more cautious than ever.

However, the direct-to-consumer approach presents significant challenges. The India bottled water market has relatively low profit margins (around 10%), compared to higher-margin categories like aerated beverages, which can reach up to 50%. Additionally, the logistics of direct delivery add further costs. As a result, sustaining this model post-pandemic may prove difficult unless companies pivot to highlight health benefits, such as added minerals or nutrients. Brands will need to find ways to attract customers to their websites and address the costs associated with last-mile delivery. Industry analysts suggest that this shift won’t fully offset the loss of revenue from traditional sales. Furthermore, since bottled water purchases are often impulse-driven, the direct-to-consumer model is likely to be more effective in the short term. If people are staying home, they are less likely to make bottled water purchases.

Challenges for companies and regulators: The biggest challenge for bottled water companies in India is counterfeiting, especially with 1-liter bottles. Compared to other products, counterfeiting bottled water is relatively easy. Many Indian consumers assume that all bottled water is safe; however, this may not be true when it comes to counterfeit products. Some counterfeit products are created by refilling discarded PET water bottles with water and selling them in high-traffic areas such as railway stations, bus stops, and metro stations. The bottles used for this purpose are often discarded in trash bins, along roadways, and at dumping sites.

A significant challenge in the India bottled water industry stems from the unorganized sector, which dominates production in rural, semi-urban, and metropolitan areas. Since manufacturing bottled water does not require large-scale machinery, counterfeiters are able to produce bottled water in numerous locations, often with a single license or, in some cases, without any license at all. The primary issues in this unorganized sector are related to product quality and safety. In 2017-18, food safety authorities conducted tests on 1,123 samples nationwide, with 496 of them failing to meet the quality standards set by India’s leading food regulator, the FSSAI. While the bottled water market in India is regulated, requiring all bottling operations to obtain both BIS certification and an FSSAI license, illegal manufacturing units persist across the country, posing significant health risks to consumers.

International Players to takeover Indian brands: Parle was the first Indian business to join the India bottled water industry, releasing Bisleri 25 years ago. However, with the arrival of prominent global companies such as Coca-Cola, Pepsi, Nestle, and a noticeable presence of national players such as Mount Everest, Manikchand, and Kingfisher, that image is deteriorating. Their distribution network combined with a competent marketing technique resulted in them grabbing the majority of the India bottled water industry, however they face stiff competition from regional businesses as well. The infrastructure and distribution network needs are the same for all sorts of players, whether they operate at the national or regional levels; nonetheless, they may differentiate themselves solely in terms of marketing and branding.

Almost all of the major international and national brand water bottles have made their way into the Indian bottled water market and can be found anywhere from malls to railway stations to bus stations to multiplexes to grocery shops and even panwala's shop. It has permeated so thoroughly into the market that it is now fairly ordinary to consume bottled water, although just a few years ago, it was regarded the choice and trend of the wealthy. Because of the corporations' aggressive marketing methods and low prices. According to certain research, truck drivers on highways account for a sizable proportion of bottled water users. Penetration in rural areas is another significant factor that is likely to play a key role in the development of the bottled water trade.



India Bottled Water Market: Alkaline Water Vs. Regular Bottle Water Comparison Analysis



Factors
Alkaline Water
Regular Bottled Water


pH Level
Higher pH (typically 8-9) for claimed health benefits
Neutral pH (around 7)


Taste
Slightly smoother, often marketed as more refreshing
Standard taste, may vary depending on source


Health Claims
Believed to help balance body acidity, enhance hydration, and provide antioxidants
Provides hydration but typically lacks specific health claims


Mineral Content
May contain added minerals (e.g., calcium, potassium)
Generally, contains basic minerals, varies by source


Production Process
May involve ionization or natural sources
Typically involves filtration, purification, and bottling


Cost
Higher price point due to added benefits and processing
Generally, more affordable


Environmental Impact
High, but some brands offer recyclable or eco-friendly packaging
High, though many offer recyclable packaging options


Market Demand
Increasing, especially in health-conscious demographics
Steady demand among all demographics


Consumer Preference
Preferred by health enthusiasts and those interested in alternative wellness
General consumer preference for affordable hydration


Availability
Growing availability, though still less common than regular
Widely available in retail, vending, and wholesale markets


Top Manufacturers
Essentia, Core Hydrations, Perfect Hydrations
Nestlé, Dasani, Aquafina, Evian, Poland Spring


Major Suppliers
Specialized suppliers focusing on premium and health-oriented products
Broad range of suppliers across mass-market distribution


Distribution Channels
Primarily health food stores, premium grocery stores, and online
Supermarkets, convenience stores, vending machines, online


Target Audience
Health-conscious consumers, athletes, wellness seekers
General consumers, price-sensitive buyers


Growth Drivers
Health awareness, demand for wellness products, premiumization
High demand for convenience, widespread availability


Market Challenges
Higher cost, scientific debate on health benefits
Environmental concerns over plastic waste


Regional Demand Trends
High demand in North America, parts of Europe, and Asia
Global demand across all regions



India Bottled Water Market Segment Analysis
Based on product, the India bottled water market is segmented into flavoured water, purified water, mineral water, sparkling water, and others. The purified segment held the largest market share of more than 40.0% in 2023 and is estimated to maintain its dominance over the forecast period. Diseases like dysentery, diarrhoea, and typhoid are frequently caused by contaminated particles are present in the flowing water, due to which consumers are searching for water-saving measures, and businesses are tackling the same challenges. Aquafina, for example, provides purified drinking alternatives that are filtered and sodium-free. The demand for mineral water in India is expected to be 500 million litres of pure water bottles each year, with the market expected to increase at a pace of 25-35 percent per year. The domestic mineral water market is mostly driven by the tourist industry. Furthermore, demand may come from the institutional sector as well as the upper income bracket group in cities.

From 2024 to 2030, the sparkling sector is expected to increase at the fastest pace of 7.4 percent. The industry is being driven by consumers' increased desire for sparkling water as a healthier alternative to sugary drinks such as cola in order to reduce sugar content levels. Excess sugar in the body leads to weight gain/obesity, type 2 diabetes, and other health problems. According to Bevnet Magazine, the November-December 2020 sparkling category has nearly doubled from the previous year. This is due to the product's health benefits, as well as a rising trend in customer preference toward healthy drinks. This is expected to be the segment's primary driver.

Flavored bottled water has lately gained popularity in India. Flavored water containing fruit essence and artificial sweeteners, such as soda, cola, juice, and other sweetened beverages, are frequently used as a substitute for plain bottled water. Flavored bottled water is occasionally preferred above regular bottled water by consumers. This transition is creating an opportunity for bottled water firms in India to increase their product portfolio for the India Bottled Water Market.

Based on distribution channel, the India Bottled Water Market is segmented into off-trade and on-trade. The off-trade segment held the largest revenue share of 85.6% in 2023. The segment includes all retail outlets such as hypermarkets, supermarkets, convenience stores, mini markets, and traditional stores. The rising ease of swiftly selecting the desired brand of bottled water with a certain combination of minerals driving India Bottled Water Market growth through the forecast period. Aquafina, Bisleri, Himalayan, Bailley, and Kinley are among the brands carried in the off-trade segment.

Restaurants, cafés, clubs, hotels, and lounges are examples of establishments in this category. Growing health and hygiene concerns, along with an increase in COVID-19 instances, have driven consumers to purchase bottled water instead of the usual alternatives at such establishments. Furthermore, the establishment of clubs, bars, and outdoor activities at resorts and hotels is expected to promote bottled water consumption through this channel. Despite the presence of a huge number of small and local manufacturers, this industry is controlled by multinational corporations such as Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Nestle, Mount Everest, Kingfisher, and Manikchand, among others. While Bisleri mineral water remains the leading brand among national players, with a 40.02 percent market, Coca-Kinley Cola's comes in second with a 28.3 percent share, followed by Aquafina at 19.1 percent. According to the article, other minor brands include Parle Agro's Bailey, Kingfisher, and McDowell's No. 1. These companies are the trend setters in the marketing of bottled drinking water. PepsiCo has announced plans to quadruple its investment in its Indian beverage division. The company's investments in Indian beverages possibly reach USD 220 million. Mount Everest Mineral Water, a Tata subsidiary, is also introduce a bottled water brand for the general market. Currently, Mount Everest distributes exclusively premium drinking water under the Himalayan brand.
India Bottled Water Market Regional Analysis
Bottled water use in India is connected to the amount of affluence in various regions. The western portion of India accounts for around 40% of the market, with over 300 indigenous and private enterprises manufacturing water pouches and bottles in the state of Gujarat. However, the bottling operations are concentrated in the Southern India. More than half of all bottling factories are located in four southern states. Citizens' future is very bleak in the coming years unless water management practises are changed, and if no drastic steps are taken in this direction, then a severe water crisis possibly occur within the next two decades, leaving no money supply to build new infrastructure and also not being able to meet the increasing demand for water due to India's population explosion. Mumbai, a metropolitan city in India had the highest bottled water consumption volume in India Bottled Water Market in 2023. The packaged bottled water consumption in the city stood at 1,190 million liters. This was followed by the city of Delhi with consumption volume of 1,036 million liters.



According to a draught World Bank assessment, India's demand for water would exceed all sources of supply in the future unless the country's management policies are adjusted. India can still only store a little amount of its erratic rains. Whereas arid-rich nations (such as the United States and Australia) have built over 5,000 cubic metres of water storage per capita, and China can store over 1,000 cubic metres per capita, India's dams can only store 200 cubic metres per person. Furthermore, India can only retain roughly 30 days of rainfall, compared to 900 days in major river basins in wealthy nations' dry areas.
India Bottled Water Market Scope: Inquire before buying



India Bottled Water Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
USD 3792.39 Mn.


Forecast Period 2024 to 2030 CAGR:
13 %
Market Size in 2030:
USD 8922.00 Mn.


 Segments Covered:
by Product
Flavoured Water
Purified Water
Mineral Water
Sparkling Water


by Packaging Type
PET (Polyethylene Terephthalate) Bottles
Water Cans
Others


by Distribution Channel
Supermarkets and Hypermarkets
Specialty Stores
Online
Others



India Bottled Water Market, by Region
• North India
• South India
• East India
• West India
India Bottled Water Market, Key Players
1. Bisleri
2. Himalayan
3. Bailley, Parle Agro
4. Pepsi’s Aquafina
5. Coca-Cola’s Kinley
6. Coca-Cola India
7. PepsiCo India
8. Dharibal Group
9. Narang Beverages
10. Aquasure
11. Kingfisher
12. Qua, Narang Group
13. Oxyrich, Manikchand
14. Rail Neer, IRCTC
15. Tata Water Plus
16. Pure Life, Nestle
17. McDowell's No. 1

Frequently Asked Questions:

1] What segments are covered in the India Bottled Water Market report?
Ans. The segments covered in the India Bottled Water Market report are based on Product and Distribution Channel.

2] What is the market size of the India Bottled Water Market by 2030?
Ans. The market size of the India Bottled Water Market by 2030 is expected to reach USD 8922.00 Mn.

3] What is the forecast period for the India Bottled Water Market?
Ans. The forecast period for the India Bottled Water Market is 2024-2030.

4] What was the market size of the India Bottled Water Market in 2023?
Ans. The market size of the India Bottled Water Market in 2023 was valued at USD 3792.39 Mn.