Sparkling Water Market Size

Sparkling Water Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market for sparkling water is expected to grow rapidly, with a current market size of $ 37.24 billion in 2024, which is projected to increase to $ 75.49 billion in 2032. This impressive growth rate reflects a CAGR of 12.5 % over the forecast period. The growing preference for healthier beverages, along with the growing awareness of the benefits of hydration, has pushed the consumption of sparkling water as a refreshing alternative to sugary soft drinks and other carbonated beverages. There are many factors contributing to this strong growth in the sparkling water market. In particular, the growing health consciousness of consumers, especially among millennials and Generation Z, has led to a greater demand for low-calorie, naturally flavored beverages. Product innovations such as enhanced sparkling water with vitamins, minerals and natural flavors are also attracting a wider audience. Consequently, the main market players, such as Nestlé, Coca-Cola and PepsiCo, are investing heavily in new product launches and strategic alliances to capture this market. The acquisition of Topo Chico by Coca-Cola and the launch of Bubly by PepsiCo are two examples of this growing competition in this rapidly evolving sector.

Regional Market Size

Regional Deep Dive

The sparkling water market is growing rapidly in many regions, driven by changing preferences for healthier drinks and the growing popularity of flavoured sparkling waters. In North America, the market is characterized by a strong demand for premium and organic products. In Europe, a wide variety of local brands and flavours are in the spotlight. The Asia-Pacific region is growing rapidly due to urbanization and increasing prosperity, while the Middle East and Africa are gradually adopting sparkling water as a lifestyle choice. Latin America, with its unique affinity for flavoured drinks, is also growing rapidly, influenced by local and international brands.

North America

• The new health-conscious consumers have prompted a sharp rise in the demand for low-calorie, naturally flavoured sparkling waters. La Croix and Spindrift have achieved a considerable degree of success.
• In order to meet the growing demand for convenient and attractive packaging, the industry is investing in new materials such as eco-materials and single-serving packages.
• The new labeling requirements of the Food and Drug Administration (FDA) will lead to a higher transparency in the ingredients of products, which will in turn lead to more trust from consumers and thus drive market growth.

Europe

• In Europe, a tendency towards premiumization has been noted, with consumers being willing to pay a higher price for artisanal and organically manufactured brands of sparkling water, such as San Pellegrino and Perrier.
• With the increase in the number of people who are interested in the environment, the trend towards greater responsibility is growing. Some companies, such as Nestlé Waters, have undertaken to reduce the amount of plastic they use and to increase the use of recycled materials in their packaging.
• The European framework of food and drink labelling is in a process of development. This is affecting the way sparkling water brands communicate the health benefits and the ingredients to consumers.

Asia-Pacific

• Increasingly, the population of China and India, growing more and more urbanized, is also in the habit of drinking a lot of sparkling water. This is where the Himalaya Sparkling Water Company is coming in.
• Brands are focusing on the younger generations, using various innovative marketing strategies, such as fitness influencers and health-related campaigns, to attract younger consumers in the region.
• The government’s policy of promoting a healthier lifestyle is fostering the consumption of mineral water as a substitute for sugary drinks, which will stimulate market growth.

MEA

• The sparkling water industry is growing rapidly in the Middle East, especially in the United Arab Emirates. Brands like Aqua Panna are capitalizing on the growing trend towards health and well-being.
• The dietary reforms which are being carried out are supported by the governments which are promoting the reduction of sugar consumption and the choice of healthier beverages.
• Brands are making their way into the market with a range of flavoured waters that cater for local tastes, such as rose and mint.

Latin America

• Latin America is a country where the preference for flavored beverages is a cultural phenomenon. Antarctica Guaraná has introduced new flavors to meet local tastes.
• International brands are establishing themselves in the region and are adjusting their products to local tastes and dietary requirements.
• In the countries of South America, the economy is growing and the middle class is expanding, which is pushing the premium sparkling water market in these countries.

Did You Know?

“Sparkling water consumption has grown by more than 60 percent in the last five years, making it one of the fastest growing beverage categories in the world.” — International Bottled Water Association (IBWA)

Segmental Market Size

Sparkling water is experiencing strong growth. It is driven by the growing demand for healthier beverages. It is the preferred alternative to sugary soft drinks. The demand for natural drinks is rising, and the premiumization trend is gaining ground. High-quality sparkling water brands like La Croix and Perrier are gaining in popularity.

In the United States the market for effervescent water is now in its mature stage of development. Major players like Coca-Cola and PepsiCo are expanding their product portfolios in this field through acquisitions and new product launches. Their main applications are hydration, well-being, and cocktails. Both health-conscious consumers and social drinkers are thus targeted. Meanwhile, the adoption of eco-friendly packaging and the promotion of water conservation are boosting the market’s growth. The development of carbonation and flavoring techniques are shaping product offerings and enhancing the consumers’ experience.

Future Outlook

From 2024 to 2032, the sparkling water market is expected to grow significantly. Its market value is expected to rise from $37.24 billion to $ 75.49 billion, at a robust CAGR of 12.5 percent. The demand for healthier drinks is increasing, and consumers are increasingly considering sparkling water as a refreshing alternative to sugary sodas and other high-calorie drinks. By 2032, it is expected that the market share of sparkling water in the bottled water market will be about 25 percent, indicating a substantial increase in penetration as health-conscious consumers continue to place a high priority on hydration without added sugars or calories.

The sparkling water market will be further shaped by the technological developments and policy drivers. The innovations in the flavouring techniques and the carbonation processes are expected to enhance the product offerings, catering to the varied tastes and preferences of the consumers. In addition, the green initiatives, such as the eco-friendly packaging and the carbon neutrality, are expected to create brand loyalty and augment the market share. The rising popularity of the infused sparkling waters, which are fortified with vitamins, minerals, and adaptogens, is expected to create a positive impact on the market growth. The companies that adopt these trends and implement the sustainable practices will be well positioned to capitalize on the growing demand for sparkling water.