The global enhanced water market is segmented based on end-users, distribution channel and enhanced water type. End-users (residential and commercial), distribution channel (offline and online), enhanced water (alkaline enhanced water, nutrient enhanced water, electrolyte-enhanced water and oxygenated enhanced waters) are the major focus areas considered while analyzing and defining the consumption of enhanced water at global scale. In 2018, the commercial end-users dominated the global enhanced water market with a maximum share in terms of revenue. Based on estimation, the segment occupied 69.1% share. While increasing disposable income, as well as rapid urbanization along with changing lifestyles, rising education and health awareness among the consumers, have catalyzed the demand for enhanced among the residential households as well as other public users who prefer to purchase the drinking water from departmental stores and retail stores. These factors would help the segment to grow at a faster rate of 8.19% during the forecast period (2019-2025). However, the strengthening number of business houses and corporate houses has also contributed towards rapid rise in sales of enhanced water in recent years.
Water plays a crucial role in nourishment as it provides nutritional elements including minerals and vitamins to the human cells. It also helps in regulating body temperature, enhancing absorption in the gastrointestinal tract and eliminating waste from the body. Enhanced Water business has been booming owing to several factors apart from convenience and health concerns. It has become one of the prominent beverage products while carbonated soft drink sales have witnessed a considerable decline. Enhanced water is a safe, healthy and convenient packaged food product that is now being widely consumed by large number of people. It has been observed that enhanced water is rapidly growing with approximate 600 million households consuming enhanced packaged drinking water in 2018 accounting for more than 100 billion gallons (391 billion liters) of water per year or 1 million bottles per minute. Furthermore, enhanced water consumption is also expected to reach a volume of around 118 billion gallons by 2022. To add on to this, modern lifestyles and changing consumer behavior, as well as accelerating disposable income and the growing food and beverage services industry has led to positive user experience, which has tremendously flourished the market potential in recent years.
Moreover, growing concerns for health issues related to water-borne diseases coupled with reduction for intake sugar content has substantially catalyzed the market performance of enhanced water across the world in front of other carbonated drinks. A considerable rise in venture capitalist investments, government initiatives to achieve the goal of access to safe drinking water by 2030 along with surging number of social developmental projects undertaken by companies also proliferated the industry growth over recent years. However, overuse of plastics and water scarcity, tend to hinder the market growth.
Moreover, in 2018, the offline distribution channel held a prominent share of 81.9%, followed by an online distribution channel of enhanced water. The offline distribution channel market at global scale was evaluated at US$ 11,046.8 million in 2018 and is projected to witness astonishing CAGR of 7.61% during the forecast period accredited to surging investments and marketing and advertisement expenditures. In addition, online distribution channel held around 18% market share on account of online shopping portals displaying a rapid growth since the past few years owing to its advantages in terms of round the clock facilities, reduced dependency on store visits, saving commuting costs, expanding market area and decreasing overhead expenses. It has been estimated that more than 85% of the world’s online population has ordered the products via online shopping portals. Hence, the segment garnered revenue of US$ 2,434.0 million in 2018.
To conclude, enhanced water business has been growing at a very accelerating pace due to growing number of consumers preferring for healthy beverages. It has been observed that the market size as well as consumption rates are reaching all-time highs at global scale and do not show any signs of slow down. Based on water type, alkaline enhanced waters, nutrient enhanced waters, electrolyte-enhanced waters and oxygenated enhanced waters, nutrient enhanced waters occupied the maximum share, attributed to health benefits offered by respective enhanced water across the world. The segment registered the CAGR of 7.18% over the forecast period. Global Enhanced Water market-derived at US$ 13,480.9 million revenues in 2018 and is expected to fetch US$ 22 703.7 million by 2025 experiencing robust CAGR of 7.81% over the forecast period (2019-2025).
Also, for better understanding of enhanced water market, detailed analysis has been done for different regions along with their major countries including North America (US), Europe (UK, France, Spain, Germany, Italy), Asia Pacific (China, India, Australia and South Korea), and rest of the world. The rest of world includes regions such as Latin America and Middle East. Based on the estimation, North America dominated the global enhanced water market, accounting for revenue share of 35.8% in 2018. On account of majority of consumers now preferring enhanced water in comparison to other beverages and United States accounting for prime consumers of enhanced water and huge health awareness about the benefits of enhanced water has significantly fostered the regional market.
Numerous companies have earmarked their presence in the global enhanced water market that continue to focus on business expansions, product expansions, surging investments and collaborations, for instance, Danone SA, Coca Cola Company, Pepsi Co Inc, Nestle, Otsuka Pharmaceuticals Co Ltd, National Beverage Corp, Spadel, Bisleri International Pvt Ltd, Fiji Water Company, Voss Water to name a few. They continue to offer wide range of enhanced water variants that cater to consumer needs and specifications in various domains that further resulted in escalating demand for enhanced water.
Global enhanced water generated revenue of US$13,480.9 million in 2018. The sector is expected grow at a CAGR of 7.87% during the forecast period 2019-2025, to reach a market size of US$ 22,703.7 million by 2025. North America dominated the market with 35.8% share in 2018.