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Rising Health Awareness and Environmental Sustainability on a Winning Streak to Quench the Hydration needs of the Consumers
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The demand for bottled water has grown over the last decade due to the rising health awareness among consumers and the adoption of new packaging technologies. The latest trend in the market is bottled water with added minerals and vitamins, which are rapidly becoming an alternative to traditional soft drinks. The total global bottled water hydration market reached $150.36 billion in 2017 at an annual growth rate of 5.3%, and it is expected to touch $242.35 billion at a compound annual growth rate (CAGR) of 7.1%. By volume, the current consumption of bottled water stands at 204.54billion liters as of 2017 and is likely to reach 282.54 billion liters by 2018. The North American and European regions are expected to remain more or less stable during the forecast period. Europe and North America contributed $48.04 billion and $24.93 billion respectively as of 2017. Asia-Pacific is the largest market in terms of total consumption, accounting for 33% market share. It is also the fastest growing market, accounting for more than one-third of the market demand due to its large population, high demand, untapped market, favorable demography, and rapid urbanization. Latin America and the Middle East and Africa are likely to experience rapid growth during the forecast period due to their poor water infrastructure, and unsafe and unclean tap water. Still water accounts for 47.6% of the market, followed by sparkling water at 23.9%, flavored water at 9.6%, and functional water at 18.9%.In terms of pack size, up to 0.5 liters was responsible for 63.7% of the market while 1 liter to 3 liter and above 20 liters contributed 32.9% and 3.4%, respectively. Nearly 95.4% of bottled water and drinks are packaged in PET plastic bottles, while glass bottles accounted for 3.3%. Recent awareness about PET bottles harming the environment has led to the emergence of sustainable packaging solutions, which contributed to 1.3% of the market. These solutions will rapidly increase over the forecast period.The global bottled water hydration market is highly fragmented. Tier I participants will continue acquiring start-ups and regional players by launching new products and business models as the market grows. Under the top tier, the market is highly fragmented and will remain so in the foreseeable future, with many small and regional participants competing for market shares. Some of the key players in the current global bottled water market are Nestle Waters, Danone, PepsiCo, the Coco-Cola Company, Fiji Water, Hangzhou Wahaha Group Co Ltd, Bisleri International Pvt Ltd, and MaiDubai Water Company.
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