Bottled Water in India

Euromonitor International
April 2024
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2023 DEVELOPMENTS ............................................................................................................... 1
Bottled water grows amid india’s water scarcity and health concerns, but not without its own
set of challenges ....................................................................................................................... 1
Due to heightened demand, bottled water players focus on last mile delivery .......................... 1
Players launch products with a wide range of attributes to target health-conscious and affluent
consumers ................................................................................................................................ 2
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Health awareness will continue to drive growth of bottled water over the forecast period ........ 2
Still bottled water players unable to make pricing adjustments due to regional and counterfeit
products .................................................................................................................................... 2
State governments actively work to reduce pollution caused by single-use plastics, particularly
smaller pack sizes .................................................................................................................... 3
CATEGORY DATA ....................................................................................................................... 3
Table 1 Off-trade Sales of Bottled Water by Category: Volume 2018-2023 .............. 3
Table 2 Off-trade Sales of Bottled Water by Category: Value 2018-2023 ................. 3
Table 3 Off-trade Sales of Bottled Water by Category: % Volume Growth
2018-2023 .................................................................................................... 3
Table 4 Off-trade Sales of Bottled Water by Category: % Value Growth 2018-
2023 ............................................................................................................. 4
Table 5 NBO Company Shares of Off-trade Bottled Water: % Volume 2019-
2023 ............................................................................................................. 4
Table 6 LBN Brand Shares of Off-trade Bottled Water: % Volume 2020-2023 ......... 4
Table 7 NBO Company Shares of Off-trade Bottled Water: % Value 2019-
2023 ............................................................................................................. 5
Table 8 LBN Brand Shares of Off-trade Bottled Water: % Value 2020-2023 ............ 5
Table 9 Forecast Off-trade Sales of Bottled Water by Category: Volume 2023-
2028 ............................................................................................................. 6
Table 10 Forecast Off-trade Sales of Bottled Water by Category: Value 2023-
2028 ............................................................................................................. 6
Table 11 Forecast Off-trade Sales of Bottled Water by Category: % Volume
Growth 2023-2028 ....................................................................................... 6
Table 12 Forecast Off-trade Sales of Bottled Water by Category: % Value
Growth 2023-2028 ....................................................................................... 7

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BOTTLED WATER IN INDIA

KEY DATA FINDINGS
▪ Off-trade volume sales grow by 14% in 2023 to 12,644 million litres
▪ Still bottled water is the best performing category in 2023, with off-trade volume sales
increasing by 14% to 12,420 million litres
▪ PepsiCo India Holdings Pvt Ltd is the leading player in 2023, with an off-trade volume share
of 12%
▪ Off-trade volume sales are set to increase at a CAGR of 16% over the forecast period to
26,040 million litres

2023 DEVELOPMENTS

Bottled water grows amid india’s water scarcity and health concerns, but
not without its own set of challenges
The ongoing demand for bottled water in India can be attributed primarily to two factors: the
scarcity of clean drinking water and rising health concerns. UNICEF reports that less than 50%
of the Indian population has access to clean drinking water, highlighting the urgent need for
alternative solutions. In addition, chemical contamination, including substances such as fluoride
and arsenic, poses a significant threat to the local water supply, affecting nearly two million
households. Over the coming decades, consumption of bottled water is expected to be
predominantly concentrated in urban areas. This demographic shift presents abundant
opportunities for bottled water players.
However, bottled water also has its own set of challenges. Most prominently, depleting
groundwater levels, as manufacturers heavily rely on drilling and consuming groundwater
resources, thereby exacerbating the water supply situation. Furthermore, over 60% of districts in
the country are grappling with water depletion, intensifying the water scarcity issue. Metropolitan
areas are particularly vulnerable, as high rural-to-urban migration strains their already stressed
water resources. Another major problem is plastic, the most commonly used type of packaging
for bottled water, which brings with it environmental issues as there are doubts about
manufacturers’ recycling processes.

Due to heightened demand, bottled water players focus on last mile

delivery
Major international and national brands of bottled water have permeated every corner of the
Indian market, from shopping centres to railway stations, bus stops, multiplexes, Kirana stores,
and even roadside paan shops. The pandemic triggered a significant shift in consumer
behaviour, particularly with the implementation of the direct-to-consumer (D2C) model for a
product category traditionally bought from retail offline. Brands such as Bisleri, Aquafina, and
Bailley have eagerly adopted the direct-to-consumer model, leveraged their online platforms or
partnered with delivery apps.
Quick-commerce apps such as Blinkit, Instamart, Dunzo, Big Basket, and Amazon have
played a pivotal role in ensuring bottled water is readily available to urban consumers at their
doorsteps. Aside from smaller pack sizes, quick-commerce platforms also provide 5-litre and 10-
litre jars, which are becoming increasingly popular due to their affordability.

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Players launch products with a wide range of attributes to target health-

conscious and affluent consumers
Rapid urbanisation and growing affluence have spurred a craving for top-tier bottled water
options. In India, consumers now have many choices, including Vedica, Evocus, Qua, Evian,
and San Pellegrino, each with its distinct positioning. These brands boast diverse attributes
ranging from sodium-free and natural minerals to spring water and even containing elements
such as vanadium. The emergence of COVID-19 intensified the focus on health, further fuelling
the demand for high-quality bottled water.
In response to this surge in demand, several established players introduced new offerings in
2023; Clear was unveiled NUbyClear, a natural mineral water brand, while leading brand,
Bisleri, expanded its premium portfolio with Vedica Himalayan Sparkling Water, extending its
product line.

PROSPECTS AND OPPORTUNITIES

Health awareness will continue to drive growth of bottled water over the
forecast period
The demand for bottled water will continue to rise in the foreseeable future, as health and
hygiene remain essential in consumers' priorities. The pandemic has further heightened health
awareness among individuals, driving them to adopt healthier lifestyles. In light of the
established correlation between obesity and the severity of symptoms when contracting COVID-
19, an increasing number of consumers are actively seeking ways to maintain a healthy weight.
This shift includes a preference for consuming reduced- or zero-sugar soft drinks. According
to the Indian Journal of Endocrinology and Metabolism, the prevalence of childhood obesity in
India ranges from 5% to 9%. This alarming statistic offers a significant opportunity for the
marketing of low-calorie flavoured bottled water as well as natural, spring, purified and functional
bottled water. These products are perceived as superior alternatives to juice and carbonates
high in sugar. Consumers are increasingly inclined to choose options offering hydration, taste
and health benefits, but with no/low sugar content. Bottled water players that can cater for these
evolving consumer preferences will be well-placed to tap into the considerable potential within
the local market.

Still bottled water players unable to make pricing adjustments due to

regional and counterfeit products
For still bottled water players, it is difficult to periodically adjust their product prices to reflect
inflationary pressure as water is seen as a commodity, and there is hardly any differentiation
within the category. In addition, regional bottled water players compete on price, so if the
leading brands increase their prices, they risk losing sales share. Bottled water’s unit prices are
therefore not expected to change substantially over the forecast period. Players in this space
will look at other ways of improving margins, such as optimising their operational costs. They will
invest in technology and equipment upgrades so that they can enhance their operational
efficiency and reduce costs. Building solid relationships with suppliers and negotiating
favourable terms and contracts can also help mitigate the impact of inflation.
Counterfeit or illegal water bottling plants continue to challenge the legal industry. Some
individuals sell bottled water using fake brand names or loose copies in India. In these cases,
they fill bottles with tap water or water from borewells and sell them to consumers. There has
also been a rise in illegal bottling plants that tap into groundwater sources without acquiring the

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proper licences or no objection certificates (NOCs). These products are priced lower than
legitimate products and are therefore attractive to price-sensitive consumers.

State governments actively work to reduce pollution caused by single-

use plastics, particularly smaller pack sizes
In India, government bodies are increasingly aware of the harmful effects of single-use
plastics on the environment. In 2023, Assam State Government, through the Assam
Environment and Forest Department, prohibited the use of plastic bottles with a capacity of less
than one litre, particularly Polyethylene terephthalate (PET) bottles used for bottled water,
aiming to mitigate the environmental impact of smaller plastic SKUs. Additionally, the Health
Department of Karnataka mandated water dispensing systems for single-use bottles during
government events to reduce plastic waste.
Similarly, beginning in 2022, the Government of Sikkim banned bottled water usage and
tourist imports to preserve its natural resources and combat plastic pollution. This decision,
prompted by the state's abundant high-quality drinking water sources and environmental
concerns, initially targeted Lachen and later expanded statewide, aligning with broader
governmental efforts to address plastic pollution. As smaller SKUs are most popular due to their
portability and affordability, these bans could potentially impede the category's growth.

CATEGORY DATA
Table 1 Off-trade Sales of Bottled Water by Category: Volume 2018-2023

million litres
2018 2019 2020 2021 2022 2023

Bottled Water 8,305.9 9,882.9 8,876.4 9,690.2 11,112.6 12,643.5

Carbonated Bottled Water 210.2 215.9 200.3 211.1 216.6 223.5
Flavoured Bottled Water - - - - - -
Functional Bottled Water - - - - - -
Still Bottled Water 8,095.7 9,667.0 8,676.1 9,479.1 10,895.9 12,420.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 2 Off-trade Sales of Bottled Water by Category: Value 2018-2023

INR million
2018 2019 2020 2021 2022 2023

Bottled Water 114,809.3 144,949.6 140,093.1 165,606.6 207,726.0 256,659.2

Carbonated Bottled Water 5,287.7 5,556.3 5,298.6 5,768.2 6,181.7 6,602.7
Flavoured Bottled Water - - - - - -
Functional Bottled Water - - - - - -
Still Bottled Water 109,521.6 139,393.3 134,794.4 159,838.3 201,544.3 250,056.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 3 Off-trade Sales of Bottled Water by Category: % Volume Growth 2018-2023

% volume growth

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2022/23 2018-23 CAGR 2018/23 Total

Bottled Water 13.8 8.8 52.2

Carbonated Bottled Water 3.2 1.2 6.3
Flavoured Bottled Water - - -
Functional Bottled Water - - -
Still Bottled Water 14.0 8.9 53.4
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 4 Off-trade Sales of Bottled Water by Category: % Value Growth 2018-2023

% current value growth

2022/23 2018-23 CAGR 2018/23 Total

Bottled Water 23.6 17.5 123.6

Carbonated Bottled Water 6.8 4.5 24.9
Flavoured Bottled Water - - -
Functional Bottled Water - - -
Still Bottled Water 24.1 18.0 128.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 5 NBO Company Shares of Off-trade Bottled Water: % Volume 2019-2023

% off-trade volume
Company 2019 2020 2021 2022 2023

PepsiCo India Holdings 8.1 11.0 10.8 12.2 11.9

Pvt Ltd
Parle Bisleri Ltd 10.4 14.5 13.0 12.9 11.8
Coca-Cola India Pvt Ltd 11.1 15.1 11.1 12.0 11.5
Dhariwal Industries Ltd 3.0 4.1 4.0 4.0 3.9
UB Group 1.5 2.1 1.9 2.0 1.9
Parle Agro Pvt Ltd 0.0 0.0 0.0 0.2 0.2
Mount Everest Mineral 0.1 0.1 0.1 0.0 0.1
Water Ltd
Dharmapal Satyapal Ltd 0.0 0.0 0.0 0.0 0.0
Others 65.8 53.1 59.1 56.7 58.7
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 6 LBN Brand Shares of Off-trade Bottled Water: % Volume 2020-2023

% off-trade volume
Brand (GBO) Company (NBO) 2020 2021 2022 2023

Bisleri Parle Bisleri Ltd 14.5 13.0 12.9 11.8

Kinley (Coca-Cola Co, Coca-Cola India Pvt Ltd 15.1 11.1 12.0 11.5
The)
Aquafina (PepsiCo Inc) PepsiCo India Holdings 10.2 10.0 11.5 11.3
Pvt Ltd
Oxyrich (Manikchand Dhariwal Industries Ltd 4.1 4.0 4.0 3.9
Group)

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Kingfisher (Heineken UB Group - 1.9 2.0 1.9

NV)
Evervess (PepsiCo Inc) PepsiCo India Holdings 0.7 0.7 0.6 0.5
Pvt Ltd
Bailley Parle Agro Pvt Ltd 0.0 0.0 0.2 0.2
Duke's (PepsiCo Inc) PepsiCo India Holdings 0.2 0.1 0.1 0.1
Pvt Ltd
Himalayan (Tata Mount Everest Mineral 0.1 0.1 0.0 0.1
Consumer Products Ltd) Water Ltd
Catch Natural Mineral Dharmapal Satyapal Ltd 0.0 0.0 0.0 0.0
Water
Kingfisher UB Group 2.1 - - -
Himalayan (Tata Mount Everest Mineral - - - -
Global Beverages Ltd) Water Ltd
Others Others 53.1 59.1 56.7 58.7
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 7 NBO Company Shares of Off-trade Bottled Water: % Value 2019-2023

% off-trade value rsp

Company 2019 2020 2021 2022 2023

Coca-Cola India Pvt Ltd 9.1 12.4 10.4 11.1 10.5

Parle Bisleri Ltd 7.8 10.7 11.7 9.5 8.7
PepsiCo India Holdings 7.0 9.2 7.9 8.8 8.5
Pvt Ltd
Dhariwal Industries Ltd 2.2 2.9 2.8 2.6 2.3
UB Group 1.2 1.6 1.5 1.4 1.3
Mount Everest Mineral 0.2 0.2 0.2 0.2 0.1
Water Ltd
Dharmapal Satyapal Ltd 0.1 0.1 0.1 0.1 0.1
Parle Agro Pvt Ltd 0.0 0.0 0.0 0.0 0.0
Others 72.5 63.0 65.5 66.4 68.5
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 8 LBN Brand Shares of Off-trade Bottled Water: % Value 2020-2023

% off-trade value rsp

Brand (GBO) Company (NBO) 2020 2021 2022 2023

Kinley (Coca-Cola Co, Coca-Cola India Pvt Ltd 12.4 10.4 11.1 10.5
The)
Bisleri Parle Bisleri Ltd 10.7 11.7 9.5 8.7
Aquafina (PepsiCo Inc) PepsiCo India Holdings 7.8 6.7 7.7 7.6
Pvt Ltd
Oxyrich (Manikchand Dhariwal Industries Ltd 2.9 2.8 2.6 2.3
Group)
Kingfisher (Heineken UB Group - 1.5 1.4 1.3
NV)
Evervess (PepsiCo Inc) PepsiCo India Holdings 1.1 1.0 0.9 0.7
Pvt Ltd
Duke's (PepsiCo Inc) PepsiCo India Holdings 0.3 0.2 0.2 0.2
Pvt Ltd

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Himalayan (Tata Mount Everest Mineral 0.2 0.2 0.2 0.1

Consumer Products Ltd) Water Ltd
Catch Natural Mineral Dharmapal Satyapal Ltd 0.1 0.1 0.1 0.1
Water
Bailley Parle Agro Pvt Ltd 0.0 0.0 0.0 0.0
Kingfisher UB Group 1.6 - - -
Himalayan (Tata Mount Everest Mineral - - - -
Global Beverages Ltd) Water Ltd
Others Others 63.0 65.5 66.4 68.5
Total Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources

Table 9 Forecast Off-trade Sales of Bottled Water by Category: Volume 2023-2028

million litres
2023 2024 2025 2026 2027 2028

Bottled Water 12,643.5 14,611.5 16,846.8 19,496.1 22,551.7 26,040.4

Carbonated Bottled Water 223.5 232.2 241.9 252.8 264.1 275.9
Flavoured Bottled Water - - - - - -
Functional Bottled Water - - - - - -
Still Bottled Water 12,420.0 14,379.3 16,604.9 19,243.3 22,287.6 25,764.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Off-trade Sales of Bottled Water by Category: Value 2023-2028

INR million
2023 2024 2025 2026 2027 2028

Bottled Water 256,659.2 305,816.8 364,306.3 435,291.4 521,171.4 623,035.6

Carbonated Bottled Water 6,602.7 6,743.1 6,921.6 7,116.1 7,333.5 7,557.5
Flavoured Bottled Water - - - - - -
Functional Bottled Water - - - - - -
Still Bottled Water 250,056.5 299,073.7 357,384.7 428,175.4 513,837.9 615,478.0
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Off-trade Sales of Bottled Water by Category: % Volume Growth 2023-
2028

% volume growth
2023/24 2023-28 CAGR 2023/28 Total

Bottled Water 15.6 15.5 106.0

Carbonated Bottled Water 3.9 4.3 23.5
Flavoured Bottled Water - - -
Functional Bottled Water - - -
Still Bottled Water 15.8 15.7 107.4
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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Table 12 Forecast Off-trade Sales of Bottled Water by Category: % Value Growth 2023-
2028

% constant value growth

2023/2024 2023-28 CAGR 2023/28 Total

Bottled Water 19.2 19.4 142.7

Carbonated Bottled Water 2.1 2.7 14.5
Flavoured Bottled Water - - -
Functional Bottled Water - - -
Still Bottled Water 19.6 19.7 146.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

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