Soft Drinks Lose Their Fizz as Bottled Water Becomes America's Favorite Packaged Beverage

At a recent Euro 2020 press conference, famed Portuguese footballer Cristiano Ronaldo removed 2 Coca-Cola KO bottles from the table. He then held up his bottle of water and said ‘Agua’ — the Portuguese term for water — in an attempt to urge people to drink water instead. The result? A $4 billion drop in Coca-Cola’s market value.

The Portuguese legend’s action exemplifies the trend seen in the current health-conscious generation and the message is clear: Water is the new soda.

In the U.S., bottled water maintains a steady growth pace, ranking at the top of beverage sales by volume. According to the Beverage Marketing Corporation (BMC), Americans drink more bottled water than any other packaged beverage — outselling carbonated drinks by volume for the first time in 2016.

Bottled Water Industry

According to a recent report, the bottled water packaging market was valued at $181.7 billion in 2019 and is expected to reach $278.31 billion by 2025, at a compound annual growth rate (CAGR) of 6.86% over the forecast period 2020 to 2025.

But there’s more to bottled water than you might think.

Based on its origins, consistencies and compositions, bottled water can be of many types — mineral water, spring or glacier water, sparkling water, distilled water, flavored or infused water and alkaline water.

You also have premium water, which typically separates itself from the average bottle through precisely calibrated pH levels and minerality, purity and presentation.

The premium bottled water market makes up 6% of total global packaged water volume, according to food and beverage market research company Zenith Global.

Rise of Alkaline Water

From caffeinated snack bars to bulletproof coffee, consumers are constantly on the lookout for products that can give them an energy boost. In recent times, alkaline water brands, which often emphasize a product’s energizing nature, are tapping into this trend.

Alkaline water has a pH level of above 7 and up to 10, which is the sweet spot for the body when an individual eats a diet rich in acidic foods as it enables rehydration after exercise, allowing for lost minerals to be more rapidly replaced.

Alkaline water sales in recent years have been astounding.

In 2013 and 2018, the volume of alkaline water sales rose from 357 million liters to 635 million liters globally, representing a CAGR of 12.2%, according to Zenith Global. It predicts sales will continue to rise, outpacing the overall premium water market, to reach a value of $4.32 billion by the end of 2023.

One of the biggest names in the alkaline water market is the Alkaline Water Company WTER. Backed by basketball legend and business tycoon Shaquille O’Neal, the company’s main product, Alkaline88, is available in 75,000 stores in the U.S.

The product is known for its superior hydration with perfectly balanced 8.8 pH water. The water’s ingredient deck is simple, easy to understand and free of buffers. Alkaline88 ionized water contains just 2 pure ingredients that customers trust — water and pink Himalayan rock salt.

Future of Bottled Water

As consumers move farther away from sugary sodas, the future of bottled water looks promising.

For brands, there is a fountain of opportunity to create premium water that is tasty and healthy so that consumers have access to water of the highest quality. In keeping with the theme of a better future, brands will also focus on the shift from single-use plastic to eco-friendly packaging.

As for alkaline water, it offers an elevated proposition over and above plain bottled water. Brands may focus on meeting the demand of consumers who are motivated by the opportunity to further benefit their immediate and potentially longer-term health by consuming alkaline water.

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