Premium Bottled Water Market By Product (Spring Water, Mineral Water, Sparkling Water), By Sales Channel (Supermarkets/Hypermarkets, Specialty Stores, Online, and Others), By Region, By Competition Forecast & Opportunities 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 20.66 Billion
CAGR (2026-2031)	6.96%
Fastest Growing Segment	Online
Largest Market	Europe
Market Size (2031)	USD 30.94 Billion

Market Overview

The Global Premium Bottled Water Market will grow from USD 20.66 Billion in 2025 to USD 30.94 Billion by 2031 at a 6.96% CAGR. Premium bottled water is defined as water of high quality sourced from protected natural origins or treated via superior purification techniques and is typically retailed at a higher price than standard options. The expansion of this market is primarily driven by rising global health consciousness and a distinct consumer preference for natural hydration over sugary beverages. Furthermore, increasing disposable income enables buyers to prioritize products with perceived purity and functional advantages. According to the International Bottled Water Association, in 2024, bottled water retail sales in the United States totaled 50.6 billion dollars.

A significant challenge impeding the market expansion is the intensifying scrutiny regarding environmental sustainability and plastic waste. Regulatory bodies and environmentally aware consumers are increasingly demanding reductions in packaging waste which places pressure on manufacturers to adopt expensive circular economy practices. Failure to effectively address these environmental concerns could significantly constrain future growth and erode consumer trust in premium brands.

Key Market Drivers

Increasing Consumer Preference for Functional and Health-Oriented Hydration is significantly propelling the Global Premium Bottled Water Market. Modern consumers increasingly view water not merely as a thirst quencher but as a vehicle for nutritional enhancement, seeking formulations infused with vitamins, electrolytes, and immunity-boosting minerals. This shift allows manufacturers to position their products in the high-margin wellness category, distinguishing them from commoditized tap or spring water options. The commercial impact of this trend is evident in the performance of major industry players that have pivoted towards these value-added segments. According to Danone, July 2024, in the '2024 Interim Financial Report', sales of its functional water brand Mizone grew by approximately 10% in the first half of the year, outperforming the company's broader water portfolio.

Rising Demand for Ethically Sourced and Sustainable Packaging Solutions serves as a critical counterweight to environmental scrutiny while simultaneously driving premiumization. As regulatory pressure mounts against single-use plastics, discerning buyers are pivoting towards infinitely recyclable materials like aluminum and glass, associating these formats with superior quality and environmental responsibility. This preference translates directly into substantial revenue gains for brands prioritizing eco-friendly presentation over conventional plastic. According to Primo Water Corporation, November 2024, in the 'Third Quarter 2024 Results', revenue from its segment comprising the glass-bottled Mountain Valley Spring Water surged by 102.2% compared to the previous year. Highlighting the sector's robust investment potential, according to BevNET, in 2024, the sustainable canned water company Liquid Death closed a funding round that valued the business at 1.4 billion dollars.

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Key Market Challenges

Intensifying scrutiny regarding environmental sustainability and plastic waste constitutes a formidable barrier to the expansion of the premium bottled water sector. As regulatory frameworks tighten and consumer sentiment shifts toward ecological responsibility, manufacturers face mounting pressure to fund expensive circular economy infrastructure and source scarce recycled materials. This transition diverts critical capital away from market expansion efforts and erodes profit margins, as the cost of sustainable compliance is significantly higher than traditional production methods. Furthermore, the inability to verify sustainable practices creates a reputational risk that can alienate the environmentally conscious demographic, which is the core consumer base for premium hydration products.

The severity of this operational hurdle is underscored by recent industry performance metrics regarding waste recovery. According to the National Association for PET Container Resources, in 2024, the PET bottle recycling rate in the United States declined to 30.2 percent. This regression in recycling efficiency highlights a widening deficit between production volumes and waste recovery capabilities, validating the regulatory aggression that constrains the industry. Consequently, the persistent gap in the sustainability loop restricts the scalability of premium brands and hampers their ability to justify high price points to an increasingly skeptical market.

Key Market Trends

The Expansion of Direct-to-Consumer Subscription Models is reshaping distribution as manufacturers bypass traditional retail to secure recurring revenue streams. This trend is fueled by the demand for convenience and the heavy bulk nature of bottled water which makes home delivery particularly attractive to modern households. By offering subscription-based services, brands can cultivate deeper customer loyalty and ensure consistent volume sales, effectively shielding themselves from the volatility of retail shelf competition. The commercial viability of this channel is evident in recent corporate performance metrics. According to Primo Water Corporation, November 2024, in the 'Third Quarter 2024 Results', revenue from its Water Direct / Water Exchange segment increased by 8.0% compared to the prior year, highlighting the growing consumer reliance on direct-to-door hydration services.

Simultaneously, the Premiumization of Sparkling and Botanically Infused Variants is aggressively capturing market share from traditional carbonated soft drinks. Health-conscious buyers are increasingly seeking sophisticated, sugar-free alternatives that offer complex flavor profiles derived from real fruit and botanical extracts rather than artificial additives. This shift allows premium water brands to command higher price points by bridging the gap between basic hydration and an upscale beverage experience. This demand for high-quality flavored carbonation is generating substantial growth for category leaders that prioritize authentic ingredients. According to BevNET, January 2025, in the article 'Spindrift Agrees Sale to PE Firm Gryphon Investors', the premium sparkling water brand Spindrift saw its sales volume increase by 22% over the 52-week period ended December 28, 2024, underscoring the robust momentum of fruit-infused formulations.

Segmental Insights

The Online segment is currently recognized as the fastest-growing distribution channel in the Global Premium Bottled Water Market, primarily due to the rapid expansion of e-commerce infrastructure. This growth is driven by the significant convenience of home delivery, which eliminates the physical burden associated with transporting heavy bulk water purchases from traditional brick-and-mortar stores. Furthermore, online platforms offer consumers access to a diverse array of international and niche functional water brands that are often limited in physical retail outlets. The increasing popularity of direct-to-consumer subscription models also accelerates this trend by ensuring consistent product availability and automated replenishment.

Regional Insights

Europe leads the global premium bottled water market due to an established cultural preference for natural mineral water and a well-developed hospitality sector. The region benefits from strict European Union regulations, which mandate that natural mineral water must originate from protected underground sources and remain free from chemical processing. This rigorous regulatory framework guarantees product authenticity and fosters high consumer trust. Additionally, the widespread consumption of carbonated and still water in dining establishments supports consistent demand, solidifying the region's dominant market position.

Recent Developments

• In November 2024, One Rock Capital Partners announced the successful completion of the business combination between BlueTriton Brands and Primo Water Corporation. This all-stock transaction created a new entity named Primo Brands Corporation, establishing a prominent North American pure-play healthy hydration company. The merger brought together a diversified portfolio of iconic premium water brands and enhanced distribution capabilities across various channels. The combined company began trading on the New York Stock Exchange, with the former CEO of Primo Water appointed to lead the new organization, aiming to drive growth and operational efficiencies in the premium water sector.
• In November 2024, Evian unveiled a strategic collaboration with a renowned musician and his wellness brand to release a limited-edition water range. This partnership introduced glass bottles for both still and sparkling water variants, featuring a distinctive design and the slogan "This is the Fountain of Youth." The packaging incorporated connected technology that allowed consumers to access a digital wellness experience via QR codes. This launch marked the first time the company produced both still and sparkling iterations in glass formats simultaneously, reinforcing its positioning in the luxury hydration market through high-profile designer partnerships.
• In August 2024, Flow Beverage Corp. announced the launch of a new sparkling mineral spring water line housed in sustainable aluminum bottles. This product innovation debuted with unflavored options alongside organic flavors such as Blackberry + Hibiscus, Lemon + Ginger, and Cucumber + Mint. The launch highlighted the company’s commitment to environmental responsibility by utilizing packaging made from over 70% recycled aluminum, which requires significantly less energy to produce than traditional formats. The new line was designed to cater to the growing consumer demand for premium, functional, and eco-friendly hydration beverages.
• In April 2024, the premium water brand Smartwater introduced a new packaging format with the launch of 12-ounce aluminum cans. This strategic move included the release of its original vapor-distilled water and an alkaline variant with antioxidants in the new sleek design. The transition to aluminum packaging aimed to address shifting consumer trends toward sustainable and convenient hydration solutions for social occasions. The launch was supported by a marketing campaign emphasizing the modern aesthetic and functional benefits of the new canned format, marking a significant expansion of the brand's portfolio beyond traditional plastic bottles.

Key Market Players

• NEVAS GmbH
• Lofoten Arctic Water AS
• Beverly Hills Drink Company
• Uisge Source, Inc.
• Roiwater
• Bling H2O
• MINUS 181 GmbH
• BLVD Water
• Berg Water
• Alpine Glacier Water Inc.

By Product	By Sales Channel	By Region
Spring Water Mineral Water Sparkling Water	Supermarkets/Hypermarkets Specialty Stores Online Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Premium Bottled Water Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Premium Bottled Water Market, By Product:

• Spring Water
• Mineral Water
• Sparkling Water

• Premium Bottled Water Market, By Sales Channel:

• Supermarkets/Hypermarkets
• Specialty Stores
• Online
• Others

• Premium Bottled Water Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE