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"Meeting dynamic demands for hydration solutions while keeping health and safety a constant should be a package deal within packaged water."
Kelsey Olsen - Food & Drink Analyst
8 in 10 consumers are engaged in the packaged water space, and while tap water is the most common water source, unflavored bottled water is not far behind. Bottled water varieties hold perceptions of health and safety when compared to tap water. However, comparably smaller categories like sparkling and flavored waters saw greater growth in 2024 driven by hybrid lifestyles and younger generations’ draw to variety.
The greater beverage landscape is undeniably dynamic as only 20% of US consumers reported not making any changes to beverage habits compared to a year ago, with hydration goals, nutritional preferences and budgetary constraints contributing. Sparkling and flavored water are unlocking diversified occasions (eg a pick-me-up, an alcohol alternative), while still and tap water hold steady as a thirst quencher during hot weather. In other words, the opportunities for products to fulfill dynamic preferences and priorities will likely keep growing.
One thing remains crystal clear within the beverage landscape: hydration is in the spotlight. From increased focuses on hydration, to boosted hydration formulas leading innovation interests, packaged water can continue to support consumers’ hydration needs. Waters’ identity as the healthiest beverage is strong differentiator within this hydration space, yet there’s still room to elevate health perceptions while growing trust with transparency and an attention to packaging.
The packaged water industry is segmented as follows:
Report segmentation excludes the following:
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