Sparkling Water Market Size, Share, Trends, Growth and Forecast 2032

Sparkling Water Industry Prospective:

The global sparkling water market size was worth around USD 37.5 billion in 2023 and is predicted to grow to around USD 108.2 billion by 2032 with a compound annual growth rate (CAGR) of roughly 12.5% between 2024 and 2032.

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Sparkling Water Market: Overview

Sparkling water contains dissolved carbon dioxide gas, either naturally occurring or purposefully added, giving it a frothy or effervescent quality. Local tastes and manufacturing techniques influence the term used as seltzer, soda water, or carbonated water. Sparkling water is popular as a refreshing drink. It is also a good replacement for sweet sodas. It acts as a mixer for drinks, including cocktails. The sparkling water industry is driven by increasing health and wellness trends, rising demand for flavored sparkling water, increasing disposable income, expanding distribution channels, and others.

Key Insights

• As per the analysis shared by our research analyst, the global sparkling water market is estimated to grow annually at a CAGR of around 12.5% over the forecast period (2024-2032).
• In terms of revenue, the global sparkling water market size was valued at around USD 37.5 billion in 2023 and is projected to reach USD 108.2 billion by 2032.
• The increasing health consciousness among consumers is expected to drive the sparkling water market over the forecast period.
• Based on product, the natural/mineral sparkling water segment is expected to dominate the sparkling water market over the forecast period.
• Based on distribution channel, the hypermarket & supermarket segment is expected to hold the largest market share over the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

Sparkling Water Market: Growth Drivers

Rising health consciousness among consumers drives market growth

Customers' growing health concerns have been largely responsible for the development of the sparkling water market. For instance, the Natural Source Water Association claims the average annual use of sparkling water among UK residents is 7.5 liters. This suggests that sparkling water is more of a luxury good than a regular drink, just 20ml daily or roughly 140ml per week.

Presently, sparkling water is a good way to keep hydrated since it offers a fizzy substitute free of added sugar or calories, giving consumers another refreshing drink choice that fits with their likes for a bubbly experience while supporting a healthy lifestyle. People are seeking better substitutes, such as sparkling water, which has no sugar and low calories, as they grow more conscious of the risks of consuming too much sugar. Thereby driving the sparkling water market.

Sparkling Water Market: Restraints

High cost compared to regular water hinders market growth

One major barrier to the sparkling water industry is the high price of sparkling water in comparison to regular water. Production methods, packaging, and branding are some of the reasons for this pricing difference. The process of adding carbon dioxide (CO₂) gas to water requires specialized tools and technology, which raises manufacturing costs. Purchasing natural sparkling water from carbonated mineral springs entails high extraction and shipping expenses.

Additionally, to preserve carbonation and appeal to luxury markets, sparkling water is frequently packed in glass bottles, aluminum cans, or premium plastic containers. Options for environmentally friendly packaging, such as recyclable or biodegradable materials, raise prices even further.

Sparkling Water Market: Opportunities

Growing product launch with innovation offers a lucrative opportunity for market growth

The rising product launch with innovation is expected to offer a lucrative opportunity for the sparkling water market growth over the forecast period. For instance, in August 2024, Flow Sparkling Mineral Spring Water was introduced by Flow Beverage Corp., renowned for its dedication to offering excellent mineral spring water that is derived responsibly. OG, Blackberry + Hibiscus, Lemon + Ginger, and Cucumber + Mint are among the varieties of Flow Sparkling Mineral Spring Water that will be offered in 300ml aluminum bottles. With no added sugar or calories, this new product offers a distinctive combination of premium carbonated mineral spring water in original and organic flavors.

Sparkling Water Market: Challenges

Environmental concerns pose a major challenge to market expansion

Customers who care about the environment may avoid sparkling water products that do not employ sustainable packaging as single-use plastic bottles and cans are condemned for their negative effects on the environment. Regulations may push brands to use more environmentally friendly methods, which would raise production prices. Therefore, the increasing environmental concerns pose a major challenge for the sparkling water industry market.

Sparkling Water Market: Report Scope

Sparkling Water Market: Segmentation

The global sparkling water industry is segmented based on product, distribution channel, and region.

Based on the product, the global sparkling water market is segmented into natural/mineral sparkling water and caffeinated sparkling water. The natural/mineral sparkling water segment is expected to dominate the market over the forecast period. The market is driven by customers' growing need for natural and healthy water. The taste, dizzy, and health advantages of the flavored varieties have made them more and more popular. In response to the needs of consumers who are concerned about their health, major firms are introducing fresh products to the market.

For instance, the world-renowned premium kitchen appliance brand Breville® announced in April 2024 that its first sparkling beverage maker, the InFizz™ Fusion, would officially launch nationwide. Customers now have more options to enjoy and try out delicious, fizzy drinks this spring and summer thanks to the brand's most recent innovation, which can carbonate a wide range of liquids, including fresh juices, wine, alcohol, coffee, and tea, in addition to water.

Based on the distribution channel, the global sparkling water industry is bifurcated into hypermarkets & supermarkets, convenience stores, online, and others. The hypermarket & supermarket segment is expected to hold the largest market share over the forecast period. Sparkling water is becoming more popular than sugary sodas and juices due to growing health consciousness, driving up demand in retail establishments. Sales in this channel are further increased by the availability of flavored and functional sparkling water varieties.

Additionally, opening supermarkets and hypermarkets in rural and semi-urban regions improves access to sparkling water, which boosts sales. Sparkling water products are widely distributed due to the global reach of chains like Tesco, Walmart, and Carrefour.

Sparkling Water Market: Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the global sparkling water market. The primary driver of the market is consumers' growing desire for healthier substitutes for soft drinks. Customers are being persuaded to drink sparkling water with advantages like increased intake, better digestion, and improved heart and bone health. Furthermore, it is expected that this product's easy accessibility through distribution channels will accelerate the expansion of this market.

Besides, Europe will also capture a significant market share over the forecast period. Many European nations, including Germany, the United Kingdom, Italy, Spain, France, and the Netherlands, have a high demand for sparkling water, frequently provided with meals in dining establishments. Quick-service restaurants are growing significantly in Europe. To increase their presence in a more competitive market, they have been launching several new drinks and food items that are influenced by both domestic and foreign cuisines. In the upcoming years, this is expected to be good for the local market.

Sparkling Water Market: Competitive Analysis

The global sparkling water market is dominated by players like:

• Nestlé
• PepsiCo Inc.
• National Beverage Corp.
• Talking Rain
• Keurig Dr Pepper Inc.
• The Coca-Cola Company
• Danone S.A.
• SANPELLEGRINO S.P.A
• Clear Cut Phocus
• Caribou Coffee Operating Company Inc.
• Hiball
• RHODIUS Mineralquellen und Getränke GmbH & Co. KG
• AQUA Carpatica
• Northwest Coffee
• Volay Brands LLC
• WakeWater Beverage Co.
• Big Watt Cold Beverage Co.

The global sparkling water market is segmented as follows:

By Product

• Natural/Mineral Sparkling Water
• Caffeinated Sparkling Water

By Distribution Channel

• Hypermarket & Supermarket
• Convenience Stores
• Online
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa