Packaged Bottled Water Market in India, 2013 - 2018
Rising safety and hygiene awareness, following incidents of waterborne diseases in major cities across India has boosted the growth of the packaged bottled water industry in India. This exponential growth has amplified the per capita consumption of bottled water to more than 20 liters, while it was only 4-5 liters in the late 1990’s.
Key findings:
- The packaged bottled water industry in India is currently valued at INR 60bn (~USD 1billion) in FY 2013 and has been growing at ~15% for the last three years. ValueNotes estimates that the industry will be worth approximately INR 160bn (~USD 2.67billion) by FY 2018, growing at CAGR of ~22%.
- The packaged bottled water industry is segmented into:
- Packaged drinking water: Packaged drinking water means water derived from any source of potable water and subjected to various treatments to meet the prescribed standard before being packed in a plastic or glass container
- Natural mineral water: Water containing less than 250ppm of total dissolved solids are defined as natural mineral water
- Packaged drinking water, which holds about 85% of the market, is witnessing strong growth owing to various factors such as changes in life style, increase in Foreign Tourist Arrivals (FTAs), health awareness, etc. Natural mineral water on the other hand, which falls under the premium water segment and is primarily consumed by the urban populace owing to its high cost, will witness growth that will be restricted to urban consumers.
- The Bureau of Indian Standards (BIS) had formulated Indian Standard (IS) for packaged drinking water (PDW) and packaged natural mineral water (PNMW) under mandatory BIS certification as per Food Safety and Standards Regulation (FSS). This implementation led major players to acquire ISI and BIS certifications to avoid any cancellation of licenses.
- The increase in the number of domestic and foreign tourists in the past years, and in the years to come, is expected to be a major driver for bottled water sales in India
Bottled water industry structure
Evolution of the bottled water industry in India
Bottled water industry classification
Industry supply chain
2. INDUSTRY OVERVIEW
Market size & growth
Industry segmentation
By product type
By type of SKUs
Imports
Exports
Seasonal analysis
Price analysis
Geographical analysis
3. DRIVERS & INHIBITORS
Driver 1: Rise in income & consumption
Driver 2: Sound economics & high profitability
Driver 3: Increasing consumer awareness on health issues
Driver 4: Growth in foreign tourists & expatriate population
Inhibitor 1: Inefficient transport infrastructure
Inhibitor 2: Low entry barriers & threat of low quality products
Inhibitor 3: Increasing use of water purifiers
4. GOVERNMENT INITIATIVES & POLICIES
5. INDUSTRY TRENDS
Recent trends witnessed
M&A and recent developments
6. INDUSTRY ANALYSIS
Porter’s analysis
Industry attractiveness index
7. COMPETITIVE ENVIRONMENT
Industry segmentation – by players
Market share of players
Porter’s analysis
Brand positioning Price& quality analysis
Competitive benchmarking
Competitor profiles
Bisleri International Pvt. Ltd.
PepsiCo India Holdings Pvt Ltd
Coca Cola India Pvt. Ltd.
Dhariwal Industries Ltd.
Parle Agro Pvt. Ltd.
8A. ANNEXURE
Water situation in India
8B. APPENDIX
Research methodology
Abbreviations & Bibliography
Glossary
The shortage of drinking water supply and contamination of water bodies have paved the path for the bottled water industry to boom in India in the last few years. A majority of households in the country either use boiled water or have water purifiers installed for accessing safe drinking water. But when traveling or eating out, bottled water has become a necessity. This need has given rise to the emergence of companies in the bottled water industry.
Currently the packaged bottled water industry accounts for ~25% of the non-aerated beverages sector, and was valued at about INR 60bn in FY 2013. The industry is expected to grow at a CAGR of 22% until 2018 to reach INR 160bn. This high boost is due to the rise in disposable income, an influx of tourists, a shortage of potable water, lifestyle changes, increasing health consciousness among Indian consumers, etc.
The bottled water industry is segmented into the following categories:
- Natural mineral water
- Spring water
- Premium natural mineral water
- Packaged drinking water
The packaged drinking water contributes to about 85% of the total market, while natural mineral water 15%. The natural mineral water falls under the premium segment and is mostly consumed by the urban population, due to its high cost. This segment is expected to gain popularity based on the aggressive promotion of the players exhibiting it as natural spring water. It is further fueled by international tourists who opt for natural mineral water along with local consumers who have experienced the same on travel abroad.
