The phrase watercooler speak references co-workers gathering collectively on the watercooler to refill their water bottles whereas catching up on the most recent information and popular culture matters. Though it is likely to be extra generally related to the social facet, the last word element drawing individuals collectively is the necessity for hydration. However immediately’s beverage market is taking that to a different degree with added advantages.
In Chicago-based Mintel’s February 2025 report titled “Nonetheless and Glowing Waters – US,” Kelsey Girard, senior food and drinks analyst, particulars how hydration objectives have positioned water within the highlight for customers.
“Customers are unapologetically focusing extra on hydration, and overwhelmingly agree that water is the healthiest beverage,” Girard states within the report. “Water’s inherent advantages do a lot of the heavy lifting, however taste, texture (carbonation), and packaging can all additional improve experiences and diversify events whereas sustaining well being standing.”
Within the present market, Girard states that customers are inserting hydration objectives as a key facet to their general well-being.
“Now, packaged water is introduced with a myriad of alternatives to quench thirst, help well being, and evolve with shopper’s beverage consumption habits all whereas contemplating what worth means as inflation retains costs elevated,” she states.
Michael Bellas, chairman at Beverage Advertising and marketing Company (BMC), Wintersville, Ohio, additionally particulars bottled water’s place with customers.
“Bottled water is benefiting from customers’ want for wholesome hydration, zero-calorie drinks, and straightforward gulpability,” he says. “Its vast number of packaging choices additionally make water accessible for all consumption events.”
These hydration objectives come because the bottled water class has been challenged attributable to financial situations.
“The one service PET bottled water market has slowed [year-to-date] (YTD) rising quantity by about 1% with revenues barely decrease attributable to elevated promotional exercise,” Bellas explains. “The phase has been impacted by some customers turning to inexpensive vended in addition to faucet waters.”
Steve Daly, affiliate director of beverage analysis at BMC, additional particulars the financial system’s impact on the class.
“Whereas the general financial system continues to advance, inflationary situations have damage decrease earnings shopper spending, which has had an influence on this yr’s bottled water efficiency,” he says.
Nonetheless, the class is exhibiting indicators of stabilizing. For the 52 weeks ending Aug. 10, the general bottled water class posted gross sales of $30.1 billion, a 2.9% enhance, in whole U.S. multi-outlets as reported by Circana, Chicago. Unit gross sales throughout this time have been close to flat at a 0.1% enhance.
Of all of the segments, non-flavored seltzer/glowing/mineral water noticed probably the most development with greenback gross sales of $1.6 billion, an 11.6% enhance, whereas unit gross sales elevated 6.2%.
Constructing on hydration
Bottled water’s core comes from the share of nonetheless water, nevertheless, enhanced and specialty varieties are constructing off this base.
“Flavored and carbonated waters are quenching customers’ thirst for selection in hydration experiences and beverage events general,” Mintel’s Girard states. “Nonetheless, nonflavored packaged water stays a foundational fixed, and may proceed to forge shopper belief with an emphasis on well being, security and transparency.”
BMC’s Daly echoes comparable sentiments. “To this point, specialty waters have had a really restricted influence on bottled water consumption,” he says. “Nonetheless, specialty waters present a visibility influence to the class by innovating in a means that plain water can’t.”
Mintel’s Girard elaborates that beverage-makers can faucet into selection and enjoyable, however nonetheless preserve the better-for-you standing that customers affiliate with bottled water.
“Customers are more and more buying merchandise like flavored waters and/or carbonated waters, but nonetheless looking for low/no sugar and calorie formulations,” she states. “Delivering experiences and options that meet further wants on high of hydration (e.g., meal pairings, pick-me-ups) whereas sustaining the inherent well being present in water might be key.”
Taking part in on the flavour novelty, Waterloo Glowing Water partnered with Man Fieri, chef, restaurateur, Emmy award-winning TV persona. This previous spring, Waterloo Glowing Water and Man Fieri’s Flavortown launched three limited-time-only flavors: Lemon Italian Ice, Huckleberry Cobbler and Spiced Mango Sorbet, every impressed by Fieri’s private experiences.
Producers are also incorporating added advantages into packaged waters. Earlier this yr, Water Plus Dietary supplements (W+S) unveiled its patented, all-in-one wellness resolution: premium alkaline water paired with high-quality dietary supplements.
Every 16.9-ounce bottle combines clear, filtered alkaline water (pH 9+) with a ready-to-use each day complement capsule. The launch lineup is comprised of the next: ENERGY+, powered by creatine, B nutritional vitamins and caffeine for clear, sustained vitality; IMMUNITY, full of nutritional vitamins C, D, B6, zinc and magnesium to help immune operate; MULTIVITAMINS, a whole each day dose of important nutritional vitamins and minerals; and SLEEP, a pure nighttime support with 5 mg of melatonin to help restful sleep.
Constructed on belief
As bottled water evolves past single-serve nonetheless water, specialists notice that this evolution is constructing on the belief that customers want throughout the packaged water market.
“Issues about faucet water security coupled with belief in bottled water security and well being put packaged water in a powerful place,” Mintel’s Girard states. “Nonetheless, the connection between local weather change and water provide and considerations of microplastics in bottled water usually are not misplaced on customers and add complexity to the dialog.”
Girard notes within the report that prioritizing packaging is essential for bottled water improvements and launches.
“An consideration to codecs, pack sizes, and materials will proceed to be essential to evolve with customers evolving water buying habits, however to additionally tackle present considerations over microplastics and the complexities of sustainability,” she states.
Though packaging improvements probably might be a precedence for some producers going ahead, BMC’s Bellas shares that bundle considerations haven’t overly affected the class.
“Whereas packaging considerations are a difficulty for the business, business respondents have indicated the influence on the class has been restricted thus far,” he says.
As bottled water navigates a few of its challenges, Bellas nonetheless sees power for the class going ahead.
“Due to its robust [health and wellness] credentials, we anticipate bottled water to proceed its low single-digit quantity advance within the coming yr with barely much less promotional exercise,” he says.
By way of long-term development, Girard shares in Mintel’s report that the market analysis agency forecasts gross sales to succeed in $36.99 billion for nonetheless and glowing waters by 2029.
