With a rise in health awareness, increase in tourism and the easy availability of bottled water, the per capita consumption of bottled water in India is on the increase.
The total market was valued at Rs.60 billion in 2013, of which the top five players accounted for 67 per cent of the market share.This market is expected to grow at a CAGR of 22 percent, to reach Rs.160 billion in 2018.
The bottled water industry in India witnessed a boom in the late 1990s soon after Bisleri launched its packaged drinking water in the country. This significant growth was fuelled by a surge in advertising by the industry players that "bottled water was pure and healthy".
Today, with a rise in health awareness, poor quality of tap water, and the ease of availability of bottled water, the per capita consumption of bottled water in India is on the increase.
India's packaged bottled water industry is currently dominated by the top five players, including Bisleri, PepsiCo, Coca Cola, Dhariwal and Parle. These companies struggle to penetrate the small non-tier cities and towns due to poor infrastructure, thus providing an opportunity for small regional players to build a presence in regional markets.
According to Shilpa Eguvanti, Team Lead (Consulting) at ValueNotes, "Even as the industry is on a growth path, smaller local players and the unorganised sector are eating into the market of the established players, often by imitating their trademarks."
Maximum sale of bottled water comes from the retail sector; but this is changing with demand coming from social functions and corporate events, especially for bulk water or bottled water cups. With the aim to capture all the segments of society, players have started foraying into packaged water pouches at low price points, but this is still in the experimental stage.
The ValueNotes report, titled Packaged Bottled Water Industry in India: 2013-2018, details the current market size and growth, the drivers and challenges for growth, the competitive landscape, an analysis on the industry for investor attractiveness, and Porter's 5 Forces. Key market trends discussed indicate the opportunities and challenges for industry players.
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