‘Packaged bottled water market could triple by 2018’

Our Bureau New Delhi | Updated on May 11, 2014

Rising health awareness and easy availability could help nearly triple the packaged bottled water industry to Rs 16,000 crore mark by FY 2018, says a report by ValueNotes.

The total bottled water market was valued at Rs 6,000 crore in FY 2013 and is expected to grow at a CAGR of 22 per cent, the report estimates.

Companies have been spending big bucks on advertising, positioning bottled water as the “pure and healthy option.” This, coupled with factors, such as poor quality of tap water and ease of availability of bottled water has led to an increase in per capita consumption in India. Also, the increase in the number of domestic and foreign tourists at present and the years to come is expected to be a major driver for bottled water sales, the report points out.

Shilpa Eguvanti, Team Lead (Consulting) at ValueNotes said, “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.”

Nearly 67 per cent market share of the sector is held by the top five players -- Bisleri, PepsiCo, Coca-Cola, Parle and Dhariwal. However due to poor infrastructure, these firms are facing a challenge in smaller cities and towns, where regional players are growing, the report added.

Bottled water companies are now experimenting with packaged water pouches at low prices to tap into the growing demand in smaller regions.

“The 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,” the report stated.

Published on May 11, 2014

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