The bottled water market in India possesses a huge growth potential, with its current market proliferation advancing much faster than the carbonated drinks market. According to survey leader Euromonitor International, the bottled water sales leaped by 22%, reaching an overall value of INR 70.4 billion during the year 2016.
Motivation for Bottled Water Market Growth
Survey results suggest that the primary motivation spurring the rapid growth of the mineral water industry is the growing concern for a healthier life and the need for clean water availability. Important factors contributing to the consumption of bottled water on a per capita basis include the growing tourism industry, increased health awareness, and the high availability of quality bottled water from multiple players in the industry sector.
Current Challenges for Mineral Water Industry
In spite of the fast growth rate, thriving in the mineral water industry is a challenge due to current market conditions and industry operations. Entering the mineral water industry to set up a filtration unit or distributorship involves multiple aspects related to factory set up, regulation, processing, packaging, and marketing.
The bottled water industry is primarily dominated by pioneers such as Bisleri, Pepsi Co, Coca-Cola, and Parle accounting for about 67% of the market share followed by regional companies. The present market state is expected to grow at a 22% CAGR. In fiscal terms, its growth is predicted to rise to approximately INR 160 billion by the financial year 2018 as per ValueNotes report.
Major Drivers for Market Growth
The hospitality, fitness, and airlines industry account for 90% of the dedicated customers for the bottled water industry. Jaipur and Goa record the majority of sales targeting premium customers such as tourists and businessmen mainly in tier 1 urban locations.
Indians continue to spur the growth of the industry not just as a result of increased awareness, but also tourism growth. Widespread government interest in building infrastructure, creating employment opportunities, and improving sanitation facilities have enabled tourism growth and the inflow of prospective customers for bottled water.
An0ther major driver for the bottled water industry is the rising population of expatriates. The period after the year 2010 has witnessed a 20% increase in the expatriate population consistently who consume premium quality mineral water brands all along their stay. In fact, expatriates are estimated to be the biggest drivers for the sale of bottled mineral water in the coming years.
The Future of the Mineral Water Industry
The present market scenario is clearly suggestive of high growth rate and low barriers to entry for the mineral bottled water industry. Companies with good branding, quality water purification or distribution services, coupled with a viable marketing strategy are well-positioned to execute a successful business in future.
If you are already a distributor or own a purification unit in the bottled water domain, then you are in the right place to access the latest news and updates for making your business a success.