The flavored water market is anticipated to develop at a stable CAGR over the forecast period (2017 to 2022), according to a report available on Radiant Insights, Inc. Growing health concerns pertaining to obesity and high cholesterol, coupled with changing consumer preferences, are anticipated to fuel the demand for flavored water in the coming years.
Growing health awareness among consumers as a result of changing lifestyles is likely to drive the growth of the flavored water market through 2022. Rising geriatric population, accompanied by rising health consciousness among them regarding obesity and diseases, can also augment market growth. Rising presence of pollutants in water has resulted in increasing demand for bottled water and this is poised to stimulate market growth. Increasing adoption of non-aerated drinks to alleviate health issues can also foster growth.
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To cater to the rising demand, most manufacturing companies are focusing on R&D investments to offer better products in the market and match consumer demand. For instance, Nestlé recently entered the market for flavored water with its launch of Nestles plash. The product is purified still water and contains natural fruit flavor. To add a hint of sweetness, the company has added sucralose and acesulfame potassium to this flavored water. The U.S. Food and Drug Administration (FDA) have approved the product as safe for consumption.
Growing opposition against the use of plastic, especially in bottles, owing to environmental conservation can hinder market growth in the coming years. In addition, availability of alternate carbonated drinks at affordable prices is likely to obstruct the growth of the market. High sugar content in some of the flavored water products can also inhibit market growth. Nevertheless, growing health consciousness among consumers and wide scope for improvement in products can create lucrative opportunities for manufacturers in the market.
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The flavored water market can be segregated on the basis of product type, application, and region. Based on product type, the market can be split into sugary and sugarless. Based on application, the market can be segmented into supermarket, retail stores, and e-retailers.
Regional segmentation includes North America, Europe, China, Southeast Asia, Japan, and India.
In North America, the market is anticipated to grow tremendously in the coming years owing to rising cases of obesity in the region. Continued consumption of junk food rich in fat and calories is leading to a high obesity rate in the region. To control the situation, consumers are gradually shifting toward calorie-free or low-calorie beverages.
In Europe, the flavored water market is expected to expand due to increasing adoption of low-calorie drinks. Growing awareness regarding health issues related to obesity is likely to diminish the consumption of carbonated drinks. This, in turn, is expected to propel the demand for drinks with lesser calories. In addition, increasing product launches under the flavored water category can augment the market in the region.
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In China and India, the market is anticipated to grow owing to changing lifestyles, increase in disposable income, and rising urbanization. In Japan, the flavored water market is poised to witness high demand for flavored water rich in minerals and less in caffeine owing to rising health concerns.
Some of the prominent companies operating in the market for flavored water are Kraft Heinz, Nestle, PepsiCo, Coca-Cola, and Cargill.
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