Thirst for bottled water in India

A rise in health awareness, increase in tourism and availability of bottled water have boosted the growth of the packaged bottled water industry in India.

Today Indians are consuming more than 20 litres of bottled water per person per year, compared to just 4-5 litres in the late 1990’s, according to research by ValueNotes.

India’s packaged bottled water industry is currently valued at Rs 60 billion (approximately US$1 billion) and has been growing at about 15% for the last three years. ValueNotes estimates that the industry will be worth approximately Rs 160 billion (US$2.67 billion) by FY 2018, growing at CAGR of 22%.

Packaged drinking water, which holds about 85% of the market, is witnessing strong growth owing to various factors such as changes in lifestyle, increase in Foreign Tourist Arrivals (FTAs) and health awareness. Natural mineral water on the other hand, which falls under the premium water segment and is primarily consumed by the urban residents owing to its high cost, will witness growth that will be restricted to consumers in the cities.

The industry is currently dominated by five players, including Bisleri, PepsiCo, Coca-Cola, Dhariwal and Parle. But these companies are struggling to penetrate into smaller cities and towns due to poor infrastructure. Therefore the opportunity exists for small regional players to build a presence in this markets, says the ValueNotes report.