Sparkling Water Market  Analysis Report 2025: Market to Grow by a CAGR of 12.37 to 2033, Driven by Government Incentives, Popularity of Virtual Assistants, and Strategic Partnerships

Key Insights

The Sparkling Water Marketsize was valued at USD 38.13 USD billion in 2023 and is projected to reach USD 86.26 USD billion by 2032, exhibiting a CAGR of 12.37 % during the forecast period. Carbonated water also known as sparkling water is water that contains dissolved carbon dioxide gas, under pressure. There are three main types: club soda, seltzer, and mineral water falling under a subgroup of BUB that includes distilled water as well. Club soda contains taste-added minerals, Seltzer is carbonated water, without the taste additive and mineral water has minerals that are naturally occurring. The consumer also finds sparkling water to taste satisfying, it has zero calorie content, and the type of flavoring that is used can be natural or artificial. Apply to drinking as a single drink, a component of cocktails, or as a replacement for sweet soft drinks. The uses also reach into the culinary domains including reinforcing and improving texture in batters and doughs, and for augmenting the multisensory aspects of meals. 

Sparkling Water Trends

• Growing health consciousness among consumers
• Rise in demand for low-calorie and sugar-free beverages
• Increasing popularity of Sparkling Water as a healthy alternative to soda
• Expansion of Sparkling Water offerings in various flavors and packaging formats
• Growing preference for Sparkling Water among millennials and Gen Z consumers

Driving Forces: What's Propelling the Sparkling Water Market

• Rising Health Awareness: Consumers are increasingly seeking healthier beverage options, leading to a surge in demand for sparkling water as a substitute for sugary drinks.
• Health Benefits: Sparkling water offers hydration, reduced calories, and potential digestive benefits, making it an attractive choice for health-conscious individuals.
• Marketing Campaigns: Effective marketing campaigns have highlighted the natural, refreshing, and thirst-quenching qualities of sparkling water, further driving its popularity.
• Flavor Innovation: The introduction of fruit-infused and zero-sugar variants has catered to diverse consumer preferences and expanded the market scope.
• Foodservice Adoption: Growing awareness of sparkling water as a healthy alternative in the foodservice industry has contributed to its increased consumption.

Challenges and Restraints in Sparkling Water Market

• Consumer Sensitivity: Sparkling water can be perceived as a premium product, making price sensitivity a challenge in some markets.
• Competition: The market faces competition from established beverage categories such as flavored water, tea, and juice, requiring differentiation strategies.
• Environmental Concerns: The use of plastic packaging raises environmental concerns, necessitating the adoption of sustainable alternatives.
• Limited Distribution: Availability and distribution can be limited in certain markets, affecting the market's reach.

Emerging Trends in Sparkling Water

• Introduction of new flavors, such as fruit-infused and botanical-infused Sparkling Water
• Growth in the premium Sparkling Water segment
• Rise of sparkling flavored water brands
• Increasing demand for sparkling water in various packaging formats, such as cans and aluminum bottles
• Adoption of sustainable packaging solutions

Growth Catalysts in Sparkling Water Industry

• Strategic partnerships between beverage companies and retailers to expand distribution and accessibility
• Investment in research and development to improve product quality and develop innovative flavors
• Expansion into emerging markets with high growth potential
• Product diversification through the introduction of sparkling juice, infused waters, and flavored seltzers

Market Segmentation: Sparkling Water Analysis

Types

• Natural/Mineral
• Caffeinated

Packaging

• Glass Bottles
• Cans
• Plastic Bottles

Distribution Channel

• Hypermarket/Supermarket
• Convenience Store
• Online Channel
• Others

Leading Players in the Sparkling Water Market

• Nestlé S.A. (Switzerland)
• PepsiCo, Inc. (U.S.)
• Keurig Dr. Pepper Inc. (U.S.)
• The Coca-Cola Company (U.S.)
• Sanpellegrino S.P.A. (Italy)
• WakeWater Beverage Co. (Canada)
• National Beverage Corp. (U.S.)
• Big Watt Cold Beverage Co. (U.S.)
• Danone S.A. (France)
• Volay Brands (U.S.)

Significant Developments in the Sparkling Water Sector

• [October 2023] Bisleri International launched 'Vedica Himalayan Sparkling Water' to expand its premium spring water brand Vedica.
• [May 2023] PepsiCo introduced its no-sugar Sparkling Water, Bubly, in the Australian market.
• [June 2022] Soleil Sparkling Water partnered with Library Collective to relaunch its carbonated waters with new packaging designs.
• [May 2022] Talking Rain Beverage Company announced its partnership with Homes For Our Troops to build homes for injured veterans.
• [November 2021] Waterloo Sparkling Water partnered with Grovara Online Marketplace to establish its products in overseas markets.

Regional Insight

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Consumer Side Analysis

• Consumer behavior and preferences
• Age group and demographic profiles
• Income and lifestyle factors