LONDON--(BUSINESS WIRE)--The global sparkling water market is expected grow at a CAGR of more than 3% during the period 2016-2020, according to Technavio’s latest report.
In this report, Technavio covers the market outlook and growth prospects of the global sparkling water market for 2016-2020. The market is further categorized into two product segments, which are unflavored sparkling water and flavored sparkling water, of which the former accounted for over 74% of the market share in 2015.
“The popularity of sparkling water in Asian economies and the availability of product and flavor variants have contributed to market growth. Sparkling water has garnered attention because it is thought to have numerous health benefits and has no artificial sugar content,” says Manjunath Reddy, a lead non-alcoholic beverages research expert from Technavio.
Technavio’s food and beverage research analysts segment the global sparkling water market into the following regions:
- Americas
- Europe
- APAC
- MEA
Americas: high incidence of obesity leads to shift from sodas to sparkling water
Increasing health awareness has led to a shift from carbonated soft-drinks to sparkling water and bottled water, especially among the young population. The incidence of obesity is one of the major factors for the growth of sparkling water, both flavored and unflavored. Most of the bottled water manufacturers have come up with diet and zero-sugar sparkling water to meet the health-related requirements of customers.
Sparkling water (unflavored) is free of calories and artificial ingredients. It can be used at any time of the day and does not require refrigeration, thereby contributing to its increasing customer base.
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Europe: health benefits associated with sparkling water boost growth
The introduction of taxes on carbonated soft drinks by France has also led to slow growth of soft drinks and carbonated drinks. This in turn will stimulate the sales of sparkling water during the forecast period. Denmark, Ireland, and Spain are facing economic crisis, and thus the market is slowing in these countries.
However, historically sparkling water in Europe has been associated with digestive health, hence people in Europe consume sparkling water after a meal to help with digestion. People in Europe prefer consuming sparkling water not for the taste but for the health benefits associated with its consumption over carbonated beverages, therefore the market is expected to grow at a CAGR of 3.5%, during the forecast period.
APAC: fastest-growing region for sparkling water with a CAGR of approximately 3.7%
APAC is the fastest-growing region for carbonated soft drinks. Changing lifestyles and increased disposable incomes are major reasons for the growth of the sparkling water market in APAC.
The rapid industrialization in emerging countries such as China, India, and Singapore is helping to boost the sales of carbonated soft drinks. Apart from this, heavy and attractive discounts, promotional offers, and a wide assortment of products on offer are other major reasons for the growth of the market.
“Awareness about the purity and safety of bottled water, and contamination of drinking water sources are some of the drivers of this market. The upsurge in demand from countries such as India, Indonesia, and China, as well as the growth of the middle-class population that demands better living standards, will also affect market growth,” says Manjunath.
MEA: younger generation emerges as the target audience for sparkling water
Rising disposable incomes, changes in lifestyle, and the hot and humid climate are some factors for the increase in the sparkling water market in MEA. Egypt, Saudi Arabia, and the UAE are the largest consumers of sparkling water. The young generation (under 35 years of age) is the major target audience for the sparkling water drinks manufacturers, and they have launched products and marketing strategies to cater to this target group.
In addition, innovation in terms of packaging such as the introduction of new slim cans by leading vendors such as Coca-Cola and PepsiCo is boosting the sales of sparkling water in the region. The growing hotel industry is also a major contributor to the sparkling water market.
The top vendors in the global sparkling water market highlighted in the report are:
- Coca-Cola
- Cott
- Danone
- Dr. Pepper Snapple
- Nestlé
- PepsiCo
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