Bottled Water in India

2020 IMPACT

Shift to bottled water due to health, availability and cost issues

While on-trade sales of bottled water slumped in 2020 as a result of the COVID-19 pandemic, off-trade sales saw increased growth as health awareness increased. According to The Water Gap – WaterAid’s State of the World’s Water 2018, a report from the charity WaterAid, India has the world’s largest population without access to safe water close to home (163 million people).

COVID-19 and health factors influence company strategies

The COVID-19 pandemic has fast-tracked the health revolution that was developing pre-pandemic, which has helped the emergence of new products in bottled water. In 2018, AV Organics launched Evocus H2O, India’s first black alkaline bottled water brand.

Counterfeit bottled water represents a challenge for legitimate players

Fake or illegal water bottling plants continue to pose a challenge to the legitimate industry. In India, there are individuals who sell water using fake brand names or a loose copy of the brand name.

RECOVERY AND OPPORTUNITIES

Health awareness a key factor contributing to growth in post-pandemic India

The COVID-19 pandemic is expected to drive demand for bottled water. This will be due not only to the continued shift towards bottled water from purifiers, but underpinned by the further rise in health awareness among consumers as a result of the pandemic.

Small, convenient packaging formats to gain traction

In addition, as lifestyles recover in the post-pandemic environment, there is likely to be increased demand for bottled water in small packaging formats suitable for on-the-go consumption. Furthermore, rising levels of disposable income are enabling consumers to afford to purchase bottled water on a regular basis, even in smaller packaging formats that command higher unit prices.

Fake products to remain problematic, long recovery for on-trade demand

The off-trade channel will continue to be dominated by the leading and trusted brands such as Bisleri, Aquafina, Kinley, and Baileys, in the case of still bottled water. Also, the direct to consumer model will be sought after for bulk packs as consumers look to source directly from the companies because of the threat of the fake and illegal bottled water brands.