The phrase watercooler talk references co-workers gathering together at the watercooler to fill up their water bottles while catching up on the latest news and pop culture topics. Although it might be more commonly associated with the social aspect, the ultimate component drawing people together is the need for hydration. But today’s beverage market is taking that to another level with added benefits.

In Chicago-based Mintel’s February 2025 report titled “Still and Sparkling Waters – US,” Kelsey Girard, senior food and drink analyst, details how hydration goals have placed water in the spotlight for consumers.

“Consumers are unapologetically focusing more on hydration, and overwhelmingly agree that water is the healthiest beverage,” Girard states in the report. “Water’s inherent benefits do most of the heavy lifting, but flavor, texture (carbonation), and packaging can all further enhance experiences and diversify occasions while maintaining health status.”

In the current market, Girard states that consumers are placing hydration goals as a key aspect to their overall well-being.

“Now, packaged water is presented with a myriad of opportunities to quench thirst, support health, and evolve with consumer's beverage consumption habits all while considering what value means as inflation keeps prices elevated,” she states.

Michael Bellas, chairman at Beverage Marketing Corporation (BMC), Wintersville, Ohio, also details bottled water’s place with consumers.

“Bottled water is benefiting from consumers’ desire for healthy hydration, zero-calorie beverages, and easy gulpability,” he says. “Its wide variety of packaging options also make water accessible for all consumption occasions.”

These hydration goals come as the bottled water category has been challenged due to economic conditions.

“The single service PET bottled water market has slowed [year-to-date] (YTD) growing volume by about 1% with revenues slightly lower due to increased promotional activity,” Bellas explains. “The segment has been impacted by some consumers turning to less expensive vended as well as tap waters.”

Steve Daly, associate director of beverage research at BMC, further details the economy’s effect on the category.

“While the overall economy continues to advance, inflationary conditions have hurt lower income consumer spending, which has had an impact on this year’s bottled water performance,” he says.

However, the category is showing signs of stabilizing. For the 52 weeks ending Aug. 10, the overall bottled water category posted sales of $30.1 billion, a 2.9% increase, in total U.S. multi-outlets as reported by Circana, Chicago. Unit sales during this time were near flat at a 0.1% increase.

Of all the segments, non-flavored seltzer/sparkling/mineral water saw the most growth with dollar sales of $1.6 billion, an 11.6% increase, while unit sales increased 6.2%.

Building on hydration

Bottled water’s core comes from the share of still water, however, enhanced and specialty varieties are building off this base.

“Flavored and carbonated waters are quenching consumers’ thirst for variety in hydration experiences and beverage occasions overall,” Mintel’s Girard states. “However, nonflavored packaged water remains a foundational constant, and can continue to forge consumer trust with an emphasis on health, safety and transparency.”

BMC’s Daly echoes similar sentiments. “To date, specialty waters have had a very limited impact on bottled water consumption,” he says. “However, specialty waters provide a visibility impact to the category by innovating in a way that plain water can’t.”

Mintel’s Girard elaborates that beverage-makers can tap into variety and fun, but still maintain the better-for-you status that consumers associate with bottled water.

“Consumers are increasingly purchasing products like flavored waters and/or carbonated waters, yet still seeking low/no sugar and calorie formulations,” she states. “Delivering experiences and solutions that meet additional needs on top of hydration (e.g., meal pairings, pick-me-ups) while maintaining the inherent health found in water will be key.”

Playing on the flavor novelty, Waterloo Sparkling Water partnered with Guy Fieri, chef, restaurateur, Emmy award-winning TV personality. This past spring, Waterloo Sparkling Water and Guy Fieri's Flavortown launched three limited-time-only flavors: Lemon Italian Ice, Huckleberry Cobbler and Spiced Mango Sorbet, each inspired by Fieri's personal experiences.

Manufacturers also are incorporating added benefits into packaged waters. Earlier this year, Water Plus Supplements (W+S) unveiled its patented, all-in-one wellness solution: premium alkaline water paired with high-quality supplements.

Each 16.9-ounce bottle combines clean, filtered alkaline water (pH 9+) with a ready-to-use daily supplement capsule. The launch lineup is comprised of the following: ENERGY+, powered by creatine, B vitamins and caffeine for clean, sustained energy; IMMUNITY, packed with vitamins C, D, B6, zinc and magnesium to support immune function; MULTIVITAMINS, a complete daily dose of essential vitamins and minerals; and SLEEP, a natural nighttime aid with 5 mg of melatonin to support restful sleep.

Built on trust

As bottled water evolves beyond single-serve still water, experts note that this evolution is building on the trust that consumers need within the packaged water market.

“Concerns about tap water safety coupled with trust in bottled water safety and health put packaged water in a strong position,” Mintel’s Girard states. “Still, the connection between climate change and water supply and concerns of microplastics in bottled water are not lost on consumers and add complexity to the conversation.”

Girard notes in the report that prioritizing packaging is important for bottled water innovations and launches.

“An attention to formats, pack sizes, and material will continue to be crucial to evolve with consumers evolving water purchasing habits, but to also address current concerns over microplastics and the complexities of sustainability,” she states.

Although packaging innovations likely will be a priority for some manufacturers going forward, BMC’s Bellas shares that package concerns haven’t overly affected the category.

“While packaging concerns are an issue for the industry, industry respondents have indicated the impact on the category has been limited to date,” he says.

As bottled water navigates some of its challenges, Bellas still sees strength for the category going forward.

“Because of its strong [health and wellness] credentials, we expect bottled water to continue its low single-digit volume advance in the coming year with slightly less promotional activity,” he says.

In terms of long-term growth, Girard shares in Mintel’s report that the market research firm forecasts sales to reach $36.99 billion for still and sparkling waters by 2029.