2026 State of the Beverage Industry: Bottled water category goes beyond hydration
Beverage-makers add functional benefits to bottled water

Like many beverage categories, the bottled water segment has been impacted by consumer desire for functionality. In Beverage Industry’s October 2025 issue, experts delved deeper into this trend.
In a February 2025 report titled “Still and Sparkling Waters – US,” Kelsey Girard, senior food and drink analyst at Mintel, Chicago, expressed how hydration goals have put water in the spotlight for consumers.
“Consumers are unapologetically focusing more on hydration, and overwhelmingly agree that water is the healthiest beverage,” Girard stated 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.”
Within the current market, Girard shared that consumers are putting hydration goals at the top of their list regarding 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 said.
Michael Bellas, chairman at Wintersville, Ohio-based Beverage Marketing Corporation (BMC), also detailed bottled water’s place with consumers.
“Bottled water is benefiting from consumers’ desire for healthy hydration, zero-calorie beverages and easy gulpability,” he said in Beverage Industry’s October 2025 issue. “Its wide variety of packaging options also make water accessible for all consumption occasions.”
Karma Water recently relaunched its Pineapple Coconut flavor variety.
Image courtesy of Karma Water.
Such hydration goals come at a time when the bottled water category has faced challenges due to economic conditions.
“The single-serve 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 explained. “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 explained 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 said, in Beverage Industry’s October 2025 issue.
However, the bottled water category shows signs of stabilizing.
For the 52 weeks ending April 19, 2026, the overall category posted sales of $30.1 billion, a 2.6% increase, in total U.S. multi-outlets as reported by Circana, Chicago. During this time, unit sales were at a 0.5% decrease. Non-flavored seltzer/sparkling/mineral water saw growth of 8.1%, with dollar sales of $1.6 billion, while unit sales increased 5.8% for the same time period.
Although bottled water’s core comes from the share of still water, enhanced and specialty waters are building off this base, experts noted in Beverage Industry’s October 2025 issue.
“Flavored and carbonated waters are quenching consumers’ thirst for variety in hydration experiences and beverage occasions overall,” Mintel’s Girard stated in the October 2025 issue. “However, nonflavored packaged water remains a foundational constant, and can continue to forge consumer trust with an emphasis on health, safety and transparency.”
Meanwhile, BMC’s Daly shared similar sentiments.
“To date, specialty waters have had a very limited impact on bottled water consumption,” he said. “However, specialty waters provide a visibility impact to the category by innovating in a way that plain water can’t.”
Mintel’s Girard noted that beverage-makers can tap into variety and fun, while still maintaining 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 stated in the October 2025 issue. “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.”
Aside from flavors, beverage-makers are incorporating added benefits into packaged waters.
Functional beverage brand Karma Water revived its beloved Karma Pineapple Coconut Probiotic Water earlier this year. The new rendition of the beverage features upgraded functional gut health benefits, the brand said.
As bottled water moves beyond single-serve still water, experts noted in Beverage Industry’s October 2025 issue that this evolution is building upon 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 said. “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.”
In the Mintel’s “Still and Sparkling Waters’ report, Girard noted 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 says.
BMC’s Bellas shared in Beverage Industry’s October 2025 issue that although packaging innovations likely will be a priority for some manufacturers going forward, package concerns have not 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 stated.
As bottled water navigates some challenges, Bellas anticipated 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 shared.
As far as long-term growth, Mintel’s Girard shared in her report that the market research firm forecasts sales to reach $36.99 billion for still and sparkling waters by 2029.
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