“It’s time to recognize bottled water as America’s official beverage of choice. Choosing water first helps keep Americans healthier because it contains one essential, zero-calorie ingredient: clean and refreshing water,” said Matt Herrick, International Bottled Water Association’s president and CEO, in a statement at the time of the release. “As our country works to reverse troubling trends in obesity, diabetes, and heart disease, encouraging Americans to choose water instead of sugary drinks is a simple step with real impact.”

Gary Hemphill, managing director of research at BMC, offers greater details about the bottled water category.

“Standard bottled water will always have a market, but the growth is in premiumization and functionality.”

– Mitch Madoff, head of retail partnerships at Keychain

“The bottled water category continues to experience modest growth, and is projected to grow 2.5% this year to more than 17 billion gallons,” he says. “It remains the largest beverage category in the U.S. on a volume basis.”

Mitch Madoff, head of retail partnerships at Keychain, New York, also points to the notable performance for bottled water in the United States.

“Bottled water has been one of the stronger-performing beverage categories over the last year, steadily stealing share from traditional soft drinks as consumers move toward zero-calorie, zero-sugar options,” Madoff says. “On Keychain, we’ve seen strong growth of flavored and sparkling waters specifically. A big part of that growth has come from the premium end. Brands like Voss, Acqua Panna, and Icelandic Glacial are seeing positive growth and momentum. Consumers want a real reason to reach for a specific water brand, so the ones with clear, differentiated identity are standing out on shelves.”

In its January report, “Bottled Water in the US,” Netherlands-based Innova Market Insights notes that unflavored bottled water encompasses much of the U.S. market, but recognizes that the evolving market is offering an opportunity for flavored bottled waters that deliver on purposeful products.

“Brands face a lot of competition in liquid refreshments in the U.S. and many different beverage products, flavors and functions that go beyond just hydration,” Innova’s report states.

Earlier this year, oHy, Grand Rapids, Mich., announced the nationwide launch of two new flavors: Blackberry and Pineapple. With these additions, oHy's portfolio now spans six flavors: Blackberry, Pineapple, Strawberry Lemon, Cherry Lime, Lemon Lime and Raspberry.

“From the start, we’ve been focused on innovating with purpose and meeting evolving consumer demand,” said Trent Hartwig, co-founder and CEO of oHy, in a statement. “Our ability to deliver hydrogen water at scale sets us apart in the industry, and these new flavors represent an important step forward. The launch of Blackberry and Pineapple is not only an expansion of our flavor lineup, but also serves as a foundation for future innovations across the functional hydration market.”

Saratoga Spring Water, a brand of Primo Brands, also embraced flavor with the launch of Saratoga Collection, a new line of flavored sparkling waters.

Saratoga Collection introduces four new flavors: Untitled Berry No.3, Abstraction of Lime, Anatomy of a Peach and Mango Dragon Fruit Perspective.

Wellness and water

Although flavor releases might be providing consumers with more bottled water options, experts note that it’s the category’s ability to support healthy hydration that is keeping it as a go-to beverage for consumers.

“The electrolyte and supplement trend is reshaping the category pretty significantly and creating a two-fold effect,” Keychain’s Madoff says. “It’s driving demand for electrolyte-enhanced drinks, while also increasing demand for standard spring water, which consumers are pairing with their own electrolyte or supplement packets. So, both trends are feeding each other.

“On Keychain, we’re seeing this reflected in the growth of brands like Propel+, an electrolyte-infused water from Propel,” he continues. “What it tells you is that people are willing to pay more for functional benefits even in a category as basic as water. Brands that can credibly offer that, like Smartwater’s Antioxidant Alkaline line or BodyArmor Flash I.V., are taking advantage of that.”

BMC’s Hemphill notes how bottled water’s health attributes has benefited the category.

“Bottled water’s overall positioning remains the same: it is the affordable, portable lifestyle beverage for today’s consumers,” he says. “It’s also the ultimate health beverage with no calories or sugar. This has continued to help propel category growth.”

Innova’s report notes that the addition of value-added functional attributes has transformed water from a commodity to a wellness beverage.

“These can include functional benefits such as beauty from within, gut health, energy, or others,” the report says. “Trendy ingredients like electrolytes, B vitamins, fiber, probiotics or prebiotics, and collagen add functionality to bottled water in the U.S. and make it better than just water.” 

Wave Kids is tapping into this with four new canned waters, featuring what it calls better-for-you ingredients.

Berry Beach Party and Tropical Vacay are non-sparkling flavored waters offering hydration with organic coconut water powder and ocean minerals, along with organic agave, organic natural flavors, and organic fruit and vegetable juice for color. Meanwhile, Melon Berry Bliss and Apple Adventure are fizzy flavored waters with a dash of prebiotic fiber from organic acacia, plus organic agave, organic natural flavors, and organic fruit and vegetable juice for color.

However, not all specialty factions of the bottled water market have fared as well, resulting in bifurcated performance.

“Alkaline waters are seeing modest but positive growth, while purified and mineral waters are trending down,” Keychain’s Madoff says. “This pattern tells us that for specialty waters to stand out, they have to be offering something genuinely differentiated or be attached to a strong, larger brand. Smartwater Alkaline is a good example of this because the brand does a lot of the heavy lifting. Standalone specialty brands without that anchor are having a harder time.”

Despite these challenges, Madoff still foresees premiumization to have a positive impact on bottled water going forward.

“Standard bottled water will always have a market, but the growth is in premiumization and functionality,” he says. “Consumers are increasingly thinking about hydration as a part of a broader wellness routine, not just quenching thirst, and they’re willing to pay for products that back that narrative. Purified and mineral waters will need to jump on the specialization train as they lose traction against premium offerings and the rise of affordable, private label brands.”