cans of soda

The Popularity of Bottled Water Rises as Soda Slips

April 7, 2016

The popularity of bottled water is taking it slow and easy in its predicted rise to the No. 1 slot of top nonalcoholic beverages consumed by Americans, according to marketing analyses. Big soda struggles to maintain its footing as manufacturers attempt to find an inroad to quench an increasingly health-conscious public.

Such is the state of the liquid-refreshment industry in the United States: Bottled water rises, soda and other beverages continue to slide.

Market observers are seeing some significant shifts as producers search for ways to offset the slow and steady rise in bottled water’s popularity, according to Market Realist, an international marketing research firm. Manufacturers have experimented with alternatives to lure consumers back into the fold with craft sodas, lower-calorie beverages and cold-pressed juices; beverage firms have even been offering new flavors in sparkling water and energy drinks.

Despite innovations, the carbonated beverage industry is stumbling in its battle with bottled water. Americans are turning away from soda in higher volumes than they are from sugar, fat and other so-called unhealthy food choices, according to a 2015 Gallup survey.

The survey doesn’t bode well for soda’s future; more than 60 percent of those surveyed said they would eschew soda, a 20 percent increase from 2002.

Popularity of Bottled Water Grows Steadily

Despite numerous indicators in the past decade, soda manufacturers haven’t thrown in the towel. Although soda still holds a tight grip on the top position, the hold appears to be slipping.

Market projections have shown a steady rise in demand for noncarbonated beverages – which includes soda, tea, coffee, bottled water and energy – in the last few years. Market volumes increased 2.2 percent in 2014 to 30.9 gallons, the majority of the growth coming from noncarbonated beverages like water.

The popularity of bottled water and sports drinks have recently surged in demand putting four popular bottled water brands in the top 10 non-alcoholic beverages in the United States.

Bottled water and sports drinks have recently surged in demand in the U.S.

Big sodas’ slow decline in the last few years can be attributed to several factors, although it still holds a tight grip of 59 percent of the market: a growing population, increased urbanization and a broader, more diversified middle class have altered the American beverage landscape. Increasingly well-informed and health-conscious consumers are seeking better values, more choices and more interesting packaging of products, according to Market Realist.

We at Azure Water, your premier bottled water producers and co-packers, continue to monitor trends and shifts in the bottled water industry to ensure our customers are getting the products they want and deserve.

If you’re interested in learning more about the industry or about how we can help you, contact us.