Total retail sales of bottled water posted estimated gains of 6.4% in 2015, reaching more than $15 billion, with strong year-over-year sales growth since 2011. Total category sales are expected to continue upward as consumers search for BFY (better-for-you) beverage alternatives and bottled water is perceived as a convenient drink option for healthier lifestyles. Flavor and function innovation will help keep the category relevant and future growth is expected to continue upward through 2020, as health remains top-of-mind with consumers.

The IBWA (International Bottled Water Association) defines bottled water as water sealed in a sanitary container to be sold for human consumption. This water may be artificially purified or tapped from a natural spring, may be still or sparkling (carbonated), flavored or unflavored.

For this report, Mintel defines bottled water as water intended for human consumption that is sealed in a sanitary, food-grade container. Bottled waters are segmented as follows:

• Convenience/PET still bottled water – May be plain, flavored, or enhanced with vitamins, minerals, or other supplements.

• Sparkling bottled water – May be plain, flavored, or enhanced; includes sweetened flavored sparkling waters such as Sparkling Ice.

• Jug/bulk still bottled water – Plain water sold in multiserve containers; excludes jug/bulk containers that are filled by the consumer.

Water sold from bulk dispensers or coolers, sales through vending machines, foodservice, and delivery services are excluded.

The market size differs from the previous report because of changes to IRI’s categories. Previously, seltzer was combined with tonic water and club soda in the Carbonated Beverages category. Now seltzer has been moved to bottled water. It is not part of the sparkling/mineral water category.