As the world celebrates World Water Day, India’s packaged drinking water market is undergoing a significant shift, driven by increasing health awareness and rising disposable incomes.
However, the $3 billion branded packaged drinking water market also faces challenges from counterfeiting and sustainability, exacerbated by the proliferation of unorganized players.
Last year, the food safety department destroyed 2,600 fake water bottles in Uttar Pradesh’s Baghpat district, labelled as “Billseri”- a counterfeit version of the Bisleri brand.
According to IKON Marketing Consultants, India’s drinking water market is only 25% organised, comprising brands such as Tata Consumer Products’ Himalayan water, Spring Alive; PepsiCo’s Aquafina, The Coca Cola Company’s Kinley, Bisleri, Bailley, Clear, Oxyrich, Rail Neer, etc. Among these brands, Bisleri leads with a 30% share.
Azaz Motiwala, Founder, IKON Marketing Consultants told Storyboard18, “The natural mineral water market was valued at Rs 1,900 crore in 2023-24 and holds promising prospects for the upcoming years, with a projected growth rate of 26% CAGR”.
Despite the market growth’s potential, the penetration of counterfeit goods remains a significant challenge, particularly in Tier-II and Tier-III cities,
‘The branding of healthy drinking water’
India’s bottled water industry can be categorized into four segments: still water, carbonated water, flavored water, and mineral water. According to data from IKON Marketing Consultants, still water held around 55.8% of the market in 2024.
A World Economic Forum report predicts that bottled water consumption will increase from approximately 350 billion litres in 2021 to 460 billion litres by 2030.
Given the remarkable growth in the packaged drinking water market, brands are intensifying their marketing efforts by launching new products such as Himalayan water and Spring water, to cater to the evolving lifestyle of Indian consumers and their growing awareness of health and wellness.
A Mintel report reveals that 32% of Indian consumers are interested in functional beverages that offer additional benefits, such as vitamins, minerals, and other functional ingredients.
A Tata Consumer Product spokesperson told Storyboard18 that it promotes its water brands through a multi-faceted strategy, including distribution expansion, product portfolio enhancement, and consumer engagement while emphasizing each brand’s unique value proposition.
Ravi Swarup, Partner and India Consumer Practice Leader at Bain & Company, notes that creating relevant consumer propositions, including building a brand and developing an efficient distribution model, are critical requirements for building a profitable drinking water business in the country.
Established players can expand their business into Tier-II and Tier-III cities, where public water infrastructure is often inadequate and unorganized players dominate, according to Motiwala.
“Investment in branding and consumer education can help build trust and shift consumer behavior towards organized and safer options,” Motiwala added. “There is also a strong opportunity to penetrate the home segment by offering mid-size packs (5L and 10L) with home delivery services”.
‘Premiumization of drinking water’
Experts note that brands are also focusing on the niche premium drinking water space, including alkaline, sparkling, and black water. Premiumization has become a key opportunity area for brands, driven by rising disposable incomes and increasing lifestyle awareness, particularly among urban consumers.
According to Motiwala, consumers are willing to pay more for products perceived to offer additional health benefits.
Some leading premium water brands in the market include Bisleri’s Vedica sparkling water and Himalayan Spring Water; PepsiCo’s Bubly sparkling water; The Coca-Cola Company’s Dasani, Tata’s Himalayan water, Tata Copper+, Tata Lyfe+ Alkaline water, and Tata Spring Alive, etc.
Tushar Malhotra, Director of Sales and Marketing at Bisleri International, stated that company’s Vedica Himalayan Spring water is performing well, driven by growing demand for premium and natural mineral drinking water in India.
“Bisleri Vedica is available in both glass and PET variants and is present in both the Himalayan Spring Water and Sparkling water categories that have a presence across premium HORECA’s, modern trade, e-commerce, and premium general trade outlets”.
A Tata spokesperson expressed confidence in the premium water segment, driven by health awareness, rising disposable incomes, and the growth of organized retail chains. Additionally, “the rise of e-commerce and direct-to-consumer models has made premium brands more accessible, especially in Metro and Tier – 1 cites, where lifestyle driven consumption is on the upswing”.
Several startups have also entered the premium packaged water market, targeting affluent consumers. Responsible Whatr, a bootstrapped company, sells its Himalayan spring water in cans. Bhrigu Seth, co-founder of Responsible Whatr (RWhatr), told Storyboard18 that the company offered canned water during the G20 Summit in 2023 and has partnered with ITC Hotels. “We source water directly from springs in Himachal Pradesh, Uttarakhand, Jammu & Kashmir, and northeast regions”.
According to Swarup, the rise of e-commerce and direct-to-consumer models has increased accessibility to premium brands, especially in metro and Tier – 1 city.
Swarup cautioned that building a brand around trends or celebrities can be risky, as they may not remain relevant in the long term.
Motiwala noted that the scale of this market is still limited and depends heavily on “awareness, branding, and effective distribution in high-footfall zones like gyms, airports, premium restaurants, and wellness centers”.
‘The sustainability challenge’
Sustainability has become a central concern in the packaged drinking water industry because of rising consumer awareness and regulatory pressure. As a result, brands are shifting towards sustainable packaging, adopting aluminum cans to reduce plastic use.
Although, canned packaging is gaining traction in the region, plastic or glass bottles remain the dominant packaging format due to their low cost. Currently, few companies sell water in cans. New players like RWhatr exclusively sell water in cans. PepsiCo is testing and implementing aluminum cans for its Aquafina water brand, while The Coca-Cola Company’s Smartwater is also being sold in cans.
However, Swarup noted that logistics costs can dramatically impact profitability. Seth agreed that selling water in cans is costly but environment-friendly, which is why companies have been hesitant to adopt this packaging. “Our sales breakdown is 60% B2B, 20% e-commerce and Q-commerce, and 20% D2C. We achieved 2.9 crores in revenue with an 18% PAT in FY24”.
Considering the growing debate on environmental sustainability, brands may be compelled to explore alternatives to single-use plastic, such as rPET bottles, biodegradable packaging, and even aluminum cans, particularly in the premium segment.
However, Motiwala cautioned that a full-scale transition to alternative packaging will be challenging due to significant cost implications.
“India’s packaged water market is extremely price-sensitive, especially in the small pack segment (200ml–1L), which accounts for the majority of sales. A shift to costlier materials will either compress margins or raise prices, potentially limiting consumer access”.
While premium brands may lead the adoption of sustainable packaging, mainstream adoption will likely rely on scalable, cost-effective solutions like recycled plastics and improved waste collection infrastructure, he added.