PACKAGED DRINKING WATER BUSINESS IN INDIA

Introduction

India’s packaged drinking water market has seen phenomenal growth in the last couple of days. Today, it has become one of the fastest-growing businesses in the beverage business industry. We all know the consumer health consciousness is increasing, disposable income of the masses will only go up and demand for pure drinking water that tastes similar enough to be fit to drink is only going to increase faster. So let us now discuss the dynamics of the packaged drinking water industry in India, growth and bottlenecks, regulatory setup and future prospects.

Indian Packaged Drinking Water Market

This market had value of approximately US$3.84 Billion in 2024 Packaged drinking water market is projected to expand at a CAGR approximately 14.7% over the forecast period, 2030.

The main reason is urbanization, more middle class and health awareness. The more people migrate towards the cities where access to clean drinking water is uncertain the more will be the demand for bottled water. In cities like Mumbai and Delhi, cities of yesteryear, a packet water-eatery is patronized by a bucket-load. Despite packaging drinking water amounting to as many as 1190 million liters in Mumbai city for the year 2023, it is true that some consumer attitude for such packaged drinking water without risk is there. This trend of an increasing demand is justified as follows below 

Improving awareness of quality. Growing concern about water quality. Many areas in India face problems with poor public water systems and not enough infrastructure. This causes pollution in available water sources making bottled water the safest choice to drink. Also rising incomes among city dwellers play a big role. The bottled water market has become attractive to consumers and businesses as more people can afford premium products that safeguard their health. The trend toward healthier lifestyles has also led individuals to choose bottled water over sugary beverages. The COVID-19 pandemic transformed shopping habits as well. An increased emphasis on cleanliness and hygiene prompted most consumers to purchase packaged goods believing them to be safer than products from conventional sources. These shifts have maintained strong sales of bottled water.

Packaged Drinking Water Categories

The packaged drinking water market in India is huge and always changing. It has many products to meet different customer wants and needs. Purified water leads the market with over 40% of the market share. This water goes through filters to get rid of dirt and harmful stuff. Many people buy it because they see it as a safe and trustworthy option for drinking water. Mineral water is becoming more popular as people care more about their health. This water comes from natural springs and has good minerals in it. People think it’s good for their health so those who want to be healthy often choose it.

Flavored water has a big impact on the drink market. It gives people a tasty option without the sugar or calories you’d find in sweet drinks. This helps it stand out for folks looking to make healthier choices. People like that they can enjoy different flavors while still sticking to their health goals.

Sparkling water, which has bubbles in it, is becoming a hit. It’s popular with younger people who want fizzy drinks. More and more people are choosing it over sugary sodas. They like how it’s bubbly and refreshing, and they think it’s better for them than regular soda. Along with that the future outlook shows a promising potential for growth in the packaged drinking water market of India, given the rising tide of urbanization, increased disposable incomes, and awareness about health and hygiene.

Packaged Drinking Water Challenges

Though the packaged drinking water industry has sprung up rapidly, there are a handful of reasons that might cloud the future development and sustainability of this beverage industry. The biggest eye-opener concerns is environmental damage. Plastic bottles packaging pollution and problems in the waste management. Consumers have become more conscious about environmental sustainability, and now brands get rated on their environmental policies. The industry has very low barriers to entry which leads to fierce competition. Although there are established brands in the industry, there are also many smaller companies to deal with so competition can eliminate businesses. When you add the fact that everyone has pretty much the same products at very close prices, building brand loyalty can be difficult. Moreover, there are also issues with regard to compliance to regulation, particularly in this sector. In India there are quality standards for bottled water by BIS which manufacturers must strictly follow for manufacturing this product. All of this requires the investment into some good quality control measures and regular testing of your product.

Regulatory Structure

India operates its packaged drinking water sector as one consolidated framework founded for the defence and safeguard of consumer and hence regulation of quality of product. BIS Bureau of Indian Standards issues specific standards for packages, packaging material labelling and requirements and packaging specifically bottled water The law requires manufacturers to apply for state issued licenses in order to do business. Which includes what documentation for the production units, what are the quality measures, and all productions must be in conformance with safety standards issued by the regulatory agency. Regular inspect by government agencies to make sure that all of these aspect are in compliance. Given such competitive challenges, the penalties of non-comply are serious and high quality production practices are essential. 

Future Prospects

There are a lot of factors saying that the packaged drinking water business in India has a bright future waiting for the growth to be constant. Urbanization is occurring at an exaggerated rate as more people move into cities and for lack of clean drinking water sources outside, demand for bottled options should follow along. Moreover, the additional awareness of healthy hydration trend is set only to expand sales rankings of virtually all sub-segments in this industry from purified waters, being an utmost health secure portfolio area and flavored offerings sold to younger consumers on a constant quest for better lifestyle changes. For the various manufacturing processes, technological progress also offers room for improvement in terms of efficiency as well as lessening environmental impact created due to production practices by way of innovation! Water waste is not only some of the issues that will be tackled, as we develop sustainable packaging solutions aimed at eco-conscious consumers on a long journey into turning sustainability into fashion in every purchase. Brand and local governments alike would have opportunities to align around building better infrastructure for direct stakes in public water to change the market dynamics. Working together enables stakeholders to generate synergies, endly leading to better outcomes for both firms in this business and the communities that depend on safe, liveable water supplies. 

FSSAI Certification: All food-related businesses, including packaged drinking water, must obtain an FSSAI license to comply with food safety regulations. You can apply for your FSSAI license here: FSSAI Registration

GST Registration: Packaged drinking water is a taxable product, and manufacturers must be registered under the Goods and Services Tax (GST) Act. For GST registration, visit: GST Registration

Conclusion

India’s packaged drinking water industry is at an interesting turning point of opportunity and challenge as it traverses through this ever-changing landscape dictated by consumer preference and environmental concerns as we speak now. The biting demand is mainly because of the increasing urbanization and mounting stress along with an enhanced realization about health and hygiene thus it stands very clear that we have a sector that is going to explode forward. Yet the need to solve challenges that are explicitly with resourcing and regulatory compliance looms large if companies want to compete at scale and for the long-run. It is indispensable with what innovative solutions address consumers as well as the larger societal needs for investment. There are solutions available to all in this industry stakeholders to lead towards sustainable growth. But with all developments into the future one thing is for certain, across every society layer; hydration will always top the priority of access and safety.