Bottled Water Industry In

India
 India-Snapshot-2017
Population 1.33 Billion (1.13%)
Gross Fiscal Deficit 4395 Billion INR
Exchange rate 67.07
Per Capita Income USD 1,751.853
Water Consumption 21,797.82 (MN Ltrs)
Number of States 29 states and 7 union territories
Rural-Urban Mix 67.2%-32.8%
Households 246 Million
House Holds Using Bottled Water (Rural) 3.9 Million
House Holds Using Bottled Water (Urban) 13.8 Million
 Per Capita Consumption of Bottled Water

• Based on the data from bottledwaterIndia.org bottled water consumption in India is around 5 litres when compared with global average of 29 litres. In the
recent times the consumption of 20 litre bottles has increased in the urban households and in offices The demand for 500 ml bottle has also been increased
drastically as we can see more number of units in the market.
• Consumption of Bottled Water in Terms of Million Cases
Year In Million Cases
1990-91 2.00
2000-01 33.00
2001-02 44.50
2002-03 55.60
2003-04 68.15
2004-05 82.00
2005-06 97.60
2006-07 114.15
2007-08 131.30
2008-09 149.70
2009-10 169.10
2010-11 189.40
2011-12 210.30
2012-13 231.33
2013-14 254.46
2014-15 279.90
2015-16 305.09
2016-17 332.55
2017-18 362.48
2018-19 395.10
2019-20 430.66
2024-25 647.57
 Market Size of Bottled Water Market in India

Global Market Size for Bottled Water Industry (BN Rupees)

CAGR %
(2018-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20232023)
153.4 170.3 194.3 208.5 230.0 250.6 272.7 296.2 321.0 347.4 375.2 8.4%

400
350
300

Billion Rupees
250
200 CAGR 8.4%

150
100
50
0
2017 2018 2023

The market size is estimated based on the following assumptions

 The ASP is calculated for the prices of bottles starting from 500 ml to 20 litres.
 The consumption of bottled water is obtained in terms of volume of international bottled water association report
2017.
 These values are multiplied with each other to get the market size of the overall Indian bottled water market.
 Bottled Water Market in India, by Type of Distribution Channels

The bottled water market by type of distribution channel is divided into two types of segments
Retail (Off-Trade Channel)
Office/Home Delivery
Retail (Off-Trade Channel)
This trade channel refer to sale of licensed good like water where the water is to be consumed off or away the premises and include retail
outlets, and supermarkets.

Office/Home Delivery
This category includes consumption of 5 litre and 20 litre category water bottles which are consumed

By Distribution Channels

By CAGR %
Distributio (2018-
n Channels 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20232023)
Retail (Off-
Trade
Channel) 125.8 137.9 155.5 164.7 177.1 190.5 205.6 221.5 238.2 255.7 273.9 7.5%
Office/Ho
me
Delivery 27.6 32.3 38.9 43.8 52.9 60.2 67.1 74.6 82.8 91.7 101.3 11.0%
Total 153.4 170.3 194.3 208.5 230.0 250.6 272.7 296.2 321.0 347.4 375.2 8.4%
 Bottled Water Market in India by Type of Household

The country has more number of rural households when compared with urban households based on the data from Ministry of Statistics and Programme
Implementation Report. The data concludes that there were around 246 million households in which 5.2% urban households use bottled water whereas 1.2%
rural households use bottled water. The rural households are expected to have a higher demand in the future.

By Type of Household
CAGR %
Househol (2018-
ds 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20232023)
Urban
Househol
ds 122.7 134.5 152.2 161.9 177.1 191.3 206.3 222.1 238.6 255.9 273.9 7.4%
Rural
Househol
ds 30.7 35.8 42.1 46.6 52.9 59.3 66.4 74.0 82.4 91.5 101.3 11.3%
Total 153.4 170.3 194.3 208.5 230.0 250.6 272.7 296.2 321.0 347.4 375.2 8.4%

Bottled Water Market in India by Region

Based on the data from bottled water India.org the market share for regions was estimated.
By Region
CAGR %
(2018-
By Region 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20232023)
West 62.9 68.1 77.1 82.0 89.7 96.9 104.5 112.5 120.9 129.7 138.8 7.4%
East 13.8 17.0 20.0 22.0 24.9 27.8 31.1 34.6 38.3 42.5 46.9 11.0%
North 36.8 42.6 49.0 53.1 59.0 64.9 71.2 78.0 85.3 93.0 101.3 9.3%
South 39.9 42.6 48.3 51.4 56.3 61.0 65.9 71.1 76.5 82.2 88.2 7.6%
Total 153.4 170.3 194.3 208.5 230.0 250.6 272.7 296.2 321.0 347.4 375.2 8.4%
 Pricing Analysis of Indian Bottled Water Market

20
18
16
14

AVerage Price/litre
12
10
8
6
4
2
0
1 2 3 4 5 6
Bottle Package in Litres
 Value Chain Analysis of Bottled Water Market

Raw Material/Bottle Packaging Marketing & Distribution

Manufacturer
Suppliers

End-User
 Porter’s Five Forces Analysis

Threat of New
Entrants
(Moderate)

Bargaining Power Intensity of Bargaining Power

of Suppliers Rivalry of Buyers
(Moderate) (High) (High)

Power of
Substitute
Products
(High)
 Threat of New Entrants (Moderate):

The parameters considered for rating this factor are:

Factors Considered for the Strategy Impact

Economies of Scale Moderate

Capital Cost Moderate

Industry growth Rate High

Government Regulations High

Brand Loyality Moderate

Overall Impact Moderate

The economies of scale is considered to be moderate because unit production cost is low and in future may decrease
with implementation of new technologies. The capital cost is not that high and industry growth rate would be high as
water is a need and is also a scarce product. Currently the ministry of health introduced some regulations which are
making life tough existing operators and also for the new ones. Brand loyalty is a factor which seems to be moderate
because customers are loyal based on the availability.
 Bargaining Power of Suppliers(Moderate):

The parameters considered for rating this factor are:

Factors Considered for the Strategy Impact
No.of Suppliers Moderate
Importance of the product to customers Very High
Product Differentiation Low

Forward Integration Moderate

Overall Impact
Moderate

No.of suppliers are considered to high as it is a fragmented market and this is the reason why the bargaining power of
suppliers is considered to be moderate. The importance of product to the customers is considered be very high as
water is a basic need. The product differentiation factor is considered to be low as it doesn’t make any difference from
one brand to another brand. The chances of forward integration are moderate as it is primarily adopted by many
established players.
 Bargaining Power of Buyers (High):

The parameters considered for rating this factor are:

Factors Considered for the Strategy Impact

Buyers purchase Option High
Switching Costs Low
Dealers can influence customers purchasing decision High

Buyers can integrate backward to make the industries product Low

Overall Impact High

The purchase options for buyers are considered to be very high as there are many suppliers available in the market. The
switching costs are low. Dealers can influence the buyers decision by selling a specific brand and the factor impact is
high. The buyers can’t integrate backward to make the industries product as it is targeted towards retail customers.
 Intensity of Rivalry (High):

The parameters considered for rating this factor are:

Factors Considered for the Strategy Impact

Competition High
Growth in industry High
Lack of Differentiation Low
Overall Impact High

The competition in the industry is considered to be very high and growth of industry is also high. The lack of product
differentiation is low.
 Power of Substitute Products (High):

The parameters considered for rating this factor are:

Factors Considered for the Strategy Impact

Switching Costs Low
Substitute and Innovative Products High
Overall Impact High

The switching cots are low but the substitute and innovative products are many such as carbonated drinks, fruit juices,
pipe born water. Innovative products such as flavoured water, non-calories water and vitamin added water (enhanced
waters) could also be considered substitutes.
Market Dynamics

Drivers

Rising urbanization and population

Increase in foreign tourists/tourism

Increasing health awareness among consumers in rural areas

Rising disposable income and consumption of water

Challenges

Increasing number of players

Increase in transportation costs

Brand and category differnetiation

 Key Players in the bottled water market in India

Key Players in the bottled water market in India

S.no Company Name

1. Bisleri (Parle)
2. Kinley (CocaCola India
Pvt.Ltd.)
3. Aquafina (PepsiCo.)
4. Bailey (Parle Agro)
5. Danone
6. King Fisher (UB)
7. Tata Global Beverages
8. Manikchand
9. Nestle PureLife
 Company Profiles

Bisleri International Pvt.Ltd.

This company is owned by Parle Group and was purchased from an Italian entrepreneur named as Signor Felice Bisleri in 1969. The Bisleri 20 litre
pack was launched in 1990 followed by Bada Bisleri in the early 2000’s. In 2006, the company launched natural mountain water from Himalayas and
in 2012, the company launched Vedica reinvented water bottle. In 2016, they launched Rockstar 300 ml bottle and in 2018, they launched first
vertical manufacturing plant for producing mineral water.

Sizes: It comes in the following sizes

250 ml cups, 250 ml bottles, 500 ml, 1 litre bottles, 2 litre, 5 litre, and 20 litre bottles.

Kinley (CocaCola India Pvt. Ltd.)

The company manufactures still and bottled water and operates as a subsidiary of CocaCola India Pvt.Ltd. The company’s products are available in
500ml, 1 litre, 1.5 litres, 2 litres, 5litres, 20 litres. The primary advantage for this company is their strong distribution network and the brand name
provided by their parent company.

Bailey (Parle Agro)

Bailley the brand that is owned by Ramesh Chauhan’s brother Prakash Chauhan is very popular in the southern part of India. Southern part of India
accounts for 25% of the sale of the whole bottled water market industry. Bisleri is facing a tough competition from Bailley
since the company plans to spread its presence in that part of the country.