We are talking about packaged water here, not your fancy spirits or elaborate mixers!
Once considered an exclusive commodity, packaged water has now become an essential item, greatly expanding business opportunities in this sector. According to a January 2023 report by GreyViews Research, the bottled water market in India was valued at $22.72 billion in 2022 and is projected to grow to $36.21 billion by 2030, with a CAGR of 6% from 2023 to 2030.
The journey of packaged water in India began in the 1960s when Rossi, the family doctor of French chemist Felice Bisleri, established a plant in Thane. Initially a product for the elite, it became more accessible after Ramesh Chauhan, founder of Parle, acquired the company in 1969, making it a truly Indian brand.
Over the past five decades, the packaged water market has seen a surge in brands, with a particularly notable increase in the last decade. While many brands are entering the market, the industry is majorly controlled by multinational giants like Parle, Coca-Cola, PepsiCo and TATA. Alongside the proliferation of local brands, global names such as Perrier, Fiji, S.Pellegrino, and Evian have also become commonplace on store shelves. Concepts like oxygen water, charcoal water, bottled rainwater, and glacial water are also becoming a trend these days.
But are these brands just quenching our thirst, or has packaged water evolved into a full-on lifestyle statement?
I don’t think that we can deny anymore that consumers have developed preferences, better to say have started associating themselves with a particular brand of packaged water. We have seen celebrities showing off their pick, like when Jack Nicholson smuggled a bottle of Evian water to the Oscars in 1990. Indian celebrities too are often spotted with their Evocus water. Restaurants and hotels, depending on their level of luxury, often choose to serve 'premium' bottled water. As more people become water connoisseurs, the expansion of the packaged drinking water industry reflects not just concerns about clean water access and health, but also a growing sense of personal statement and style.
It’s fair to say that packaged water is likely to evolve into a Veblen good in the future. The higher the price of the packaged water, consumers will be inclined to purchase it and there are a couple of reasons for it. One of course the perception of greater purity and the other is the element of aspiration. Branding, packaging design, and advertising are all contributing to this aspirational appeal. Consumers now are making conscious choices of which water they want to drink, they are increasingly identifying packaged water by their brand name, the shape of the bottle and who is endorsing it. A documentary I recently watched revealed that some stores now offer exclusive water-tasting experiences, suggesting pairings of specific waters with various foods. It’s a fascinating concept—what could be more refined than pairing water with your meal? Wine?
Brands and advertisers are transforming packaged water into a coveted commodity, distinguished by unique shapes, labels, and selling points. Water bottles these days look no less than a bottle of an expensive spirit. An expression of the power of branding that we now want to associate with a particular brand of packaged water, let alone bags and shoes.
We’ve witnessed substantial investments from brands transitioning to glass and tin for packaged water. At first glance, one might mistake these containers for a bottle of vodka or a can of beer. With higher aspiration comes cleaner drinking water.
As brand designers, packaging designers, and advertisers, the packaged water industry holds a glittering future and I am as much smitten by it.
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