Plant-based Waters Market Analysis

Plant-based Waters Market Analysis

The product market of plant-based waters consists mainly of coconut, maple, birch, artichoke, cactus, etc. Coconut water is one of the biggest market in terms of volume and revenue. Birch and maple water are the new entrants and are being recognized as the next "super drinks" set to replace coconut water and is heading towards U.S., U.K. and other markets. Earlier, birch water extraction was considered as a cottage industry and was harvested from trees during spring in Eastern Europe, Korea, Japan and Scandivian countries. Other plant waters such as rose, bamboo, olive, ginger, barley constitute minimal share of the total market and are expected to reach twofold of the current market size by 2024.
 

The plant-based water market in terms of flavor type is segmented as flavored and original/ natural. Plant-based waters occurrence is natural in nature and is mostly available as flavored and non-flavored. Unflavored plant-based waters dominate the market in terms of flavor type. This segment has a significant market share as of 2016, and this trend is expected to continue during the forecast period. However, companies are introducing these waters with assorted flavors such as lime, green tea, ginger, rose, etc. Blend of two or more constituents form flavored plant-based waters. The trend of different flavors is on the rise which can significantly impact the global market.
 

Innovations in packaging type are aiding in extending the shelf life of these products and allow manufacturers to launch healthy, low-calorie and natural plant waters that are sustainably sourced. The product market has been segmented into cans, bottles, cartons and pouches. Cartons constituted the major chunk of the market in 2016 with a revenue of about 1.1 billion which is expected to grow at a remarkable pace. Majority of the coconut water is packed in aseptic cartons. Pouches are anticipated to grow at a noticeable rate by the year 2024.
 

The key distribution channels for plant-based waters are online platforms, retail stores and fitness centers & cafes. Online channels play a significant role in marketing of the product and hold a major market share. The ease of availability of the product and hectic lifestyle of people has led to the popularity of online stores. Through online portals, companies have the advantage of showcasing their diverse product portfolio in one platform. The retail stores accounted for the next highest share in the global market and are expected to boom with the highest CAGR of about 23 %. These stores have continuously evolved and will continue to increase in number owing to the broad portfolio of the product.
 

Asia-Pacific provides tremendous opportunities in the future for the players as branded and packaged coconut water consumption is an untapped market in countries such as India, Indonesia etc. due to abundant supply of coconut in these countries and is unorganized and non-branded category. North America provides better potential for organic sourcing and natural flavors. In the U.S., packaged water consumption has increased over a period.
 

Germany, U.K., France, etc. offer the best prospects for birch water as the birch trees are widely tapped in Europe. Maple water production is found in North America owing to the large-scale cultivation of maple trees.