Water & Ice Manufacturing
Companies in this industry produce bottled water and packaged ice. Major companies include Coca-Cola (Dasani, Smartwater), DS Services, Home City Ice, Mountain Valley Spring, PepsiCo (Aquafina), and Reddy Ice (all based in the US), along with Arctic Glacier (Canada), Groupe Danone (France), and Nestlé Waters (Switzerland).
The global market revenue in the bottled water segment amounts to about $330 billion in 2022 and is forecast to reach a compound annual growth rate (CAGR) of about 6% from the 2022-2026 forecast period, according to Statista. Most revenue is generated in the US, accounting for more than $85 billion in 2022. In terms of volume, the bottled water segment is expected to reach about 520 ml by 2026.
The US water and ice manufacturing industry includes about 700 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $7 billion.
Bottled water and ice manufacturing companies are part of the nonalcoholic beverage industry, which also includes soft drink manufacturers and is covered in a separate First Research profile.
Demand for bottled water and packaged ice is driven by consumer spending, population growth, and weather conditions. Public health concerns also increase demand for bottled water in developing regions with inadequate supplies of clean water. The profitability of individual companies depends on efficient operations, effective product pricing, and geographic concentration of key customers. Large companies have advantages in economies of scale in production and distribution. Small companies compete on service, quality, and price. The US industry is highly concentrated: the 50 largest bottled water manufacturers account for more than 95% of category revenue, and the top 50 packaged ice firms account for about 85% of revenue.
Three companies - Coca-Cola, PepsiCo, and Nestlé - own four of the top five best-selling bottled water brands, according to Beverage Marketing Corp. Similarly, the bulk of the US packaged ice market is controlled by three multi-regional operators, while hundreds of smaller local operators and vending companies compete for the remainder.
Bottled water is increasingly taking market share from soft drinks as consumers seek out healthier beverage options. However, products such as at-home soda makers (SodaStream, for example) and flavored drink mixes offer cheaper alternatives to premium water brands. Almost all of the bottled water sold in the US is sourced and consumed domestically - exports account for about 1% of total production. Imports, primarily from Italy and France, make up about 6% of the US market.
Because packaged ice manufacturers tend to serve customers within a limited range of their production facilities, their success depends largely on access to high-density distribution routes within a region and high customer concentration in a market area. To reduce distribution and delivery costs, many manufacturers install machines that make ice cubes and package them on-site at high-volume stores.
Products, Operations & Technology
Bottled water accounts for about 90% of the US industry revenue, while packaged ice accounts for about 10%. Despite large increases in volume sales of
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms