Innovation Keeps Sparkling Water Aisles Bubbling With Growth
The sparkling water market is far from flat. In fact, the industry generated $297.1 billion in revenue in 2021, according to Grand View Research, and the market is predicted to grow at a compound annual rate of 12.6% through 2028.
This growth is acutely visible within convenience stores. Enhanced water sales grew 4% in the industry and 3.7% per c-store last year, the most out of any packaged beverage segment, according to Convenience Store News.
And though it's a crowded market, brands continue to uncover new white spaces. For example, Mtn Wtr is bringing the ultra-carbonated trend popular in Japan to the United States. The company's Extra Strong sparkling water is reportedly made from naturally alkaline spring water filtered through volcanic rock beneath Mount Fuji, and is said to pack a fizz level that's nearly double that of standard sparkling water.
Protein water, including the sparkling variety, is becoming more prevalent in the aisle, as the number of Americans taking GLP-1 medications increases and consumers look for new alternatives to low-calorie energy drinks.
Other new product innovations, such as water infused with CBD and magnesium, have gained attention at food industry events like Expo West and the Lipari Food Show.
Sparkling Shopper Behavior
A shopper survey issued last summer further reinforces the trend and shed light into purchase habits. Storesight questioned 1,000 shoppers about their sparkling water preferences and what can convert a browser into a buyer, and more than half reported buying it at least weekly.
The space is ripe for ongoing innovation: Nearly 99% of respondents expressed willingness to try new sparkling water brands. Bright packaging, new flavor options and the right price point (near what they normally pay) make 54% extremely likely to explore, followed by 29% as very likely and 16% as somewhat likely. Just seven respondents in total said they were not inclined to try something new.
Taste was the top purchase driver for 71% of sparkling water buyers. Flavor variety, packaging, retail presence and price also strongly influence purchase decisions.
Most Americans purchase their sparkling water while grocery shopping, according to Storesight's survey. When asked where they usually bought seltzer, survey takers said:
- 76%: big-box retailers such as Target or Walmart
- 73%: grocery stores
- 16%: convenience stores
The majority (65%) of sparkling water customers discover new brands and flavors from in-store displays. Recommendations from friends and family steer 47% of purchases, and social media influences 31%. Advertisements (29%) and online reviews (23%) hold sway, too.