Australia Bottled Water Market: Growth, Trends, and Projections from 2024 to 2034

The Australian bottled water market, valued at AUD 1.82 billion in 2024, is witnessing significant growth driven by the increasing demand for convenient, on-the-go hydration solutions. Bottled water has become a go-to choice for consumers seeking portability and easy accessibility, especially in an active, health-conscious society. With a projected compound annual growth rate (CAGR) of 4.07% from 2025 to 2034, the market is expected to reach AUD 2.71 billion by 2034. This article explores the key drivers of growth in the bottled water sector, trends shaping its future, and the market's projections for the next decade.

Overview of the Australia Bottled Water Market

The Australian bottled water market is composed of a wide variety of products, including still, sparkling, flavored, and mineral water. As a fundamental part of daily hydration for individuals, bottled water is sold in a range of sizes, from single-serve bottles to large multi-liter containers for families and offices. In recent years, bottled water has seen a rise in popularity, with health-conscious consumers choosing it over sugary beverages such as sodas and juices.

Australia's bottled water market is influenced by various factors, including the growing awareness of the importance of hydration, the increasing demand for health-conscious beverages, and the trend toward convenience. With a solid foundation in both local production and imported bottled water brands, the Australian market offers ample opportunities for growth, particularly in the premium bottled water segment.

Key Drivers of Growth in the Australia Bottled Water Market

1. Health and Wellness Trend

Health and wellness have become a top priority for many Australians, contributing significantly to the growth of the bottled water market. As consumers become more aware of the negative effects of sugary drinks, many are turning to bottled water as a healthier alternative. Bottled water offers hydration without the added sugars, calories, and artificial ingredients found in soft drinks and flavored beverages.

The preference for bottled water has been further supported by the growing trend of maintaining a balanced lifestyle, especially among millennials and Generation Z. These health-conscious consumers are more likely to prioritize clean, natural hydration options that align with their fitness routines and overall well-being.

2. Portability and Convenience

One of the major factors driving the bottled water market's growth is the convenience that bottled water provides. With busy lifestyles and the need for on-the-go hydration, bottled water is the ideal solution for people who are always on the move. Whether it's at the gym, during outdoor activities, at work, or while commuting, bottled water offers a quick and portable hydration option.

The availability of bottled water in various sizes further enhances its convenience, catering to the needs of individual consumers, families, and corporate environments. With this level of accessibility, bottled water has become an essential product in the daily routines of many Australians.

3. Increasing Environmental Consciousness and Sustainability Initiatives

As consumers become increasingly aware of environmental issues, sustainability has become a key consideration in the bottled water industry. Many bottled water brands are responding to this shift by adopting more sustainable practices, such as using recyclable packaging, reducing plastic waste, and offering refillable bottles.

In particular, the rise of eco-conscious bottled water brands that emphasize the use of biodegradable, recyclable, or even reusable packaging is an important trend in the Australian market. Brands that align themselves with sustainability efforts, including those that support recycling initiatives or use materials like plant-based plastics, are gaining popularity among consumers who prioritize environmental responsibility.

Additionally, some companies are promoting refillable water bottles, encouraging consumers to reduce single-use plastic waste while still enjoying the convenience of bottled water.

4. Premium and Functional Bottled Water

The growing interest in premium bottled water is a significant driver of the market. Consumers are increasingly seeking out high-quality water with added minerals, unique sourcing stories, or enhanced functionality. The rise of mineral water, alkaline water, and spring water brands, which offer specific health benefits, is contributing to the market’s expansion.

Functional bottled water, which is enhanced with nutrients, electrolytes, or vitamins, is also becoming more popular. This type of water appeals to consumers who are looking for added value in their hydration products, aligning with the overall trend toward functional foods and beverages that support health and wellness.

5. Bottled Water in Foodservice and Hospitality Sectors

The foodservice and hospitality sectors are also important contributors to the growth of the bottled water market in Australia. Restaurants, cafes, hotels, and resorts offer bottled water as part of their beverage offerings to cater to customer preferences for premium and convenient hydration options. Many fine-dining establishments are also opting for high-end bottled water brands to complement the quality of their food and provide a luxury experience to diners.

Trends Shaping the Future of the Bottled Water Market in Australia

1. Shift Toward Eco-Friendly Packaging

As mentioned, environmental sustainability is a major trend in the bottled water industry. In response to the growing demand for eco-friendly products, many bottled water brands are investing in more sustainable packaging options. This includes adopting 100% recyclable plastic bottles, plant-based plastics, and glass bottles.

Additionally, some companies are introducing returnable and refillable bottle programs, further promoting a reduction in plastic waste. The push for biodegradable packaging materials and the use of minimal packaging will continue to shape the bottled water market in Australia as consumers demand more sustainable choices.

2. Rise of Flavored and Infused Water

Flavored bottled water has gained significant popularity in recent years, especially among consumers seeking healthier alternatives to sugary drinks. Water infused with natural flavors such as lemon, mint, berry, and cucumber offers a refreshing taste without adding sugars or artificial additives.

As consumer preferences shift toward healthier and more interesting options, the demand for flavored and infused water is expected to continue growing. Brands that focus on creating innovative flavors and using natural ingredients will likely lead the way in this segment.

3. Bottled Water for Functional and Specialized Needs

Another growing trend in the Australian bottled water market is the rise of functional water products. Consumers are increasingly looking for water that offers specific health benefits, such as enhanced hydration, improved energy, or added nutrients like electrolytes and vitamins. Functional bottled water brands that cater to these needs will continue to attract health-conscious consumers.

Products such as electrolyte-infused water, alkaline water, and water with probiotics are gaining traction. These specialized offerings appeal to individuals who prioritize fitness, recovery, and overall health.

4. Increased Focus on Local and Premium Water Sources

As the premium bottled water market expands, more consumers are becoming interested in the origin and quality of the water they drink. Australian bottled water brands that source their products from pristine natural springs or remote regions are seeing an increase in demand, as consumers appreciate the purity and sustainability of local sources.

Brands that highlight the uniqueness of their water sources, along with the quality and purity of their products, will appeal to a growing segment of consumers willing to pay a premium for high-quality, locally sourced bottled water.

Market Forecast: Growth and Projections

The Australian bottled water market is projected to grow at a compound annual growth rate (CAGR) of 4.07% from 2025 to 2034, with the market value expected to reach AUD 2.71 billion by 2034. This growth is attributed to the rising demand for bottled water, fueled by consumer preferences for convenience, portability, and health-conscious hydration options.

The market’s expansion is also driven by sustainability efforts within the industry, with many brands adopting eco-friendly packaging solutions to meet consumer demands. As consumers increasingly seek healthier beverage options and sustainable products, the bottled water sector is expected to continue thriving over the next decade.