Indonesia Bottled Water Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR (2024 - 2029) | 8.15 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Bottled Water Market Analysis
The Indonesia Bottled Water Market is expected to register a CAGR of 8.15% during the forecast period.
Changing customer preferences and growing demand for clean and safe drinking water aid the exponential growth of the bottled water market in Indonesia. Rising disposable income in the country is driving the market, thus enabling higher sales revenue for the market players. Increasing demand from the rising population and inefficient water supply management in certain countries is driving the market. The consumer shift to vitamin- and mineral-fortified sparkling water is expected to boost the growth of the sparkling water segment of the market studied.
Although Indonesia has sizable renewable water resources, supply and demand frequently do not coincide. On the sparsely populated islands of Papua, Kalimantan, and Sumatra, freshwater is in plentiful supply. On islands like Java that have a higher density of people, freshwater is less accessible. Due to severe contamination and poor access to piped water, West Java faces significant risks to the security of its urban water supply. Such factors have paved the way for the bottled water market's growth across the region. Moreover, the rising trend for healthy lifestyles and the wide utilization of bottled water for activities such as trekking and other sports activities are the major factors responsible for the high demand for bottled water. Furthermore, the growing demand for eco-friendly bottled water packaging is opening up lucrative market opportunities for both existing manufacturers and new entrants in the market under consideration.
Indonesia Bottled Water Market Trends
Increasing Expenditure on Drinking Water Due to Lack of Safe Drinking Water Availability
Lack of access to safe water sources is a leading risk factor for numerous infectious diseases, including cholera, diarrhea, dysentery, hepatitis A, typhoid, and polio. Most of the urban population in Indonesia is concerned about the quality of tap water, especially in regard to taste and consistency. This resulted in a rising demand for bottled water in Indonesia.
According to World Bank data, Indonesia had 273.75 million citizens as of 2021, making it the world's fourth most populated nation; thus, the country seeks to meet the need for safe drinking water for its citizens' health. According to water.org, although Jakarta, the nation's capital, is developing as a global hub, the infrastructure and health of rural populations and those living in urban slums continue to be problems for them. Many homes lack access to clean drinking water because the sources are too remote, expensive, or contaminated. According to Water.org, in Indonesia, approximately 20 million people lack access to better sanitation facilities, while 18 million lack access to safe water.
Growing consumer awareness of health and wellness has led to a demand for bottled water. The purity of the water is often highlighted as a unique selling proposition by the market players, while some brands add functionality, which boosts the value. Due to rising concerns about the quality of water, the government is increasingly implementing new labeling requirements to tackle the counterfeiting of bottled water. The government is taking major initiatives for safe drinking water in the country, including tightening product controls and changing the labels on bottles in an attempt to enhance transparency regarding the quality of bottled water.
Flavored/ Functional Water is the Fastest Growing Segment
The flavored water segment of the market studied experiences major competition from substitute drinks. The calorie balance and the amount of sugar present in the water are the two challenging factors that have an impact on the market. The market has a great potential for growth due to the addition of additional flavors, and consumers perceive that additional fruit extracts would improve the nutritional benefits. With the increase in market penetration, the key players also tend to come up with new combinations of flavors, such as kiwi, lemon, raspberry, and strawberry.
Functional water is gaining popularity in Indonesia with the growing consumer trend toward health and wellness. The property of functional water is to have a lower calorie content than other soft drinks; offering more taste appeal than plain water is an attractive proposition to many consumers. Functional water is fueled by new formulations and improved marketing schemes. In terms of flavors, citrus varieties dominate the market studied, but the market studied has witnessed the penetration of various new flavors.
Functional waters continue to account for a small proportion of the market studied. The development has been held back to some extent by the premium pricing of these products. However, the health and diet needs of different consumer groups and tapping into young consumers' willingness to experiment with products that offer credible health benefits are expected to boost the market during the forecast period.
Indonesia Bottled Water Industry Overview
The Indonesian bottled water market is fragmented. Danone SA, The Coca-Cola Company, Fraser and Neave Limited, Asahi Group Holdings, Ltd., and Nestle SA are the key players in the market. Several new players are entering the market and are able to capture the market at a very fast pace, owing to the increasing demand for bottled water. Product launches, followed by new mergers and acquisitions, partnerships, and expansions, are the most preferred strategies to strengthen the players' positions in the market.
Indonesia Bottled Water Market Leaders
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The Coca-Cola Company
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Nestle SA
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Fraser and Neave, Limited.
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Asahi Group Holdings, Ltd.
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Danone SA
*Disclaimer: Major Players sorted in no particular order
Indonesia Bottled Water Market News
- August 2022: Kosme Group has launched Jiwater in Indonesia. Jiwater is natural artesian water that has undergone Japanese technological processing. The pH range of the new mineral water is between 7.5 and 8.
- January 2022: Indonesia's biggest bottled water producer, Danone-AQUA, launched AQUA LIFE, where they produced PET bottles made of 100% recycled material, delivering nourishing elements of water and beverages while conserving nature and the country's resources.
- June 2021: Nestlé Waters announced it would expand its efforts to manage water responsibly and collaborate more closely with its partners to find and promote regional solutions. Nestlé Waters aims to have a positive impact by revitalizing the regional water cycle. By implementing more than 100 projects across 48 of its locations by 2025, Nestlé will use its expertise to encourage the regeneration of the water cycle.
Indonesia Bottled Water Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Still Water
- 5.1.2 Sparkling Water
- 5.1.3 Functional Water
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5.2 Distribution Channel
- 5.2.1 Supermarkets/Hypermarkets
- 5.2.2 Convenience Stores
- 5.2.3 Online Retailers
- 5.2.4 On-trade
- 5.2.5 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Asahi Group Holdings, Ltd
- 6.3.2 Danone S.A.
- 6.3.3 The Coca-Cola Company
- 6.3.4 Nestle SA
- 6.3.5 Fraser and Neave Limited
- 6.3.6 Indo Food
- 6.3.7 Tanobel Food
- 6.3.8 PT INDOFOOD SUKSES MAKMUR Tbk
- 6.3.9 Promag
- 6.3.10 Blue Band
- 6.3.11 Kosme Group
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Indonesia Bottled Water Industry Segmentation
Bottled water is drinking water packaged in plastic or glass bottles. Bottled water may be carbonated or not. Sizes range from small single-serving bottles to large carboys for water coolers. The Indonesian bottled water market is segmented by type and distribution channel. By type, the market is segmented into still water, sparkling water, and functional water; and by distribution channel, into supermarkets and hypermarkets, convenience stores, online retailers, on-trade, and other distribution channels. The report offers market size and forecasts for the bottled water market in terms of value (USD million) for all the above segments.
| Type | Still Water |
| Sparkling Water | |
| Functional Water | |
| Distribution Channel | Supermarkets/Hypermarkets |
| Convenience Stores | |
| Online Retailers | |
| On-trade | |
| Other Distribution Channels |
Indonesia Bottled Water Market Research FAQs
What is the current Indonesia Bottled Water Market size?
The Indonesia Bottled Water Market is projected to register a CAGR of 8.15% during the forecast period (2024-2029)
Who are the key players in Indonesia Bottled Water Market?
The Coca-Cola Company, Nestle SA, Fraser and Neave, Limited., Asahi Group Holdings, Ltd. and Danone SA are the major companies operating in the Indonesia Bottled Water Market.
What years does this Indonesia Bottled Water Market cover?
The report covers the Indonesia Bottled Water Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Indonesia Bottled Water Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the emerging trends in the Indonesia Bottled Water Market?
The emerging trends in the Indonesia Bottled Water Market are a) Increasing focus on sustainable practices b) Convenience packaging
Indonesia Bottled Water Industry Report
The Indonesian bottled water market is witnessing robust growth, propelled by a shift in consumer preferences towards healthier, clean, and safe drinking options along with a notable rise in health and wellness awareness. This upward trend is fueled by increased disposable incomes, urbanization, and a preference for eco-friendly packaging, alongside a significant spike in demand for vitamin and mineral-fortified sparkling water. The sector has shown remarkable resilience in bouncing back post-pandemic, underscoring a broader trend towards healthful living and increased consumption of bottled water for various activities. The market's competitive landscape sees a dynamic mix of local and global players employing strategic mergers, acquisitions, and product innovations to strengthen their foothold. Moreover, the growing popularity of flavored water as the segment's fastest grower and the pursuit of functional water reflect a consumer shift towards beverages with added health benefits. Sustainability initiatives and the booming online retail sector are opening new avenues, indicating a promising market outlook rooted in health consciousness and the quest for convenience. Insights drawn from Mordor Intelligence™ Industry Reports further project a vibrant market expansion, get a sample of this industry analysis as a free report PDF download.
