Report Overview

Japan's bottled water market is expanding rapidly due to its thriving tourism industry and increasing consumer awareness about its health benefits. Additionally, the launch of multiple bottled water brands, offering a variety of flavors and attractive packaging, is driving the market forward.

Japan Bottled Water Market- Industry Trends & Forecast Report 2028

Japan bottled water market is anticipated to grow at the CAGR of 7.1% during the forecast period (2022-2028). The demand for bottled water is increasing at a high rate in Japan owing to the flourishing tourism sector in the country and growing consumer awareness. Moreover, the launch of bottled water brands with different flavors and attractive packaging is driving the market forward.

Bottled Water – A Brief Overview

A bottle of water is packaged drinking water that is usually packed in plastic or glass bottles. The sizes range from 250 ml as single-serving bottles to large carboys for water coolers. Bottled water can be used as an alternative to tap water, which is usually derived from a variety of sources, including well or public water supplies. There are also several types of bottled water available on the market, including groundwater, purified water, mineral water, hydrogen water, etc.

Japan Bottled Water Market Forecast and Trends

Growth Drivers

Growing Health Consciousness Among Consumers

Japan's bottled water market is witnessing promising growth due to the changing lifestyle of consumers as well as increased disposable income. Japanese citizens have always been health conscious and a healthy diet is an integral part of their lifestyle. Mineral bottled water is gaining significant traction among the Japanese population due to its high concentration of minerals and health benefits. These factors are significantly influencing the shift towards bottled water, propelling the overall market growth.

Japan’s Flourishing Tourism Sector

According to the 2017 Travel and Tourism Competitiveness Report, Japan is one of the world's top tourist destinations. It ranks fourth out of 141 countries. The demand for bottled water is forecast to increase in Japan during the forecast period due to flourishing tourism. In Japan, bottled water is widely used in the travel & hospitality sector, such as in airports, hotels, restaurants, and railroads, which is increasing the demand for bottled water. Furthermore, tourists like to keep bottled water handy for keeping themselves hydrated, which is driving the growth of Japan bottled water market.

Restraints

Environment Pollution Caused by Single-Use Plastic Bottles

Single-use plastic used for bottled water is one of the major contributors to environmental pollution. According to Harvard University, "bottled water is responsible for global warming and air pollution throughout its entire life cycle." The water. Moreover, the water used in bottled water from natural water sources is being overly exploited for the sake of domestic supply. Several reports have also revealed that there is not much difference between tap water and bottled water in Japan. These factors negatively affect the growth of the Japan bottled water market.

Impact of COVID-19 on Japan Bottled Water Market

The COVID-19 pandemic outbreak significantly halted the growth of the Japan bottled water market. The Japanese economy witnessed severe challenges during this period with the government having to impose a nationwide lockdown which halted all economic activities. Therefore, it adversely affected the demand for bottled water in Japan as the major commercial facilities that use bottled water such as airports, hotels, restaurants, etc., were closed. Despite this, the market is expected to grow at a steady pace during the forecast period due to a surge in health consciousness and a healthy eating habit among Japanese consumers.

Japan Bottled Water Market - By Product Type

Based on product types, Japan bottled water market is segmented into spring water, purified water, mineral water, distilled water, sparkling water, and others. The mineral water segment holds the largest share in the Japan bottled water market owing to the increasing health consciousness among Japanese consumers. Several studies have proved that the consumption of mineral water intake reduces blood pressure and improves blood circulation. Furthermore, it is also a good source of necessary minerals, such as magnesium, and helps in controlling cholesterol levels.

Japan Bottled Water Market - By Category

Based on categories, Japan bottled water market is grouped into water exchange, refill, and new. The new bottled water segment accounts for the largest market share due to its easy availability in inconvenience and retail stores. This kind of bottled water also offers higher hygiene and safety compared to its counterparts due to its sealed packaging. Nevertheless, the refill category is also growing at a substantial rate, although it is much slower than the new bottled water category. The demand for refill category is growing among eco-conscious customers seeking effective ways to reduce their plastic consumption.

Japan Bottled Water Market - By Distribution Channel

Based on distribution channels, Japan bottled water market is grouped into on-trade, off-trade segments. The off-trade segment dominates the Japan bottled water market with the largest market share. This segment is further classified into supermarkets/hypermarkets, convenience stores, retail stores, specialty stores, online channels, home, and office delivery, and others. On the other hand, the convenience stores segment also holds the largest market share owing to the availability of a wide range of bottled water brands of different sizes. Furthermore, the presence of a high number of convenience stores in this region also drives its market growth.

Japan Bottled Water Market- Competitive Landscape

The leading players in the Japan bottled water market are Suntory Holdings Limited, The Coca-Cola Company, Asahi Group Holdings, Ltd., FamilyMart Co., Ltd., Evian, Aqua Clara, Otsuka foods, FIJI Water, DrSilica Sdn Bhd, Fillico, and other prominent players.

Japan bottled water market is highly fragmented due to the presence of numerous brands. However, certain brands such as Suntory and Asahi enjoy more popularity and cover a significant market share. The market players also constantly introduce new products with added flavors and minerals and experiment with innovative packaging to attract consumers. Additionally, they spend huge amounts on advertising and marketing to generate consumer awareness and boost their sales. Furthermore, the adoption of competitive strategies such as mergers, acquisitions, partnerships, joint ventures, etc., is also prominent in this market.

Recent Development

• In December 2021, Suntory Group announced its plans to use 100% sustainable PET bottles globally by 2030 for its mineral water brand in Japan, Suntory Tennensui.

Scope of the Report:

By Product Type

• Spring Water
• Purified Water
• Mineral Water
• Distilled Water
• Sparkling Water
• Others

By Category

• Water Exchange
• Refill
• New

By Distribution Channel

• On-Trade
• Off-Trade

1. Supermarkets/Hypermarkets
2. Convenience Stores
3. Retail Stores
4. Speciality Store
5. Online Channel
6. Home and Office Delivery
7. Others