“Disrupting the Bottled Water Market: Innovative Brands Carve Their Niche with Unique Offerings and Sustainability”
In 2020, Matt Levine rode his bike around Brooklyn, carrying a backpack filled with water, eager to earn some money. However, during the early days of the pandemic, the former restaurant owner had a goal that extended beyond mere profit. Levine aimed to attract businesses to his unique beverage: mountain spring water infused with liquid chlorophyll and essential vitamins. “Honestly, when we first launched, I was quite anxious,” he admitted.
Initially, Levine distributed his water to local yoga studios. Before long, health and wellness retailers began to stock the product, albeit often relegating it to obscure corners of their stores. Fast forward two years, and Chlorophyll Water, which derives its green hue from chlorophyll extracted from alfalfa, is experiencing rapid growth. Major retailers like Sprouts and Whole Foods are now showcasing the brand prominently in their grab-and-go refrigerated sections. Levine noted that a significant number of first-time shoppers return to purchase Chlorophyll Water again, with over two-thirds making repeat buys. “There has been a massive education over the past year or two about the benefits of chlorophyll,” Levine said, revealing that he now uses his product as a substitute for iced coffee to boost his morning energy levels.
Emerging brands like Chlorophyll Water are striving to carve out their own niche in the fiercely competitive bottled water market by emphasizing unique products and sustainability attributes that help them stand out. Even a small share of the extensive water market can translate into substantial revenue. According to Global Industry Analysts, the U.S. bottled water market is projected to reach $39 billion this year. Bottled water remains the largest beverage category by volume in the U.S., with a record 15.7 billion gallons sold in 2021, as reported by the Beverage Marketing Corporation. Consumption increased by 4.7% last year compared to 2020, with each American consuming an average of 47 gallons of bottled water, attracted by its perceived value and healthier image as consumers move away from sugar and artificial ingredients.
Experts and former beverage executives in the water sector indicate that large mainstream brands dominate the market, leveraging economies of scale and efficient distribution networks to keep prices competitive. For a standard bottle of water to break into this space and challenge established players like Coca-Cola’s Dasani, Danone’s Evian, or PepsiCo’s Aquafina would be nearly impossible. Gary Hemphill, managing director of research at the Beverage Marketing Corporation, emphasized that for new companies to succeed, they must offer something distinctive—such as health benefits or functional attributes—that sets their product apart. “It’s not as if there’s a strong demand for a new traditional water brand. However, if you can introduce a unique proposition, it changes the game,” Hemphill stated. “Water has proven to be a fertile ground for innovation due to its versatility.”
Hank Cardello, a food industry expert at Georgetown University’s McDonough School of Business and a former beverage executive, mentioned that upstart brands achieving sales of at least $10 million to $15 million could become attractive acquisition targets for larger consumer packaged goods companies. “Functional waters have a bright future ahead. It’s a rapidly growing category,” Cardello observed. “The major companies are unlikely to innovate significantly in this area; they are more inclined to acquire existing brands that require minimal investment.”
While much of the bottled water comes from underground springs or tap sources, some entrepreneurs are exploring unconventional origins. In Hawaii, Waiākea’s water flows from the Mauna Loa Volcano, where rain and snowmelt journey through porous volcanic rock for 14,000 feet. This natural filtration process results in alkalized water rich in essential minerals like potassium, calcium, magnesium, and silica, as well as electrolytes. A key component of Waiākea’s branding revolves around sustainability, including its use of post-consumer recycled plastic and refillable aluminum bottles. The volcano filters approximately 393 million gallons of water daily, with Waiākea claiming to bottle fewer than 12,000 gallons, further minimizing its ecological footprint.
Sean Lowden, Waiākea’s sales director, highlighted that the brand’s connection to the volcano and its emphasis on non-purified or enhanced water help it stand out on store shelves. Currently, the brand is experiencing “high double-digit growth” and is available at retailers such as 7-Eleven, Walmart, Kroger, Whole Foods, and Fresh Markets. “The water market is fiercely competitive,” Lowden noted, branding Waiākea as a “disruptor.” He added, “We stand out as consumers become increasingly educated and gravitate toward premium options.”
Lowden isn’t the only entrepreneur embracing the disruptor label. Adam Lazar, founder and CEO of Asarasi Sparkling Tree Water, stumbled upon his business idea 14 years ago while visiting a Vermont maple farm with his daughter. He observed that vast quantities of sugar-free maple sap were being discarded. Upon learning that only 3% of the sap collected is used for syrup and other products, Lazar was struck by an idea. “I asked the farmer, ‘Would you sell it to me?'” he recalled. “He looked at me like I was insane.”
Today, Asarasi procures thousands of gallons of sugarless maple sap annually from over 100 family farmers, many of whom have doubled their income without additional labor. Lazar noted that retailers like Kroger, Costco, and Walmart find Asarasi’s product appealing, as it helps them mitigate their water footprint. Priced at about $1.40 per bottle—approximately 20 cents more than a standard offering—Asarasi’s water emphasizes environmental sustainability and support for family farmers, which has resonated with consumers. Lazar also pointed to the ongoing drought in the western U.S. and the discovery of contaminants in water as favorable conditions for brands like his.
In recent years, the purity and quality of bottled water have come under scrutiny, with investigations revealing contaminants such as arsenic and microplastic particles in various products. “Millions of people are becoming aware of these issues and are becoming more discerning about their water choices,” Lazar commented. “We’re at a pivotal moment of awareness and consumer trial; people realize that just by enjoying an Asarasi while relaxing in their backyard, they are making a positive impact.” In addition, the demand for health-focused products, like ccm calcium tablets, is rising, further reflecting the trend toward conscious consumerism in the beverage industry.
