Indonesia Bottled Water Market Outlook to 2030

Indonesia Bottled Water Market Overview

• The Indonesia Bottled Water market is valued at USD 336 million, based on a five-year historical analysis. This market is primarily driven by the rising demand for safe drinking water due to concerns over tap water quality and increasing health consciousness among consumers. Urbanization, combined with a growing middle class, has fueled the demand for convenient and reliable hydration options. Bottled water consumption is also supported by the expanding tourism industry, especially in regions like Bali, where tourists prefer packaged water for safety reasons.
• The market is dominated by urban centers like Jakarta, Surabaya, and Bali. These cities have experienced significant economic growth, with a rise in disposable income and a burgeoning middle class contributing to the high consumption of bottled water. The tourist-heavy areas like Bali also experience heightened demand for bottled water, as international visitors prefer safe and convenient hydration options, further boosting the market in these regions.
• Indonesias government has stringent national water quality standards to ensure the safety of bottled water products. In 2022, the Ministry of Health revised its regulations, enforcing stricter guidelines on microbial and chemical contamination levels. Companies are required to conduct regular quality checks, with penalties for non-compliance. The updated standards are designed to protect consumers from waterborne diseases and ensure consistency in bottled water quality, especially as the market grows and more players enter the industry.

Indonesia Bottled Water Market Segmentation

By Product Type: The Indonesia bottled water market is segmented by product type into still water, sparkling water, flavored water, and functional water. Still water holds the dominant market share in Indonesia, largely due to its widespread availability, affordability, and consumer preference for non-carbonated hydration options. Many leading brands focus on providing still water as their primary product, catering to the everyday consumption needs of a broad demographic across both urban and rural areas.

By Packaging Type: Indonesia's bottled water market is also segmented by packaging type into PET bottles, glass bottles, cans, and biodegradable packaging. PET bottles hold the largest market share, as they offer a lightweight, affordable, and convenient packaging solution for consumers. PET bottles are also widely recycled, making them a more sustainable option than other materials, which resonates with environmentally conscious consumers. Many companies have also introduced eco-friendly initiatives to improve PET bottle recycling rates.

Indonesia Bottled Water Market Competitive Landscape

The Indonesian bottled water market is competitive, with both local and global players vying for market share. The market is characterized by a consolidation of major brands, including local market leaders like Danone Aqua and global players such as Coca-Cola Amatil Indonesia. These companies have achieved dominance through extensive distribution networks, strategic partnerships, and large-scale marketing efforts that resonate with a wide demographic of consumers. Innovation in packaging and product differentiation, such as the introduction of flavored and functional waters, also plays a critical role in maintaining a competitive edge.

Indonesia Bottled Water Industry Analysis

Growth Drivers

• Urbanization and Population Growth: Indonesia's urban population continues to rise, with over 158 million people residing in cities as of 2023, which reflects a notable increase from previous years. This urbanization drives demand for bottled water, as access to safe drinking water remains inconsistent in urban areas. Indonesia's total population reached 278 million in 2024, making it the fourth-most populous country in the world. This substantial population, combined with increasing disposable income in urban centers, amplifies the need for bottled water.
• Increasing Health Consciousness: Health-conscious consumers in Indonesia are becoming more aware of waterborne diseases due to contaminated sources. In 2022, the Ministry of Health reported that nearly 60% of the population prefers bottled water as a safe drinking option. With the increased prevalence of gastrointestinal illnesses in regions where piped water quality is low, demand for bottled water has surged. In 2023, Indonesia experienced a rise in lifestyle diseases such as obesity and diabetes, pushing consumers toward healthier choices, including low-calorie bottled water and mineral-rich water alternatives.
• Tourism and Hospitality Sector Demand: Indonesia welcomed over 5.3 million international tourists in 2023, recovering from the pandemic lows, with Bali being a key destination. Tourists prefer bottled water due to concerns about local water quality, contributing significantly to bottled water sales in hotels, restaurants, and retail outlets. The growing hospitality sector, driven by the country's tourism rebound, continues to boost the bottled water industry. Additionally, the expansion of eco-friendly tourism has led to higher demand for premium and mineral-rich water options catering to health-conscious visitors.

Market Challenges

• Environmental Concerns Related to Plastic Waste: Indonesia produces an estimated 6.8 million tons of plastic waste annually, with a significant portion attributed to single-use plastics like bottled water containers. This has raised environmental concerns and prompted calls for more sustainable packaging solutions. In 2023, the Indonesian government implemented policies aimed at reducing plastic waste by 30% by 2030, which could impact bottled water manufacturers that rely heavily on plastic bottles.
• High Cost of Bottled Water Production: The cost of producing bottled water in Indonesia remains high due to factors such as energy prices, water extraction fees, and stringent quality control processes. In 2024, the average electricity cost for industrial producers rose to approximately USD 0.10 per kWh, according to the Ministry of Energy and Mineral Resources. Additionally, transportation costs have increased due to rising fuel prices, affecting the supply chain.

Indonesia Bottled Water Market Future Outlook

Over the next five years, the Indonesia bottled water market is expected to witness significant growth driven by increasing consumer awareness of health benefits, expansion into untapped rural areas, and improvements in water infrastructure. The rise of premium and functional bottled water products, along with the trend towards eco-friendly and sustainable packaging, will also play a key role in shaping the future of the market.

Market Opportunities

• Growth in Premium Bottled Water Segment: There has been a notable increase in demand for premium bottled water in urban areas, with brands offering mineral-rich and alkaline water experiencing growth. In 2023, the premium water segment saw an increase in sales, particularly in metropolitan areas like Jakarta, where consumers are willing to pay higher prices for perceived health benefits. The rise in disposable income, which reached an average of USD 4,340 in 2024 for urban households, supports this trend.
• Rising Demand for Sustainable Packaging: The move toward sustainable packaging has gained momentum in Indonesias bottled water market. In 2023, the government set a target to reduce plastic waste by 30% through initiatives that encourage the use of biodegradable and recycled materials. Companies in the bottled water sector are responding by introducing packaging made from recycled plastics or biodegradable materials, appealing to environmentally conscious consumers