Danone is increasing investment in its bottled water business as rising health consciousness drives consumers away from sugary beverages across key European markets.
The French food and beverage group said demand for healthier hydration in countries such as the UK and France is boosting sales of premium brands, including Evian, reflecting a broader structural shift in beverage consumption.
Major food companies, including Nestlé and Unilever, are adapting portfolios as consumers shift toward low-sugar and functional beverages, a trend further reinforced by the growing use of GLP-1 weight-loss drugs, which are influencing dietary habits.
According to Danone Waters Europe managing director Antoine Portmann, the €18 billion European bottled water market grew 5% in value and 3% in volume last year, marking its strongest growth in recent years. France and the UK led the expansion with value growth of 7% and 9%, respectively.
“What is driving this is increasing consumer awareness about the importance of healthy hydration,” Portmann said, adding that growth momentum is expected to continue over the long term.
Danone’s bottled water division generated about €4.85 billion in revenue last year, accounting for less than one-fifth of total company sales. The segment grew 1.9% overall and 3.3% in Europe.
The company also cited rising demand for convenient, on-the-go hydration, particularly in urban markets, as a key growth driver.
To support expansion, Danone has committed €20 million to upgrade its Evian bottling facility and an additional €8 million to enhance production sites for brands including Volvic, Badoit and La Salvetat.
The strategic shift comes as rival Nestlé considers selling a 50% stake in its water business, which includes Perrier and San Pellegrino.
As health-driven consumption patterns reshape the global beverage industry, bottled water is emerging as a core growth engine, prompting legacy food companies to rebalance portfolios toward cleaner and more functional offerings.