India’s packaged water industry, a rapidly growing beverage market segment, faces increasing regulatory challenges as authorities strive to balance public health, environmental sustainability, and industry growth. The packaged water industry has witnessed significant growth with the rising demand for safe and clean drinking water, particularly in urban areas and regions with inadequate water infrastructure. However, concerns surrounding water resource management, plastic pollution, and quality standards have led to tighter regulations and scrutiny.
The Bureau of Indian Standards (BIS) mandates stringent norms for packaged drinking water and natural mineral water to ensure quality and safety. Bottled water manufacturers must obtain IS 14543 (for packaged drinking water) and IS 13428 (for natural mineral water) certifications, which require periodic testing and compliance with quality benchmarks. Regulatory bodies such as the Food Safety and Standards Authority of India (FSSAI) also enforce strict monitoring of hygiene standards, packaging safety, and labeling accuracy to protect consumer interests.
One of the significant challenges facing the industry is the extraction and use of groundwater, which has drawn criticism due to its environmental impact. Manufacturers are required to obtain permission from the Central Ground Water Authority (CGWA) to regulate water extraction, and growing concerns about overexploitation have led to stricter controls in water-scarce regions. This has resulted in operational hurdles for companies that rely heavily on groundwater sources tiny and medium enterprises (SMEs).
The issue of plastic waste poses another regulatory challenge. With packaged water bottles primarily made of PET (polyethylene terephthalate), concerns about their environmental impact have prompted the government to impose bans on single-use plastics and push for sustainable packaging solutions. Under the Extended Producer Responsibility (EPR) framework, manufacturers must collect and recycle plastic waste, adding to operational costs.
Additionally, increasing consumer awareness of water quality has led to greater demand for transparency regarding source labeling and water purification methods. Regulators are pushing for more stringent labeling norms, ensuring that manufacturers disclose details about water sources and treatment processes to maintain consumer trust.
While large players in the industry have the resources to comply with these evolving regulations, smaller manufacturers face challenges in meeting the cost and infrastructure requirements for compliance. As the demand for packaged water continues to grow, especially in urban and rural markets, companies will need to innovate with sustainable practices, such as eco-friendly packaging, water recycling systems, and alternative materials, to align with government mandates and environmental goals.
In the face of these regulatory challenges, the packaged water industry must strike a balance between sustainable operations, environmental responsibility, and meeting consumer demand for clean drinking water. Proactive measures, investment in green technologies, and collaboration with policymakers will be critical for the long-term growth and resilience of India’s packaged water sector.
