Industry Summary The sparkling water industry is rapidly expanding, with the market projected to grow significantly in the coming years. According to an industry report, the “sparkling water market was valued at USD 32.3 billion in 2021 and is expected to reach USD 93.8 billion by 2030,” and Spindrift is one of the “Key Companies” in the industry. The industry's growth is fueled by health-conscious consumers, particularly Gen Z and Millennials in America and Europe, seeking healthier beverage options. The pandemic further boosted demand for bottled and canned sparkling water during periods of isolation at home. Approval from the American Dental Association regarding its teeth-friendly nature has also driven its popularity as an alternative to traditional soda. Spindrift demonstrates environmental consciousness by donating 1% of profits to environmental causes and employing eco-friendly packaging materials such as aluminum cans and cardboard. Efforts are underway to minimize the use of shrink wrap, aligning with sustainability goals.

Government or Societal Influences There is an overall growing trend of people being concerned about their health, and the pandemic only increased this “as seven in 10 agree that they’ve become more aware of how they treat their body since the pandemic began.” This trend influences Spindrift's sales and brand positioning, as sparkling water is viewed as a healthier alternative to traditional sodas like Coke and Pepsi. Spindrift distinguishes itself by using real fruit juice and no added sugars, catering to health-conscious consumers. Additionally, their direct collaboration with farms for ingredient sourcing aligns with the growing consumer demand for ethical production. However, challenges arise, such as supply chain disruptions due to factors like extreme weather events. For instance, a heatwave in the northwest led to a shortage of raspberries, impacting Spindrift's popular Raspberry and Lime flavor. Furthermore, a recent class action lawsuit alleging false ingredient labeling poses a threat to the brand's credibility and consumer trust.