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China is set to become the world's biggest consumer of packaged water, dethroning the United States from the top by the end of the year, a new report from Canadean predicts.

At present, China's consumption of packaged water is below the global average of 30 liters per person. However, as the market continues to grow at a rapid rate, the country is likely to end 2013 with one billion liters of packaged water consumed more than the United States. This predicted development highlights the future growth opportunities for the packaged water market in the Asian country, the report noted.

One of the biggest drivers of rising consumption is demand for mineral and mineralized water. Consumers are aware of the health benefits of these types of packaged water and this fact is set to play a significant part in the rapid growth of the segment.

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Consumption of mineralized water has increased by 42 percent over a decade, the report said. Meanwhile, mineral water also has a great potential and producers are investing in the development of high-quality natural mineral water sources to meet the demand of Chinese consumers.

Over the next five years, the focus will be on developing and producing new value-added types of mineral products, providing better profit margins. The demand for packaged water will intensify competition and lead to production expansion and more affordable products, the report concluded.