Highland Spring Group, which produces naturally-sourced bottled water, is investing £16m ($21m) in doubling production capacity over the next 12 months.
The Blackford site extension will house a new production line.
Les Montgomery, chief executive of Highland Spring Group, points to an 8.2% rise in UK bottled water consumption in 2015, reaching nearly 3.3bn liters, with retail value in excess of £2.5bn ($3.3bn).
“We have great confidence in the underlying strength of the category and our investment plans to drive long-term sustainable growth,” he said.
“The factory extension will increase capacity at our main Blackford site by 50%, ensuring we are perfectly placed to meet demand for bottled water as consumers continue to switch from sugary soft drinks to healthier hydration choices.”
By 2020, the plain water market is expected to reach more than 4bn litres, he added, with the total water drinks market reaching 4.8bn litres.