Yes, but people still buy it (and market is bound to grow, ceteris paribus) because they think tap water is worse somehow. And with crumbling public water infrastructure in many countries, that's not really far from the truth.
https://www.pewtrusts.org/en/trend/archive/spring-2019/how-d...
https://www.umweltbundesamt.de/en/topics/water/drinking-wate...
Some companies are even selling tapwater in bottles for a good profit, so many drink tapwater from bottles without knowing:
https://www.theguardian.com/us-news/2020/apr/23/pepsi-coke-b...
Water in plastic bottles can contain solvents and microparticles, and be worse because of that:
https://www.time.com/5581326/plastic-particles-in-bottled-wa...