Report Overview

China Bottled Water Market- Industry Trends & Forecast Report 2027

China bottled water market was worth USD 45.1 billion in 2020 and is further projected to reach USD 76.2 billion by the year 2027, growing at the CAGR of 7.6% in the forecast period. China is one of the leading markets for bottled water mainly because of the increasing health consciousness among consumers and the growing disposable income of the middle-class group. Furthermore, a severe shortage of fresh water supply, increasing water contamination, and prevalence of water-borne diseases are anticipated to drive the China bottled water market during the forecast period.

Source: BlueWeave Consulting

China Bottled Water Market- Overview

Bottled water is packaged drinking water usually packaged in plastic or glass water bottles. There are a variety of sizes available, from 250 ml single-serving bottles to large carboys for water coolers. Bottled water serves as an alternative to tap water obtained from various sources, including groundwater or a public water supply. China's growing demand for bottled water is driven by the fear of water-borne diseases as well as the convenience and ease of portability provided by bottled water.

China Bottled Water Market Forecast and Trends

Growth Drivers

Increasing Health Concerns Among Consumers

A growing trend toward a healthy lifestyle among Chinese consumers and distrust in tap water quality, along with associated health risks, drives the China bottled water market. Mineral water is in high demand in Chinese markets as a result of the high concentration of necessary minerals that are making consumers willing to pay more for pure drinking water. According to a report by IOPscience, more than 50% of Chinese consumers prefer bottled water. Consequently, the demand for bottled water is projected to increase during the forecast period due to consumers' growing desire for pure drinking water.

Concerning Water Pollution Levels

China's groundwater is contaminated by toxic human and industrial waste, and around 70% of its rivers and lakes are polluted; therefore, the water is considered unfit for human consumption. Moreover, untreated waste is being illegally dumped directly into water bodies due to rapid industrialization and expanding manufacturing activities. Thus, the declining water quality levels are reducing access to safe and clean drinking water for citizens, which is prompting them to purchase bottled water.

Restraints

Increasing Prices of Bottled Water

Chinese consumers are extremely price-sensitive, mainly because of the availability of low-cost products in the domestic market. In such a situation, the increasing prices of bottled water may act as a major deterrent for the market. The average cost of bottled water is around 4.25 Yuan (USD 0.67) for a 1.5-liter bottle in China. The increasing fuel and chemical prices directly influence the price of bottled water, which may decrease its demand among middle and lower-income consumers in China.

Impact of COVID-19 on China Bottled Water Market

China was at the epicenter of the coronavirus outbreak and therefore, all the economic sectors were directly impacted by the COVID-19 pandemic. Manufacturers and distributors of bottled water faced many challenges, including disruptions in production and distribution. Moreover, the demand for bottled water from end-users declined sharply due to a shortage of bottled water in offline channels, such as convenience stores. Moreover, vast populations were placed under strict lockdown, which restricted consumers' access to bottled water. However, bottled water brands are overcoming these challenges by resorting to online sales channels to boost their growth.

China Bottled Water Market - By Product Type

Based on product types, the China bottled water market is segmented into spring water, purified water, mineral water, distilled water, sparkling water, and others. The mineral water segment dominates the China bottled water market with a 91% share due to the high health concerns. The benefits of mineral water are numerous. It reduces blood pressure, helps regulate blood circulation, lowers cholesterol levels, and is a good source of minerals like magnesium. Meanwhile, sparkling water is also growing rapidly in China due to its high mineral content. The growing awareness of the importance of leading a healthy lifestyle also contributes to the growth of this market segment.

China Bottled Water Market - By Distribution Channel

Based on distribution channels, China bottled water market is grouped into on-trade and off-trade segments. The off-trade segment is further classified into supermarkets/hypermarkets, convenience stores, retail stores, specialty stores, online channels, home, and office delivery, and others. Even though online channels are growing at a high rate, most Chinese consumers prefer buying bottled water from convenience stores and supermarkets/hypermarkets. However, the sales of bottled water through e-commerce platforms are registering significant growth over the past few years, and is likely to witness substantial growth during the forecast period.

China Bottled Water Market- Competitive Landscape

The leading players in the China bottled water market are Nongfu Spring, FineWaters, Natural Waters of Viti Ltd., The Coca-Cola Company, Nestlé Waters, China Resources (Holdings) Co. Ltd, Shenzhen Jingtian Food & Beverage Co., Ltd, Hangzhou Wahaha Future Cola Beverages Co., Ltd., Ting Hsin International Group Market, Tingyi Holdings Corporation, and other prominent players.

The market is significantly dominated by certain players, such as Nongfu Spring, Coca-Cola, and Nestle Waters. China's bottled water market is led by Nongfu Spring, accounting for 13.6% of the market. Other companies are also launching products and using advertising and marketing strategies to build their brand awareness. Furthermore, the adoption of competitive strategies, such as collaborations, mergers, acquisitions, partnerships, etc., is also prominent in this market.

Recent Development

• In August 2020, Tsingtao Brewery Group, China’s second largest brewing group announced the acquisition of Nestle’s domestic water business. Through this acquisition, it intends to sell Nestle’s international brands, including Perrier, S. Pellegrino and Acqua Panna in the domestic market.

Scope of the Report

By Product Type

• Spring Water
• Purified Water
• Mineral Water
• Distilled Water
• Sparkling Water
• Others

By Distribution Channel

• On-Trade
• Off-Trade

1. Supermarkets/Hypermarkets
2. Convenience Stores
3. Retail Stores
4. Speciality Store
5. Online Channel
6. Home and Office Delivery
7. Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Increasing Health Concerns Among Consumers
         2. Concerning Water Pollution Levels
      2. Market Restraints
         1. Increasing Prices of Bottled Water
      3. Market Challenges
         1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
         1. Growing Prevalence of Water-Borne Diseases
         2. Increasing Disposable Income of Middle and Lower-Income Groups
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. China Bottled Water Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Product Type
         1. Spring Water
         2. Purified Water
         3. Mineral Water
         4. Distilled Water
         5. Sparkling Water
         6. Others
      2. By Distribution Channel
         1. On-Trade
         2. Off-Trade
            1. Supermarkets/Hypermarkets
            2. Convenience Stores
            3. Retail Stores
            4. Speciality Store
            5. Online Channel
            6. Home and Office Delivery
            7. Others
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on China Bottled Water Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Nongfu Spring
   2. FineWaters
   3. Natural Waters of Viti Ltd.
   4. The Coca-Cola Company
   5. Nestlé Waters
   6. China Resources (Holdings) Co. Ltd
   7. Shenzhen Jingtian Food & Beverage Co., Ltd
   8. Hangzhou Wahaha Future Cola Beverages Co., Ltd.
   9. Ting Hsin International Group Market
   10. Tingyi Holdings Corporation
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: China Bottled Water Market Segmentation

Figure 2: China Bottled Water Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: China Bottled Water Market Size, By Value (USD Billion), 2017-2027

Figure 5: China Bottled Water Market Share (%), By Product Type, By Value, 2017-2027

Figure 6: China Bottled Water Market Share (%), By Distribution Channel, By Value, 2017-2027

List of Tables

Table 1: China Bottled Water Market Size, By Product Type, By Value (USD Billion), 2017-2027

Table 2: China Bottled Water Market Size, By Distribution Channel, By Value (USD Billion), 2017-2027

Table 3: Nongfu Spring Financial Analysis

Table 4: Nongfu Spring Business Overview

Table 5: FineWaters Financial Analysis

Table 6: FineWaters Business Overview

Table 7: Natural Waters of Viti Ltd. Financial Analysis

Table 8: Natural Waters of Viti Ltd. Business Overview

Table 9: The Coca-Cola Company Financial Analysis

Table 10: The Coca-Cola Company Business Overview

Table 11: Nestlé Waters Financial Analysis

Table 12: Nestlé Waters Business Overview

Table 13: China Resources (Holdings) Co. Ltd Financial Analysis

Table 14: China Resources (Holdings) Co. Ltd Business Overview

Table 15: Shenzhen Jingtian Food & Beverage Co., Ltd Financial Analysis

Table 16: Shenzhen Jingtian Food & Beverage Co., Ltd Business Overview

Table 17: Hangzhou Wahaha Future Cola Beverages Co., Ltd. Financial Analysis

Table 18: Hangzhou Wahaha Future Cola Beverages Co., Ltd. Business Overview

Table 19: Ting Hsin International Group Market Financial Analysis

Table 20: Ting Hsin International Group Market Business Overview

Table 21: Tingyi Holdings Corporation Financial Analysis

Table 22: Tingyi Holdings Corporation Business Overview