Bottled water is regarded as a substitute for soft drinks such as carbonates, juice for no sugar and additive contents. As people care more about the quality of drinking water, they are more likely to turn to bottled water for food safety concerns instead of drinking tap water, which aligns with an upgrade in consumption nationwide.
As consumers are more knowledgeable, they prefer products that offer more benefits in one package. Consumption of bottled water is moving towards natural mineral water for its natural minerals.
Consumer type and drinking occasion segmentation are driving category growth. Household consumption will be an important consumption demand in the next few years, which will result in various products being positioned differently to meet different needs such as for cooking etc.
Nongfu Spring is taking actions in product innovation and cross-border cooperation to maintain its leading role in bottled water in China. Nongfu Spring glass bottled water appeared at the Belt and Road International Summit Forum after G20 as the conference’s drinking water, delivering an image of Chinese brands with a high-quality water source.
Cost of nationwide supply chain and recycling of containers make penetration difficult for leading players, thus Chinese bulk water is dominated by small local players especially in lower-tier cities. Smaller size of bulk water will be a trend for safety and regulation concerns, which will enable wider coverage by leading brands as a way of driving the category forward.
Local brands are the top players and lead the competition. Nongfu Spring, C’est Bon and Ganten show great potential in terms of development.
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This industry report originates from Passport, our Soft Drinks market research database.