Table of Contents
Introduction
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- Report structure
- Definition
- Methodology
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Volume sales of bottled water in China (bn litres), 2008-18
- Companies and brands
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- Figure 2: Leading bottled water companies, % market share, 2013
- The consumer
- Frequency of drinking different types of packaged drinks
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- Figure 3: Frequency of drinking each type of soft drink, December 2013
- Figure 4: Repertoire of frequency of drinking different types of packaged drinks, December 2013
- Different types of bottled water drunk
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- Figure 5: Different types of bottled water drunk, December 2013
- Occasions for drinking bottled water
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- Figure 6: Occasions for drinking bottled water, December 2013
- Locations for purchasing bottled water
- Top factors for purchasing bottled water
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- Figure 7: Top factors for purchasing bottled water, December 2013
- Opinions and attitudes towards bottled water
- Key issues
- Water sourcing is key to attracting consumers
- Accessible products and smaller packs will attract impulsive, on-the-go consumers
- Heated bottles and food pairings can boost sales
- Health benefits of water can engage the health-conscious population
- What we think
The Market
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- Key points
- Market size
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- Figure 8: Growth trends in China’s bottled water market, volume (bn litres) and value (RMB bn), 2008-13
- Bottled water leads volume sales, but is only third by value in soft drinks
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- Figure 9: Volume (bn litres) and value (RMB bn) retail sales of soft drinks, China, 2013
- NPD activity declines compared to other soft drinks
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- Figure 10: NPD activity in the soft drinks market, by category, 2009-13, China
- Market forecast
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- Figure 11: Value retail sales of bottled water in China (RMB bn), 2008-18
- Figure 12: Total bottled water volumes in China (bn litres), 2008-18
- Figure 13: Volume retail sales of bottled water in China (bn litres), 2008-18
- Figure 14: Volume non-retail sales of bottled water in China (bn litres), 2008-18
- Market segmentation
- Non-retail sales outpace retail sector
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- Figure 15: Volume sales of bottled water in China, by retail and non-retail (bn litres), 2008-13
- Market drivers
- Demand for bottled water rises as safety of boiled tap water questioned
- Plasticizer scandal causes shift to bottled water
- Increasing outdoor activities lead to improved bottled water demand
- Bottled water benefits from increasingly health-conscious population
- Rising disposable incomes and discretionary spending encourages premiumisation
- Affordability keeps bottled water competitive
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- Figure 16: Average price per litre, by beverage category, China, 2013
- Market barriers
- Competition with boiled tap water and home water purifiers
- A lack of variety turns off consumers
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- Figure 17: Typical bottled display water in a supermarket
- Northern China sees weaker sales due to long cold season
- Lack of heated bottled waters lowers sales during winter
Companies and Brands
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- Key points
- Top five brands account for half of the market
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- Figure 18: Leading bottled water companies, % market share, 2013
- Master Kong
- Wahaha
- Nongfu Spring
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- Figure 19: Nongfu bottled water products in various pack sizes under the advertising slogan “Nongfu Spring is a little sweet”.
- C’est Bon
- Jiangxi Runtian Beverage Company Limited
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- Figure 20: Three brands of bottled water from Runtian, in varying sizes: Cuitianran mineral bottled water, Runtian purified bottled water and Shennongjia mineral bottled water
The Consumer – Frequency of Drinking Different Types of Packaged Drinks
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- Key points
- Frequency of drinking different types of packaged drinks
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- Figure 21: Frequency of drinking different types of packaged drinks, December 2013
- Bottled water is the most frequently consumed packaged drink
- The core consumers of bottled water and other packaged drinks
- Bottled water
- Other packaged drinks
- Repertoire of drinking different types of packaged drinks
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- Figure 22: Different types of packaged drinks drunk, by repertoire of packaged drinks drunk, December 2013
- Rising incomes result in a broader repertoire of packaged drinks
The Consumer – Different Types of Bottled Water Drunk
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- Key points
- Different types of bottled water drunk in past 6 months
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- Figure 23: Different types of bottled water drunk, December 2013
- Still and unflavoured waters dominate
- Sparkling and flavoured waters are considered more functional, indulgent and reviving
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- Figure 24: Occasions for drinking bottled water, by different types of bottled water drunk, December 2013
The Consumer – Occasions for Drinking Bottled Water
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- Key points
- Occasions for drinking bottled water in past 6 months
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- Figure 25: Occasions for drinking bottled water, December 2013
- Bottled water is drunk most often outdoors
- Bottled water is seen as a good thirst quencher
- Indoors consumption of bottled water is low
The Consumer – Locations for Purchasing Bottled Water
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- Key points
- Retail channels for purchasing drinking bottled water in past 6 months
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- Figure 26: Locations for purchasing bottled water, December 2013
- Supermarkets are the most common outlet
- Retail channels benefit from wide presence and competitive prices
- Different demographics embrace different retail channels
- Food service has potential as Chinese increasingly eat out
- Higher income consumers dominate foodservice purchases
- Repertoire of bottled water purchase locations
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- Figure 27: Repertoire of locations for purchasing bottled water
- Older consumers are more conservative shoppers, while the young are impulsive
The Consumer – Top Factors for Purchasing Bottled Water
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- Key points
- Top factors for purchasing bottled water
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- Figure 28: Top factors for purchasing bottled water, December 2013
- Good water standards are essential, but other factors can also attract consumers
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- Figure 29: Top factors for purchasing bottled water, by income, December 2013
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- Figure 30: Top factors for purchasing bottled water, by age, December 2013
The Consumer – Opinions and Attitudes Towards Bottled Water
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- Key points
- Agreement towards statements regarding bottled water
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- Figure 31: Agreement with bottled water statements, December 2013
- Tier one consumers more aware of health benefits
- Four-in-five believe higher quality water is worth paying more for
- Channels and convenience
- Mixed opinions on water safety
- Trust in foreign brands shows the need for branding and quality control
- Occasion-positioned water could boost appeal
Key Issue – Good Water Source is Key to Attracting Consumers
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- Key points
- Water pollution raises safety fears for drinking boiled tap water
- Good water standards are top motivation when purchasing bottled water
- The core consumers for high water quality and good water source
- Taiwan plasticizers scandal benefits bottled water
- Core demographics believe bottled water is safer than other soft drinks
- Emphasising quality will widen bottled water appeal
- Core consumers willing to pay more for high quality bottled water
- Brands compete for good water sources
- Water quality and source drive premium bottled water sales
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- Figure 32: Chinese premium bottled water brands, 2011-12
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- Figure 33: Examples of top bottled water brands in China and their water sources
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- Figure 34: Nongfu and ganten sell bottled waters through water sources
- What does it mean?
Key Issue – Product Accessibility and Smaller Packs Will Attract Impulse and On-the-go Consumers
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- Key points
- Convenience is key to attracting impulse and on-the-go consumers
- Core consumer groups for convenience
- Outdoors availability and an emphasis on product functionality could boost uptake
- Targeting top locations for on-the-go consumers
- Hot spots include travel hubs, tourist destinations, leisure places, offices, schools, eateries and exercise venues
- Bottled water has potential in premium clubs
- Smaller bottled waters will appeal to on-the-go consumers, particularly women
- Smaller pack sizes NPD is not enough
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- Figure 35: NPD activity in bottled water market in China, by 10 most popular bottle sizes, 2009-13
- Smaller bottled waters are increasing, but lag behind other soft drinks
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- Figure 36: NPD activity in fruit juice, RTD tea, bottled water and CSD in China, 2009-13
- What does it mean?
Key Issue – Heated Bottled Water and Food Pairings Can Boost Sales
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- Key points
- Consumers want bottled water at appropriate temperatures and in meal deals
- Female, married, high earners desire meal deals and appropriate temperatures
- Chilled and heated bottled waters could boost consumption
- Improving existing ambient and chilled options in the market
- Lack of heated bottled waters in the market
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- Figure 37: Heated display unit in a convenience store in Shanghai
- Figure 38: Metal aluminium can and bottle in Portugal and Japan, 2013
- Bottled water could explore indulgent food pairings
- Fast food growth increases on-trade potential
- Food pairings are lacking in the off-trade
- Healthier bottled water can pair with indulgent snacks
- What does it mean?
Key Issue – Highlighting Health Benefits of Water can Penetrate Health-conscious Population
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- Key points
- Healthy claims will appeal to increasingly health-conscious Chinese
- Bottled water can position itself as a tool against obesity
- Bottled water can better target exercise occasions
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- Figure 39: Kang Ba Er’s Soda Water
- Bottled water claims are often overlooked
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- Figure 40: Product launches in the Chinese bottled water market, % share by selected claims, 2009-13
- What does it mean?
Appendix – The Consumer – Frequency of Drinking Different Types of Packaged Drinks
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- Figure 41: Frequency of drinking different types of packaged drinks, December 2013
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- Figure 42: Frequency of drinking different types of packaged drinks, December 2013 (continued)
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- Figure 43: Most popular frequency of drinking different types of packaged drinks – Bottled water, by demographics, December 2013
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- Figure 44: Next most popular frequency of drinking different types of packaged drinks – Bottled water, by demographics, December 2013
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- Figure 45: Most popular frequency of drinking different types of packaged drinks – Carbonated soft drinks, by demographics, December 2013
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- Figure 46: Next most popular frequency of drinking different types of packaged drinks – Carbonated soft drinks, by demographics, December 2013
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- Figure 47: Most popular frequency of drinking different types of packaged drinks – Sports/energy drinks, by demographics, December 2013
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- Figure 48: Next most popular frequency of drinking different types of packaged drinks – Sports/energy drinks, by demographics, December 2013
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- Figure 49: Most popular frequency of drinking different types of packaged drinks – Ready-to-drink tea, by demographics, December 2013
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- Figure 50: Next most popular frequency of drinking different types of packaged drinks – Ready-to-drink tea, by demographics, December 2013
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- Figure 51: Most popular frequency of drinking different types of packaged drinks – Juice, by demographics, December 2013
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- Figure 52: Next most popular frequency of drinking different types of packaged drinks – Juice, by demographics, December 2013
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- Figure 53: Most popular frequency of drinking different types of packaged drinks – Ready-to-drink coffee, by demographics, December 2013
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- Figure 54: Next most popular frequency of drinking different types of packaged drinks – Ready-to-drink coffee, by demographics, December 2013
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- Figure 55: Most popular frequency of drinking different types of packaged drinks – Plant protein drinks, by demographics, December 2013
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- Figure 56: Next most popular frequency of drinking different types of packaged drinks – Plant protein drinks, by demographics, December 2013
- Repertoire analysis
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- Figure 57: Repertoire of frequency of drinking different types of packaged drinks, December 2013
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- Figure 58: Repertoire of frequency of drinking different types of packaged drinks, by demographics, December 2013
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- Figure 59: Frequency of drinking different types of packaged drinks, by repertoire, December 2013
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Appendix – The Consumer – Different Types of Bottled Water Drunk
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- Figure 60: Different types of bottled water drunk, December 2013
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- Figure 61: Different types of bottled water drunk, by demographics, December 2013
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- Figure 62: Occasions of drinking bottled water, by different types of bottled water drunk, December 2013
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- Figure 63: Top factors for purchasing bottled water, by different types of bottled water drunk, December 2013
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Appendix – The Consumer – Occasions for Drinking Bottled Water
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- Figure 64: Occasions for drinking bottled water, December 2013
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- Figure 65: Most popular occasions for drinking bottled water, by demographics, December 2013
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- Figure 66: Next most popular occasions for drinking bottled water, by demographics, December 2013
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- Figure 67: Other occasions for drinking bottled water, by demographics, December 2013
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- Figure 68: Locations for purchasing bottled water, by most popular occasions for drinking bottled water, December 2013
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- Figure 69: Locations for purchasing bottled water, by next most popular occasions for drinking bottled water, December 2013
- Repertoire analysis
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- Figure 70: Repertoire of occasions for drinking bottled water, December 2013
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- Figure 71: Repertoire of occasions for drinking bottled water, by demographics, December 2013
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- Figure 72: Occasions of drinking bottled water, by repertoire of occasions of drinking bottled water, December 2013
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Appendix – The Consumer – Locations for Purchasing Bottled Water
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- Figure 73: Locations for purchasing bottled water, December 2013
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- Figure 74: Most popular locations for purchasing bottled water, by demographics, December 2013
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- Figure 75: Next most popular locations for purchasing bottled water, by demographics, December 2013
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- Figure 76: Other locations for purchasing bottled water, by demographics, December 2013
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- Figure 77: Locations for purchasing bottled water, by different types of bottled water drunk, December 2013
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- Figure 78: Locations for purchasing bottled water, by most popular factors for purchasing bottled water, December 2013
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- Figure 79: Locations for purchasing bottled water, by next most popular factors for purchasing bottled water, December 2013
- Repertoire analysis
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- Figure 80: Repertoire of locations for purchasing bottled water, December 2013
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- Figure 81: Repertoire of locations for purchasing bottled water, by demographics, December 2013
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- Figure 82: Locations of purchasing bottled water, by repertoire of locations of purchasing bottled water, December 2013
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Appendix – The Consumer – Top Factors for Purchasing Bottled Water
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- Figure 83: Top factors for purchasing bottled water, December 2013
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- Figure 84: Most popular factors for purchasing bottled water, by demographics, December 2013
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- Figure 85: Next most popular factors for purchasing bottled water, by demographics, December 2013
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- Figure 86: Top factors for purchasing bottled water, by most popular occasions for drinking bottled water, December 2013
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- Figure 87: Top factors for purchasing bottled water, by next most popular occasions for drinking bottled water, December 2013
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Appendix – The Consumer – Opinions and Attitudes Towards Bottled Water
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- Figure 88: Agreement with bottled water statements, December 2013
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- Figure 89: Agreement with the statement ‘Bottled water of higher quality is worth paying more for’, by demographics, December 2013
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- Figure 90: Agreement with the statement ‘Bottled water is a healthier alternative to soft drinks’, by demographics, December 2013
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- Figure 91: Agreement with the statement ‘Bottled water with added ingredients provides more health benefits than standard bottled water’, by demographics, December 2013
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- Figure 92: Agreement with the statement ‘Bottled water is more hydrating than other drinks’, by demographics, December 2013
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- Figure 93: Agreement with the statement ‘The water quality of international bottled water brands are more reliable than Chinese brands’, by demographics, December 2013
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- Figure 94: Agreement with the statement ‘Bottled water is safer to drink than soft drinks’, by demographics, December 2013
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- Figure 95: Agreement with the statement ‘Boiled tap water is just as safe to drink as bottled water’, by demographics, December 2013
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- Figure 96: Agreement with the statement ‘I am interested in buying bottled water as a part of a ‘meal deal’’, by demographics, December 2013
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- Figure 97: Agreement with the statement ‘Bottled water served at an appropriate temperature would encourage me to buy more’, by demographics, December 2013
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- Figure 98: Agreement with the statement ‘Places that are easier to reach should sell more bottled water’, by demographics, December 2013
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- Figure 99: Agreement with the statement ‘I would like to see more bottled water designed for various occasions’, by demographics, December 2013
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- Figure 100: Agreement with the statement ‘There is not a wide range of different pack sizes of bottled water for on-the-go occasions’, by demographics, December 2013
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- Figure 101: Agreement with bottled water statements, by different types of bottled water drunk, December 2013
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- Figure 102: Agreement with bottled water statements, by most popular occasions for drinking bottled water, December 2013
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- Figure 103: Agreement with bottled water statements, by next most popular occasions for drinking bottled water, December 2013
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- Figure 104: Agreement with bottled water statements, by most popular locations for purchasing bottled water, December 2013
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- Figure 105: Agreement with bottled water statements, by next most popular locations for purchasing bottled water, December 2013
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- Figure 106: Agreement with bottled water statements, by most popular factors for purchasing bottled water, December 2013
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- Figure 107: Agreement with bottled water statements, by next most popular factors for purchasing bottled water, December 2013
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