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Bottled Water - China - March 2016

Published By :

Mintel

Published Date : Mar 2016

Category :

Bottled Water

No. of Pages : N/A

The current bottled water market is at a more sustainable stage driven by rapid expansion in the low end, with a volume sales advantage and a small high-end market with escalating growth and high profit margins. While low-end brands are competing on price, high-end brands are rivalling with premium associations such as high-quality water sources and packaging.

Table of Content

Overview

What you need to know
Products/themes covered in this report

Executive Summary

The market
Figure 1: Best- and worst-case forecast of china retail sales of bottled water, by value, 2010-20
Figure 2: Best- and worst-case forecast of china retail sales of bottled water, by volume, 2010-20
Key players
Figure 3: Value market share of leading brands, 2015
Figure 4: Volume market share of leading brands, 2015
The consumer
Unflavoured still has the highest penetration
Figure 5: Preference of different bottled water types, November 2014 versus December 2015
Domestic dominates while international appeals to high earners
Figure 6: Preferences for domestic and international bottled water products, by netting, December 2015
Gender is a key influential on purchasing channels
Figure 7: Channels used when purchasing bottled water, by gender and age, December 2015
Lower city tier residents have higher premium brand awareness
Figure 8: Attitudes associated with premium bottled water, by cities, December 2015
What we think

Issues and Insights

How domestic products maintain competitiveness and consumer confidence
The facts
The implications
What does premiumisation mean to consumers?
The facts
The implications
The opportunities for e-commerce to target online shoppers
The facts
The implications

The Market – What You Need to Know

Overall upward trend and market upturn projects growth
Future market posts certain growth
Water pollution drives bottled water consumption
Implementation of bottled water regulatory

Market Size and Forecast

Figure 9: Best- and worst-case forecast of china retail sales of bottled water, by value, 2010-20
Figure 10: Best- and worst-case forecast of china retail sales of bottled water, by volume, 2010-20
Figure 11: Value and volume retail sales for bottled water in China, 2010-20

Market Drivers

Water pollution drives consumption
Implementation of the existing regulatory system overhaul
Online shopping boom provides an abundant source

Key Players – What You Need to Know

Purified bottled water dominates the market
Market players focus on competing with price and packaging
Beauty claims to attract females
Innovations of consumer-specific waters

Market Share

The leading players
Master Kong
Wahaha
Nongfu
C'est Bon
Runtian
Figure 12: Value market share of leading brands, 2015
Figure 13: Volume market share of leading brands, 2015
Market structure of bottled water and brand representatives
Figure 14: China’s market structure of bottled water by volume share, 2015

Competitive Strategies

The price war
Compete with packaging
Glass bottled and consumer segment specific – Nongfu Spring
Mineral water packaging change – Master Kong
Ethical and environment claims via packaging – 5100

Who’s Innovating?

Not just water – Beauty enhancing
China market - Flower extract (rose)
Figure 15: The Rose Water (Hua Yu Man Tian) in China, November 2014; Rose Water (Jiu Duo Mei Gui) in China, December 2012; the Red Rose Water Drink (Hong Mei Gui) in China, July 2010
International market – Anti-ageing
Figure 16: Beauty Water Vortex Minuman Kecantikan in Indonesia, October 2015; VitalZing Collagen Morning beautiful tropical flavoured water, and evening beautiful peach flavoured water in New Zealand, February 2015
Not just water – Consumer specific
China market – Baby water and teen water
Figure 17: The Nongfu Spring baby water in China, May 2015
Figure 18: The Nongfu Spring teen water in China, May 2015
International market – Health water
Figure 19: Assist Water in Japan, January 2016, and Detox Strawberry Kiwi Flavoured Water in India, December 2014

The Consumer – What You Need to Know

Unflavoured still has the highest penetration
Majority prefer domestic while high earners prefer international
Gender is an influential on purchasing channels
High-quality water sources as the most premium association
Lower city tier residents have higher premium awareness
Meet the Mintropolitans

Preference of Different Bottled Water Types

Unflavoured still water has the highest penetration
Flavour is a key differentiator for still water while income is for sparkling
Figure 20: Preference of different bottled water types, November 2014 versus December 2015
Figure 21: Preference of sparkling bottled water, by monthly household income, December 2015

Competitions among Domestic and International Bottled Water

Majority favour domestic bottled water with Nongfu being the most aware
Higher earners have greater tendency to consume international waters
Mineral water is the most consumed type among all
Figure 22: Preferences for domestic and international bottled water products, by netting, December 2015
Figure 23: Preferences of domestic and international bottled water products, by gender and monthly household income, December 2015

Channels Used When Purchasing Bottled Water

Offline channels especially supermarkets still preferred by overall consumers
Gender as a main influential on purchasing channels
Home delivery service is most significant for online consumers
Figure 24: Channels used when purchasing bottled water, December 2015
Figure 25: Channels used when purchasing bottled water, by gender and age, December 2015
Figure 26: Reasons to purchase bottled water online, December 2015

Attitudes Associated with Premium Bottled Water

High-quality water sources associated the most with premium
Lower city tier residents have higher premium brand awareness
Gender is a premium differentiator on function and ingredient preferences
Figure 27: Attitudes associated with premium bottled water, December 2015
Figure 28: Attitudes associated with premium bottled water, by cities, December 2015
Figure 29: Attitudes associated with premium bottled water, by gender, December 2015

Cluster Analysis

Group 1 – Premium Drinkers
Demographics and characteristics
Opportunity
Group 2 - Domestic Brand Lovers
Demographics and characteristics
Opportunity
Group 3 - Conspicuous Devotees
Demographics and characteristics
Opportunity
Group 4 – Take-all Converters
Demographics and characteristics
Opportunity
Figure 30: perceptions about bottled water from different consumer groups, by cluster groups, December 2015

Mintropolitans

Demographics and characteristics
Lifestyle
Figure 31: demographic profile of Mintropolitans versus non-Mintropolitans, by gender, age, and monthly household income, December 2015
Figure 32: demographic profile of Mintropolitans versus non-Mintropolitans, by children in household, city tier, and education level, December 2015

Appendix – Methodology and Definitions

Methodology
Fan chart forecast
Mintropolitans – Definition
Abbreviations

List of Table

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